The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-16
SIGNED, SEALtO AND ij.LIv:3EO
An Epoch in the Local Oil
History.
The Contract let for 81 Pipe Line
and Storage Tanks.
The Producers Company Getting in
Shape to Regulate the Market
for L troll um.

The most important event in the history OF
the oil industry in Los Angeles city took place
last night at the Office OF the Metropolitan Oil
company, when cont act WIS signed by tie
Producers Gil COMPANY, represent g 90 per
cent of the pr d1ct OF the seeond-,tre park
oil field, with tao Pa life Oil Refail, an / Sup
Ply tomplny of San Francisco. for tho con
struction ofa pipe line an ! storage tanks.
Th1 CONTRACT holds BOD for FIVE years, and by
its terms the producers have their oil piped to
central storag station at the river and rail
roads for cents bl-rel. For forage 2 cents
per mont, cent Tor half month or under is
charged. The oil is insured BY the Pacific COM
pany. The proiace-s contract to deliver soc
bar e's day for Fix months after tle pipe line
is In operation.
THE PROPOSED NEW P.PE LINE.
The pipe line sough; to be constructed is the
one named in an apple tion for franchise
laid before the city council Monday afternoon
ana r.fsrred to the DO lrd of p1blc works. The
ap, LEGATION is made by the Pacific Oil Refining
and supply company, by its president II. l.
Will ans, and ads as follcws:
"Your petitioner respectfully asks that your
HONORABLE body take The necessary steps and
proceedings for he purpose of advertising an
applicable which your petitioner hereby
makes 10. Il franchise for the pur J9sc OF con-
Quoting oil through and undtr thu city over
and along the following streets: From the
corner OF West Statc and Court streets along
Lakesnore ayenus to First ttreet; thence across
Fir tstre t to Ssc1nd street; thence along Sec
ond stree; to Pea-l street; thence along Pearl
street to Third str e.; thence Long Third street
toF.ower stree; thence along Flower street to
Seventh street; til IN &c along verth street to
Los An eles river. Also from Laksshcfe ave
nue. easterly Court street To Beaudiy ave
uu thence aloa. Beaudfy avenue 10 an inter
section W III h aoove-n tn,ed l'nes OF :. ond
street Al o rom ponl on The FIRST above
nam ID iIe a. the intersecAun of S,v-nth
street wan Mateo street, sud g ong Mateo
stiret north to Palmetto street; thence along
Paine 10 street cast to sqnt Re avenue. said
franchise 10 be similar aus pruvi Sions aud re-
menJs 10 those Iece 1t y granted
WHAT PROPOSE TO BE DONE
1t Is q foregoae conclusion that the franchise
as prayed for Y L be granted and that work on
the enterpli-e Will soon thereafter 10 COM
menced. The Pacific OIL Refining and supply
company l. III Iy able 10 carry out Its cDntfact
which rs T. cD1i let a pipe iine, storage tanss
with 20 900 barre $ capacity wi min 80 days
after the grnntinE OF the IraucLise, aud com
plete 10000 buras inO-e tenkace as sool as
the Produe r. OF com aahy snni quire il.
1t is under4tood hat The Paetlic GA Refining
and supply compIny hai cnut-.c cd in z, mn
sylvania for ths required TANKS, and is
negotiating for the iay.ng of laI -welc ed
screw joint pipeline, 80 miles II length, con
meeting the 5econu PARK oil ii sd with the
proposed storage tanSs. fne site for the tanks
has not Yet been definitely loo ted, but will
probably lie in tt.r V clluy If the o., Burning
Supply company yagd in &c fomed by the
Southern Pacific and santa Fe tracks, Il .ar the
river.
OIL CERTIFICATES.
@sfOne of the most important features of the
contract is n provision by which the pipe line
~ 0dv IN. H.. 81
barrel on credit balance certificates after the
oil has gone through the pipe and into the
storage. This gives ready working capital nd
greatly aids the producer in pushing the de-
velopment Of oil. A storage ca pacity OF 10000
barrels is 10 lie provided 10y series OF steel
tanks and tie oil is to be divided into classes
A and b. acco ding TO its gravity. The p pa
line company is backed by ample capital and
experience. and the syst matte marketing OF
oil from thi, field viii not be long delayed
THE PRODUCERS OIL COMPANY.
The directors Ct the Producer Oil company
completed organization last night by the cleo
ton OF the fol owing officers: e. L. Doheny,
president F. B. Northup, vice president; Chas.
J. Perkins. secretary; !. b. Parker, tr asurer.
The remaining directors arc: y. Z. Mnginnis,
DR.. J. s. schmilz and Councilman NJ. p. snyder
The directory is composed of an exceptionally
fine body OF men and tn y evidently mean
business. 1t is expected that at least S5 per
cent of the producers in the district will me
into the company now that a contract for a
pipe line and storage tanks made.
The Los Angeles Pipe Line company, which
was Incorporated last week is also in the field
and represents that it means business. 1t owns
what is known us the Wiltshire franchise for a
pipe line and has secured ground for storage
tanks near the southern Pacific and Santa te
tracks, where the latter the river on
the way to Santa Ana. The officers of the com
pany yet reticcnt aboGt their plans. They
say they are awaiting the return OF their in
corporation papers, when they Will tllk bust
ness They have large paid-up capital and
will b, able TO carry out their plans regardless
OF the o. era ion OF other companies.
II is not generally believed that more than
one pipe line Will be cons tructed for the pres
ent, one will be sufficient to conduct all the
oil produced to IL central distributing point.
II is limited that the principal business OF the
Observation-Disclosures syndicate, controlling
the Wiltshire franchise, Will be oil refining, ana
that they viii use the Producers Oil company $
product, delivered by the pipe line just con
tracted for.
COMPRESSED FUEL.
new industry has sprung up in connection
with the DILL business, in the manufacture OF
compressed fuel. This is a mixture of coal and
petroleum, nodded in the form of bricks. The
Screenings of coal is used for the purpose,
mixed with crude Oil and tie composition
makes q good and convenient fuel. 1t is
hawked about the streets at 50 per ton or 81
cents per 1Ou-pound sack and seems to sell
readily.
m