The herald., 1897-11-10
Railroads Not Agitated by
Oil Producers
PROMISING RUSH TO ALASKA
THE NEXT FREIGHT TRAFFIC
MANAGER
Refugees From the East Arriving by
Notwithstanding From the
Rail-Traffic Notes

the price of oil will exceed the dollar
mark and the question arises what ac-
tion will the railroad companies take.
They are the heaviest consumers of the
product and have maintained from the
start that they would equip their en-
gines for the burning of coal instead
of oil if the latter ocst over one dollar
per barrel. 1t is definitely known that
several large producers who have been
supplying the railroads with oil in ac-
cordance with contracts made almost a
year ago have notified them that their
agreements would soon expire and af-
ter that they could sell no more at the
price therein named. AS the Oil Produc-
ers' exchange already controls ninety
per cent of the local output and as many
other producers have signified their in
tention of joining the exchange on jan
uary first, it seems reasonable that the
price of crude petroleum will take quite
a jump with the beginning of the new
year.
Railroad officials have openly declared
that they will not pay one dollar for oil
and before that price or anything near
it is paid they will commence using coal
again. Many of the producers know
that the companies mean just what they
say, as they have already changed the
equipments of their engines from oil to
coal on account of the price going up,
and some who own oil wells are averse to
any further advance, claiming that
there would be stagnation in the mar
ket if the railway companies were not
consumers. The daily consumption by
the latter is stated to be as follows:
Barrels.
Southern California railway .......... 500
Southern Pacific railway ................ $50
Los Angeles and Pasadena railway. 100
Los Angeles and Redondo railway go. 40
Los Angeles Terminal railway .......... 65
Los Angeles Railway company ........ SEQ
Total ................. ...................l6oo
Said a well-known official yesterday,
whose road is a large consumer: II am
heartily in favor of assisting in estab-
fishing a market for home products, but
the railway company for whom l work
will not allow it's representatives here
to contract for oil at one dollar per bar
rel or even much less. 1t is fact that
eum as fuel, for it would not pay We
can get Australian coal delivered at our
wharf in this county for $3.50 per ton in
cargo lots, and that is what we will do if
necessary. Personally l am in favor of
using oil even at higher cost, as am
interested in the development and
growth of Los Angeles and all Southern
California, but we are governed by Off
Gals higher in authority, and whatever
rules they establish we of course have to
carry out to the letter. However, l
hardly think we will experience any diff
Guilty in securing all the oil we want, as
hardly a day passes but what some pro-
ducer calls and asks us to make con-
tract with him at price which usually
is less that 70 cents. I think the Oil
Producers exchange is a good thing in
it's way but / don't believe that it can
ever control the market. 1t costs on an
average of S15 to change the equipment
of a locomotive for fuel purposes. This
may seem expensive, but it is a small
matter compared to what the difference
in cost would be between oil and COAL
PREPARING FOR THE KLONDIKll
From present indications there will
ne dillDlc IdtlllIlGS IDI
prospectors who wish to enter the
klondike country next spring, but So
far there are no signs that the price of
tickets will be any cheaper That is
what the dear public want and it may
be that yet their fond hopes for low
rates will be realized, as already 1t il
known that at least four steamship com
panies are preparing to enter the field
and compete for business between San
Pedro and the gold regions of Alaska
and tributary country. Three of these
new transportation companies hail
from San Francisco; another is backed
by Seattle enterprise and report has it
that similar company will soon be or
ganiZed by Los Angeles parties. The
latter now have a representative in San
Francisco with a view of chartering
large vessel and say they too will be
ready to take care of q portion of the
hundreds of people who will strike OUT
to seek fortune in Alaska, commencing
the early part of February. One com
pany is already here and has booked
about thirty passengers, among whom
are five women. who expect to sail from
San Pedro for the Copper river country
on February 10. The rate is advertised