The herald., 1895-11-11
los ANGELES PETROLEUM
Discussion Of the Superiority
of Home Market
SAN FRANCISCO NO GOOD
Ballast Coal at That Port Preciudes
the Use of Oil
Comparison Of the Product and Character Of
This Deposit With the Ohio and
Pennsylvania Fields

ESuuoytvou0 TtCI0U
To one whose thoughts of California
have always been associated with visions
of golden sunsets. tropical flora and
elvsian climate, the advent Of any tn ing
so utilitarian as steam engines, oil der
ricks or refineriss seem as incongruous as
a picture of shingle mills in Paradise.
The idea of the residence portion Of the
city OF Los Angeles beng dotted over
with offensive smoke stacks is a shock to
ones sensibilities; yet such has come to
be a grim reality. The vision is no less
blessing than the unequalsd climate and
soil which have MADE California Justly
celebrated as the "land of the after
noon.'
Though it is now scarcely two years
since oil was first made use Of for COM
mercial purposes in this district, the field
now presents much the same aspect as
may be looked upon in the older and
long worke d regions of Pennsylvanio
and Ohio. The methods now in use
are substantially the same as one on
counters there and the general appear
anoe of thrift and activity are their exact
counterpart. The plan OF util iziny the
isolated plant system has been to great
extent abolished for the more economical
system of pumping jacks. BY the lattsr
method q series OF wells within vi IL
area are aotuated from q central station
and by the use of greatly reduced force
of men. In some cases, notably at the
plant OF J. G. Elliot, the item Of fuel
kna vv,sr 1t,th xvt k,o
utilization of natural gas from one we'll,
which flows in sufficient quantity to sup
ply 20.horse power gas engine. The
economic management OF the industry
has still further been accomplished by the
introduction OF the piping system as
means of transportation, in many cases.
The latter plan has been adopted by
large firms having storage tanks adjacent
to the railway stations, or located within
the manufacturing district
The limits of the oil district now being
operated are comprehended by an area
extending about one mile east and west
and one-fourth OF that distance from
north to south. This tield is located in
the heart of what vas recently one OF the
most highly improved residence districts
of the city. and is therefore now dotted
over with pretentious residence struc-
lures. Within ii one may sse huge oil
stained derricks arising in back yards and
alleys. by the side Of handsome porches
and upon lawns in front of residences.
Running riot throughout the field are
traverse the sites of 1ower-adorned
lawns, and usurp the region of the back
fence. Overhead are flying cables At
tsohea to distant pumping jacks. while
under foot is spread out in every direc-
ton net work Of pines. Upon all sides
are huge oil tanks. of the vintage OF the
brewery loft or cooling room. but large
enough to hold 1000 barrels each. Every
where the eye meets the ceaseless motion
of the swinging pump Levers and the ear
is greeted WITH the hiss of escaping
steam. The whole aspect Of the place is
that of intense activity, and is in strange
contrast with intermittent glimpses of
domestic habitaiions which are visible at
intervals along the borders of the field.
Since the discovery of oil in this field
a constant and bitter warfare has bsen
waged between the owners OF residence
property adjacent to the field and the
we'll owners and wildcats" as the pros
pectors are called. In many cases tina
value OF property has been disadvan-
tageously affected by the new industry;
but upon the whole prices have been at
ected to the good. Property imme-
diately adjoining the field. but
which is not oil bearing property.
has suffered most. Within the field
lots have brought more than rasi-
turned into offices. stables. machine
shops and other necessary appurtenances
In some cases the exigenUies of situa.
tions have demanded the running OF
cables through them to comm unicate with
pumps belyoud.
WORK OF THE OIL EXCHANGE.
At no time since the development of
the oil field began have prospects of its
profitable working been so bright as now.
This happy condition is the result Of
organization ana the establishment of an
oil exchange. The personnel Of the body
is drawn entirely from the membership
of firms now in the field. The objects
ed at are the establishment OF mar
ket for the surplus product and the deter
mination upon price for oil below which
sales will be refused. The first oDjsct
has 50 far been accomplished as to have
secured proposition from outside parties
to transport the oil to San Francisco.
where, 1t is believed, an adequate mar
ket can be secured. To make effectual
the cooperation OF all producers in ord or
that the full amount undertaken to be
supplied to the distant market may be
forth coming at all times. Up to
date the producers have not all signihed
an agreement 30 the coalition by coming
up and signing the agreement. though
enough have done so to secure the faith-
full performance of the contract. The
amount thus agreed to be furnished is
very far below the present pumping ca
pacity of established plants.
There is no littla unrest felt Dy somo OF
the parties to the agreement.Dy reason of
the isct that some producers are believed
TO be hanging back for the purpose of
taxing an unfair advantage. 1t is
thought that the delinquents are count
ing upon q free and unoccupied local
field to be furnished them by others
agreeing TO send given quantity of oil
eech day to San Francisco takers, and
that they hope to corner at that time the
visible supply and advance local prices.
The irritation thus caused was said by
one of the heaviest producers yesterday
to be very likely to cause ruinous re-
duction of prices upon the part of those
favorng the coalition, within ten days,
as a means OF forcing the tardy ones into
the compact. AS it IS, the nominal price
of oil at the distributing points in the
field rules at so cents barrel, while in
many cases the exiRencies OF particular
cases requirs that the product be dis
posed of at any price obtainable.
REGARDING tho propristv OF stalking
too much upon the value of the San Fran
CISCO market there is wide dIverance
of opinion. Those best qualified to
SPEAK upon the subject, by reason of
thorough knowledge of the situation, do
not favor the distant market scheme.
They base their argument upon the ap.