The herald., 1895-08-19
THE LOCAL OIL INDUSTRY
Its Present Condition and
Future Prospects
EXTENSIVE DEPOSITS discovered
Beginning OF a New Epoch for
Los Angeles
THROUGH MANUFACTURING
Ths Crude Oil Is Cheap and Very
Superior Fuel
No Limit Has Yet Been Fc1nd to the
Oil Field
A Wide Market Opened in the North-Trans-
portation Alone Neeied-Prosp.cts for
Immediate Relef-Capitalsts
Showing Their Faith
No Limit Has Yet Been Fclud to the
Oil Field

n:That extensive deposits of petroleum
exist in Southern California, almost in
the very center of the city of Los Angs-
les, is not news to great many. That
these deposits have been partially ex-
plored and their richness demonstrated
by the successful drilling and operation
of several hundred wells is known also
only within a limited territory. 1t was
but a short time ago that Los Angeles
oil men became aware of the fact that
they held in trust one of the richest gifts
of nature. Now the truth is known and
the consequent growth which has fol-
lowed that revelation, is without par
allel in the amazing rapidity with
which California was peopled after the
announcement OF the discovery of gold
in 1S47. AS at that time. the discovery
Nns made by a pioneer. whose determin-
etion led him to prosecute the work Of
investigation in spite of adverse circum
stances and the discopraging advice of
friends. The result was a brilliant sur
prise to everyone. Immediately new ven
tur,p wrere made, and soon number
wers drilling for oil at points as near a 5
possible to the place OF the original dis
ecvery.
For some time work continued in this
manner until quite a bit of oil had
been produced, when the question arose
as to what use was to be male OF it. 1t
was found to be an excellent fuel, and
o. such 1t quickly superseded coal in
many of t he local plants. Producers
then received as high as 81 per barrel for
their oil. Z ncouraged b. tha success of
the early oil men, others embarked in
the industry, and tall derrioks sprang up
like mu shrooms over a widened field. An
increased supply thus put upon market,
which was as yet only local, reduced the
price. Still the field was extended, larger
wells were found, and noseffort was made
to widen the market. Oil at once began
to go down. and continued to fall as the
supply furnis shed by newly opened wells
increased. With the supply constantly
increasing and the demand at a stand
still, the market became gllttei and
prices ran down to sucn low hgues as not
to pay for the cust of production.
Then followed an embarrassing period,
wells were put down during that time
and some of the old ceased operations.
The question OF widening the market be-
gan to receive attention, and various
plans were discussed. but no fruitful ac-
tion resulted. Oil men were practically
in the hole. They had no means OF trans
porting their product, even if an outside
market were to be had. But they were
not assured of that.
In this manner the oil industry stood
for period of months. AS "a result of
the continued agitation of the question
OF greater market, means were adopted
for the formation OF an exchange. The
producers came together on July 11th,
Just q month ago, and movement was
soon started which eliminated in the
formation of the Los Angeles Oil Ex-
change.
Since that day things have taken new
start. The exchange began active and
aggressive work at once. committee
was sent to San Francisco to aJquaint the
manufacturers of that city with the fact
that a cheap fuel could be had from this
section, which was vastly superior to
coal and appreciably cheaper and safer to
use. The committee met With the most
encouraging success. 1T found wide
market ready TO receive the southern oil
in almost unlimited quantities, when
ever it was placed i'll their hands.
Next came the question OF transporta-
tion. How to reacn the new marKet?
Arrangements were attemp pied with the
Southern Pacific. which operates the only
line between Los Angeles and the nortn.
but nothing could be done with chat COM
pany. They refused to put on any special
cars for conveying OIL, offering simply to
lease a limited number for which they
would charge at the rate of 81 cents per
barrel from Los Angeles to San Fran
cisco.
Failing in securing the hoped-for trans.
portation by rail, the exchange turned
their attention to the steamership com
panies. No satisfactory agreement could
be made In that line. The question of
transportation still renamed llnsolved.
From northern capitalists then came q
numb ber of offers all of which were based
upon the pIoviso that u certain amount
of oil be guaranteed for shipment each
trip. careful canvass OF the producers
was made. and enough oil found to
secure the much desired relief OF transport
tatlon to the northern markets.
The exchange is now negotiating for
the laying of a pipe line to the sea from
the fields, the erection of large storage
tanks at the seaboard, and the maiuten-
ance of line OF oil steamers between this
place and upper coast ports
With these assurances OF relief in sight.
the oil men have begun The prosecution
OF their WORK Win retOuDIeI cUcrSN. he
field has never grown so rapidly before
as now. New wells are being drilled in
every part OF the oil section. and the old
boundaries are being crowded over on all
sides. AS yet no limit has been found.
The site of the present field. according to
the most recent figures is one mile in
length and 1000 feet in width. IL is situ-
ated in hilly section OF land, not quite
. mile west frUm the center OF the city.
1t is, in fact, built upon ground which
was formerly held to be valuable for resi-.
dence property, owing to its proximity t.
the business center and the slightly view
from the hills.
Ever since the beginning of the oil busi
ness a controversy has been carried on
between oil men and residents Of the OF
belt. The matter found its way into tht
courts, where lengthy litigation was
carried on until quite recently, wnen thu
cases were decided in favor of the oil in
terests. For while the fire commits
sioners took it upon themselves to lssu'
permits to parties desiring to drill for OF.
but that. too. was done away with. auo
there is now no impediment in the wa!
of the industry.
4, Tho Iocation of the Los AnCeios nj