The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1865-03-23
Petroleum-Oost Of Production and the Re-
sultant Profit.


To the Editor of the Press: -
was pleased with the article in your paper
OF Saturday morning, signed "Public," car
tioning our citizens against making invest
ments in the fancy petroleum companies that
are thrown upon our markets with the idea of
great dividends to the stockholders, the same
being advertised as located in the vicinity Of
great paying wells. If these companies
would only give the public the true facts, not
dollars worth of this stock could be sold in
our market.
In the first place, the lands in the oil regions
of Pennsylvania, "the best lands" are owned
by rich companies in the cities of New York
and Philadelphia, and these lands are leased
to parties by the acre or half acre, and the
companies working the same-paying to the
land proprietors fee interest of one-half of
the products of their wells, ii they are sue
eessful in obtaining oil.
The cost Of operating these lands is enor-
nous. To sink well the usual depth of 900
to $50 feet, will cost. including engines, &C..
about $4,000. And the expenes after the well
is sunk don't end here. Oil is only obtained
at great expense from that depth. Your
well has to be provided with pumps, and the
necessary machinery, and pumped with steam
engines. Coal at the oil regions costs $1,25
to 81 30 per bushel of 70 pounds; wood $14 to
$15 per cord. Ordinary board for labcrers, is
81 per day; a man and two horses, $35 to $50
daU pAa lax, T.. l..
that transportation to place the oil in the mar
ket of New York and Philadelphia, costs
about 81 per Dbl. The barrel cost So so; gov
eminent tax is 81 per Dbl. Now paying to
the owner one-half the oil, it leaves 81 rs to So
abb. to those who operate the wells.
On Fridsy last, on the decline OF gold, the
crude petroleum sold for $12 per bbl, in the
market at Philadelphia, and the stock of one
Of the best paying wells in the United States,
declined from SIT to $40 per share. H.N
The Philadelphia Commercial Register says
that there will be in operation in the Counties
OF Venange and Clarion, this spring, 600 en-
gines, and one-half that number in the cour-
Ties aoJolllinss s.s,z z-...-o. +his sill frrthor
enhance the cost of obtaining the article OF
petroleum in that location.
Is is said that the Southwestern part OF the
State of New York, in the Counties of ALLIE
ghany, Cattaragus, and Chautauqua, they being
in the same great valley and on the Allegheny
river, has every indication that is presented
to Pennsylvania. both as to surface and for
nation, of the Bedrock Oil Springs, and Gas
Spring are abundanily found in this location.
The cost of operating the lands in these three
counties is seyenty-fve per cent. less than in
the oil regions Of Pennsylvania. Wood is OBJ
tanned for 50 per cord, and coal in the same
proportion. Board is So to 81 per week. A
man and two horses 81 to So per day. Freight
to New York and Philadelphia $15O per Dbl.
As these lands are located ON the line of the
New York and Erie Railroad, arrangements
are being made to sink $50 wells this season
in these three counties. There are now some
fine paying wells in operation, and no well has
been commenced and prosecuted but gives as
good show for oil as wells at Oil Creek, Penn.
Will not these lands be developed when it is
found that the expenses of operating in the
present oil regions eats up all profits, and the
working expenses are reduced seventy. five per
cent? CAsoo.