The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-04
THE OIL INDUSTRY BOOMING.
Incorporation Of the Producers
Company.
A Pipe Line and Big Steel Tank to Be
Bu If.
in Gil Exchange VIII BE Next in order.
The second street Park
Gusheps

The Produeers' OIL company, final org mia
tion Of which was co pieted Wednesday even
ing, as exclusively announced by TIE HERALD,
filed artio es OF n.o.po-ation yesterday. There
are a present IS stockho de.s and the capital
ization is s12.S9O OF whie 1880 is already
were elected Ill ect1rs: F. b. Eorthgp, presi-
a NJ OF the Metropolitan Oll comfahy A. +.
Mag uns. one of TINS !esSecs o. II large tract OF
oil land; City councilman NJ 2. snyder.a mem
per OF the Cc-opsrative OH company; DE- }.
sChmllz Of the Eureka Oh com pnuy: &. j. Per.
elns of ferklus Il Van yKe, H. q. Parker, a
large owner IN the East Side company; ~ Il,
Doheny, whose extensive experience ana OIL
interests are We'll Enown. The last n4med
gentleman was elec,ed president pro TEN OF the
board and Mr.. Perkins cretnfy.
a. the Stockholders have contracted thei
product to the co pany for 3 month";, and the
CON pany Will begin ut once the aequiiemen. OF
pipe line, storage tanks, tank cars and q re-
hnery Tine company controls Two of TIE three
plpe ine lranenlsss recently g,arted, ana Will
begin WORE on pipe line witlln 81 days. Ahe
company is ut pre- ent ind spsndent OF any 9th
e. OF Producing company, and It's avowed OF
Ject Is not TO combine TO put up The price ct OF
but 10 create Il market py Offering inducements
10 consumers. The prime opject is To BE- able 10
take lafs contacts and lessen the cost OF uls-
trlhutUu. The board of directors represent over
nall tbs oil PROD CT OF this city.
Several heavy producers who would not come
INTO the new company a first, have since sign-
He'd their intention of join ng the combine. A
numbee ct tho Q who nave contracts for their
output NJ BoOl ptlCoS are disposed To cOntlnue
gong IL atone for the p,esent but IL is prob
able that the entire fle d will soon be united in
n common cause The new corp Jraton Will
bid for very large share of the local trade,
even IL it does have to compete with Santa
Paula OIL ut79 cents q barrel. Negotiations Tor
supplying several large concerns with fuel are
Low IN progress.
The OH put has been restricted of late on ac-
count OF the demoraiized condition Of the mar
ket and poor f1ci4ties for handling The stuff.
Is is alleged tn { the presen, output could be
trGDie1 if there dpmn01 for Lhn prOllff
The newly organized Producers Oil company
has about completed arrangements for a pipe
line from til. Second street park oil field to Il
II act of iand not far distant from the ntersec-
ton OF Down " avenue and the Los Angeles
river, where 80 600 barre steel tank will b.
erected. If NEGOTIATIONS now pending are com .
pleted W trim the next few days ms now seems
probable, oil eau be transported through this
pipe line to the g tank by the 10 h OF Febru
AIRY, making great saving in transportation
ano the handing of the OIL to the consum RS
as well as the producers. IL is proposed to run
pipes from the main reservoir to the plants OF
the principal consumers. and TINS do away
with the tank wagon mode of delivery, which
is expensive and cum beisome.
As only the Producers company will have the
1t IL quite Likely that all the producers will en-
ter the combln1 in order TO enjoy the privilege
of this cheap method OF transportation.
The rompletion of the pipe line will b TO
lowed by the establishment of an oil exchange.
Certificates will issue to thesaeveral oiucers
for Cne amount Of oil turned into The common
reservoir BIZ eich. 1heSe cSrtln PateS Will D -
come a medinm of exchange, and can be used
rs col aterai, thus ensoling producers to raise
money on their output before the produut is
acs7ally sod. 1t will be convenience in
many ways, and will go long way towai d
bringing the oil business down TO systematic
basis.
Mr.. Perkins, director of the new company
spoke enthusiastically lsst night of the outlook
for the locai OIL men. He said the second street
park oil field Is simply phenomenal. There is
not dry hole among the 30 or lao completed
a = that
cannot b } made tc yie.d so barrels per day. All
that is necessary is to bore deep enough. The
majority are too shallow. The main oil sand
lies at n dep Il of 900 or 1000 feet.
The Metz opo,itan company's deepest well Is
10Y feet, and IL yields over zoo barrels every
day the pumps kept running. The flow shows
not the slightest sign of abating.
Van Slyck & Perkins best well al 80 feet
encountered SO much oil that boring had to be
abandoned. Ninety barrels were pailed out
yesterday in nine hours. New casing is now
being put in and new pump rugged. Mr.. Per-
kils feel confident that it will be the best well
in the district 1t is only 266 feet distant from
the metropolitan gusaer.
Indications are that the market will soon be-
come steady and that there will be a demand
for all the oil produced i'll Southern California
at good prices. The use of petroleum as iuel is
rapidly extending. The successful expert
ments conducted by the Santa Fe railroad COM
pany, promise to revolutiOn,ze the system If
firing locomotives. Its almost foregone con
cusion that oil will take the place OF coal en-
nearly all the western railrosd' The effect
OF this wilt be 10 make the oil industry one of
the most profitable in southern California.
1t is u matter for congratn lation that Los An
geleS is the center OF an oil field of wide extent
aud that she has men Of brains and capital to
develop it, The best feature of all that the
money spent by local consumers for oil instead
of coat as fuel, remains in the community. II
tho industry continues TO expand, as il has
been doing for the past year, it will result in
the community that would otherwise go to
other states or foreign countries for coal.