The Petroleum Centre daily record. [volume] (Petroleum Center, Pa.) 1868-1873, 1872-09-28
The MOdus Operantsl.

An OIL City correspo ndent Of tho C!eve-
Herald gives the following as the modus
opersndi BY which millionaires 10 the lower
oil belt are sometimes manufactured. Al
though the hero Of the writer in the Herald
is 60 doubt imaginary individual, 90, there
10 no question that the picture is more Of a
reality tbsn . fancy piece:
Zone point that seriously endsngers the
interest OF the oil region bss never bpen men
toned 10 print, and that 10 the evile OF the
speculation mania. 10 the Psrker's Land
ing district to-day, there are numbers OF
drms repn,ed to be immensely wealthy and
doing busIrsss extensively, that are not
worth . dcl'sc To give your readers just
idea Of how " 10 done, We will give you
supposltion o.se. but one that hss many
conotsrpar'-. One year ago man named
Smith mad" bis appearance 10 the Parker
district. He he'd . business cir about bin,
pisaty ofobsek, and $500 In money. Hs
procured . lease for which he paid bonus
Of 500. He expended $3.50 more for
rig 80 The derrick, engine house, 10, 10
called. The terms OF bis leaee required that
be should give to the land owner one.half
Of the oil produced. After looking around
some time be foucd that Jones had 90 en-
Nns With tools lying idle. He says to
Jones, ~ will give you one eighth Of the
we'll for your engine snd tools 10 put IL
down. Jones accepted the proposition,
and the machinery WAS put on the ground.
He then bad $3.50. left, . ridiculously , email
capitol, as the greatest expense was yet TO
be provi dad for. But Smith didn't get dis.
couraged. Smith never gives up. He call.
ed upon . contrsetor, and said, :'IIow much
will you charge me 10 put down well 90
such lssssi" After a little figuring the
contractor replied. "Thirty-five hundred
dollars" The time of payments was ar
ranged, and tho contractor directed to CONF
msuce work the next dsy. Smith then
went out to certain capitalists and said,
~ have lease on such and such = farm.
I want to sell . quarter. What will yo,
give for III" After two or three days delay
they offered him $780, low price-snd
The offer WAS accepted. Al first everything
went along oil right. Smith made bis firs
payments promptly, and wss considered 9
model operator. After while, however,
bis money became exhausted, and the mer
anxious for their pay. Smith was read,
for tho emergency. His wife was suddsuly
taken sick, and he was away two or three
weeks. Then be bad heavy drafts to meet
aud hs was little short, but would be al
riabViu few days. In snort, by free us
ot the CAB be held the confidence of To-
contractor and the well was finished. |
seldom happens that wells prove good, bu
Smiths well commenced flowing 2UO barrel
= day. 1t was Immediately tsIegrspbed o.
over The country that Smith had struck
two hundred barrel we'll, aud Smith ives o.
right. Il WAS not generally known tbs
y Smith bad only oue-sighth interest 10 th
we'll, and that Ii WAS worth certainly no
more than $40, 900, but 90 ths strength o
the we'll itself b. was able to command un
limited credit, The hardware men wsr
glad 10 hll bis orders for engines aud tool
at thirty to sixty days; cspltaiis,s endorse
bis paper, and money was plenty. H
then plunged headloug into spsculatlo1, p,
: down well after we'll, bought new territory
and perhaps had bic biography printed
the Petroleum Monthly at 60 much per lin
A few wells proved good many were fa,
urss. Smith is still doing business. II
Income Is about $50 per day he has cash
tho bank $1,000. lie owes eontracto
$4,000; and hsrdwrs men $4,000; pap
= falling due at Intervals, and 10 be take
u care ofby giving other paper 100000.
. short time Smith must fail and ruin OFT
ers. There ere many suoh meo now dsin
J, h b business.
= BY references to the card published els
kn r.. -