The herald., 1896-01-31
Improvement in Business Since
the Recent Combine
PRODUCERS ENCOURAGED
They Believe Petroleum Will Reach Q
Dollar q Barrel
The Fifty Gent Rate Looked Upon With Favor
GeneralIv-Driliinz Very Dull in the
FieId-Gsnerai Items

Since the recent advance in the price OF
oil, brought about by the united action OF
The producers of the field aud the members
of the Oil exchange, there has not been as
ready a market for the local petroleum as
there was shortly before. For the first
five days after the Inauguration of the rise
the exchange did not make sale outside
Of that for which it had previ ouly con-
tracted. Since then, however, business
has increased, though it has not reached
the former standard.
Fifty cents per barrel at the well or So
cents delivered is the new rate established
a week ago. The compact raising the
price to the present figure was adopted
as a final resort to restore something like
business order to the demoralized
industry. About forty active oil men
signed the agreement, representing the
majoIity of the heavy producers of the
field. The effect of the movement has
been to create better feeling among all
the dealers. The failure of previous plans,
attempted to better the conditions of those
engaged in the industry restraints many
from very exuberant feeling, while
those who have refused to enter the COM
bine look upon the whole matter obviously.
Others seeing the effects of the rise, have
joined hands with the instigators of the
movement and will share in the profits
which it is hoped will come as result of
the organized effort.
A prominent producer said yesterday in
speaking of the movement to establish
higher prices, that by such means alone
could the well owners hope TO save them
selves from financial ruin. Oil cannot be
produced at the rate at which it has been
f~- ttr
cents is little enough. When the field has
been thoroughly organized L hope to see
the price advance to s. a barrel.
Another opera tor said he had Joined the
movement to better his own condition and
intended to see it through, as it appeared
the only way out of serious situation
which was rapidly running every oil man
in the field. WAS ctfered 40 cents a bar
rel for 800 barrels of oil today but refused
it. No, / do not know of any one who is
selling for less although there are many
who are not bound by the 80 cent agree
ment. The sale of oil is little less brisk
than it was, but in the long run. business is
better.
The immediate effect in the field is not
noticeable. Drilling is as slack as formerly.
Only few rigs are at work and they are
mostly engaged in deepening old wells.
There has been but one new derrick
erected within the past two weeks.
Brophy b ros. are down 700 feet in their
we'll south of Temple street. near Victor.
They are having large tank built prepar-
atory to getting oil.
Work has been resumed in the Chandler
we'll on Beaudry avenue. About 700 feet
of tubing has been lowered into the hole.
Beach, Young and Cochran have gone
through the second sand in their we'll on
Temple street and are now putting in the
tubing. The we'll is 920 feet deep and the
oil is within $50 feet of the top. tank
,f t0n harraIS caDacity is beiny con-
structed near by.
The pump has been put IN the Iona
company's we'll on Angelina street.
Warning d McCrea after iliing to a
depth of $50 feet in their well on Temple
street below Park place, have struck
good body of oil and are now drawing the
outside casing.
The drillers at the Rommel we'll, or Park
place. have bad fishing job on their
hands.
its second we'll, and is now down $50 feet.
The pump has been set 10 work in the
Green we'll, above Belmont avenue.
Drilling at the Rex company's well No. 3
has been slightly impeded by number of
bad caves. The hole is now 800 feet
deep.
After fishing off and on for over three
months, Lehman & Mills have raised two
strings of tools from their well on Ioluca
and State streets, and have put in the
pump. Their efforts are being rewarded
by an excellent flow of petroleum.
The pump has been put in the Cole %
Hummiston we'll, on Belmont avenue.
The tools which delayed drilling so long
in the Rex we'll No. 3, on First street, have
been cased off and work is progressing
satisfactorily.
Mr.. Carl has built new derrick on First
street, near Belmont avenue, where new
we'll will be drilled in the near future.
f. W. Flint has resigned as director OF
the oil exchange, and his son, j. P. Flint,
has been elected to fill the vacancy.
Edward Strassburg, vice-president of
the exchange, is now in San Francisco
pushing business for the corporation at
that end of the line,
In two weeks the transportation COM
pany expects to have is boat ready to
start north with the first cargo of Los An
geles petroleum. The exchange will prob-
ably furnish the first consignment.
large force of men is now engaged in
the erection of two large storage tanks fo-
the Standard Oil company. Both are in
tended for handling crude oil.