The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1889-01-31
CAl2NEGIE'S FORTUNE.
The Pittsburgh Iron Makers First Big ven-
ture in OIL.

lure IN VII.
1t is an interesting fact not gener-
ally known that Mr.. Andrew Car
negie, the big iron manufacturer,
whose income was the subject of so
much newspaper comment during
the campaign, made his first big
money in the oil business. The
death, in Pittsburgh, Of David A.
Stewart, chairman of Carnegie Bros.
Il Co., suggests reference to the Co.
lumbus Oil Company, of which Mr..
Stewart was treasurer and the active
manager, and Mr.. Carnegie one of
the several stockholders. This COM
pany bought and operated the Story
farm on Oil creek, between Titus
vile and Oil City, history of which
reads like a story of the Arabian
Nights. It was the richest farm ever
developed in the oil country, and
from his interest in this farm Mr..
Carnegie became comparatively a
rich man. The farm was originally
owned by William Story, who barely
made a living from it prior to the
discovery of petroleum. 1t consisted
of 400 acres, and Mr.. Story offered
the place for 1880, one-third of
which was to be in cash and the bal
ance in three annual payments. He
could find no purchaser until oil was
struck on the creek, and then he
sold it to Mr.. Carnegie and his
friends for SIS, 900 cash. The Co.
lumbia Oil Company was organized
to develop it May I, 1861. Mr..
Stewart was made treasurer and Mr..
Carnegie one of the directors. The
capital stock was S25o 5000, divided
into 5000 shares of SIS each. The
farm proved to be productive beyond
all expectation, and in the entire his
tory of the petroleum industry no
other farm has approached it as an
oil bonanza. The first years output
was 10000 barrels, and the following
year it was increased to $4,000. In
two and a half years after the incor-
poration of the company dividends
had been declared amounting to 1870
per cent. on the capital stock. In
1864 the production of the farm in
creased to 14I,5oS barrels. During
this year the average price of oil was
$9,873 per barrel. During the first
SIX months of the year four divi-
dends were declared, amounting to
100 per cent. on the capital stock.
A month later the capital stock was
increased to $2,5oo,ooo, and a divi-
dend of 5 per cent. on this amount
was at once declared from the earn
ings of the farm. Before the close
of the year five dividends were de-
clared, making in all IS per cent. on
the increased stock. Ten years af-
ter the first we'll was struck on the
property the production of the farm
was 142,o34 barrels for that year.
In these ten years 1,7I5,972 barrels
were produced, and the whole
amount of it's dividends were 4o1 per
cent. on its capital stock. In law
suit in Erie in 1885, Mr.. Stewart,
treasurer of the company, testified
that the Columbia Oil Company had
sold oil from the farm to the value
of between $4,000, 900 and So, ooo,o 900
Estimating the amount of oil pro-
duced by the farm since that time,
the total output is placed by practical
oil men between 10000, 900 and S1o,-
100000. Although the Story farm
has been constantly operated for
twenty-seven years it is still produc-
ing about 100 barrels month. All
the old original wells have been
drained and abandoned some years
ago, and the present production is
from new wells drilled within the
past few years. Hundreds of farms
in the oil regions have yielded vast
fortunes to their owners, but none OF
them have record equal to this, and
from this farm Mr.. Carnegie re.
ceived a start that has made him one
of the money princes of the world
zitWsUtNe (Pa.) Letter.
MAKE No MIsTAKE.-Ifyou have made
up your mind to buy Hoods Sarsaparilla dc
not be induced to take any other. Hoods
Sarsaparilla is peculiar medicine, possess