New-York tribune., 1890-06-05
A BIG PETROLEUM IDEAL"
THE STANDARD BUYING PRODUCTION.
FOR THE ABSORPTION OF FoU1
OF THE LARGEST PENNSYLVANIA
COMPANIES.

COMPANIES.
Negotiations are now pending In a transactioR
which may prove TO he one OF the most lmpof'ant
operations recorded in the history Of petroleum.
They have reached stage which forbids the
idea of their failure although all the necessary
details have not been completed There Is every
prospect that at an early date the control of the
four largest oil-producing companies which own
territory in Pennsylvania and West Virginia will
pass into the hands Of the Standard Trust in
teress. The companies are the Forrest, the
Union the Anchor and the Washington, together
with the smaller interests attached 10 them.
The amount involved in the Transaction will
reach several millions Of dollars and large pro-
portion Of the current production and Of tho
most promising lands in the petroleum region
will become the property of the controlling re-
fnng company.
Inquiry at the Offices OF the Standard O1I
elected an admission that negotiations were un-
der way, but for detailed information inqurers
were referred TO the other parties TO the pro-
posed bargain II was learned, however that
the deal" has received the approval Of the lead
ing stockholders in the several companies, and 10
may be accepted as virtually accomplished. The
terms of the purchase are withheld from the pub
lie. but it is understood that good prices were
paid by the Standard 10 complete its acquisition.
IL is not known just how the Standard will ar.
range for the control of the properties. The
stocks of the companies may be passed 10 the
Trust or they may be partially or completely
merged in or consolidated with other producing
companies of which the charters are in the con-
troll Of the Standard. 1t is believed that tho
machinery of the purchased companies VIII no
maintained and that the present officers and
managers will develop the properties in line wlth
the Standards policy. well-informed man,
who has no relations with the refining interest,
said Yesterday: 4" / regard this transaction -
one Of the hest strokes the Standard ever ac-
complished. II not only secures 10 it large
proportion Of the output Of crude oil and some
large tracts Of rich territory, but II ensts in ITS
service many of the most Efficient and able eX-
plorcrs and managers OF producing property in the
oil country
The Union Oil Company has a capital stock OF
81 0OO, ,000 and has recently been paying per
cent dividends. The capital OF the Forrest Oil
Company is 80, 600. 900, and it pays per cent
The Anchor Oil Company has capital of about
81 200, ,OOO and yields per cent to the share
holders. The capital of the Washington Oil Com
pany is 81 900, 900. The purchase is said % be
of the capital stock of all the companies except
the Anchor. The property of the latter company
is bought outright. Estimates place the producing
"a
concerns at close upon 100000 acres. The terr-
tory is all the way from the bradford field, IN
Mexican County. Penn. 10 the fields around Pitts
burg and in the promising territory OF Wesc
Virginia rough estimate OF The average daily
output Of the companies is as follows: Union
1900 barrels Washington $500, Forrest 1900,
Anchor .0O0 total 800. Counting in the yield
Of some subordinate concerns the transaction VIII
place in the control OF the Standard from 5000
TO 1900 barrels of petroleum day. The COM
panias that are absorbed The most important
in the PENNSYLVANIA fields. The largest individual
operators are John McKcown ard Thomas l..
Phillips. the latter having been the head Of the
shutdown movement Of SS7-'SS, which reduced
stocks above ground about one-haf. and enabled
the trade 10 secure good prices for its oil ever
since.
Hints Of the deal" have been given at tha
Consolidated Stock end Petroleum Exchange in the
last few days but the foregoing statements are
as near an official recital as can he made In face
Of the retccnce observed by the two parties % the
bargain. As rue. the quiet comment OF th0Sa
who possessed any information on the subject was
that the transaction ought to tend TO steady the
value OF crude oil. This view maintained by
some persons in spite Of the decline recorded at the
Exchange. The bringing in of the standard as
large producer. il was argued, would give II an
interest in supporting values far possible
consistent with its refining business BY assuming
the managemc of the big companies IL would
lca I'm practical lesson TO the cost Of oil mining,
and il would be- forced 10 bear the losses in the
future Of Improbable ventures in the search for
new fertile territory
Another argument urged was that the purchase
indicated the high value placed by the refining
power upon the present supply Of the Pennsylvania
! commodity.