The herald., 1895-10-06
All They Expect Is a Very
Small Profit
HANDLING LOS ANGELES OIL
Local Agent Harvey Receives Informa.
tion From San francisco
An OId-Timer Gives His Opinion Why the
Standard Entered the Field So Sudden.
Iy-Late Oil News

the tank cars of the Standard Oil COM
pany will be carrying fuel oil from Los
Angeles to San Francisco, which will for
the present be the greatest and largest
field for tho consumption of the local oil
product.
There were mary oil producers who at
first had their doubts as to whether or
not the Standard paople intended really
to invade this territory, but the develop
ments of the past few days have expelled
all misgivings. There are very few oil
men now who do not think the Official
announcement made by the agents of the
great oil combination in The Herald and
the Morning Journal. as to intentions
with regard to Los Angeles oil were sent
out in good faith.
And then yesterday Manager j. G. Har-
v.y gave some informa tion which practi
cally cinches the proposition as to what
the Standard people intend to do.
Mr.. Harvey received lettor from Cen
eral Manager W. s. Miller, who handles
the Pacific coast interests Of the Stan
dard. 1t was under date uf the Sd inst.
In that letter Mr.. Miller explained fully
what the Standard was about to do.
Tn letter stated, among other things,
that 'our people say the proposition is
simply this: AS soon as we can find out
the valus of Los Angeles oil as compared
with other fuel oil. we Will then enter
the field and pay as much as we possibly
can for fuel oil. We are ready to handle
the oil at very small profit. and you can
positively say that the company will be
in the market soon."
Mr.. Harvey stated that three tes,s of
Los Angeles oil were now being made by
experts of the company in as manydiffer-
ent cities. The idea is to ascertain what
the fuel properties of the oil are as COM
pared with coal. AS a matter of fact.
numerous tests IF this character have al
ready been made, but the Standard de-
pends solely upon the tests made by it's
own experts and is never governed in
entering a new field bv any reports other
than those made by its own employees.
After the tests are made in three differ
cnt places anu the average of these three
tests obtained, the result is what the
Standard Will be governed by in the mat
ter of the prices it will pay for Los Ange-
H. OIL
WHAT THE TESTS SHOW.
1t is a we'll known fact that the tests
tnat have been made already OF the heat
producing qualitie, OF the oil have been
magnificent. One pound Of oil will evap-
crate eleven pounds OF watei on loco
motive engine, and fifteen pounds of
water on a stationary enigne.
Patrick Noble, superintendent Of the
Pacific rolling mills at San Francisco,
made an experiment WITH Los Angeles
oil and found that the average for twenty
four hours run each day for one week.
demonstrated that one pound of oil would
,vaporate 1895 pounds of water. This
was great showing.
That the Standard people wi II find their
tests of the oil as a fuel satisfactory goes
without saying. AS it will take but a
short time to make tn EN-, there is nothing
left to bar their entering the field at once
and bidding for the product. And this
is what will be done within three weeks.
WHAT AGENT HARVEY SAYS.
As to a market, Mr.. Harvey states that
San Francisco will pobably be the heav-
lest consumer for some time to come.
When oil was selling at $2.10 barrel
and coal at SS per ton it was found that
the use of the former as fuel resulted in
saving of 33 1-3 per cent. With oil at 81
per barrel the saving would be propoI-
tionately greater.
Some producers have been very bitter
in theii opposition to the Standard people
entering this field. Touching upon this
subject yesterday, Mr.. Harvey SAID:
\ ''There is nothing personal about this
matter at all. We are here for business
and do not intent to interfere with any
one. We will pay the best ice for oil
really forced into this makret as buyers.
We have had applications showering in
on us for six months last past to furnish
transportation for oil. After considera-
ton our people arrived at the conclusion
that it would be better for us to operate
our ewn cars than it would be to lease
them to others, and that is what we are
going to do. We will be here to buy.
and If the folks will sell to us we will
take it. If not. we will continue to do
business at the old stand as usual"
BY oil men the idea thai the Standard
combination will buy up all the ground
in the local field is regarded as ridiculous.
The belt in tho city is certainly 1000 fe ct
long by 1000 feet wide, ana the property
is in the hands of too many single indi-
viduals to be gobbled up by com mbina-
tion at anything like reasonable figure.
Then, If iC was bought up. the oil
bearing ground extends at intervals from
the ocean to Puente, thirty miles, in
cluding thousands of acres.
Within the next few davs there will be
some developments to record, and the
exact datJ when the Standard will bs
ready to receive oil will be N ade public.
This cannot be done at present.
WHAT THE MOVE MEANS.
An old time oil man says that he knows
why the Standard is going to drop in at
this juncture to buy Los Angeles oil. He
says that the proposition to Duild pipe
line from here to the sea coast was well
advanced and that arrangements had
about been concluded for line of tank
steamers to put the product to San Fran
cisco and Portland at ocean freight rates.
The Southern Pacific company looked
upon this move askance. They were al
ready favoring the Standard people so
they mads proposition to them to come
into Los Angeles with their tank cars
and buy oil. Then the railroad com pany
would do the hauling at such a rate as
to admit the Standard making good
money. The railroad company would
then do all the hauling and the pipeline
from Los Angeles to the sea would be
knocked out as we'll as the proposition
OF ocean transportation for oil. This is
of course only the oldtimer's idea about
it, but it is plausible.
AT THE OIL EXHANGE.
About sixty owners of oil wells have
signed the three-year contract of the oil
exchange, and no further signatures are
expected. The exchange officers are 60
ing steadily ahead to carry out the objects
for which the organization was perfected
President Heron has done some good
work in San Francisco, but Secretary
Cochrane stated yesterday that he was
not yet prepared to give out the details.
Mr.. Cochrane says that the exchange is
all ri0ht and that the OnIV OnDOs1tyon IL