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 SYSTEMATIZING '''''''' '' 
 
 The 
 OIL BUSINESS 
 
 COPYRIGHT APPLIED FOR 
 
 By G. H. BESSIRE 
 
 P. O. Box 73 
 
 Wichita Falls, Texas 
 
INDEX (P^i3H^ 
 
 Introductory 3 
 
 •Ji\';'' Stock Companies Incorporated and Others 3 
 
 The Oil Business in General 5 
 
 .' '".\. The Opening Entry 5 
 
 Names of Accounts 5 
 
 N. li 7 
 
 Expense Accounts 8 
 
 Examples for Journal Entries on the Following Accounts 8 
 
 The Purchase Requisition 9 
 
 Leases 9 
 
 Lease Development (Drilling Wells) 10 
 
 Warehouse 12 
 
 Taxes 12 
 
 Repairs and Replacements 13 
 
 Filing 13 
 
 Lease Rental Payment „ 14 
 
 Checks ; 14 
 
 Closing Your Books 15 
 
 Audits 15 
 
 Income Tax Report 15 
 
 Other Losses Which Are Allowed 16 
 
 Information for Your Executive Officer 16 
 
 Balance Sheet as of July 31, 1922 16 
 
 Details of Balance Sheet Items as of July 31, 1922 17 
 
 Operating Profit and Loss Statement for Month of July, 1922 18 
 
 Accounts Payable (subject to a discount) 18 
 
 Accounts Payable (Current) 18 
 
 Lease Rentals Payable for Quarter Ending March 31st, 1922 19 
 
 Hopkins Well No. 1 — Production Report, Prairie Oil & Gas Company 19 
 
 Phillips Well No. 5 — Casinghead Gas Production — Indian Gasoline Corporation 19 
 
 Davis Well No. 3 — Gas Production — The Texas Company 19 
 
 Rental Receipt _ 19 
 
 Employees' Schedule _ 20 
 
 Daily Bank Balance _... 20 
 
 Deposit Slip Record 20 
 
 Trade Magazines 20 
 
 Automobile Expense 20 
 
 Purchasing Department 20 
 
 Furniture and Fixtures 21 
 
 Stationery and Printing 21 
 
 Drilling Equipment and Oil Well Supplies 21 
 
 Forms 23-32 
 
INTRODUCTORY 
 
 In putting this System on the market by mten- 
 tions are to benefit the oil business as a whole, and 
 especially the beginners such as I was when I entered 
 the business several years ago with a number ot years 
 accounting experience in different mercantile Imes. 
 You will find, as I did, that the oil business is different 
 from any other line of business. In fact, it is a busi- 
 ness all to itself. In saying this I am speaking from a 
 number of years experience in the accounting and ex- 
 ecutive branches. While this System is intended to 
 cover the accounting department of the oil business, i 
 will not undertake to outline any one system of twoks 
 to cover the oil business in general. While a lot ot the 
 problems are the same, each company has problems all 
 its own. If I were called upon to install a system ot 
 books, I would go into the business in detail with the 
 executives of the company, get the aims and aspira- 
 tions of the men who are building the organization, and 
 then I would install a system to meet their individual 
 needs— one that would not only take care of the pres- 
 ent requirements, but also their future expansion. 
 
 As there are more stock companies engaged in the 
 oil business than others, I will begin my work by tak- 
 ing up the needs of these companies as a whole, and 
 will continue their further needs under the heading ot 
 Oil Companies In General. 
 
 STOCK COMPANIES INCORPORATED 
 AND OTHERS 
 
 Have your charter, articles of association or 
 trust agreement made out and properly filed. The next 
 book you will need will be a book of records for the 
 minutes. I suggest for this purpose a loose leaf binder, 
 as with this form of records you can keep a typewrit- 
 ten record, where otherwise you would have to make a 
 pen and ink record. For this purpose I suggest an 
 I P. loose leaf Duratlex Binder No. 2714. This may be 
 filled with I. P. loose leaf pages, sizes 8I/2XII inches. 
 These articles are put out by the Irving-Pitt. Mfg. Co., 
 Kansas City, Mo., and are sold by most stationery sup- 
 ply houses and book stores. This has a ring binder and 
 the pages can be removed at will. When it is used as 
 a minute book I suggest that the pages be numbered 
 to avoid duplication. However, if a real minute book 
 is desired, one that was built for that purpose alone, 
 and one in which the pages are numbered at the fac- 
 tory and sold in sets which cannot be duplicated out- 
 side of the factory, and which assures you a record 
 book which would be hard to tamper with without de- 
 tection, call for a McMillam Minute Book, which comes 
 in sizes from 200 pages up. 
 
 Make this minute book a complete history of all 
 of the meetings of your board of directors, trustees 
 and stockholders, keeping dates and names of all mem- 
 bers present, also stating if there was a quorum pres- 
 ent, or otherwise. Keep an exact record of all resolu- 
 tions passed at these meetings, also any other informa- 
 tion which should be of record. Where shareholders 
 are not present a record should be kept of all proxies 
 voting, and the original signed proxies should be filed 
 away in a folder used for this purpose. At the close of 
 a meeting the minutes of same should be signed by the 
 President and Secretary of the company. 
 
 Next in order will be your stock certificate book. 
 This book will contain certificates or shares of your 
 
 company's stock, and should be numbered consecutive- 
 ly starting with number one. The stub and certificate 
 should both be numbered. Each original certificate 
 sold requires a revenue stamp of five cents on each 
 share up to the value of $100.00, or in other words on 
 each sharei'. of a hundred dollars or less ; same to be af- 
 fixed to the stub of the certificate sold, so that it may 
 be readily examined by a revenue officer who is likely 
 to visit you at any time. This stamp should be can- 
 celled to show the date when cancellation of same 
 was made. When original shares are returned to you 
 to be transferred to another party, properly cancel 
 same so that there will be no possible chance of them 
 being used again. It should then be pasted onto the 
 original stub bearing the same number, and a new cer- 
 tificate should be issued to the party to whom it has 
 been transferred. Change the original owner of this 
 stock in your Stockholders' Ledger, and credit in the 
 same book the party to whom the stock has been trans- 
 ferred. Stock transfer only requires a two-cent revenue 
 stamp. 
 
 Certificate books can be made up by your printer, 
 and in this way you will be able to select a design suit- 
 able for your business. 
 
 The next book on your program will be your Stock- 
 holders' Ledger. This book will be used to keep the 
 names of your stockholders, the number of shares they 
 own and the price they paid for same, as shown by the 
 stub in your stock certificate book. This Ledger should 
 be kept as any other ledger. Credit the shareholder 
 with each certificate purchased by him, or her, and 
 debit them with any transfer of stock which they 
 should make, thereby keeping a complete record of 
 your issued stock at all times. Besides showing the 
 names of stock, or shareholders, you should have a 
 complete record of their addresses, showing street 
 numbers, or postoffice box numbers when possible. 
 Always be sure to note any change of address, and 
 change these on your records at the time you receive 
 this information. By following this rule you 
 will likely save yourself a lot of grief. A good 
 ledger for this purpose is put out by the Dorsey Com- 
 pany, 1000 Commerce Street, Dallas, Texas, and if 
 same cannot be purchased from your local stationery 
 supply house, you may order it direct from the com- 
 pany in Dallas. When ordering call for Stock Certifi- 
 cate Ledger No. 3462, which may be had in 200, 400 or 
 600 pages. 
 
 The next thing on your program is your regular 
 set of books. As I said before, I will not attempt to 
 outline a set of books to cover your business, as I am 
 not familiar with it. Some accountants prefer a 
 three-book system, consisting of a two column journal, 
 a cash book and a ledger. Others prefer a col- 
 umnar journal with enough columns to cover their 
 segregated expense accounts, adding these columns 
 at the end of each month and carrying these totals to 
 their respective accounts in the ledger. When one 
 person has a lot of work to handle there is no doubt but 
 that person can handle more business in less time with 
 a columnar journal, covering the different expense ac- 
 counts with one posting of each to the ledger, than 
 could be handled by the individual posting of each sepa- 
 rate item to the ledger.. With a set of books of this 
 kind made for your individual business needs you 
 would certainly have an ideal bookkeeping system. 
 
 761708 
 
The first entry to be made in your journal is a 
 charge to your Unissued Stock and a Credit to your 
 Capital Stock Account. Charge your Unissued Stock 
 Account with the amount your company is capitalized 
 for, and credit your Capital Stock Account with the 
 same amount. Some accountants use the term Treas- 
 ury Stock, where I use Unissued Stock. But no mat- 
 ter what it is called, it merely represents Unissued 
 Stock in your Stock Certificate Book, and nothing else. 
 
 If the officials of your company see fit to trade 
 Unissued Stock for Leases, Royalties, Fee Holdings, or 
 shares in other companies, you should then charge 
 these different accounts with the par value of the stock 
 traded by your company, and credit your Unissued 
 Stock Account with the same amount. Make a com- 
 plete detailed record of the transaction in your journal, 
 stating the number of shares traded, the par value of 
 each share, and the total amount. Also give the num- 
 ber of acres you received in the trade, the State and 
 County in which this acreage is located, also the price 
 per acre. If shares in other companies are received in 
 exchange for Unissued Stock in your company, give the 
 name of the company, the number of shares received 
 in the exchange, the book value of same, the par value 
 of same, also book value placed on it, if different 
 than par value. And remember that you cannot make 
 a journal entry too complete. 
 
 Issue the stock which has been traded, and handle 
 the matter just as explained to you before. The traded 
 stock will require the same revenue as if it had been 
 sold for cash. 
 
 It is a good plan to write all of your stockholders 
 at frequent intervals, especially when anything of im- 
 portance comes up, be it good news or bad. They 
 will appreciate your confidence in them, and they are 
 certainly entitled to this information, for it was their 
 confidence and money that made the starting of this 
 company possible, and if they retain this confidence in 
 you, they may be the means of assisting you in the 
 launching of many other successful ventures. If your 
 company is on a dividend paying basis a letter should 
 be sent out with every dividend payment, giving them 
 a statement of the business at that time, also telling 
 them of your plans for the future. A letter and state- 
 ment should be sent to them at the close of your busi- 
 ness year, and after your books have been audited. 
 
 It is much better for a company when starting a 
 drilling campaign, unless the manager is an experi- 
 enced oil operator, to have the wells drilled by contract. 
 And if done by contract, select a drilling contractor who 
 has a successful drilling record in the particular field in 
 which you are operating. As I have known more com- 
 panies to go on the rocks on their first wells and 
 through inexperience, than all other causes, as a lot of 
 men working in the oil fields will take advantage of 
 your inexperience, and protracted fishing jobs and 
 junked holes will rapidly drain your drilling fund, an^l 
 put you out of business. And my advice to a company 
 when drilling their first well, if the life of the company 
 depends on their getting a producer, is to offer each 
 and every man on the job, from the contractor down to 
 the roustabouts, a nice bonus for bringing in a well, for 
 by doing this you have done everything which is 
 humanly possible to assure a producing well. And if it 
 comes in a real oil well this matter of expense will soon 
 be forgotten. And many a hole has come in dry, which 
 
 was surrounded by production, because the boys on the 
 job were simply making hole at so much per foot, re- 
 gardless of what the result might be, and it is a very 
 easy matter to pass up a producing oil sand when not 
 watching closely, especially with a rotary machine. 
 
 If your company gets a producing well, or if they 
 should dispose of some of their holdings at a profit, 
 this money will probably in time be disbursed as a divi- 
 dend to your shareholders. In this event you will open 
 a Surplus and Dividend Account. Charging your Sur- 
 plus and Crediting your Dividend Account with the 
 amount you have set aside to be paid as a dividend, if 
 you have a number of shareholders it will require quite 
 a bit of time to enter each individual check in your 
 journal. But my method is to charge your Dividend 
 Account with the total amount of the dividend paid, 
 and to credit the bank with a like amount, making a 
 journal explanation like this. Checks Nos. 536 to 834 
 to cover a 25% dividend paid to shareholders of record 
 July 21st, 1922. This will wipe out your Dividend Ac- 
 count on your ledger and leave your Surplus Account 
 to be charged off of your book at the close of the year. 
 
 As there is only one item of tax which affects 
 Stock Companies exclusively, namely, the Capital Stock 
 Tax, we will take it up now and later under the heading 
 of The Oil Business in General. We will take up all 
 other tax matters in detail. 
 
 This Capital Stock Tax is a Federal Tax and 
 amounts to $1.00 per thousand on each $1,000.00 over 
 $5,000.00 on the value of your stock at the end of the 
 year as determined by your balance sheet of that date. 
 This tax is payable in advance and should not be over- 
 looked, as it bears a penalty. 
 
 If for any reason or at any time you should decide 
 to dissolve your company — that is, after this decision 
 has been reached by your board of directors, or trus- 
 tees, as the case may be. The next step will be to close 
 out all of your remaining assets to the best possible 
 advantage, and deposit this money in the bank. And 
 after paying in full all outstanding indebtedness 
 against your company, and laying aside a sufficient 
 fund to cover all of the expense necessary to properly 
 close the business, then notify your shareholders of 
 the whole transaction, and tell them that this money 
 will be paid out as a liquidating dividend. Also request 
 them to send in their stock certificates to the com- 
 pany's office by a certain date, naming a date at least 
 two weeks ahead in order to give them a chance to have 
 them all in by that date. On receipt of these stock cer- 
 tificates same should be cancelled and pasted onto the 
 original stubs in your stock certificate book. When 
 all shares are in and have properly been taken care of, 
 you are then ready to start mailing out your checks. 
 Each shareholder of record should be mailed a check to 
 cover their proportional part of this Liquidating Divi- 
 dend, according to the number of shares which they 
 own, as shown by the certificates which they sent in, 
 if this amount corresponds with their account on your 
 Stock Ledger. On a liquidating dividend you may mail 
 out the checks as soon as you receive the original cer- 
 tificates from the different stockholders, and have 
 them pasted onto the original stubs in your stock cer- 
 tificate book, or books. In case your assets should be 
 sold on a time basis, with an initial payment down, it 
 will be better to pay your Liquidating Dividends in in- 
 stallment payments also. Number these dividends be- 
 
ginning at number one, until all of the money has been 
 disbursed. You are then ready to have your legal de- 
 partment file dissolution papers with your Secretary of 
 State. Close your books, and after putting them in a 
 safe place for future reference, the transaction will be 
 completed. 
 
 All resolutions pertaining to this matter should be 
 fully entered in your minute book, giving the names of 
 all members present, also making a statement of how 
 each voted, unless the vote was unanimous, and if so 
 state so. In case all of the certificates are not returned 
 to you before this matter is closed, the funds remain- 
 ing in the bank to cover the amount of said certificates 
 should be placed in the hands of a trustee appointed 
 for this purpose, preferably some official of the bank 
 in which these funds are deposited. This money should 
 be held subject to presentation of the stock certificates 
 which show on your books as not having participated 
 in the Liquidating Dividends. 
 
 THE OIL BUSINESS IN GENERAL 
 
 While not advocating any particular system of 
 books to meet the requirements of the Oil Business in 
 General, as I claim that each individual company needs 
 a system especially designed to meet the requirements 
 of that particular company, especially the larger ones, 
 I myself have successfully used for independent oper- 
 ators, partnership and small companies, a two lx)ok 
 system consisting of a three column loose leaf journal 
 and a loose leaf ledger. An ideal journal for this pur- 
 pose is an I. P. loose leaf journal page, number 317-3, 
 which may be used either in a canvas or corduroy bin- 
 der to suit your ideas on this matter, and an I. P. 
 ledger sheet number 17-5. If you really want a binder 
 which is a time saver and at the same time substantial 
 and worthy of a place in any office, do not fail to in- 
 vestigate an I. P. binder number 3217. These books 
 may be purchased from your stationery supply house, 
 or from the Irving-Pitt Mfg. Company of Kansas City, 
 Mo., who are the makers of same. 
 
 I eliminate the cash book by using the third col- 
 umn of my journal to carry all of the credits to the 
 bank which I check on. By this system you can have 
 as many depositories as you desire. But you must use 
 only one bank to check from. My idea in eliminating 
 the cash book is this: There is no accountant who is 
 infallible, and it stands to reason that the fewer times 
 you handle a figure, the less liable you are to misplace 
 same, or make a mistake. Besides this, you save a lot 
 of time. 
 
 Use your first column for all of your debit 
 items, including all charges to your bank, or banks. 
 Use your second column for all credit items, except 
 credits to the bank on which you check against. The 
 third column is to be used exclusively to credit all 
 checks against the bank on which you check. This col- 
 umn may be totaled daily, or can be carried to the end 
 of the month, when total may be carried as a vi'hole as 
 a credit to your bank account. This item alone will 
 save you a lot of time. 
 
 THE OPENING ENTRY 
 
 Any money or equivalent put into the oil business, 
 be it for independent operator, partnership, or com- 
 pany, except stock companies, should be credited to 
 Capital Account. The most frequent equivalents to 
 
 cash in the oil business usually consist of leases, fee 
 holdings and royalties. Sometimes drilling machinery, 
 well equipment, such as pipe, casing, and tools, also au- 
 tomobiles, are taken in as an equivalent for cash. 
 
 If cash alone is put into the business to start with, 
 your opening entry would be like this: Charge First 
 National Bank $50,000.00 and Credit Capital Account 
 $50,000.00. Make a full explanation of this transac- 
 tion in your journal entry, giving source from which 
 this money was derived, and any other details neces- 
 sary to make it thoroughly clear to anyone who may 
 have to refer to the journal for this information. 
 
 We all know that bookkeeping is only a daily his- 
 tory of your business, but in most cases the history is 
 too brief to be of much value, even to the person who 
 records same, for it is almost impossible for anyone to 
 remember in detail transactions after they are a year 
 old, and should the accountant in charge die, or leave 
 your employ, it might be necessary for the new man in 
 charge to have to go through all of your files in order 
 to find the original papers, invoices and statements 
 necessary to make this matter clear, and this would re- 
 quire much more time than it would have taken to 
 make a detailed journal entry at the time this entry 
 was originally made. And time means money. 
 
 My idea is to make your journal a detailed history 
 of your business. Make the record so clear that any- 
 one on looking over same can understand it as plainly 
 as you do, regardless of whether they understand the 
 first principles of bookkeeping or not. 
 
 If a cash equivalent such as leases, fee holdings, 
 royalties, drilling machinery, well equipment and auto- 
 mobiles are used, enter each of these items separately 
 on your debit side, with cash value of same opposite 
 each item. And after these items have been totaled, 
 credit the total as a whole to your Capital Account, and 
 make a detailed journal entry of each item. For in- 
 stance, if it should be a lease, give the State and 
 County in which this acreage is located, the number of 
 acres in same, the price per acre it is to be valued on 
 your books, and the lessor's name. Fee holdings and 
 royalties should be entered the same way. 
 
 For drilling machinery and well equipment you 
 should make an itemized list, taking every part in de- 
 tail, giving the book value price on each article when 
 possible. As this is very important in case you should 
 sell same, so that you can determine the loss or gain 
 on same. On automobiles you should list the make of 
 car, the model, engine and license number, also the 
 book value placed on same. 
 
 NAMES OF ACCOUNTS 
 
 The following accounts are the ones most likely to 
 be used in the oil business, but of course there may be 
 many others come up in your particular business. If so, 
 open up an account to take care of same. 
 
 Bank Account: ;> %;■ 
 
 Accounts Receivable ."gal 
 
 Notes Receivable • - . - .t- 
 
 Oil and Gas Wells (Active) . .^ 
 
 Royalties (Active) : " 
 
 Royalties (Inactive) - - 
 
 Leases Semi-Proven 
 Leases (Inactive) 
 Leases (Wildcat) rrjT j.-. 
 Fee Holdings ' ' ' 
 
 -^- 
 
Furniture and Fixtures 
 
 Stocks and Bonds in Other Companies 
 
 Drilling Machines (Standard) 
 
 Drilling Machines (Rotary) 
 
 Pulling Machines 
 
 Engines 
 
 Boilers 
 
 Pumps 
 
 Tools 
 
 Equipment 
 
 Pipe Lines 
 
 Casing 
 
 Tanks 
 
 Warehouse 
 
 Buildings 
 
 Vehicles ^ ■ 
 
 Live Stock 
 
 Automobiles 
 
 Trucks 
 Capital Accounts: 
 
 Accounts Payable 
 
 Income 
 Expense Accounts: 
 
 Automobile 
 
 Office . 
 
 Lease Rental 
 
 Lease and Royalty 
 
 Legal and Audit 
 
 Office Supplies and Expenses 
 
 Salaries 
 
 Taxes 
 
 Telephone and Telegraph 
 
 Travel Expense 
 
 Donations 
 
 Interest, Discount and Revenue 
 
 Lease Expense 
 
 Well Expense 
 
 We will now go into details concerning the above 
 accounts, starting with Bank Account. 
 
 Under Heading of Bank Account. Give a double 
 page in your Ledger to each bank. But remember if 
 you use a three column journal, that you are only to 
 use one bank to check from. The other bank accounts 
 should be used as a reserve. And the only time you 
 should check against them, is when you transfer money 
 from one or all of them to the bank where you carry 
 your checking account. In such a case credit your re- 
 serve bank, or banks in the second column of your 
 journal. 
 
 Under Accounts Receivable you should charge all 
 outstanding accounts due your company, except those 
 which are secured by notes. Give the names of the in- 
 dividuals, or companies owing this money, also the 
 amount of indebtedness, and the date which you expect 
 payment of same. Be sure and give a complete item- 
 ized journal entry of all transactions under this head- 
 ing. 
 
 Under Notes Receivable you should charge all out- 
 standing secured paper due your company. Give the 
 names of the individuals and companies who signed 
 these papers, also the amount of the principal, and the 
 dates when payments are due. Be sure and have a 
 complete itemized journal entry covering each individ- 
 ual transaction under this heading, including the rate 
 of interest they bear. 
 
 Under Oil and Gas Wells Active you should charge 
 all producing oil and gas wells with their actual 
 cost. Opening an account with each individual well 
 when same is started, and only use the group heading 
 of Oil and Gas Wells Active on your balance sheet. 
 This matter will be taken up later under heading of 
 "Drilling Wells." 
 
 Under Royalties Active you should charge all pro- 
 ducing royalties, giving the name of the land owner, 
 your royalty interest, the number of acres your royalty 
 covers, the State and County in which this acreage is 
 located, and the purchase price of same. Be sure and 
 have a complete itemized journal entry on each indi- 
 vidual royalty. 
 
 Under Royalties Inactive make the same charges 
 which you made on your Royalties Active. 
 
 Under Semi-Proven Leases. Charge all leases that 
 adjoin proven leases, but which have not been tested. 
 Give the names of the land owners, the County and 
 State in which this acreage is located, the number of 
 acres each lease contains, also the purchase price per 
 acre on each lease. 
 
 Under Inactive Leases. Charge all leases in or 
 near producing oil fiends on which no development 
 work has been started. Make the same journal entry 
 you have on Semi-Proven Leases. 
 
 Under Leases (Wildcat) . Charge all leases which 
 are owned by your company that are not in or near any 
 proven oil field. Give the name of the land owner, the 
 County and State in which this acreage is located, the 
 number of acres in each lease, also the purchase price 
 per acre on each lease. 
 
 Under Fee Holdings. Charge all land owned in fee 
 by your company, giving the name of the original land 
 owner, the County and State in which this land is 
 located, the number of acres in each fee owned, and the 
 purchase price per acre. 
 
 Under Furniture and Fixtures. Charge all ar- 
 ticles, such as rugs, desks, tables, chairs, costumers, 
 cuspidors, waste baskets, filing cabinets, safes, type- 
 writers, adding machines, check protectors, ink stands, 
 wall maps, pen racks and any other office appliances. 
 Make an itemized journal entry of each item, giving 
 prices and descriptions on same as taken from the item- 
 ized invoice received from the people from whom these 
 articles are purchased. 
 
 Under Heading of Stocks and Bonds in Other Com- 
 panies. Charge all stocks and bonds you own in other 
 companies, giving the name of the company, the num- 
 ber of shares in each company, the book value of same, 
 the par value of same, also book value placed on same if 
 different than par value. 
 
 Under Drilling Machines (Standard) . Give num- 
 ber of standard rigs owned by your company, kind or 
 make of machine, or machines, also state number of 
 same, if same are numbered, as in case it is a Star or 
 Armstrong machine. State if the rig is completely fit- 
 ted, and if not what part or parts are missing, also give 
 purchase price on each rig as it stands. 
 
 Under Heading of Drilling Machines (Rotary). 
 Make the same charge as you did on your standard 
 machines. 
 
Under Heading of Pulling Machines. Give name, 
 number and horsepower on all rod, tube puUing and 
 bailing machines owned by your company, also pur- 
 chase price of each machine. 
 
 Under Heading of Engines. Charge all engines 
 owned by your company, giving name of maker, horse- 
 power and purchase price of each; also state if steam 
 or gas. 
 
 Under Heading of Boilers. Give name of maker, 
 the horsepower, weight, also the purchase price of 
 same. 
 
 Under Heading of Tools. Charge all tools owned 
 by your company. I prefer to divide this account un- 
 der two headings, namely, Small Tools and Drilling 
 Tools. Small tools to include tools commonly used by 
 carpenters and gardeners, such as saws, squares, ham- 
 mers, chisels, etc., and hoes, rakes, picks and shovels. 
 Drilling tools to include all tools used in drilling oil 
 wells. A complete list of these tools can be found in a 
 Continental Supply Company catalogue, which they 
 will be pleased to send you on request from their office 
 at 1139 Ohve Street, St. Louis, Mo., where they main- 
 tain headquarters. Give the name of each tool and the 
 price of each in your journal entry. 
 
 Under Heading of Equipment. Charge all parts 
 and fittings not included under headings of Drilling 
 Machines, Pulling Machines, Engines, Boilers, Pumps 
 and Tools, giving name of each piece, also purchase 
 price of same. Your Continental Supply Company cata- 
 logue will give you the names of all equipment used 
 around oil properties. And I have always found this 
 company reliable and courteous, and their service is un- 
 equalled, as they maintain branches in every proven 
 field in the United States, and are also in a position to 
 handle business in all other oil and gas fields in the 
 world. 
 
 Under Heading of Pipe Lines. Charge all pipe 
 owned by your company, which is used in oil lines, 
 water lines and flow lines, giving material, size, and 
 weight, also number of feet in each and the purchase 
 price per foot. 
 
 Under Heading of Casing. Charge all casing 
 owned by your company above ground, giving material, 
 size, length and weight, also purchase price per foot. 
 
 Under Heading of Tanks. Charj^e all tanks owned 
 by your company, giving material, size and capacity of 
 each, also purchase price of each. 
 
 Under Heading of Warehouse Account. Charge 
 all material of any kind which you have on hand in 
 your warehouse, if you have one. This matter will be 
 taken up later under heading of Warehouse. 
 
 Under Heading of Buildings. Charge all buildings 
 owned by your company, including power houses, pump 
 houses, warehouses, also houses used by employees if 
 owned by your company, also garages, stables and 
 other buildings, if any. Give full description of same, 
 including size, material and purchase price of each. 
 
 Under Heading of Live Stock. Charge all live stock 
 owned by your company, giving full description of 
 each, also purchase price of each. 
 
 Under Heading of Vehicles. Charge all wagons 
 and horse drawn vehicles owned by your company, giv- 
 ing full description of each, also purchase price of each. 
 
 Under Heading of Automobiles. Charge all Auto- 
 mobiles owned by your company, giving the name or 
 make of each, the model, engine and license number of 
 each, also the purchase price of each. 
 
 Under Heading of Trucks. Make the same charge 
 as you did on Automobiles. 
 
 Under Heading of Accounts Payable. Credit the 
 different firms, individuals, and companies with the 
 separate amounts due them by your company, giving a 
 complete itemized list of the articles purchased from 
 them, also purchase price covering each article, and 
 naming discount date, if any. 
 
 Under Heading of Notes Payable. Credit the dif- 
 ferent individuals, firms, and companies with the sepa- 
 rate accounts owed them by your company and secured 
 by your note, or notes. Give a complete itemized jour- 
 nal entry, including each separate transaction, the date 
 notes are payable, the rate of interest on each, and the 
 total amount of interest due on each note. 
 
 N. B. 
 
 If yours is a large company it may be more con- 
 venient to have separate Accounts Payable and Ac- 
 counts Receivable Ledgers. If so, post same directly 
 from your journal to your proper ledger. 
 
 Before taking up the matter of Income, I am going 
 to make a suggestion as to the way I handle my 
 Ledger Accounts. I divide the ledger in five sections. 
 In the first section I group all Asset Accounts, includ- 
 ing Accounts and Notes Receivable. In the second sec- 
 tion I group Accounts and Notes Payable Accounts. 
 And in the third section I group all of the Income Ac- 
 counts. In the fourth section I group all of the Ex- 
 pense Accounts, and in the fifth section I group all of 
 the Capital Accounts, including the Surplus Account. I 
 use the Surplus Account to take care of all transactions 
 pertaining to the Capital Account until the close of the 
 year, then I charge same off to Loss and Gain. Trans- 
 actions that are most frequently handled under this ac- 
 count are leases which are dropped or sold and transac- 
 tions of like kind. 
 
 Under Heading of Income. Credit all money re- 
 ceived from sale of production from oil and gas wells, 
 also active royalties. In fact, from all sources received, 
 except from the sale of Capital Assets, which will be 
 handled by your Surplus Account. Open a separate 
 account with each producing oil and gas well, also pro- 
 ducing royalties, using the name under which same 
 was drilled in the case of producing oil and gas wells. 
 This name may be taken from the log of the well. In 
 the case of active or producing royalties, use the name 
 of the land owner. 
 
 Keep the production statements received from the 
 company who purchased your oil and gas each in a 
 separate filing folder, and place same in front of 
 the folder in your filing cabinet, which contains the 
 well or royalty folder pertaining to same. I will take 
 up this matter again in speaking of drilling wells under 
 heading of Lease Development, 
 
 ^7— 
 
EXPENSE ACCOUNTS 
 
 Under Heading of Office Rent. Charge all money 
 paid out for this purpose, and in your journal entry on 
 same, state to whom paid, for what month, the number 
 of the room, or rooms, also the amount paid. 
 
 Under Heading of Lease Rental. Charge all money 
 paid out for this purpose. And in your journal entry 
 state to whom paid, give the number of the lease, the 
 number of acres in same, the date lease rental is due, 
 and the amount paid. Also state if this is a quarterly, 
 semi-annual or annual payment. 
 
 Under Heading of Lease and Royalty Expense. 
 Charge all money paid out for recording and assign- 
 ment fees, also abstracts. In your journal entry, state 
 what lease or royalty this money was paid on, the name 
 of the party the money was paid to, and the amount. 
 
 Under Heading of Legal and Audit Expense. 
 Charge all money paid out for this purpose. In your 
 journal entry on same state to whom paid, the month, 
 time, or item this payment covers, the service per- 
 formed, and the amount paid. 
 
 Under Heading of Office Supplies and Expense. 
 Charge all money paid out for the following items: 
 Stamps, pens, ink, pencils, erasers, typewriter ribbons, 
 adding machine tape, carbon paper, stationery and all 
 other small and necessary articles used in an office. 
 
 Under Heading of Salaries. Charge all money paid 
 out for this purpose. And in your journal entry on 
 same, state to whom paid, the service performed, the 
 time payment covers, and the amount. 
 
 Under Heading of Telegraph and Telephone. 
 Charge all money paid out for this purpose. And in 
 your journal entry on same make a detailed explana- 
 tion of same, giving number of the phone on which con- 
 tract and toll service is being paid, also period covered 
 by this payment, and the amount. Telegrams should 
 be handled in the same way. 
 
 Under Heading of Travel Expense. Charge all 
 money paid out for this purpose that would come under 
 necessary expense to the business. And in your jour- 
 nal entry state to whom paid, and what trip this ex- 
 pense covers, also itemized list of the expense in ques- 
 tion, showing railroad fare, hotel bills, cab or automo- 
 bile hire and other details, if any. A nice way to keep 
 this expense is for the party who makes these trips to 
 keep an itemized list of same on an I.-P. loose leaf 
 Salesmen Expense Book, form C-51. These sheets 
 should be used in an I.-P. binder No. 104. This 
 will make an ideal book for this purpose, and same may 
 be purchased from your stationery supply house, or or- 
 dered from Irving-Pitt Mfg. Company, Kansas City, 
 Mo. 
 
 Under Heading of Interest, Discount and Revenue. 
 Charge all money paid out for interest and revenue, 
 and credit all money received as a discount on paid 
 bills. Give a detailed itemized statement of each trans- 
 action, showing to whom the money was paid, on what 
 note, or notes, the time covered by this payment, and 
 the amount of each separate item. On discount credit 
 all money received for this purpose, stating from whom 
 same was received, and on what invoice, or invoices, 
 the time covered by same, also the amount. In all jour- 
 
 60.00 
 
 nal entries give as much detail as possible, as these ex- 
 planations may prove very valuable some time. 
 
 Under Heading of Donations. Charge all money 
 paid out for this purpose. And in your journal entry, 
 state to whom money was paid, and for what purpose. 
 Also give the name of the institution, church, or organ- 
 ization, and be sure and remember when you are clos- 
 ing your books at the end of the year that private do- 
 nation to charities cannot be charged off as expense on 
 your Income Tax Return, as the Government has no 
 way to check up on items of this nature, and they re- 
 quire a full explanation of all items of this nature 
 which are deducted on your Income Return, including 
 the name of the church, institution and organization. 
 
 Under Heading of Taxes. Charge all money paid 
 out for this purpose. And in your journal entry state 
 to whom paid, and on what property, and where lo- 
 cated ; also state if same is city, county, state, school, 
 capital stock, or income tax. Also the amount of each 
 item under each different heading. And remember m 
 closing your books at the end of the year that no In- 
 come Tax is deductible as an expense item from your 
 Income Return. So be sure and not include theni with 
 other expense items under heading of taxes. Or if you 
 wish you may open a separate account to take care of 
 these items, under heading of Income Tax. 
 
 EXAMPLES FOR JOURNAL ENTRIES ON THE 
 FOLLOWING ACCOUNTS 
 
 Lease Rental Account 60.00 
 
 Bank No. 68 
 City Nat'l Bk., Graham, Texas 
 For annual lease rental on 
 Lease No. 72. Containing 60 
 acres. Being the west one-half, 
 and the south one-half of the 
 east one-half of the southwest 
 one-fourth of block No. 1562,. 
 H. I. G. N. Survey in Young 
 County, Texas. Owned by 
 Sam Burgess. Rental due Jan. 
 1st, 1922. 
 
 Taylor Well No. 1. Expense.... 150.00 
 
 Bank No. 69 150.00 
 
 Jack Jones (for 15 days labor 
 as driller on Taylor well No. 1. 
 First half of January @ $10.00 
 per day). 
 
 Donation 25.00 ' 
 
 Bank No. 70 25.00 
 
 United Charities, Ft. Worth, 
 Texas. For amount subscribed 
 to annual budget for 1922. 
 
 Taxes - 40.20 
 
 Bank No. 71.- 40.20 
 
 Lon Smith (State Comptrol- 
 ler) . For Gross Receipt Tax of 
 11/2% on 1,554.10 bbls. oil pro- 
 duced and sold at an average 
 price of $1.50 plus per bbl. To- 
 tal amount received $2,593.43. 
 Total of Gross Receipt Tax on 
 this amount $88.90. Also 1-20 
 of 1% Tax, regulating Pipe 
 
 —8- 
 
Lines, on the above amount of 
 oil. 1-20 of 1% on $2,593.43, 
 being $1.30. Total Tax for 
 Quarter ending December 31st, 
 1921, is $40.20. 
 Farmers & Mechanics National 
 
 Bank 146.77 
 
 Hopkins Well No. 1. Pro- 
 duction 146.77 
 
 65.14 barrels of oil produced 
 the first half of January, and 
 sold to the Prairie Oil & Gas 
 Company @ $2.25 per barrel. 
 Farmers & Mechanics National 
 
 Bank 207.52 
 
 Davis Well No. 3. Pro- 
 duction 207.52 
 
 Our one-fourth of 27,669,000 
 M cubic feet of gas produced 
 in the month of January, and 
 sold to the Texas Company @ 
 .03c per M cubic feet. Our part 
 6,917.250 M. cubic feet @ .03c 
 per M. cubic feet $207.52. 
 
 THE PURCHASE REQUISITION 
 
 You will find a number of useful forms in my Sys- 
 tem. But the most useful and necessary form is my 
 Purchase Requisition. As there is no way for a man 
 in the office of your accounting department to know 
 what is going on in any department other than his own 
 unless he is told, and when a mass of invoices and bills 
 flood his office on the first of the month, he is certain- 
 ly not in a position to make a very intelligent disposi- 
 tion of same. And if left to his own resources and the 
 knowledge gained through accounting experience in 
 mercantile lines, you will find many items charged to 
 investment accounts which could have properly been 
 charged to expense, if he had had the necessary infor- 
 mation. In other words, there is no man in your or- 
 ganization, but the man who purchased these articles, 
 who is in a position- to know what disposition he in- 
 tends to make of them at the time they were pur- 
 chased. And if he waited until the end of the month 
 to give you this information, it is likely that he would 
 have forgotten where more than half of these articles 
 were used. By the use of my Purchase Requisition and 
 the co-operation of purchasing agent, or agents, with 
 your accounting department, your .accounting depart- 
 ment will be in a position to properly charge every item 
 purchased during the month, and this will save your 
 company thousands of dollars in the course of a year, 
 besides giving you much valuable information which 
 will help you to cut down your expense account, and 
 put you in closer touch with your business. Each and 
 every man in your organization who is authorized to 
 make purchases for your company should be supplied 
 with a requisition book. These books are made in 
 pocket size and can and should be carried at all times. 
 The pages are made in duplicate. The original sheet is 
 to be handed to the party from whom goods are pur- 
 chased, with instructions to this party that unless this 
 requisition is attached to the invoice when same iS 
 mailed to your office, that he will likely never hear of 
 same again, as your accounting department has been 
 
 instructed not to enter any invoice or bill unless pur- 
 chase requisition properly signed by the man who made 
 this purchase is attached to same. And each company 
 with which you carry an account should be notified by 
 letter to the same effect. The duplicate requisition is 
 left in the book as a record in case of any controversy. 
 On the original purchase requisition the purchasing 
 agent should write the information as to where each 
 item is to be used, and if there are a number of dispo- 
 sitions to be made of these items, a separate sheet 
 should be made to cover each separate disposition. In 
 other words, if he was buying some article for a drill- 
 ing rig, others for a pump, or automobile, he should 
 make a separate requisition to cover articles under 
 each heading, as in this way there can be no doubt in 
 the mind of your accountant as to the proper entry to 
 be made of same. 
 
 You may experience a little trouble with your 
 trades people at the start, but after you return their 
 invoices a couple of times, with notation on same to 
 please attach purchase requisition and return same to 
 you, things will begin to work smoothly. And once you 
 get this System established the value of same will be 
 more apparent each day. 
 
 You will find a copy of this form in the back of 
 this book, under the heading of FORMS. 
 
 LEASES 
 
 Another very important matter in the Oil Busi- 
 ness is the proper handling of your leases, especially if 
 you have a number of them, as many a valuable lease 
 has been lost on account of the rental dates being over- 
 looked through negligence, or through lack of proper 
 system in handling this important matter. But if my 
 System is fully carried out, I will assure you of a double 
 check on each lease you own at all times. When a lease 
 is turned over to your accounting department, a copy 
 should be made of same and placed in a folder, under 
 heading of Matters Pending. The original lease should 
 be sent by registered mail, with a return receipt re- 
 quested, to the County Clerk of the County in which 
 this lease is located. Request him to record same and 
 return to your office, with a statement covering his 
 services. When this lease is returned to your office, 
 prepare a folder for it, as each lease and all letters and 
 papers pertaining to same, including abstracts, lease 
 rental letters and receipts should be placed together in 
 one folder and filed, so as to be handy to refer to at 
 any time. I have found a Yawman & Erbe Fiberstock 
 Folder No. 4526-E ideal for this purpose, as it is roomy, 
 and when fitted with a Yawman & Erbe Folder D. 
 3404-T, which gives you the necessary divisions to keep 
 your letters and receipts separated from your lease and 
 abstract, you will have a safe and economical recep- 
 tacle for this purpose. .Personally I can recommend the 
 Yawman & Erbe Filing Equipment and Systems to 
 fully meet all of the requirements of an up-to-date 
 business of any kind. And their Filing Equipment is 
 much superior to a number of different lines on the 
 market, which can readily be proved by comparison. 
 Number your leases consecutively, beginning at num- 
 ber one. Also place this number anB the name of the 
 land owner, and the County in which it is located, on 
 a tab on the outside of your folder or on the place in- 
 tended for this purpose on the right hand top of your 
 folder No. D-3404-T, where it can readily be seen. Be- 
 fore filing this lease it should be recorded in your 
 
 —9— 
 
Lease Ledger. I have seen a number of ledgers intend- 
 ed for this purpose, but the only one I have ever seen 
 which will meet the full requirements of a Lease 
 Ledger, is an L P. Loose Leaf Current Ledger No. 
 267176, put out by the Irving-Pitt Mfg. Company, 
 Kansas City, Mo. This ledger when properly filled 
 with Lease Record Form No. 1 and Lease Rental Sheet 
 Form No. 2 and Lease Expiration Sheet Form No. 3, 
 put out by The Boyd-Patterson Company, Inc., 
 Printers, 1323-25 Wood Street, Dallas, Texas, you will 
 have everything which is required of a Lease Ledger. 
 
 After properly entering a lease on these three 
 pages, enter same on both your lease and lease rental 
 cards. Forms for same will be found in the back of 
 this book, under heading of Forms. Your lease will 
 then be ready to file. Handle each lease in the same 
 way, and if you have leases in different states and 
 counties, your ledger should be tabbed with the name 
 of each county, alphabetically arranged, in which you 
 own leases. 
 
 This ledger should be revised at the close of each 
 year. All leases which have expired, or have been 
 dropped, or sold should be taken out from among your 
 live leases and be filed in another section of your 
 ledger, as a matter of record and reference. 
 
 The remaining leases should be kept up to date. If 
 any change such as lease sales or lease trades have 
 been made, and transferred to a new sheet, showing 
 the exact status of same at that time, your lease and 
 lease rental cards should be kept in an indexed card 
 file which may be placed on your desk or other suitable 
 place where it will be handy for reference. 
 
 Your cards should be placed in this file so as to 
 show lease rentals coming due in January in the De- 
 cember compartment, leases coming due in February 
 in the January compartment, and all the way through 
 the year, as by this method there will not be any chance 
 of same being overlooked until too late. But to doubly 
 safeguard them, and also to give the Lease Depart- 
 ment, or executive who may look after such matters, a 
 chance to pass same on for payment, or to drop same 
 as he sees fit, I make up a schedule of the rentals com- 
 ing due for three months ahead, and place this schedule 
 in the hands of the parties who are responsible for the 
 payment of this rental. This schedule contains the fol- 
 lowing information : The number and the name of the 
 lease, the County and State in which it is located, the 
 land owner's name and the number of acres in same, 
 also tlj^e rental date and the amount of rental due, and 
 the expiration date on same. And always state if this 
 is a quarterly, semi-annual, or annual payment. And 
 in this connection it is well to make four lease rental 
 cards when your lease rentals, are payable quarterly, 
 two cards when payable semi-annually, and keep same 
 in their proper places, so that there will be no possible 
 chance of them being overlooked. If a lease sale or 
 trade has been made between rental dates, same should 
 be marked up on your lease ledger, and also a notation 
 of same should be made under remarks on your rental 
 card, so that same may be deducted before you pay an- 
 other rental on same. I also use a lease sales card. A 
 form for same will be found in the back of this book 
 under heading of FORMS. On this card I make a com- 
 plete explanation of this sale, and then attach same to 
 proper lease rental card, and also make notation on this 
 
 lease rental card to see sales card attached to this 
 rental card. 
 
 After looking over quarterly lease rental schedule, 
 the official in charge of this matter should make a no- 
 tation opposite each lease, stating if lease rental shall 
 be paid, or if lease should be dropped. Lease rentals 
 should be mailed out at least fifteen days before they 
 are due, so as to give them plenty of time to reach their 
 destination before they are due. And to make sure 
 that this matter is not overlooked it is best to mark up 
 your payment dates on your daily reminder. Form for 
 same will be found in the back of this book under head- 
 ing of FORMS. All letters containing lease rentals 
 should be registered, and a request for a return receipt 
 on same should be made at the time they are regis- 
 tered. Forms and form letters will be found in the 
 back of this book to fully take care of this important 
 matter. 
 
 When a lease expires or is dropped the party in 
 charge of this department should get a couple of blank 
 release forms and make out a release covering this 
 lease, also making a copy of same for your files. Mail 
 the original release, after it has been properly signed 
 and acknowledged before a notary, to the party who 
 owns the land. File your copy with the original lease. 
 Remove the folder containing this lease from your live 
 leases, and in a transfer case place all of your released 
 leases, keeping them in numerical order as before. 
 
 The executive who has charge of the matter per- 
 taining to leases owned by his company should keep in 
 close touch with all development which is being done, 
 or contemplated on acreage adjoining or near his com- 
 pany acreage, so that he will be in a position to either 
 pass for payment, or drop lease rental payments as 
 they come due according to the information he hason 
 this matter. As a lot of money can be lost by paying 
 lease rentals on acreage after it has been practically 
 proven worthless b}" development on nearby acreage. 
 If you only have a few leases I would not advise you to 
 go to the expense of purchasing a Lease Lederer, as 
 your lease, lease rental and lease sales cards will take 
 care of this matter nicely. 
 
 LEASE DEVELOPMENT (DRILLING WELLS) 
 
 If you are operating in the State of Texas or other 
 States that require a permit from the Railroad Com- 
 mission, Oil and Gas Division, before you can start to 
 drill a well, you will have to get the necessary blanks 
 from the Commissioner's office, fill same properly and 
 return to the Commissioner, and wait until you receive 
 a permit from him before actual drilling operations can 
 be started. 
 
 We are now ready to start our. drilling campaign. 
 After picking a location a derrick must be erected and 
 a slush pit dug. Also tanks must be provided for fuel 
 oil and water. These things are necessary and must be 
 provided, regardless if well is drilled with your own 
 drilling rig, or if drilling is to be done by contract. We 
 will now open accounts on our books to account for the 
 money which will be spent in drilling this well. Some 
 accountants prefer to charge all of the money expended 
 in drilling a well to Well Investment Account. And 
 then after the well is completed they go back and dig 
 out all of the expense items and charge them to Well 
 Expense. 
 
 —10— 
 
My system is to open up two accounts at the start. 
 The first to be Well No. 1 Expense Account, and the 
 other to be Well No. 1 Investment Account. My reason 
 for doing this is because I have found by actual expe- 
 rience that it is easier and much time can be saved by 
 handling in this way while you have all of the informa- 
 tion, at hand. We vdll start in by charging to our Well 
 Expense Account the cost of the derrick, and also the 
 cost of digging the slush pit. The tanks, if any are 
 provided, will be charged to your Tank Investment Ac- 
 count, and in your journal entry on same be sure and 
 state the material, and capacity of these tanks. If the 
 well is to be drilled by contract you will likely have to 
 stand the expense of moving the drilling rig from its 
 present location to your well site. If so, this will be 
 charged to your Well" Expense. Be sure and make a 
 detailed journal entry covering same. You will also 
 have to furnish the fuel and water used in drilling this 
 well, and this will be charged to your Well Expense. 
 And if fuel oil is used, be sure and state in your journal 
 entry the number of gallons, or barrels used, and the 
 price per gallon or barrel. Outside of the contract pries 
 per foot for drilling this well, this is likely to be all of 
 the expense you will have on a contracted well. All 
 casing, casing shoes, tubing, succor rods, and working 
 barrel which are left in the well when same is com- 
 pleted and on the pump, if not a flowing well, will be 
 charged to Well No. 1 Investment Account. Give a de- 
 tailed account of every foot of casing, tubing, succor 
 rods, and other material left in the well, giving mate- 
 rial, size, weight and price per foot. 
 
 If this well is to be a test well and you use your 
 own rig to drill it you will likely use a standard rig. 
 However, if you are drilling in a proven field you will 
 likely use a rotary rig. In either event before drilling 
 IS started be sure and see that notices are posted on 
 and around you rig the kind of Compensation Insur- 
 ance your company carries to protect your employees 
 Also see that your drillers are supplied with drilling 
 report blanks. Forms for same will be found in the 
 back of this book under the heading of FORMS. This 
 report will not alone furnish you an excellent log of 
 your well, but it will enable you to pick out a drilling 
 crew from the men employed on this well, as this report 
 wil give you the history of each crew on the well, and 
 will show you who is doing the work. 
 
 •11 ¥ y°","^^ y»"r own rig in drilling this well, you 
 will have all of the expense above mentioned, less the 
 contract price per foot for drilling same. But to make 
 up for this you will have all of the labor expense, lubri- 
 cating oil for the engine and gears, aJso the expense of 
 lighting the derrick, if a double shift is used, and a 
 number of incidental expenses, including packing and 
 waste for the engine, batteries for the flash-lights and 
 other incidentals which will be turned in by your Lease 
 Foreman m charge of the job, and this will show on 
 purchase requisition attached to the invoices and ex- 
 pense bills turned in on this well. In addition to this. 
 If an automobile or truck or both are used on this well 
 all expense charged against them while on this job will 
 be charged to this well. In fact, all of the money ex- 
 pended on this well except for casing, tubing, rods and 
 all of the material left in well, also the flow lines pipe 
 lines and tanks, are chargeable to well expense. ' 
 
 Be sure and caution your purchasing agent to be 
 .caretul toNpIace on his purchase requisition just what 
 
 account or expense every item is chargeable to, as he is 
 the only person who can give you this valuable infor- 
 mation. 
 
 In the back of this book under heading of FORMS 
 you will find a time, or labor slip, which should be made 
 up in books of fifty or a hundred sheets to the book, 
 and turned over to your foreman or timekeeper. All 
 labor charges should be turned in on these slips, also 
 any deductions should be shown on same. The infor- 
 mation from these slips should be transferred to your 
 Payroll Sheet. You will find a form for same in the 
 back of this book under heading of FORMS. You will 
 find the Payroll Sheet very useful, for besides giving 
 you the information you will need to make out your pay 
 checks, it will furnish you with the information neces- 
 sary to make out your Employers Compensation Insur- 
 ance Report. And from it you can get the information 
 which is required by the Government in regard to a re- 
 port on all employees who receive as much as $1,000.00 
 per year for services rendered your company. 
 
 Each well should have a separate folder in your 
 files. In this folder should be kept all matters pertain- 
 ing to this well, including all Expense and Investment 
 items, also a copy of the log of this well. And in a sepa- 
 rate folder placed in front of the folder of the well bear- 
 ing the same number you should file all production 
 statements received from the company who purchases 
 the oil produced from same. It is very important that 
 you keep these papers, as they will be needed when an 
 audit of your books is made, and most purchasing com- 
 panies refuse to furnish duplicates of these statements 
 at the end of the year, as they have been imposed on 
 so much in this respect by the carelessness of the 
 people who have charge of this matter. And then it 
 would require them to put on additional clerical force 
 in order to furnish these duplicates at this, the rush 
 season of the year. 
 
 In making your journal entry from invoices and 
 statements from supply houses and others, it isjiot ab- 
 solutely necessary for you to itemize them, as in doing 
 this a lot of time is used. But unless my system is car- 
 ried out in detail you will find that you will have saved 
 a lot of time in the end by making an itemized journal 
 entry of them. My system is to charge Well No. 1 Ex- 
 pense $75.00 and credit the Continental Supply Com- 
 pany $75.00, with the following journal explanation: 
 As per invoice No. 672, which may be found in the fol- 
 der in your file which contains Well No. 1 Investment. 
 However, if you wish to keep all of your supply invoices 
 from each company in a separate folder, you can do 
 this by requesting your supply house to furnish you 
 with duplicate invoices covering each invoice, and in 
 this way you can keep the originals together in a sepa- 
 rate folder, and the copies may be used to carry out my 
 system. Either way you see fit to use them, be sure 
 and mention the invoice number in your journal entry. 
 
 In case you should have a fishing job on a drilling 
 well, all fishing tools which may be rented on this work 
 should be charged to your Well Expense. If tools 
 should be lost in the hole, and the hole is junked or 
 abandoned, all of said tools, also all casing in same 
 which cannot be recovered, may be charged off as a 
 loss at the close of your year's business. 
 
 When a well comes in a producer, either flowing or 
 after it is put on the pump, your Drilling Well Expense 
 Account is closed. By adding the total Drilling Ex- 
 pense to your total Investment Account on this well. 
 
 —11— 
 
you will have the total cost of this well. You should 
 then open an Operating Expense Account on this well, 
 to take care of the expense of pumping, including 
 pumper, gasoline, lubricating oil, waste and other inci- 
 dentals turned in by your lease foreman, also the labor 
 necessary to pull the rods and tubing and the cleaning 
 of same. In addition to your Well Expense, you will 
 have a Lease Expense to take care of the labor, teams, 
 or trucks used in keeping your lease clean, as every pre- 
 caution should be taken to keep down fire hazards. 
 Also charge other incidental lease expenses which may 
 be turned in by your Lease Foreman. Open a Lease 
 Expense Account on each producing lease you operate, 
 carrying same on your books under the name of the 
 land owner. 
 
 After your well is putting oil in the tanks, have 
 your pumper or ganger to make a daily gauge report 
 on each well, using the form which you will find in the 
 back of this book, which is intended for this purpose. 
 
 Also write to the office of the pipe line company 
 who are running your oil and request that they send 
 you copies of the tank strappings of all the tanks on 
 your lease from which they are running your oil. By 
 using this strapping table you can read the daily gauge 
 report sent in by your lease men, and you will know 
 exactly what amount of oil each well is producing daily, 
 without waiting for your pipe line statement at the 
 end of each month. And by checking over these tickets 
 sent in by the pipe line company after each tank is run 
 or gauged, you are in a position to correct any errors 
 made on same, as I have found by experience that these 
 people are as liable to make a mistake as anyone. 
 
 WAREHOUSE 
 
 If you are operating on a large scale it will pay you 
 to build a warehouse on a centrally located part of your 
 holdings, and to stock same with a complete line of fit- 
 ting and oil well equipment. Also to purchase your 
 pipe and casing in car lots. This casing and pipe can 
 be placed on racks, under cover, near your warehouse. 
 You will not alone realize a big saving from the differ- 
 ence between buying in wholesale lots and in buying in 
 small quantities at retail, but you will affect a big sav- 
 ing in time, and avoid possible shutdowns on account of 
 having to wait for some needed repair parts or tools. 
 
 K you put in a warehouse my advice is to get an 
 experienced man for a storekeeper, preferably one who 
 has had similar experience, or one who has had expe- 
 rience in an oil well supply store, as a man of this kind 
 can save you big money by keeping your stock up to 
 date, and he will also understand how to keep a stock 
 sheet, and he will also be more familiar with the prices 
 on oil well supplies. 
 
 Handle all invoices through your office, and open 
 up an account on your books under heading, Warehouse 
 Account, to take care of same. As soon as your store- 
 keeper checks in a shipment of supplies, have him mail 
 you in a duplicate stock sheet covering this shipment. 
 After checking same with your invoice and finding 
 same 0. K., charge your Warehouse Account with the 
 amount of your invoice or invoices and credit the sup- 
 ply house from which same were purchased, with the 
 same amount. Instruct your purchasing agent or 
 agents to issue purchase requisition to your store- 
 keeper the same as if he was buying from some outside 
 supply house, and have your storekeeper to mail in 
 
 these rquisitions the same as if he was running an out- 
 side supply house. Also have him mail in a stock sheet 
 of goods on hand at the end of each month, and in this 
 way you should be able to keep your Warehouse Ac- 
 count on your books in balance with his stock sheet. 
 Unless there is a POSITIVE rule made against loaning 
 things from your warehouse, there will be more or less 
 of it done, and if lending is permitted 1 have a loan 
 sheet to properly take care of this matter. Form for 
 same will be found in the back of this book under head- 
 ing of FORMS. And unless a close check is kept on 
 your Warehouse Account, and unless you have the full- 
 est co-operation of your storekeeper, purchasing agents 
 and field foreman, you will have a hard time keeping 
 this account straight on your books. And it is a good 
 idea to furnish each of these men with a sheet of in- 
 structions covering this matter, and tell them just 
 what you expect of them, and any time they fall down 
 on any part of your instructions to them, let them 
 know about it right now, and if they make a habit of 
 disregarding your instructions on this matter, report 
 them to your executive officer and let him handle this 
 matter. 
 
 TAXES 
 
 Another very important matter in the oil business 
 is that of taxes, and the oil business is certainly blessed 
 with a lot of them. First, if you are operating in the 
 State of Texas, you will have to pay the Secretary of 
 State a tax of $1.00 per year in advance to do business 
 in this State. Then you have city, county, state and 
 school taxes to pay, and if you are a stock company you 
 will have a Capital Stock tax to pay ; and if at the end 
 of the year your business shows a profit, you will have 
 a Federal Income Tax to pay. Besides these taxes 
 most oil and gas producing states levy either a gross 
 receipt, severance, or some such tax as this on all oil 
 and gas produced; and some states, including Texas, 
 also levy a tax regulating pipe lines. 
 
 Your city tax will cover all office furniture and 
 fixtures, also any other city property owned by your 
 company. There will also be a city school tax on this 
 property. Your county, state and school tax will cover 
 all land owned in fee by your company, also on produc- 
 ing oil and gas wells, pipe lines, equipment, drilling 
 machinery, tanks, live stock, vehicles, automobiles, 
 trucks and buildings on leases, such as warehouse, 
 power house, tank houses, stables, garages and houses 
 for employees. 
 
 The surest and best way to handle this matter to 
 avoid paying a penalty on same, or to have your prop- 
 erty assessed at twice or three times its actual value by 
 some equalization board which thinks that an oil com- 
 pany has all of the money in the world and should be 
 made to carry the biggest part of the tax burden of 
 their county, is to render this tax yourself, and the best 
 time to do this is immediately after you have taken an 
 inventory of all of your property, and this should be 
 taken as near the first of the year as possible. As 
 nearly every county has a different method of fixing 
 taxable value on producing oil and gas wells, also equip- 
 ment, it is a good idea to write to the tax assessor of 
 each county in which you have production, and have 
 them send you a schedule covering this matter, and 
 showing his method of arriving at the figures on which 
 he bases this value. By comparing them all you should 
 be able to decide what counties were trying to assess 
 
 —12— 
 
excessive values on your properties, and then if there 
 was enough difference to justify you, you might go be- 
 fore the equalization board in that county and try to 
 get an adjustment with them on this matter, which 
 you should not have any trouble inr doing if you have 
 your figures showing where other counties are assess- 
 ing the same class of property on a more reasonable 
 basis, as a lot of this practice is due to ignorance. Most 
 of them figure values on producing oil and gas wells at 
 so much a barrel on your daily production, or about the 
 same method that is used in buying producing wells. 
 
 If you have producing wells in the State of Texas 
 you are subject to a gross receipt tax of IV2 % on all oil 
 produced by your company; also 1/20 of 1% tax regu- 
 lating pipe lines. This tax is payable quarterly. Checks 
 covering this tax should be made payable io the State 
 Comptroller. Personal checks, unless certified, will not 
 be accepted in payment of this tax. 
 
 Louisiana has a severance tax of 2 % on all oil and 
 gas produced in that state. As different states have 
 different taxes regulating this matter, and as they are 
 all subject to a change, I will not try to cover them in 
 this book. 
 
 REPAIRS AND REPLACEMENTS 
 
 This is one of the most important matters in my 
 System, and if properly handled it will save any produc- 
 ing company hundreds of dollars in the course of a 
 year. It is here that your purchase requisition is most 
 valuable, for without the purchase requisition there 
 will be no necessity of opening this account on your 
 books ,as there is no possible way of your accounting 
 department obtaining the information which makes 
 this account so valuable to your business, than through 
 the information obtained from your purchase requisi- 
 tion, for without this information many thousands of 
 dollars will be charged to your investment accounts, 
 which could properly have been charged to Expense, if 
 your accounting department was furnished with the 
 necessary information. 
 
 The value of this information should be taught to 
 all of your purchasing agents, field foreman and ware- 
 house keeper. They should be furnished with a sched- 
 ule covering all of the accounts on which repairs and 
 replacements are allowed, and they should be instruct- 
 ed that any article purchased for the purpose of repair- 
 ing, or to be used as a replacement on any of the fol- 
 lowing accounts, should be marked as such on their 
 purchase requisition at the time these articles are pur- 
 chased. They should be especially cautioned to watch 
 their step when purchasing cable, both rope and wire, 
 also belting, as these articles are short lived, and con- 
 sequently have to be replaced frequently. 
 
 The Government will allow any legitimate repairs 
 and replacements on any of the following accounts, 
 either any parts of same, or the whole, when such re- 
 placements cover the loss or breakage of small tools, 
 equipment and fittings, to be charged off of your books 
 as a loss at the end of the year. Same may be deducted 
 from your gross income on your Income Tax Return, 
 but the income tax, or internal revenue inspectors and 
 collectors are not required to take your word on this 
 matter, and unless you have sufficient proof to support 
 this claim, he may not allow any part of it to be charged 
 off, and you will be compelled to lose the benefit of this 
 allowance from your Income Tax. Even the smaller 
 
 producing companies will find that this will amount to 
 several thousands of dollars in the course of a year, 
 and the larger companies will benefit in proportion. 
 But with your signed purchase requisition as proof 
 positive of your claim, you would not hesitate to make 
 an affidavit as to the correctness of this claim, and I 
 have never known any claim of this kind, when sup- 
 ported by purchase requisition, to be turned down. 
 
 The proper way to show this matter on your books 
 will be to open a Repair and Replacement Account in 
 connection with each of the following accounts on your 
 books. Or you could open a Repair and Replacement 
 Account to cover this matter as a whole. And your 
 detailed journal entry on the different items would give 
 you the information as to what accounts these differ- 
 ent entries had been made to. But if you handle as 
 first suggested, make this Repair and Replacement en- 
 tirely separate from any expense you ordinarily carry 
 on your books with these accounts. Each individual 
 well should have a Repair and Replacement Account to 
 take care of all necessary repairs and replacements on 
 them. 
 
 Automobiles 
 
 Boilers 
 
 Buildings 
 
 Drilling Machines 
 
 Engines 
 
 Equipment 
 
 Furniture and Fixtures 
 
 Pumps 
 
 Pipe Lines 
 
 Tools 
 
 Tanks 
 
 Trucks 
 
 Vehicles 
 
 Wells 
 
 FILING 
 
 No system, according to my idea, is better than a 
 poor one, and especially so when applied to a Filing 
 System, and the more simple your system, the less 
 trouble you will have in locating the things which you 
 need. 
 
 File all of your subjects alphabetically, and when 
 you have enough correspondence with an individual or 
 company to justify you to do so, it is much better to 
 file this correspondence in an individual folder. 
 
 Each individual well should save a separate folder, 
 regardless of the amount of matter placed in same. 
 Also each producing well should have a separate folder 
 in which to place production statements when they are 
 received from the pipe line, or other companies who 
 purchase your oil or gas. This production folder should 
 be placed immediately in front of the folder containing 
 the correspondence of the well of the same number as 
 that which contains the production statement you are 
 filing. This same rule applies to producing royalties 
 and production statements pertaining to same. 
 
 In connection with matters to be filed in your well 
 arid royalty folders, will state that all matters pertain- 
 ing to this well, or royalty, including all correspond- 
 ence, all invoices and statements pertaining either to 
 Investment or Expense items, also a log of the well; 
 and by all means be sure and include a complete state- 
 ment of the cost of each well, including the total 
 amount of investment left in the well and the expense 
 attached to drilling same, so that when your executive 
 officer calls for the folder containing any particular 
 
 —13— 
 
well, you will know when you hand it to him that you 
 are giving him a complete record of this well, and that 
 you have given him all you have in connection with 
 this matter, and he in turn will soon learn that it will 
 be of no use to question you further on this matter. 
 
 If you will use a Yawman & Erbe Folder No. 
 D-3404-T you will have a nice division which will sepa- 
 rate your correspondence from your invoices and state- 
 ments, and thereby make it much easier to locate the 
 subject matter needed. 
 
 Where individual or company correspondence is 
 placed in a separate folder, in addition to filing alpha- 
 betically, be sure and put a separate marker tab with 
 the name of the individual or company on same. 
 
 In filing correspondence, file same in the order of 
 date received. In other words, start the year by filing 
 all January letters in the front of the file according to 
 the date, and the rest of the months of the year should 
 follow your January correspondence in proper order. 
 In filing outgoing con-espondence be sure to attach a 
 carbon copy of each letter to the one you are answer- 
 ing, and file same in proper order as to the date it was 
 received, or sent. In filing matter alphabetically, but 
 not in a separate folder, be sure and keep it together 
 in regard to the individual or company from whom it is 
 received or to whom it is sent. File a carbon copy of 
 your answer to each letter received, also attach them 
 to each other and keep them in order as to dates. 
 Where you have several letters of this kind but not 
 enough to justify using a separate folder, you may put 
 them in your miscellaneous folder and keep them to- 
 gether by using a clip. 
 
 File all valuable papers such as Notes, Stocks, 
 Bonds, and Contracts in a locked compartment of your 
 safe. It is a good idea to buy a safe large enough to 
 hold all of your correspondence, invoices, leases and all 
 papers of any value, if your office is not located in a 
 modern fireproof building, as otherwise you are simply 
 trusting to chance, as up to date I have never seen a 
 filing case, either steel or other kind, which was abso- 
 lutely fireproof, although you will frequently hear a 
 salesman for the different makes of filing equipment 
 claim that his line is absolutely fireproof. While not 
 claimed to be absolutely fireproof, Yawman & Erbe 
 Company FIRE WALL STEEL filing cabinets will give 
 you more fire protection than any filing: cabinet on the 
 market today. 
 
 At the beginning of a new year purchase Y & E 
 steel transfer cases and file your last year's contents 
 from your regular filing case, in the same order you 
 had them in your current files, as by this method last 
 year's papers are always easily accessible. 
 
 The chapter on Filing in my System is intended 
 for those who have already installed their filing equip- 
 ment, but who have not had experience in filing mat- 
 ters pertaining to the oil business. But for the be- 
 ginner who is buying new equipment, I advise that he 
 get all of the available information in regard to his 
 business, and place same before his Yawman & Erbe 
 dealer at the time of making his purchase, and I feel 
 sure that he will be able to install you a system to meet 
 the requirements of your particular business, which I 
 cannot do in this System. As I told you before that 
 each individual business has problems all its own, and 
 as Yawman & Erbe dealers are equipped with a system 
 to fit any kind of a business, and with information sup- 
 
 plied by you, they are in a position to supply your 
 needs more intelligently than I am, not knowing any- 
 thing about your business, only in a general way. This 
 service is gratis, and I have always found Yawman & 
 Erbe representatives courteous and willing to be of as- 
 sistance. He will also be in a better position to show 
 the fire resisting and burglar proof qualities of their 
 line of safes. 
 
 LEASE RENTAL PAYMENT 
 
 As most lease rentals are payable through some 
 bank, I have designed a triplicate bank deposit slip to 
 take care of this important matter. Forms for same 
 will be found in the back of this book under heading of 
 FORMS. 
 
 Each slip is of a different color, in order to avoid 
 any possibility of a mistake in handling them. The 
 original slip is white; the duplicate sUp is pink, and the 
 triplicate slip is yellow. The depost slips should be 
 made in pads containing the number of sets you desire. 
 
 When making out these slips a carbon should be 
 used between the original and duplicate slips, also one 
 between the duplicate and the triplicate slips. These 
 three slips should be filled out properly, and it will be 
 a good idea when possible to make a brief description 
 of this lease in the space below the line containing the 
 county, on your deposit slip. This description should 
 always be given in your letter, as the party from whom 
 you are leasing this land may have two or more tracts 
 of the same size in the same section of land, and this 
 might confuse him if you do not send in a full descrip- 
 tion of the tract on which you are paying this rental. 
 
 The three slips should be enclosed in the envelope 
 containing the letter and the check which you send in 
 to the bank covei'ing this lease rental. This letter 
 should be sent by registered mail, with a return receipt 
 requested. The first or original slip will be retained by 
 the bank as their record. The second or duplicate slip 
 will be sent by the bank to the party from whom you 
 are leasing, as evidence that you have sent this lease 
 money to be deposited to their credit in the bank desig- 
 nated by them in the terms of their lease to you. The 
 third or triplicate slip will be signed by some officer of 
 the bank, and returned to you. This will be your re- 
 ceipt that the money was I'eceived by the bank, and you 
 should file this slip in your lease folder which contains 
 the lease on which you paid this rental. A letter to be 
 sent with these deposit slips and check to the bank, will 
 be found in the back of this book. 
 
 CHECKS 
 
 Another very important matter is the proper han- 
 dling of your checks. All of your checks should be 
 numbered, and a complete record of each check should 
 be kept from the time it is issued until it is returned to 
 you cancelled by your bank, and filed away in a safe 
 place. A check is so important that it should have 
 every protection that you can give it. 
 
 Before a check leaves your office it should be run 
 through a check protector, preferably one which pro- 
 tects both the amount of the check and the payee's 
 name. It is also a good idea to have your checks 
 printed on a protected bond paper. The Todd Protecto- 
 graph when used in connection with their Protod- 
 Greenbac Forgery-Proof Check, will give you all of the 
 protection which I recommend, and will also give you 
 an insurance policy for $10,000.00, insuring you and 
 
 —14— 
 
your bank, jointly, against loss or law suit. 
 
 If an error is made on a check when it is issued, do 
 not try to erase. Void this check but do not destroy it. 
 Issue another check in its place, and handle the check 
 which you voided in the same manner you handle all 
 other checks. That is, it should be run through your 
 journal, so as to keep your check record complete. The 
 only journal record necessary is to show that this 
 check was voided. 
 
 If a check is lost in the mail or otherwise, payment 
 of same should be stopped at the bank at the earliest 
 possible moment, and a duplicate check should be is- 
 sued to cover same. The proper method to use in stop- 
 ping payment of same at your bank is to write your 
 bank a letter along the following lines : 
 
 First National Bank, 
 
 City. 
 
 Gentlemen : 
 
 We herewith request that you kindly stop pay- 
 ment on our check No. 2522. This check is made pay- 
 able to John Smith, and was issued under date of Janu- 
 ary 25th, 1922. The amount of same is twenty-five 
 ($25.00) dollars. This check was presumably lost in 
 the mail, and we are issuing our check No. 3002 to take 
 the place of same. 
 
 Respectfully yours. 
 
 In making journal explanation when issuing a new 
 check to cover the one which was lost, be sure and 
 explain that this check is issued to take the place of 
 check No. 2522, which was lost, and if you use a 
 voucher check, write on the voucher part of same, the 
 same explanation. 
 
 After you receive your cancelled checks from the 
 bank at the first of each month, they should be care- 
 fully checked with the bank statement for any possible 
 errors. After same are checked and found 0. K. ar- 
 range them in numerical order and check them with 
 your check stubs, vouchers, and journal entries, in 
 order to see what checks are outstanding. These out- 
 standing checks should be entered in your reconcile- 
 ment book. A reconcilement book is the best method 
 I have ever found to handle this matter properly, and 
 same can be purchased at most stationery supply 
 houses, or may be purchased from Hargreaves Print- 
 ing Company, 2201 Main Street, Dallas, Texas. When 
 sending in an order to this company call for Reconcile- 
 ment Ledger No. 504. 
 
 This book will give you a complete record of your 
 outstanding checks, and will keep this record all to- 
 gether. All checks should be kept in numerical order 
 and filed away in a safe place, preferably your safe. 
 If you use a voucher check, the concelled check and the 
 corresponding voucher should be filed together. If a 
 supposedly lost check is ever returned to you file it 
 away in its proper place. Your check book and book 
 of vouchers should always be kept in a safe place, and 
 away from the public, as there are still a lot of forgers 
 in this country, and it does not pay t otake any chances 
 with your bank account. 
 
 CLOSING YOUR BOOKS 
 
 At the end of the year when you close your books 
 preparatory to starting a new year's business, remem- 
 ber that all transactions pertaining to your Capital 
 Account will be found under heading of Surplus Ac- 
 
 count. This account will show either a loss or gain 
 and should be charged off to Loss and Gain accord- 
 ingly. 
 
 All of your expense accounts will be charged off 
 to Loss on your Loss and Gain Account. Be sure and 
 remember that in making out your Income Tax Return, 
 to deduct your Income Tax from this amount, as it is 
 not allowable. 
 
 All income shown on your books, except that 
 which was received from the sale of Capital Assets, 
 will be charged off to Gain on your Loss and Gain ac- 
 count. In other words all expense accounts will be 
 charged on the debit side of your Loss and Gain Ac- 
 count, and all Income shown on your books will appear 
 as a credit on your Loss and Gain Account. 
 
 On all other accounts after same have been totaled, 
 balanced and properly ruled, the remaining balance 
 should be clearly shown below the ruling and on the 
 proper side of the page, or if transferred to a new 
 sheet, it should be shown under its proper heading and 
 on the proper side of the sheet. 
 
 All accounts which have been closed out, or have 
 been transferred, should be removed from your current 
 ledger, and should be placed in a transfer binder in the 
 same order that you carried them in your current 
 ledger; and then they should be filed away some place 
 where they can easily be reached in case they have to 
 be used for reference. 
 
 AUDITS 
 
 Unless your organization has an Audit depart- 
 ment the service of a reliable Auditor should be 
 secured, preferably one who has had experience in 
 auditing the books oil companies, as it is necessary that 
 an audit should be made at the close of the year, 
 especially if yours is a Stock Company, and unless this 
 auditor has had some experience in auditing oil ac- 
 counts, his report will not show the standing of your 
 company as clearly as if he had this experience, and he 
 is not as liable to find possible errors on your books. 
 As I have said before, the oil business is a business in 
 itself, and it requires special study to master it. 
 
 INCOME TAX REPORT 
 
 The same rule that applies to your auditor will 
 apply to the person who makes out your Income Tax 
 Return, and unless that person has had experience in 
 making out the Income Tax Return for oil companies, 
 and unless he had made a special study concerning 
 Depreciation & Depletion, especially the Depletion on 
 oil wells, you are likely to lose a lot of money, for to 
 figure the proper Depletion on oil wells requires a lot 
 of study, as it covers so many angles. Allowance is 
 also made for discovery wells. 
 
 The only man in the United States whom I can 
 honestly and truthfully recommend as an Oil Auditor 
 and Income Tax Expert is G. S. Reid of G. S. Reid «&; 
 Company, Suite 204 Mason Building, Houston, Texas. 
 When he makes out your Income Tax Return and 
 sends it in, you may rest assured that the matter is 
 closed for all time to come, and that there will be no 
 come back, also that he had saved you every dollar 
 which could be legitimately saved on same. 
 
 He is so good that he has been called to all parts of 
 the United States, by some of the largest companies 
 in the oil business. 
 
 —15— 
 
OTHER LOSSES WHICH ARE ALLOWED 
 
 All property which is lost, or stolen, if not recov- 
 ered, also all damage by wind, water and fire, unless 
 the property is insured, may be charged off as a loss 
 on your Income Tax Return. 
 
 INFORMATION FOR YOUR EXECUTIVE OFFICER 
 
 The following pages contain information which 
 should be placed in the hands of your executive officer, 
 at the earliest possible date after your books are closed 
 at the end of the month. 
 
 As your balance sheet, with detailed information 
 will put him in touch with the general condition of the 
 business, including the financial status, which is usual- 
 ly the most important item, this information followed 
 by a list of your Accounts Payable (subject to a dis- 
 count) and your Accounts Payable (current) will give 
 him an opportunity to pass on these different matters, 
 and to decide if he will take the discounts on all of the 
 accounts subject to same. To an oil man who is in the 
 habit of thinking in large figures, a mere 2 per cent 
 looks like very small change, but when you stop to 
 think that this is 2 per cent a month and that means 
 24 per cent a year, and that you can go to the bank 
 and borrow at from 8 to 10 per cent per year, the mat- 
 ter begins to take a different aspect, as 14 and 16 per 
 cent earned on your discount account is not a matter 
 to be turned down without some consideration. 
 
 Current accounts payable should also be passed for 
 payment as soon as possible, as prompt payment of 
 your bills makes your credit stronger, and a strong 
 credit in the oil business is a great asset. 
 
 The proper way to place these matters before your 
 executive officer, is to purchase an I. P. Loose Leaf 
 Duraflex Binder No. 2714, put out by the Irving-Pitt 
 Manufacturing Company, Kansas City, Mo., and sold 
 by most stationery supply and book stores. By this 
 method you have both a handy and permanent record. 
 Fill this binder with the desired number of I. P. Loose 
 Leaf pages, sizes 8V2XII inches. These pages are put 
 out by the same people who put out the above men- 
 tioned binder. 
 
 In this book each producing oil and gas well, also 
 each producing royalty should have a separate page. 
 Put a tab on the page containing each account, and on 
 this tab place the name of the well and royalty from 
 which this production is received. If you have more 
 than one producing well on each lease place the well 
 number with the name on the tab. 
 
 Each time a check is received for production, the 
 sheet in the book covering this production should be 
 removed and the amount of production and the price 
 paid for same should be added to that which is all 
 ready there in the same manner as shown on the sheet 
 which I have placed in this book for your guidance. 
 By doing this from month to month it gives your execu- 
 tive officer a chance to make a comparison with the 
 preceeding months, and if the production is falling off, 
 it gives him a chance to take this matter up with your 
 field or production foreman with a view to increasing 
 same. 
 
 All gas and casinghead gas production should be 
 handled in the same way, and this information should 
 be kept in this ■book and placed on your executive of- 
 ficer's desk as soon as possible after same has been 
 received in the office. 
 
 In addition to the information shown on the fol- 
 lowing pages and which should be placed in this book, 
 put a tab near the back of this book on which should 
 be marked Well Logs. Under this heading keep a copy 
 of each Well Log in your possession, and that should 
 include a log of each well which you own any interest 
 in. 
 
 Your balance sheets should be filed in this book 
 monthly, under a tab marked Balance Sheets. If you 
 are a stock company a copy of the minutes of your 
 company should be kept in this book also. With the 
 information contained in this book, your executive of- 
 ficer will be kept in close touch with all matters per- 
 taining to the business at all times. 
 
 If a lease is sold or dropped it should be shown 
 on your detailed balance shoot on the same page and 
 under the same heading as this lease was shown on 
 your balance sheet under heading of Surplus Account 
 as an explanation of the difference between the total 
 of your previous month's report and this one. 
 
 BALANCE SHEET AS OF JULY 31ST, 1922 
 
 ASSETS: 
 
 Cash in Banks $ 8,000.00 
 
 Furniture & Fixtures 838.14 
 
 Accounts Receivable 9,970.07 
 
 Notes Receivable 3,984.96 
 
 Stocks & Bonds in other 
 
 Companies 11,101.00 
 
 Royalties Active 5,438.34 
 
 Wells (Oil) 25,280.41 
 
 Wells (Gas) 3,043.20 
 
 Askew No. 1 Investment.. 2,250.00 
 
 Bell-Williams Investment 2,730.24 
 
 Leases Inactive 2,250.00 
 
 Leases Inactive, La. W. C. 2,300.00 
 
 Leases Inactive, Tex. W.C. 8,573.00 
 
 Royalties Inactive 1,721.25 
 
 Fee Holdings 2,901.00 $90,381.61 
 
 LIABILITIES: 
 
 Account Payable $3,756.50 
 
 EXPENSES: 
 
 General Expenses 12,468.52 
 
 INCOME: 
 
 January 1st to August July 
 
 Baker Royalty to 6-31 $ 130.57 904.44 
 
 Jones Royalty to 4-31 119.91 119.91 
 
 Jones Royalty to 7-15 169.70 942.31 
 
 Willis Royalty to 7-15 203.90 1,348.85 
 
 Parker No. 1 to 7-15 382.48 3,771.82 
 
 Parker No. 3 to 7-15 1,470.48 3,345.52 
 
 Boon No. 1 to 7-15 278.00 2,501.51 
 
 Fitz No. 1 to 6-31 234.14 1,246.42 
 
 Interest and Discount 129.42 $14,320.20 
 
 CAPITAL STOCK: 
 
 Class "A" Stock, 8,483 shares 
 
 @ $10.00 Par Value 84,830.00 
 
 Surplus 46.57 
 
 $102,896.70 $102,896.70 
 
 —16— 
 
DETAILS OF BALANCE SHEET ITEMS AS OF 
 JULY 3IST, 1922 
 
 EXHIBIT "A" 
 
 CURRENT ASSETS 
 Cash in Banks: 
 
 Farmers & Mechanics National..-. $ 7,000.00 
 
 First National (Reserve) 1,000.00 $ 8,000.00 
 
 Av«.wunts Receivable: 
 
 R. C. Dale (For Casing 158.46 
 
 Bessmer Oil Corp. (For Tanks) 461.00 
 
 L. L. Duke (Part Lease Rental) 10.00 
 
 Askew No. 1 Syndicate, Equipment 
 
 for Well No. 1 257.96 
 
 Silbert R. Willis (Casing & Tools 9,057.65 
 
 Lucky Strike Oil Company, July Of- 
 fice Rent 25.00 
 
 Notes Receivable: 
 
 (Other Than Stock) 
 
 R. L. Thompson, Monthly purchase of 
 Buick Roadster 837.64 
 
 Rio Grand Valley Syndicate (Loan) 
 
 Due November 22nd, 1922 821.3? 
 
 Ray F. Tolbert (Loan), Due Septem- 
 ber 16th, 1922 856.00 
 
 (For Stock 
 
 D. P. King (100 shares of Class A. 
 
 Stock @ $10.00, due Oct. 5th, 1922 1,000.00 
 
 Ervin Walker (47 shares of Class "A" 
 
 Stock @ $10.00, due Jan. 1, 1923).... 470.00 
 Furniture & Fixtures: 
 
 Ft. Worth Office $959.60 less deprecia- 
 tion reserved thereon, $95.96, and 
 purchase of filing cases in June, 
 $17.00, less sale of Wall Map to 
 J. P. Rice for $7.50, and sale of of- 
 fice desk to Wortham Loan Com- 
 pany, $35.00 , 
 
 Stock & Bonds in Other Companies: 
 
 Lucky Strike Oil Company, 4,764 
 shares @ $50.00 per share, valued 
 at $9,526.00 9,526.00 
 
 Rio Grande Valley Syndicate. Cost 
 
 $5,375, valued at 1,575.00 
 
 Carried Forward 
 
 "INVESTMENTS" 
 
 9,970.07 
 
 2,514.96 
 
 1,470.00 
 
 838.14 
 
 11,101.00 
 $33,894.17 
 
 $33,894.17 
 
 Carried Forward 
 
 Royalties Active: 
 
 Baker Royalty, undivided 1-16 in 120 
 
 Acres, Eastland County $ 1,193.88 
 
 Jones Royalty, undivided 1-2 in 50 
 Acres, Stephens County 2,385.54 
 
 Willis Royalty, undivided 1-4 in 142 
 Acres, Comanche County 1,858.92 $ 5,438.34 
 
 Active Oil & Gas Wells: 
 
 Parker Well No. 1 (Oil) 1-8 of 8-8 
 production 8,260.87 
 
 Parker Well No. 2 (Oil) 1-8 of 7-8 
 working interest 3,210.24 
 
 Parker Well No. 3 (Oil) 1-8 of 7-8 
 working interest 9,446.64 
 
 Parker Well No. 4 (Oil) 1-8 of 8-8 
 
 production 3,207.21 
 
 Boon Well No. 1 (Oil) 1-16 production 1,155.45 
 Fitz Well No. 1 (Gas) 7-32 interest, 
 Clairborne Parish, La 3,043.20 
 
 Inactive Royalties: 
 
 Long, undivided 3-284 in 460 acres, Co- 
 manche County 10.00 
 
 Jenkins, undivided 1-2 in 100 acres, 
 
 Eastland County 1,000.00 
 
 Bishop, undivided 1-8 in 60 acres, 
 
 Stephens County 200.00 
 
 Mills, undivided 1-16 in 200 acres, Palo 
 Pinto County 10.00 
 
 Wier, undivided 24-256 in 40 acres, 
 
 Eastland County -501.25 
 
 (Overriding Interest) 
 
 Inactive Leases (Semi Proven): 
 
 Radford Lease, De Sota Parish, La. 
 
 20 acres 1,000.00 
 
 R. S. Moss Lease, Clay County, Texas, 
 
 10 acres 200.00 
 
 C. B. Coke Lease,, Archer County, 
 
 Texas, 30 acres 400.00 
 
 A. D. Levy Lease, Young County, 
 
 Texas, 150 acres 650.00 
 
 Inactive Leases (Louisiana Wildcat): 
 Lease No. 12, Union Parish, La., 
 
 180 acres 800.00 
 
 Lease No. 45, Caldwell Parish, La., 
 
 40 acres 300.00 
 
 Lease No. 62, Caldwell Parish, La., 
 
 60 acres 400.00 
 
 Lease No. 112, Claiborne Parish, La., 
 
 140 acres 800.00 
 
 Carried Forward 
 
 Brought Forward $ 73,927.37 
 
 Askew No. 1 Investment: 
 
 1-8 Working Interest in (Clairborne 
 
 Parish, La.) in 80-acre Lease 2,250.00 
 
 Bell-Williams (Royalty Investment): 
 1-16 Royalty Interest in 45,640 acres 
 
 in Reves County, Texas 2,730.24 
 
 Texas Leases Inactive (Wildcats) : 
 100 McCuUough Co., acres 80 $ 400.00 
 
 102 Menard Co., 180 acres... 800.00 
 
 103 Eastland Co., 20 acres. ... 150.00 
 
 104 Kaufman Co., 60 acres.... 116.00 
 
 105 Terrell Co., 30 acres 158.00 
 
 106 Bexar Co., 18 acres 300.00 
 
 107 Comanche Co., 50 acres... 300.00 
 
 108 Clay Co., 40 acres 290.00 
 
 109 Archer Co., 110 acres... 550.00 
 
 110 Wilbarger Co., 200 ac's 800.00 
 116 Wichita Co., 15 acres... 1,600.00 
 118 Wichita Co., 10 acres... 1,200.00 
 
 120 Reeves Co., 160 acres... 600.00 
 
 121 Reeves Co., 240 acres 700.00 
 
 122 Reeves Co., 300 acres 435.00 
 
 128 Haskell Co., 160 acres ... 174.00 8,573.00 
 Fee Holdings (Texas): 
 
 Durdan Fee, Comanche Co., 
 80 acres 1,200.00 
 
 28,323.61 
 
 1,721.25 
 
 2,250.00 
 
 2,300.00 
 
 $73,927.37 
 
 — XT-- 
 
Hofman Fee, Clay County, 
 
 1-16 interest in 15 acres ... 100.00 
 
 Block 49, Eastland, East- 
 land County, Texas, Lots 
 -- Nos. 18 to 36 1,601.00 2,901.00 
 
 EXHIBIT "B" 
 
 LIABILITIES 
 Accounts Payable: 
 
 Continental Supply Co. (For Equip- 
 ment) $2,377.50 
 
 Johnson Supply Company (For Tools... 1,379.00 
 
 $ 3,756.50 
 
 EXHIBIT "C" 
 
 EXPENSES 
 General : 
 
 Parker Well No. 1 $ 475.20 
 
 Boon Well No. 1 962.83 
 
 Fitz Well No. 1 245.07 
 
 Lease & Royalty Expense 35.00 
 
 Lease Rents 518.65 
 
 Legal & Audit Expense 1,666.28 
 
 Office Supplies & Expense.... 579.80 
 
 Office Rent 220.00 
 
 Salaries 4,827.75 
 
 Taxes 1,474.20 
 
 Telephone & Telegraph 457.37 
 
 Travel Expense 1,006.37 
 
 12,468.52 
 
 Carried Forward $102,850.13 $3,756.50 
 
 EXHIBIT "D" 
 
 INCOME 
 
 Brought Forward $102,850.13 
 
 Received from Jan. 1st to August — 
 Royalties: 
 
 Baker Roy. (Oil) to 7-31-22 $ 904.44 
 Jones Roy. (Gas) to 5-31-22 119.91 
 Jones Roy. (Oil) to 7-15-22 169.70 
 Willis Roy. (Oil) to 7-15-22 203.90 
 
 $3,756.50 
 
 Wells— Oil: 
 
 Parker Well No. 1 to 7-15-22 3,771.82 
 
 Parker Well No. 3 to 7-15-22 3,345.52 
 
 Boon Well No. 1 to 7-15-22 2,501.51 
 
 Wells— Gas: 
 
 Fitz Well No. 
 
 1 to 6-31-22 1,246.42 
 
 Interest & Discount: 
 
 Interest on Notes and Dis- 
 counts on Paid Bills 
 
 CAPITAL STOCK 
 Class A Stock — Authorized: 
 
 Unissued, 24,000 shares, $240,000.00 
 .Issued, 15,517 shares, 155,170.00 
 
 3,315.51 
 
 9,618.85 
 1,246.42 
 
 129.42 
 
 84;830.00 
 
 8,483 shares 
 
 SURPLUS 
 
 This account set up to show Loss and 
 
 Gain on Capital Accounts until 
 
 books are closed at the end of the 
 
 year, 1922 46.57 
 
 Expense Difference 
 
 $ 130.57 
 
 169.70 
 
 203.90 
 
 OPERATING PROFIT AND LOSS STATEMENT 
 FOR MONTH OF PULY, 1922 
 
 Income: 
 
 Royalties — Income 
 
 Baker $ 130.57 
 
 Jones 169.70 
 
 Willis 203.90 
 
 Wells— Oil- 
 Parker Well No. 1 382.40 
 
 Parker Well No. 3 1,470.48 
 
 Boon Well No. 1 278.00 
 
 Wells— Gas— 
 
 Fitts Well No. 1 234.14 
 
 Interest and Discount — 
 2% Discount on Continental 
 
 Supply Company's Invoice 
 
 No. 1252 for $400.00 8.00 
 
 $ 36.96 
 
 73.12 
 
 345.52 
 345.52 
 204.83 
 
 234.14 
 
 8.00 
 
 $2,877.27 $110.08 $2,767.19 
 
 Expenses: 
 
 Legal and Audit $ 200.00 
 
 Office Supplies and Expense 2.25 
 
 Office Rent 35.00 
 
 Salaries 825.00 
 
 Taxes 1,066.12 
 
 Telephone and Telegraph 30.03 
 
 Travel Expense 62.50 
 
 Gain.. 
 
 $2,220.93 
 
 $ 546.29 
 
 ACCOUNTS PAYABLE (Subject to a Discount) 
 
 Name of Last 
 
 Company. Invoice No. Date Am't Dis. dis. date 
 
 Continental Sup. Co 48 Jan. 1 $ 160.00 $ 3.20 Feb. 20 
 
 Continental Sup. Co. ... 956 Jan. 12 80.00 1.60 Feb. 20 
 
 Continental Sup. Co 1356 Jan. 15 40.00 .80 Feb. 20 
 
 Continental Sup. Co 2896 Jan. 27 640.00 12.80 Feb. 20 
 
 Continental Sup. Co 2940 Jan. 30 320.00 6.40 Feb. 2D 
 
 Total due Continental Sup. Co $2,240.00 $24.80 Total dis. 
 
 Johnson Supply Co.... 24 Jan. 9 
 Johnson Supply Co 36 Jan. 11 
 
 40.00 
 60.00 
 
 .80 Feb. 9 
 1.23 Feb. 11 
 
 Total due Johnson Supply Co....$ 100.00 $ 2.00 Total dis. 
 
 ACCOUNTS PAYABLE (Current) 
 
 First National Bank, January office rent 
 
 City Garage, January account, storage and gasoline 
 
 Mills Heavy Hardware Company; January account, small 
 
 tools 
 
 Ford Auto Supply Company, January account, Ford parts 
 Western Oil Company, January account, gasoline and oil 
 Willard Battery Station, January account, rent on battery 
 Southwestern Telephone Company, December contract, 
 
 January toll 
 
 Western Union Telegraph Company, January account 
 
 Excelsior Tire Company, January account, tire and tube 
 
 Grant's Supply Store, January account, office supplie.s 
 
 Blair Printing Company, January account, stationery 
 
 Lone Star Tool Company, January account, fishing tools.. 
 
 $150.00 
 4.75 
 
 15.75 
 
 25.65 
 
 36.00 
 
 2.50 
 
 25 00 
 
 9.65 
 
 23.00 
 
 6.4 S 
 
 25.00 
 
 125.50 
 
 $102,896.70 $102,896.70 
 
 Total of January account $449.25 
 
 —18— 
 
LEASE RENTALS PAYABLE FOR QUARTER 
 ENDING MARCH 31ST, 1922 
 
 Lease Owner's Rental 
 
 Number County State Name Acres Date Rental 
 
 100 McCullough, Texas J. B. Wade 80 Jan. 6 $20.00 
 This lease expires Jan. 6, 1924. Lease rental payable quarterly. 
 
 102 Menard Texas R. S. Davis 180 Jan. 15 45.00 
 
 This lease expires Jan. 15, 1926. Lease rental payable quarterly. 
 
 10.3 Eastland Texas F. P. Jones 20 Jan. 24 5.00 
 
 This lease expires Jan. 24, 1927. Lease rental payable quarterly. 
 
 106 Bexar Texas D. V. Quinn 18 Feb. 4 9.00 
 
 This lease expires Feb. 4, 1928. Lease rental payable semi- 
 annually. 
 
 108 Clay Texas L. O. Johnson 40 Feb. 20 20.00 
 
 This lease expires Feb. 20, 1929. Lease rental payable semi- 
 annually. 
 
 128 Haskell Texas T. 0. Bailey 160 Mar. 24 160.00 
 
 This lease expires March 24, 1923. Lease rental payable annually. 
 This lease is protected by a drilling well. Inquire as to status 
 of this well before paying lease rental. 
 
 HOPKINS WELL NO. 1— PRODUCTION REPORT 
 PRAIRIE OIL & GAS COMPANY 
 
 Total 
 
 January, 1922: Barrels Bbls. Price Amount Total 
 
 1- 1-22 to 1-15-31 206.73 $2.25 $465.14 
 
 1-15-22 to 1-31-22 190.03 2.25 427.57 
 
 Total January 396.76 $892.71 
 
 2- 1-22 to 2-15-22 206.34 2.25 464.27 
 
 2-15-22 to 2-28-22 211.56 2.25 476.01 
 
 Total February 417.90 940.28 
 
 3- 1-22 to 3-15-22 192.46 2.25 433.04 
 
 3-15-22 to 3-31-22 160.62 2.25 361.40 
 
 Total March :.... 353.08 794.44 
 
 4- 1-22 to 4-15-22 19.65 2.25 44.21 
 
 Total April (see explanation in Journal.. 44.21 
 
 Total August 140.43 210.65 
 
 5- 1-22 to 5-15-22 81.53 2.25 183.44 
 
 5-15-22 to 5-31-22 104.76 2.25 235.71 
 
 Total May 186.28 419.15 
 
 6- 1-22 to 6-15-22 65.23 2.25 146.77 
 
 6-15-22 to 6-30-22 66.31 2.25 149.20 
 
 Total June 131.54 295.97 
 
 7- 1-22 to 7-15-22 65.14 2.26 146.57 
 
 7- 1-22 to 7-15-22 47.72 2.00 95.44 
 
 7-15-22 to 7-31-22 71.77 1.75 125.60 
 
 Total July 184.63 367.60 
 
 8- 1-22 to 8-15-22 72.02 1.50 108.03 
 
 8-15-22 to 8-31-22 68.41 1.50 102.62 
 
 PHILLIPS WELL NO. 5— CASINGHEAD GAS 
 
 PRODUCTION 
 
 INDIAN GASOLINE CORPORATION 
 
 January, 1922: Division Gallons Price Total 
 
 1-1-22 to 1-31-22 8/64 of 664.16 0.1707 $13.78 
 
 2-1-22 to 2-28-22 8/64 of 3057.98 0.1707 65.25 
 
 3-1-22 to 3-31-22 8/64 of 2609.47 0.1616 52.71 
 
 DAVIS WELL NO. 3— GAS PRODUCTION 
 THE TEXAS COMPANY 
 
 January, 1922: Division M. Cu. Ft. Our Part Price Total 
 
 111-22 to 1-31-22.. % 27,669,000 6,917.250 .03 $207.52 
 
 2-1-22 to 2-28-22.. % 24,636.000 6,159.000 .03 184.78 
 
 3-1-22 to 3-31-22.. 14 30,860.000 7,715.000 .03 231.45 
 
 Copy of letter to be mailed to the bank accompa- 
 nied by check for Lease Rental: 
 
 City National Bank, 
 Graham, Texas. 
 Gentlemen : 
 
 We herewith enclose our check No. 66 for $60.00, 
 which we ask that you kindly place to the credit of Mr. 
 Sam Burgess. 
 
 This money is intended as an annual lease rental 
 payment on our lease No. 72, which contains 60 acres 
 of land which we have leased from Mr. Burgess, same 
 being the west one-half, and the south one-half of the 
 east one-half of the southwest one-fourth of block No. 
 1562, H. I. G. N. Survey in Young County, Texas, and 
 owned by Sam Burgess. The rental on same being due 
 January 1st, 1922. 
 
 Please mail to Mr. Burgess the duplicate deposit 
 slip enclosed, using the enclosed stamped envelope 
 which we are sending for that purpose. Also please 
 sign and return to us in the enclosed stamped and self- 
 addressed envelope, the triplicate deposit slip, which 
 will be our receipt that this lease rental has been re- 
 ceived by your bank. 
 
 Respectfully yours, 
 THE SMITH OIL COMPANY. 
 
 If Lease Rental is to be sent direct to the land 
 owner, use the following letter: 
 
 Mr. Sam Burgess, 
 Olney, Texas. 
 Dear Sir: 
 
 We herewith enclose our check No. 66 for $60.00. 
 This money is intended to cover the annual lease rental 
 payment on our lease No. 72, which contains 60 acres 
 of land which we have leased from you, same being the 
 west one-half, and the south one-half of the east one- 
 half of the southwest one-fourth of block No. 1562, H. 
 I. G. N. Survey in Young County, Texas. This lease 
 rental is due January 1st, 1922. 
 
 We ask that you kindly sign in the presence of a 
 witness, and then have the witness sign the enclosed 
 rental receipt, and return same to us in the enclosed 
 stamped and self-addressed envelope. 
 Respectfully yours, 
 
 THE SMITH OIL COMPANY. 
 
 RENTAL RECEIPT 
 
 Lease No............:..:.:.:. Check No 
 
 Payable to 
 
 Received of SMITH OIL COMPANY $ 
 
 being in full for the rental on 
 
 acres of land in ...county, 
 
 from to... in accordance with 
 
 the terms of an Oil and Gas Lease covering 
 
 Said Lease being from to 
 
 dated ,...:...... and containing.., acres. 
 
 Witnessed : 
 
 —19^ 
 
EMPLOYEES' SCHEDULE 
 
 Each and every employee who has been. with your 
 organization a sufficient length of time to become 
 thoroughly familiar with his or her duties, should be 
 required to write out in detail a schedule covering their 
 individual duties. 
 
 This schedule will prove of great value in case of 
 sickness, absence on vacations, or when someone leaves 
 your employ oh short notice. 
 
 These schedules should be turned over to the dif- 
 ferent department managers, and same should be filed, 
 by them, in a place which is convenient for anyone in 
 this department to reach, so that in case the depart- 
 ment manager is absent, that these schedules can read- 
 ily be found, and thus prevent any unnecessary delays 
 in your office routine. 
 
 By reading over these schedules when not other- 
 wise employed a new employee will soon become famil- 
 iar with the work required of them, and in case of 
 doubt it will prove a handy reference. 
 
 DAILY BANK BALANCE 
 
 After your bank deposits are made each morning 
 you should take a balance of your cash on hand in each 
 bank, if you use more than one bank, and a schedule 
 should be made and placed in some stated place, on or 
 in your executive officer's desk. This will be of great 
 assistance to him in many ways, and especially so if 
 your balance on hand is small. 
 
 This balance may be found by taking the totals of 
 the money you have deposited in the bank, and sub- 
 tracting from same the total amount of the checks you 
 have issued against same. By keeping up with this 
 daily you will find it very easy to keep this matter 
 straight. 
 
 DEPOSIT SLIP RECORD 
 
 This seems a very small matter to most account- 
 ants. But I think it is one of first importance, and un- 
 less it is properly kept, it is liable to cause the loss of 
 much time, and in the case of an audit when you are 
 paying an auditor at the rate of $25.00 per day for his 
 services, the loss of one deposit slip, or insufficient ex- 
 planation on same may cost you quite a few dollars. 
 
 A full explanation of each individual deposit should 
 be made on your duplicate deposit slip, which is the 
 one that you keep for your records, and remember that 
 you cannot get too much detail on same. For it is 
 awfully hard for anyone to remember transactions 
 which have happened twelve months previous, and in 
 case of doubt, or in case it was necessary to refer to 
 this matter, that detail would look awfully good to you. 
 
 Each deposit slip should be numbered, also the 
 duplicates, and after your journal entry has been prop- 
 erly made, these duplicate deposit slips should be filed 
 away in a safe place, where they will be handy for 
 reference. , 
 
 TRADE MAGAZINES 
 
 At least one good oil trade magazine like the 
 PETROLEUM AGE is a necessity. in every oil office, 
 for with this magazine the executive can keep up with 
 all of the latest developments in the different oil fields 
 in the world, and will ofttimes find information which 
 will help him solve some of his own individual prob- 
 lems in his own field and his own wells. 
 
 This magazine and one other, The Oil Weekly, 
 practically cover all of the information in the oil fields 
 of the world like a blanket, and a man who is really in- 
 terested in the oil business and wants to keep in touch 
 with same cannot afford to be without these two maga- 
 zines. The first mentioned is published by the Graf fis- 
 Sutton Publishing Company, 28 East Jackson Blvd., 
 Chicago, 111., and the latter is published by The Gulf 
 Publishing Company, Houston, Texas. 
 
 AUTOMOBILE EXPENSE 
 
 I have left this matter until toward the last, as I 
 wish to call your special attention to this account, for 
 if this matter was watched more closely, it would not 
 amount to so much. I have kept a separate account on 
 each automobile owned by my company, and I have 
 known of old scrap cars which should have been sold 
 as junk being kept in repair for a year at a cost greatly 
 exceeding the price of a new car, and at the end of the 
 year it was sold for a price less than junk, bringing less 
 than $50.00. Experience has taught me to trade my 
 old cars in on new cars before they have lost too much 
 of their trade value, and by playing this system you 
 will find that you are money ahead at the end of the 
 year, as your cars will be in use most of the time, and 
 not in the repair shop. Your repair and gas bills will 
 be much lighter, and you will have an automobile at 
 the end of the year and not a pile of junk. Someone in 
 the office should be appointed to take care of the pur- 
 chase of new automobile license tags each year, as one 
 or two fines imposed on you for neglecting this matter 
 will more than pay the tax on several cars, and what 
 is everybody's business is nobody's business. The easy 
 method is to let George do it. 
 
 Charge each individual car with its own expense, 
 which is very easily done if this information is placed 
 on the purchase requisition at the time each article is 
 purchased. All expense such as gasoline, oil. storage, 
 flashlights and battery rent should be charged to Auto- 
 mobile Expense; and an Automobile Repair and Re- 
 placement Account should be opened to take care of all 
 repair and replacement items, such as tires, tubes, 
 flashlight batteries, burned out or broken electric 
 bulbs, and any and all repairs to engine, fan, belt, body, 
 top, and wheels, or any parts of same. 
 
 PURCHASING DEPARTMENT 
 
 If your organization is large enough to require a 
 regular Purchasing Department, it will require the 
 service of an experienced executive for same, for this is 
 one of the most important departments in the oil busi- 
 ness, and unless the head of this department has had 
 considerable experience in buying for oil companies he 
 is likely to cost you a lot of money while he is getting 
 this experience, and if he has this experience he has 
 probably worked out a system of his own which will 
 perhaps suit him better than any I might suggest. 
 
 The object of this chapter in my books is to sug- 
 gest to the inexperienced in the oil business things 
 which I have found added to the efficiency of the dif- 
 ferent departments in which they are used, and I can 
 truthfully say that any article I suggest or recommend 
 is the best of its kind on the market today, as proved 
 by test of actual experience in the oil business in com- 
 petition with similar articles put out by other com- 
 panies. 
 
 -20, 
 
FURNITURE AND FIXTURES 
 
 The furnishing of one's office is more or less a 
 matter of individual taste, and the only suggestions I 
 will make are for those who have not had any expe- 
 rience in this line. In the matter of desks I think you 
 will find the flat top types the most suitable for a mod- 
 ern office, as the pigeonholes in a roll top desk are 
 merely catch-alls and the matters usually placed in 
 same could be much better and more properly be taken 
 care of in your regular filing system. Or if you want 
 a handy filing system to take care of your individual 
 needs, I think you will find a system to meet your re- 
 quirements in either a Yawman & Erbe or Byron Desk 
 Company's line of efficiency desks. These people also 
 put out an efficiency typewriter desk. 
 
 In my chapter on Filing I recummend the Yawman 
 & Erbe line of filing equipment and systems, but I for- 
 got to mention that this company has a very nice steel 
 filing section to take care of maps, and as most oil com- 
 panies have quite a few valuable maps on hand, it will 
 be worth your while to investigate this matter. 
 
 A tape recording adding machine is a necessity in 
 any oil office, no matter how small, and it will pay for 
 itself many times over in the avoidance of errors and 
 the satisfaction in knowing you are right. You will 
 find either a Victor or Burroughs will meet all of the 
 requirements for this purpose. But if your organiza- 
 tion is large enough to justify the use of a calculating 
 machine, by all means investigate the merits of Mon- 
 roe Calculator. This machine is as near human as it is 
 possible to make a machine, as by the simple pressure 
 of a plus, minus, or division key you have the total of 
 any set of figures you may have on this machine. 
 
 All standard makes of typewriters have their mer- 
 its and you will find stenographers who will claim that 
 the machine which they first learned to operate is the 
 best. But I believe that if you will investigate the 
 merits of a NOISELESS typewriter you can readily see 
 the value of same, especially if a number of typewrit- 
 ers are in constant use in the same office with your ac- 
 counting department, as such constant noise affects 
 the nerves, and is likely to cause errors. A Line-a-Time 
 attachment fitted on any typewriter will increase the 
 efficiency of the operator of same at least twenty-five 
 per cent, besides relieving the physical strain on the 
 operator. 
 
 STATIONERY AND PRINTING 
 
 In the matter of purchasing stationery, you will 
 find that you can save considerable money by buying 
 same in quantities, as the largest matter of expense In 
 connection with same to the printer, is the setting up 
 of the forms. For your benefit I have made arrange- 
 ments with my publisher to set up all of the forms 
 which you will find in this System, and by this ar- 
 rangement you will be able to make quite a saving on 
 the printing of same, without being compelled to buy 
 in lots of a thousand or more in order to do so. Of 
 course, the larger quantity you order the larger will 
 be your saving on same. Each form is numbered, and 
 
 when ordering same, kindly use this number. The 
 name of the company from whom you may order these 
 forms is THE BOYD-PATTERSON COMPANY, 
 1323-25 Wood Street, Dallas, Texas. 
 
 DRILLING EQUIPMENT AND OIL WELL 
 SUPPLIES 
 
 You can effect quite a saving in the development 
 of your leases by using steel derricks and equipment, 
 and especially so if you are developing on a large scale, 
 for besides eliminating the danger of fire and most of 
 the danger from wind, this type of derrick is easily 
 taken down, moved and reset on a new location. And 
 they are to be considered as permanent equipment. 
 When in the market for this line of equipment you can 
 make no mistake in purchasing the line of derricks and 
 equipment manufactured and distributed by The In- 
 ternational Derrick & Equipment Company of 186 
 Broad Street, Columbus, Ohio. You will find this line 
 fully represented in any oil field which is being devel- 
 oped by experienced oil operators. 
 
 When in the market for tongs, casing, elevators, 
 tubing elevators, sucker rod elevators, floor circle 
 braces and tubing catchers, the experienced oil oper- 
 ator naturally thinks of the Dunn Line. These six re- 
 liable tools are the best of their kind on the market to- 
 day and you will find one or all of them in use on nearly 
 every drilling rig in operation today. This splendid line 
 is manufactured by the Dunn Manufacturing Company 
 of Oxnard, California, and can be purchased through 
 any reliable oil well supply house. Safety, efficiency 
 and durability are the outstanding features of this line 
 of oil well tools. 
 
 Your needs for a reliable meter may be filled by 
 purchasing the line of meters put out by the Metric 
 Metal Works of the American Meter Company, Tenth 
 and Payne Avenue, Erie, Pa. This company manufac- 
 tures meters which fully meet all of the requirements 
 of the oil business and all of its branches, and this line 
 of meters has met the requirements of this business 
 for a period of time, and is still the best line of meters 
 on the market today. 
 
 All of your other requirements for drilling equip- 
 ment and oil well supplies of any nature and in any 
 part of the world where oil is being developed will be 
 fully met by The Continental Supply Company. If you 
 are looking for real service you can make no mistake 
 by intrusting your business to this company, and you 
 will always find them more than willing to advance you 
 all the credit you are entitled to, and you will find their 
 service unequalled. 
 
 It is very important that your purchasing depart- 
 ment keep a complete record of all outstanding orders 
 and be careful to check off same on their arrival. Also 
 be sure to issue purchase requisition for every item or- 
 dered, and place the necessary information on same so 
 that your accounting department will be in a position 
 to charge the proper account with same. Follow this 
 rule to the letter, even when ordering supplies for the 
 warehouse. 
 
 —21— 
 
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 Forms 
 
 lllllllllllllllllltlllllKltllUIIIIMtlllllllllllllllllMllllll) 
 
Form No. 7 
 
 Forma. I3I9-M»-39M 
 
 Lease No. 
 
 Countg or Pariah- 
 State 
 
 Lessor 
 
 Acres Sotd. 
 
 Deaertptton 
 
 LEASE SALE CARD 
 
 LEASE SALE 
 
 Date of iMtae... 
 
 Acres Sold-... 
 Description . 
 
 ..7a.., 
 
 Acres Sotd... 
 Description .. 
 
 Consideration.. 
 Consideration.. 
 Conalderatton... 
 
 Data of Payment. Re&d. 
 
 Date of Payment, Rec'd 
 
 Date of Pagment Retfd 
 
 Size 8x5 inches (3-ply Bristol Board) 
 
 Form No. 5 
 
 romifi. ur«eo»-5»9T 
 
 Lease No Date of Lease... 
 
 County or Partsfa. Itecord 
 
 State _ 
 
 LKSSORS 
 
 LEASE CARD 
 
 ..Pagft„ 
 
 Date of Assignment ^.. 
 
 Record Vol.. 
 
 Pare.. 
 
 Description :... 
 
 Royalty 
 
 Oil r. Terra 
 
 Dry Gas Rental 
 
 Gasoline Gas.l .' Payments Coumence.. 
 
 REMARKS - 
 
 .years. Expires.. 
 
 Consideration 9... 
 
 Vou. No CheckNo 
 
 Size 8x5 inches 
 
 -25— 
 
Size 6x9 inches 
 
 FOR WEEK OF 
 
 DAILY REMINDER 
 
 Form No. 8 
 FOR YEAR OP 
 
 Sunday 
 
 
 
 
 
 
 
 
 
 Monday 
 
 
 
 
 
 
 
 
 
 Tuesday 
 
 
 
 
 
 
 
 
 
 
 -— -^ . -; --,- 
 
 
 
 
 
 
 
 
 
 
 
 1 Dursuay 
 
 
 
 
 
 
 
 
 Vrl/tmxi 
 
 
 rrioay 
 
 
 
 
 
 
 
 
 
 
 Saturday 
 
 
 
 
 
 
 —26- 
 
Form No. 12 
 
 Daily^ Gauge Report 
 
 Fann- 
 
 24 hoon ending 8 A. M _ 
 
 -19_ 
 
 
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 Id. 
 
 Ft. 
 
 tn. 
 
 ■^• 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Wells Pumping 
 
 Hours Pumped 
 
 Wells Flowing 
 
 Wells off and why 
 
 Wells Drilling 
 
 Wells Cleaning Out 
 
 Hours Off 
 
 New Wells 
 
 WeUs Shot 
 
 Initial Production 
 
 Size of Shot 
 
 REMARKS: 
 
 Pumper. 
 
 Size 8%xll inches (Duplicate^ 
 
 —27- 
 
Form No. 6 
 
 Portal. )M9-1M-«9M 
 
 LEASE RENTAL CARD 
 RENTAL CARD 
 
 L€a»€ No. „ DQt9 6f Leaa* 
 
 Month Due. Record Vol.. 
 
 Countp or Pariah ^tate 
 
 LESSORS: _._ 
 
 . POffe.. 
 
 Dale of Aaaignment .. 
 Record 
 
 Aena Meaertptton:.. 
 
 -f-i 
 
 Rental Payments to... 
 
 Das of Month Due 
 
 Lease Expires « 
 
 Protective Clause 
 
 REMARKS: 
 
 Size 8x5 inches (3-ply Bristol Board) 
 
 Form No. 13 
 
 APPC Form 16 
 
 ORIGINAL TO BE RETAINED BY STOREKEEPER 
 
 LOAN SLIP Dci,^ 
 
 _ Warehouse 
 
 Article listed below to be returned to warehouse in same cendition as receired when work is finialMd. 
 
 Nomber 
 
 DESCRIPTION OK ARTICLE 
 
 S. H 
 
 Old 
 
 AoMunt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 U ted at 
 
 Received by 
 
 FOREMAN 
 
 6%x4'4 inches (Duplicate) 
 
 VTOREKCEPCR 
 
 -9«_ 
 
Form No. 4 
 
 Wichita Falls, Texas,. 
 
 -19L 
 
 Mr. 
 
 Deliver to. 
 
 for _^__ 
 
 and charge to account of 
 
 -Lease 
 
 By- 
 
 the following material: 
 
 AMOUNT 
 
 SIZB 
 
 DESCRIPTION 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 PURCHASE REQUISITION 
 
 Size 41^x8% inches. Made with duplicate. Duplicate to be of colored bond. 
 
 —29— 
 
Form No. 9 
 
 SEMI-DAILY DRILLING REPORT 
 
 NOTE l.—Jf there are any defects at any time in machinery or drilling rigs or other equipment, it MUST be 
 reported under "'remarks" by the drillers on their respective tours, and in the absence of such reports the 
 Superintendent will assume that no defects exisv. 
 2—. These Semi-Daily Reports must be signed by the drillers on their respective tours. 
 
 Semi-Daily Report, Ending 7. .._m ._i92.. 
 
 Lease 
 
 Well No Rotary-Star Drilling Rig Depth 7_-_M.._. 
 
 Feet Drilled 
 
 FORMATION 
 
 COLOR 
 
 Depth Total Feet 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amount Drilled Last 12 Hours — Feet 
 
 
 
 
 
 
 
 
 LABOR 
 
 
 NAME 
 
 OCCUPATION 
 
 HOURS 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Remarks: 
 
 Signed- 
 
 ^Driller 
 
 Sizez 5^2x8% inches (Duplicate) 
 
Form No. 10 
 
 Name- 
 
 Has labored - 
 Has labored - 
 
 Doe 
 
 Due 
 
 Dm.. 
 
 TIME OR LABOR TICKET 
 Occupation 
 
 — Month- 
 DR. 
 
 -days at $_ 
 -days at $ 
 
 for Board.. 
 
 ..lot 
 
 ..for 
 
 -per day, amountrng to 
 -per day, amounting to 
 
 . days It $..... p«r day 
 
 Dale 
 
 Date 
 
 TOTAL DEBIT CHARGE 
 
 BALANCE DUE THIS MONTH.. 
 
 CR. 
 
 Form No. 14 
 
 Received Hiyment- 
 Signature _ 
 
 Size 8%x4 inches 
 
 LEASE RENTAL DEPOSIT SLIPS 
 Deposited With 
 
 -»2 
 
 Bank of 
 
 J91_ 
 
 For the credit of 
 
 Fo 
 
 r Rental Due 
 
 
 
 
 on 
 
 acres land 
 
 in 
 
 
 County 
 
 ORIGINAL 
 
 By 
 
 DUPLICATE 
 
 Cashier 
 Please forward this to your customer 
 NOTE: Receipt by Bank of this rental and crediting of same on its 
 books in no way involves bank in tliis transaction. 
 
 By 
 
 TRIPLICATE 
 
 Please return this to 
 
 Cashier 
 
 -31— 
 
Form No. 11 
 
 Oil Producers and Refiners 
 
 PAY ROLL 
 
 AME OF EMPLOYEE 
 
 -Days Ending - 
 
 DISTRIBUTION 
 
 Re pain | Conitniction 
 
 DEDUCTIONS 1 
 
 Size lOVzxU 
 
 —32- 
 
BRANCHES 
 
 located at all Prominent 
 Oil Country Points 
 
 NEW YORK 
 2 Rector Street 
 New York City 
 
 PENNSYLVANIA 
 
 Pittsburgh 
 
 WEST VIRGINIA 
 
 Charleston Clarksburg 
 
 OHIO 
 
 Columbus 
 West Park 
 Newark 
 
 Logan 
 Marietta 
 
 ILLINOIS 
 
 Bridgeport 
 
 KANSAS 
 
 Augusta Eureka 
 
 Chanute Ottawa 
 
 Coffeyville Pea body 
 
 El Dorado Virgil 
 
 Elgin Winfield 
 
 KENTUCKY 
 
 Bowling Green Louisa 
 
 ARKANSAS 
 
 £1 Dorado Smackover 
 
 LOUISIANA 
 
 Shreveport 
 Harmon 
 
 Haynesville 
 Oil City 
 
 OKLAHOMA 
 
 Apperson 
 
 Ardmore 
 
 Barnsdall 
 
 Bartlesville 
 
 Blackwell 
 
 Bristow 
 
 Cashing 
 
 Drumright 
 
 Duncan 
 
 Garber 
 
 Healdton 
 
 Henryetta 
 
 Morris 
 
 Oklahoma 
 
 City 
 Okemah 
 Okmulgee 
 Tonkawa 
 Tutsa 
 Walters 
 Wilson 
 Wynona 
 
 TEXAS 
 
 Amarillo Houston 
 
 Breckenridge Humble 
 Burkburnett Mexia 
 
 Dalla 
 Eastland 
 Electra 
 Fort Worth 
 Graham 
 
 Mirando City 
 Orange 
 Ranger 
 Wichita Falls 
 
 Basin 
 Casper 
 
 COLORADO 
 
 Denver 
 
 WYOMING 
 
 Lander 
 Rawline 
 
 MONTANA 
 
 Great Falls Winnett 
 
 Export Department 
 
 Continental Well Supply Co., 
 
 Inc. 
 
 2 Rector Street 
 
 NEW YORK CITY 
 
 and c/o CARR BROS. 
 
 Finsbury Court, 
 
 Finsbury Pavement, 
 
 E.C. 2, LONDON, ENGLAND 
 
 We Consider 
 
 the Three Elements 
 
 of our Business PoUcy 
 
 Q 
 
 uality ^ Service ^ Price 
 
 Equally Important 
 
 QUALITY of Material, 
 SERVICE in executing orders 
 
 and Service rendered by our Materials, 
 
 A FAIR PRICE 
 
 ^ 
 
 We are the Selling Agents for the Oil Country for 
 
 THE YOUNGSTOWN 
 SHEET & TUBE CO. 
 
 Casing, Drive Pipe, Line Pipe, Tubing, Standard 
 
 Pipe. 
 
 Every step in the making of Youngstown Tubular 
 
 Goods is guarded by the rigid inspection of highly 
 
 skilled workmen in the most modern and complete 
 
 plant of its kind in the world. 
 
 All sizes from 1 /8 in. to 20 in. 
 
 "YOUNGSTOWN PIPE IS GOOD PIPE'' 
 
 Our Line is Complete — Everything for the Contractor, Producer and Refiner 
 
 The Continental Supply Company 
 
 Oil and Gas Well Supplies 
 
 ST. LOUIS, MO. 
 
 GENERAL OFFICE 
 
34\ears Experience Enables 
 
 us io Meei your Meier 
 
 Rec|uii4inenis 
 
 Iron Case 
 Observation 
 
 High Pressure 
 
 ■■• » T »i 
 
 Iron Case 
 Domestic 
 
 Tobey — Domestic ^^| 
 
 HHHHJHHHI^^^IH 
 
 
 ^ Tin — Domestic 
 
 
 Orifice Meter 
 
 
 
 , 
 
 Cm Steam Water 
 
 Oil 
 
 
 
 WESTCOTT & GREIS 
 
 
 
 Kansas City, Mo. 
 
 Tulsa, Okla. 
 
 
 Dallas, Texas 
 
 METRIC METAL WORKS, ERIE.PA 
 
 o/* American Meter Company Inc 
 
PEED. 
 
 *y .^r; ; in 
 
 bPERATION 
 
 r-** 
 
 'lit i' ' '?i\i 
 
 1 Sar^t I 
 
 Safety: To materially reduce or 
 eliminate the hazard to 
 life and property. 
 
 Speed : To speed up and increase 
 the output of workmen 
 and equipment. 
 
 Efficiency: To lower the cost of ex- 
 isting methods of opera- 
 tion to an appreciable 
 extent. 
 
 The features which justify the manufac- 
 ture and widespread use of any appliance 
 or device for oil country work, are Safety, 
 Speed and Efficiency in operation. 
 
 Each Dunn Tool is subject to the most 
 severe tests possible in order to determine 
 the justification for its production according 
 to the above measurement of value. Each 
 one has proved up fully and completely in 
 these, the most vital features of any oil 
 well tool, before it has been offered to the 
 petroleum industry. 
 
 Carried in Stock by 
 
 Leading Supply Houses Everywhere 
 
 Tongs Tubinx Elevators Casinj^ Elevators 
 
 Sucker-Rod Elevators Floor-Circle Braces 
 Tubing Catchers 
 
 Dunn Manufacturing Co. 
 
 Office and Works: Oxnard, Cal., U. 3. A. 
 
 ^ Correspondence AH Cable Address : 
 In All Standard "Dunoiltool" 
 
 Languages Co<Ies Oxnard. Calif. 
 

 
 ■i'- 
 
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