Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1865-06-09

yollo. ~ Woeto V,VVvVVv. - r
n produalns ths61l IL esnpo1ntivs klgna
4 would pefhaps b. sals 70 estimate 49,
Do0, 900 d this amount - repressnting re
~ ufuft on this retusn. Thin grin wonh
81 eodivale to profit Of twenty pr csne
upon On, 0O0, 900 Of Rid pp capital which
mount assy b considered - s6oot she tnn
Dcfuallv invested In petrolsun enterprises
N f001. upsu m avsfaesfor TIE ysar. On.
rine the closing months Of 1864, and the
Ant three months Of the current year, the
crSeAiou Of coupooies hes progressed ct .
rte that would make up The difference b.
tween the 81, 000, 900 Of paid up capital
~ ssEinalsd go ~ 1a16y 900 eco akssel
stated, ~ The probable paid up capital ct the
closs Of Mach, 1855. 4
The course adopted 10 some, Of conpar.
iae H. paA ia sef pstsoleam with he
present capital invested in It, productioo, 10 |
obviously unfair; for 1bost a the M con-
panies have not yet had time for the dsvel. |
opmsnt Of their lands, Within the last six |
months heavy proportion Of the whole |
number Of now existing companies has been |
organised and most Of these are nov en-
gagged in boring operations, which may be
expected soon to yield the usual 6ow, but
which, ofnecessity, have O. yet made almost
no return upod the Investment. The sever
ity Of the winter. the devastation Of the
foods in Pennsylvania, the danger Of guer-
rilla depredations in Western Virginia, and
the difficulty everywhere Of getting the ap.
pliAncss Sor boring and pumping, have oil
I conspired to retard the development Of new
lands, within the last few months. 1t is
reasonable TO expect that when these new
companies have made fair degree Of pro-
grsss in their operations, We shall witness
large increase IL the production OF OIL
Throughout he history Of the pstro'ssm de-
velopmsnt il has bssn found that the aggre-
gate product has increased o. boring opera.
lions have been extended; and there is ap.
parent reason for anticipating now any ex-
ception to this rule.
svrscr or An INCREASED SUPPLY UPON fHs
PRICE.
The immediate result. Of such an increase
on the supply Of petroleum, NJ may be cx-
pected from the experiments in progress,
would, undoubtedly, be reduction Of the
price Of the product. Whether thst effect
would be temporary or permanent. howev-
or, Is open to question. II il not suppos-
abls that the fore On demand has yet reach
"A Ia ma xirnum. There are immense tracts
Of nopulation in Europe and Asia that have
not vet learned to substitute petroleum for
tho more costly and less efficient means Of
| illumination now in use (; commerce will
steadily offer petroleum to these people, un-
| til its advantages overcome their time worn
prejudice and win them over to the consum.
ton Of the great illumination Of the western
world. The active interest taken in this
commerce by the merchants Of England,
whose trading connections are ramifed
through oil civilization, will insure steady
increase Of consumption among all civilized
countries. As in cotton SO in petroleum
the United States will be the producer, and
Great Britain the distributor Of the pro-
duct.
Nor ia this the only consideration affect.
ing the future demand. The progress of in
vention strongly indicates that petroleum is
destined to be largely used for heating pur-
poses, as we'll rs for Illuminating uses. II
has been demonstrated beyond all question,
that petroleum contains the chief elements
Of heat possessed by coal, and that the for
msr will yield given amount Of heat at a
| much less cost than the latter, and with o
great saving in point Of convenience.
All that remains to be achieved in order
to an extensive substitution Of petroleum for
coal, and wood fuel, is the invention in this
branch of improvement. The fact being es
tablished that petroleum is . cheaper and
more convenient fuel than anything else.
chemistry and mechanics may be relied up
on to speedily produce the needful means
for applying 1t to domestic and manufacture
ing purposes. Should this be accomplished
the consequent demand would be almost H.
limitable. There appears. therefore, reason
for believing that, although the present and
future enormous development of oil lands
may very largely increase the supply Of oil,
yet the demand may, and probably will, be
found at no distant day to keep pace with
the enlarged production. In that event,
the future course of prices would not, on the
average, materially vary from those now
current.
VALUE OF OIL LANDS.
There is 30 much uncertainty as to what
may be the yield Of a tract of land, that it Is
difficult to say whether the current prices
are dear or cheap. That is matter depend
ing upon Just estimate of the average yield
Of oil to the acre cons deratiou which we
apprehehend, none Of the oil Spectators
have vet found leisure to estimate. One
thing Is certain, that where the land turns
out productive, the loss must be i'm
mcnse. On the other hand, where oil is
struck in liberal quantities, the land will re-
pay its cost. A parcel Of one hundred acres
purchased at $500 per acre, with the wells
sunk upon it at an aggregate cost Of CSC, 900
would involve an Investment 600, 900 and
. yield Of only eight barrels per day, at an
average profit of *45 per barrel, would re-
turn ten per cent per annum upon the in
vestment. Considering, however, the liza
bility Of tho flow to interruption and stop
page, the yield, upon such aproperty as we
have instanced, ought to be at treble this
rate. Whether lands held in the market at
$500 per acre generally a reasonable aver
age promise Of yield Of % barrels per Gay,
VIC don't pretend to decide. The question
! can only be settled by an extend comparison
of results for which the necessary data is
lacking.
The enormous prices paid for oil lands in
Pennsylvania seem to overlook the fact that
oil is to be found elsewhere than in that
State. Immense tracts Of territory may be
bought in West Virginia at Sl0@20 per
acre, which in the opinion Of the most scien-
tific Judges, cover oil deposits as valuable as
anything discovered in Pennsylvania.
Should actual development confirm the opin-
ion Of biologists, that West Virginia is as
rich in oil IS Pennsylvania. there must be
very heavy fall in the price Of lands in the
Allegheny region, and a corresponding rise
in the value Of property in the Kanawha
valley. While there is so much probability
Of the existence Of great oil basin underly-
ing the region Of the Kanawha, it seems un-
wise, not to say reckless, to rush wildly in.
to Oil Creek speculations, accepting just
: such prices ~ the. half-inssnc landhc lders
think proper to ask. Oil spectators, how
ever, like ''swells' and bellies, appear to be
wholly controlled by fashion. Oil creek
lands - the peg tops" of the day, and
. nothing else is cared for, no matter how
e much cheaper and better it may be.
!, DISTRIBUTION OF PETROLEUM.