The herald., 1896-01-03
The Proposition Which Is Being
Discussed by Producers
MUST HAVE BETTER PRICES
Or Many Operators Will Be Forced te
Suspend
Prospecting Going On in Several Directions
Outside of the Present Beit-Notes
From the Oil Field

pldut anu everything Wnlcn mas TO 90 WIN
the production of oil, is the latest remedy
suggested for the depression under which
operators have been laboring for the past
six months. At the first glance the idea
seems to be revolutionary in it's nature, 1t
appears that those who advocate the move
are influenced by spirit of revenge
against some imaginary enemy of the in
dustry who is responsible for all the trouble
recently experienced by those engaged in
it. Such, however, is not the case,
The measure rs talked of quite seriously
by some of the most conservative busi-
ness men in the field. Out of twenty men
who were interviewed yesterday every one
expressed favorable opinion of the pro-
ject though the majority of them believed
that it would be impossible to accomplish
anything by an attempt at such a move on
account of the difficulty of uniting all of
the producers on any one plan of action.
In the minds of some the closing down of
all the wells offers the only solution of the
ques ton of prices. There are those who
advocate the PROPOSE ion and who hope
sooner or later to succeed in their efforts.
A prominent operator said yesterday
that it was only a matter of time until a
large pumber would have to cease work
anyway unless some relief come in the
| in his opinion it would be better for all to
| unite in temporarily suspending opera
| tons until something like a fair price could
| be obtained for oil than for the whole field
to continue at the demoralizing cut-throat
game which has resulted SO disastrously
| up to the present time.
| Everything has been tried, said he; Or
ganizations have been formed. the ex-
change was organized, the Standard took
a step in the direction of our field, and yet
noh hing has been done to improve the
conditions of the producer. The
same opinion was expressed by
| few slight variations as to the time that
would be required to bring up prices, and
! the per cent of producers necessary to
make the scheme effectual. Ii the wells
were stopped for a month. some believed
I that the market would be improved, while
| others were in favor OF suspendng for at
| least two months. AS to the number which
would be required to carry the thing to a
, successful conclusion, most of those VINO
| spoke of the matter thought that only fail
ure would result unless the entire field was
united. Several argued that half of the
| producers. by maintaining their ground,
! could ultimately WIN.
J While the talk of closing down the wells
| is quite general, there is little probability
| of its being carried out. The same remedy
| has been repeatedly tried in several of the
eastern oil districts, and in no instance
was it ever a complete success. Condi-
tions are somewhat different here, it is
true, but the general proposition is the
same. In the east the suspension move
| ment failed because of the competition of
surrounding fields. There are no districts
| in California that produce fuel oil which
could be put on the market at such figure
as to compete with Los Angeles oil, SO it
/, is thought by some of the most vigorous
! promoters of the movement. In the main
| that is true, but not entirely. The oil that
| is refined a Puente and Santa Paula and
| at other points in the stats has body of
refuse which averages from D to 20
| gravity and makes a very good fuel.
| There are other reasons arising from con-
ditions in the field itself which would prac-
| tically defeat the proposed measure. There
are among the producers many who have
| contracts for all or a portion of their out
put, and of course could not stop their
| wells ON that account. Many of the men
| have gone in debt for their wells and can
only pay for their construction and the ma
terial in them by selling their daily prod
! uct. These are not in position to suspend
| even for a short time. To shut down their
| pumps would mean ruin inevitable, and
more immediate than that which is gradu-
ally coming upon them under present con-
ditions.
| When it is taken into consideration that
large number of men would be thrown
| out OF employment i'll event the wells were
closed, and that the result would necessa-
| rily be doubtful, it is questionable whether
the means suggested should be tried, al
though it is freely admitted by everyone
conversant with tho facts OF the case that
something should be done to relieve the de-
preston of The industry.
NOTES FROM THE FIELD
While at present operations in the local
oil field are less active than they have been
for long time, there are some important
moves being made, which are of moro mo-
ment to the Industry than any of the work
which has been done in the city. At the
Garvey ranch, near San Gabriel, corpora
ton composed of eastern and local capi-
talists has leased tract of 10000 acres
of land and is now preparing to put down
| the first test well. In case of success in
the first trial others will be drilled and
wide range of territory opened.
j. Il. Homes, the well-known derrick
builder, came in from Whittier yesterday,
where he has been putting up a derrick for
company that intends to drill in that
locality.
At Ivanhoe company has been erect
ing derrick with the intention of pros
pectng there. Excellent oil indications
have been found at Ivanhoe, and the men,
bers of the company feel confident that a
good territory will be opened.
Another prospecting party has started to
drill at Glendale on tract of acreage
property.
The driliers have gone through the second
sand in the Tubbs we'll on Park place, and
the pump will be started within day or
two.
w. X. Wing has announced his intention
of drilling another we'll on his property
near Welcome and Hobart streets.
AT the Rex company's we'll No. 3, on
lockwood avenue. the drillers are still fish
ing for string of lost tools.
A depth of 915 feet has been reached in
Lehman & Mills well, on West State
street, and the drill is still going down.
The new rig of the Rex company, on
First street above Belmont avenue, is
about ready for use. The steam attach.
ment will probably be put in place today.
We'll No. 4, belonging to the same COM
pany, has been spouting between forty and
fifty barrels per day, while the drillers are
still at work deepening.
The drill is down 200 feet in the secoud
Green we'll, above Belmont avenue.
The bull wheels were broken at Cole &
Hummiston's we'll, on Belmont avenue,
yesterday, and the owners have decided 10
put in the tubing ann set the well to pump
ing while they are waiting for new wheels
to he constructed.
Edward North has loaded two cars with
oil to be shipped to San Diego.
After a weeks delay Bophs and Leslie
have succeeded in getting the tools from
their we'll on Victor street and arc now
going down with the drill.
Warning and McCrea are down 700 feet
in their we'll on Temple street.
l.