The Portland daily press., 1885-02-16
An Old Landmark Destroyed.
A HoteI Which Recalls the Famous Pit
hole Oil Farm-FOrtunes Made in she
Early Days of tEse Oil Excitement.
Times.N


By the tearing down of the old Duncan
house at Oil City, the last relic of Pithole's
paimy days had been removed. The house
was built in the spring of 1865 by G. B. Dun
can, and cost $4,000. Duncan was Scotch
man who became interested with John,
George and Abraham Prather in the pur-
chase of the Holmden farm at Pithole, from
which, on an investment of $4,000, they
made $1,0OO,000 each in few months.
The Holmden farm was the pioneer oil
territory of Pithole. The farm belonged
to the father-in-law of John Prather,
who, with his two brothers, kept a
small country store in the village Of
Plumer. A wildcat oil company, known as
the United States petroleum company, and
organized al hundreds of others were formed
in those days for the sole purpose of dispos
ing of its stock, the idea of actually finding
oil not being entertained by any Of its pro-
jectors, leased small portion Of the Holm
den farm on which to base their claims and
to proceed with drilling operations. The
Prather brothers believed they might make
some money on the strength of the work
being done by the oil company, and secured
the refusal of the remainder of the Holmden
farm for 60 days. If they concluded to buy
at the end of that time they were to pay
S25, 1000 for The property. Duncan was then
speculating in oil in the Pittsburgh market,
and to have the benefit of his services
in securing a purchaser for the Holmden
farm they admitted him into the scheme as
an equal partner. While looking for a pur-
chaser for the farm, the drill at the United
States well struck the oil vein, and the well
began to flow at the rate of 800 barrels a
day. The region went wild with excite
ment. There was no railroad or telegraphic
connection with Pittsburgh, at that time,
and George and Abraham Prather, knowing
that the Holmden farm was now worth
81 100000 at least, were rendered nearly
crazy at the thought that their brother John
might sell the farm before they could get
word to him. George Prather hurried to
Oil City and telegraphed to John, but could
get no answer. He then mounted bis horse
and rode to Pittsburg, without stopping to
eat or sleep. From there he took the cars to
Philadelphia, where he met his brother and
Duncan at the Girard House. They were
about ready to close the sale of the farm to
james McCreery for 100000. The news
from Pithole stopped all negotiations in that
direction. The Prathers sold one-sixteenth
of their farm for $125,000 The sale took
place the day before the go days In which
they had the refusal were up. When they
went to pay Holmden the $25, 900 for his
farm, Mrs. Holmden refused to sign the
deed unless she was paid $1,000 in gold.
Gold was then at heavy premium and very
scarce. A small army of men was started
through the country to collect the gold at
any price, and the amount was raised in due
season. In two months Pithole was pro-
ducing $4,000 barrels of oil a day and
had a population of $1,000. Duncan built
the splendid hotel which became so
famous throughout the country. He
also built a Presbyterian church in
Plthole, which cost him $4,000. Eventu-
ally he sold his interest in the Holmden
farm for 81 100000, and, closing out all his
other enterprises, he returned to Scotland,
where he died in 1868. He evidently had
not heard that Pithole was then but de-
serted ruin, for he bequeathed $25, 900 to the
church he had founded in the place. The
Prather boys remained in Pithole until the
collapse came, and each left the region with
100000. The United States oil company,
started as wildcat adventure, made the for
tunes OF all who were connected with il.
The house was purchased by Oil City par
ties, taken down and removed to Oil City,
where it was put up in its original form and
was for years the principal hotel of the oil
metropolis. 1t was abandoned few years
ago and became dilapidated rookery, which
has at last heen takan- dawn and sold for
nrewood. Its original register, bearing the
signatures of men famous in this country
and Europe, great actors, capitalists aud
statesmen is now 10 the possession of a cti-
zen of Pittsburg.