The herald., 1895-06-15
LOCAL FIELD OF COMMERCE
Development of the Oil Indus
try in Los Angeles
PRODUCT CAN BE REFINED
Favorable Reports From All Parts OF
the Country
Better Employment for Labor Especially in
the Wcst-Continued Advance In Iron
and Its Products

The petroleum industry within the city
limits which is yet in its waddling
clothes, is making growth and develop
ment which is little dreamed of by our
own citizens, except those who are di-
rectiy engaged IN the development. The
journal, in a recent issue, gives these
facts ON that branch of industry:
The oil business has many sides to it
that do not always strike the observer at
first. The first thought disinterested
person has about it is that it must be
great thing for the city. Observation
confirms this impression. There are a
good many wells IN operation. The der
ricks, standing closely together, look like
forest OF timbers. There must be 225
wells in the Second street district. They
represent an investment, exclusive of the
land, of perhaps $500, 900. A great many
men are employed in the aggregate. al
though fewer than might be supposed,
for the completed wells need little atten-
ton, and from ten to twenty-five can be
pumped from one station. The average
price for pumping is something less than
vi per day, for there has been competi-
ton among the bumpers. This repre-
sents about $3.50 per day paid out for this
item. The output may be 1000 barrels
daily, but it is probably less. 1t is not
easy to get accurate figures, for the own
ers of wells seem to like to put good
liberal estimate on the output. Oil is
selling as low as so cents a barrel on the
ground, SO that it is quite possible that
the output OF the Second street district
at the present time does not represent
more than $1,000 per day. Still, that much
money put into daily circulation means
great deal to our own business men.
time and generally yield we'll. Some of
the old ones particularly those that were
not put down far enough. have given
out. The proper depth is about 800 feet.
1t is matter of great importance that
the experiments so far conducted seem to
prove that the oil can be successfully re-
fined.
The limits OF the field are being grad
ually extended, but operators are very
cautious about venturing far out of the
proved territory.
The weekly review of trade by Dun
& Co. has the following:
1t is no longer a question whether bust
ness improves. Not for long time have
our reports from all parts of the country
been so uniformly favorable. The daily
average of bank clealings in June is
24.8 per cent lager than last year, though
11.S per cent less than in 1892. The
of more favorable advices regarding
growing crops. Labor troubles are get
ting out of the way, wages in many es
adjustments are rising and the IRON in
dustIy just now leading, there is general
trp Senaons n asa hap be None e
draws near when a good crop export will
bring gold hither and though foreign
operations in stocks and bonds have
been insignificant this week the effect
of the previous transactions has not been
| exhausted. Much diminished receipts
, of money from the interior indicate bet.
ter employment in business and especi
ally at the west and the volume of COM
merclal loans steadily rise and is now
fair for this season. even in good year.
Western receipts for two weeks OF June
were 3, JIG $50 bushels of wheat, against
3.0O1, 202 last year. while Atlantic ex-
ports flour included, were only 2, 364, 947
bushels against 1880, 227 last year. The
effect of the rise in prices was seen in
the official reports of May exports. show
ing a decrease of 1000. 900 bushels from
Atlantic but an increase of 1000. 600
from Pacific exports. The price was re-
duced ~ IN trading. Corn also declined
about l cent, with better reports of
growth.
The output of pig iron June was but
tritle larger than May 1-157. 224 tons.
against 156. 554 month ago and ia, 022
tinues. Bessemer pig reached ST.. 40 and
grey forge $l0.65 at Pittsburg, and
changes in all iron products shows an ad
avnce OF 3.7 per cent this month and 1873
per cent from the lowest point In Febru-
arv. For this conservative industry the
rise of 26 per cent in Bessemer iron seems
large, but it compared with So per cent
in cotton. So per cent in wheat, 60 to 10
per cent in leather, so per cent in refined
oil and over II per cent in. hides. All
those products were at the lowest prices
ever known and remarkable gains were
to be expected when any came, but with
each consumption has yet to justify ad-
vanCes.
Bradstreet has the following resume
for the week:
The recent check to the activity in gen
eral trade, taking the country as whole.
frosts of the close of May has begun to
register itself in relatively fewer upward
spurts of prices for staples and moderate.
ly smaller totals in bank clearings. The
cereal crop scares, with the frost, fright
ened foreigners out of Wall street for the
moment, and since then the speculation
exchanges and leading commercial houses
have been busy trying to determine fu-
ture vaiues on the basis OF present condi-
tions.
The except in the fall is found in the
remarkable exhibition of strength by
iron ana Steel, winch, WltnOut special
orders from railroad and other large con-
sumers. have again advanced all along the
line. Exports OF wheat, flour included as
wheat, from both coasts of the United
States and Canada showing a surprising
decrease, the total amounting to only
!. 7s1, TAT bushels. against ., 99l, 900 bushels
last week. Boston, Montreal and Balti-
more report very much smaller ship
ments of wheat than last week and at
Newport News much less flour. This
weeks total wheat and flour shipments
appear to have been the smallest since
the second week in June, 1891. There
have been few changes in the trade stu
alton at the south, but these are in the
direction of improved demand, princi-
pally in dry goods, shoes, hats and other
seasonable goods, with the prospects for
a good fall trade should the crop pros
poets remain as at present.