Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-04-21
ESPECIAL TELEGRAM TO TIE DrspAroH.r I


ESPECIAL TELEGRAM TO THK DTsPATcRI
LIMA, April 2O.-Pennsylvania people
who are not unlikely to become alarmed by
the numerous fairy tales sent out from this
new oildom can with safety deduct from 80
to IS per cent from the general newspaper
reports sent out from here, particularly to
the Ohio papers, and need not be at all scru-
pulous about questioning the balance. The
whole town is stark mad and doesn't know
or care what it is talking about, in so far as
Lima oil and its future are concerned.
The solemn facts that the Standard has
acquired control of as much as possible of
this territory and is building pipe line to
connect this field with all its works, and
even that it is refining Lima oil, are now
admitted by everybody, the Standard in
cluded, and the Pennsylvania oil people
must govern themselves in accordance with
these facts and common sense, but they
must make due allowance for the excitement
existing here, when considering any of the
extravagant reports new current
will give some idea of the existing state
of affairs by overhauling a column of
ridiculous misstatements published in to-
days Cincinnati Enquirer. 1t speaks of
this as the greatest petroleum producing
region outside of the famous Baku district
of Russia, when the daily production does
not average over 80, 900 barrels, and speaks
OF 1000 to 1,500 barrel production on 100
acre tracts, when the average is 800.
DELUsIvE STATEMENTS.
1t tells of tankage here tor 81 ZOO, 900 bar
fels, exclusive of pipe lines, when they real
ly have about 450 35,0O0-barrel tanks. 1t
has the amount of oil in tanks here down
all right, but says this Is, 600, 600 barrels of
oil is worth as it stands $40 600, 900 to the
Standard. In other words according to this
report, Lima oil, for which the Standard
paid 10 cents, is worth 81 80, or over so per
cent more than Pennsylvania oil. The ex-
travagance of the statement is too apparent
to need comment.
The district to-day, with restricted pro-
duction, is producing 80, 900 barrels daily.
or say $50, 900 barrels a week. The produc-
tion, as is well known, could be raised to
100000 barrels a day, if such thing was
desirable. This statement is important, and
is hardly less exJravagant than the preced-
ing one, IN SO far as the possibilities ex-
pressed are concerned. Of course it is
hard to estimate what amount the earth
contains, and 1 have certainly no desire to
depreciate the importance of this field, but
desire to state such facts as will be valuable
to Pennsylvania oil men who are endeavor-
ing to come to a conclusion.
People who come here from the Pennsyl-
vania oil field find very different surround
lngs from what they are accustomed to. The
rocky hemlock foothills are conspicu6usly
oh md Se L
Of oil excepting the odor and tanks and
derricks, which look out of place. 1t is a
level agricultural country, and the putting
up Of derrick here previous to the natural
gas excitement, when oil was accidentally
discovered, would have been regarded as
sufficient evidence of insanity to put any
man in lunatic asylum.
ONE WELL ENOUGH FOR 50 ACRES.
The difference between this oil territory
and that in Pennsylvania is not confined to
the surface. The rock is as different as the
products OF the two fields, if not more SO. In
parts OF the Pennsylvania field well to the
acre Is not an unusual thing. In this field
they followed the rule, and there are to-day
numerous holes not being worked at ali.
The rock is SO porous that one we'll will
drain ten acres and one well to 10. 20 or
even 90 acres seems to be more in accordance
with the nature of things. 1t has been
found that it is matter of choice between
one large or several small wells. One we'll
will drain an immense territory. Further
more if a man don't get big we'll and
good wad of money at the outset he gets
LEFT. A 100 barrel well falls off to about 25
barrels in year.
One disadvantage under which Lima pro-
ducers labor is the fact that all Lima oil has
to be pumped. There is DO pumping by
heads and no gas to make the well flow.
The same paper gives currency to some
alarming nonsense regarding the future
price of Pennsylvania oil, which is credited
to an old, experienced Pennsylvania pro-
ducer who had been squeezed I'D on the
right hand and frozen on the left by the
Standard. He is reported as saying:
WON'T BEAR ANALYSIS.
at will recede, of course. and coutinue
to recede. 1t can't hurt anybody in this
field, but it means death to PENNSYLVANIA.
The result will not be to put down the price
of crude here in Ohio, but it will drag it in
Pennsylvania down to the Is cent level. In
this one field the Standard controls 3S. 600
acres, capable OF producing at least 80. 600
barrels day if necessary. There is no mar
ket for oil If it ran armpit deep in the
brooks, except through the Standard. The
price hereafter paid for crude oil is a mere
farce. Why? Because they own everything
except royalties. Why would they put up
the price? They are now paying in this
district Is cents barrel on their royalties.
They would be great fools to give gratuities,
and to advance prices now would be to give
gratuities. There are no fools in the Stand
ard Company"
This sounds all right If you do not stop to
analyze it when it appears to be absurd.
One question will settle it. If the Standard
should reduce the price of Pennsylvania oil
to Is cents, how long would it be before
there would be a market for it outside of
Standard. At any such ridiculous reduc-
uon independent refneries would spring up
IKE mushrooms, for Pennsylvania oil is un-
ooubtedly the best and would admit Of
greater profits at an equal price Tor both oils.
LIMA OIL AS BASIS OF VALUE.
ii there is anything that the Standard can
be depended upon to do il is to obstruct all
ROADS leading to competition, and it will of