The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-02-07

cash statsepnds on the LIT Of s January, thA sum
OF $500 ,0oQ and ct intervals stheresNsr additional
came but M 500 600 payment did not The Governor
% AUTHORISED by law Immediately took possession OF the
road and declared II forfeited 10 the State ana
has advertised IL for sale the 2lst Of April
Tho Legislature, taking cognizance OF the matter,
mas approved tn, the % action and ds
Osborn, Carpenter Co have executed the mortgage
referred to, with view 1t is said, Of raising money TO
redeem the road before the day Of SALE Whether they
sell the bonds is thing and II they whether
they can redeem the road another The Governor and
S sa s s
stockholders in tho road insist that Osborn Carpenter
Co are not and never WERE the bona de owners Of the
subscribers has entered suit TO enoin the consummaon
Of the said mortgage and put stop 70 Osborn Carpenter
& Co Is operations
The following extract Of letter from a person who
has had some experience in the ''oil business may
prove interesting to many who have invested In pero
leum companies under the deluson that cheering
returns would speedily follow tho Inauguration OF such
enterprises ~ .s .aaa aii aagg
have, for some length Of time, given my undivided
attention TO the oil business especially IN developing
territory. The statistics below therefore derived
from personal experience and observation In tho oil
region Of venango county and may be relied upon a.
Eyst-in regard 70 the expense Of putting down
oil wolL Where have been operating It may DO set
same Tho depth Of boring and distance from the rail
road communication very materially Affect the expense
Second-The cost OF operating the wells after oil has
Deen found also depends upon circumstances. Coal In
the district in which have boon working cost from 81 10
to 81 30 per bushe and from twelve twenty bushels
are required per day, owing whether the engine
portable or stationarythe latter requiring the most
consumes all Of twenty bushels in twenty four hours
pay TWO men four dollars per day each sometimes they
make as high as eight days in the week by means Of
overwork 80 that you readily that twenty dol
lars per day is tho minimum cost Of the labor and other
expenses OF pumping well and unless the well produces
over ten barrels 1t will not pay to pump IT, unless II Is
near railroad or river for transportation and govern
ing at high figure, and when half the oil Is given
royalty, less than twenty barrel well will not pay the
owner for working It, These statements are based upon
the operations In venango county.
There are wells IN other districts in which, at shallow
depths, lubrcaing oil Is obtained, which brings In the
market from $40 to $40 per barrel, of which much
less production will yield profit
ThtTd-Wcre every we'll success the cost Of putting
them down would be small matter; but when II Is
taken into consideration that not we'll in twenty-five
rage cost Of producing is very heavy From my
walton and experience believe am safe in saving that
more money has been sunk In the oil business than has
ever been realized and that every gallon of oil taken
from the ground has COST In the aggregate than
received for IT, Last winter invested In the petroleum
stock, and, with the expectation of making my invest
ments sure thing divided them nine different
companies and yet not one out Of the whole number has
succeeded In obtaining paying well, although at least
twenty five wells have been sunk and about $500 900
pended My observations In the oil region during the
last six months have convinced that these companies
are not exceptions. but como under the rule. have
stood In front OF my office, near Plummer, In Cherry
Run, and within the compass Of my eye, from rough
calculation have estimated expenditure in oil opera
lions S. 900 to So 600 000 without the return Of
one dollar Even In the Pithoe regien have heard It
estimated that not over In twenty wells has pro.
duccd oil.