The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-10-22
THE BOOM IS GROWING
OIL BUSINESS IN INDIANA NEVER
LOOKED so FLOURIsHING.
The History of Production and Prices
Through a Decade-POssibility
of a Great Combination.
specIal TO The Ipdianapolis journal.

Special to the indianapolis Journal.
MONTPELIER, Ind., Oct. 2.-Never be-
fore in the history of the oil business of
this State has the industry looked as -four
fishing as it does at the present time. Oil
people are coming here from all tie fields
and are investing. as they are of opinion
that this is the coming place to invest in
the business. Leasers are active in all parts
of the State, taking up all the available
territory that they can secure. For some
weeks leasers have been at work as far
to the northwest as Laporte. and up
around Terre Coupe and Warren prairies,
in st. Joe county. The lay of the land there
IS such that the producers are confident a
big field will soon be opened in the famous
Kankakee valley. The most sensational
feature of the trade at the present time.
and the thing most talked of throughout the
entire oil country. is the combination OF
several OF the largest companies and the
targets producers in all the fields Of both
east and west. 1t is currently reported that
the combine is about ready to materialize
and will consist of such prominent figures
as the Emery Oil Company, Northern Oil
Company, Palmer Oil Company, Southern
Oil Company. Echo Oil Company, McCor-
mick Brothers,, Fearless Oil Company. Brad
AOAo Va tNNNN
| Steelsmith, John Shay. Hazelwood Oil COM
| pany, C. ]. Westerman, and in all proba-
| bility the Cudahy Company. of Chicago,
| and many other producers. Should such q
thing occur it would revolutionize the oil
business, and put 1t on a great basis, CIV
ing competition TO the only great concern
In the counery at the present time, the
Standard Oil Company, which lew controls
the markets OF the world. The new con,
Germ contemplateS building refinerieS In all
the prominent fields and among some of the
| producers mentioned there are already a
few refineries owned. Amos Steelsmith has
a refinery in the eastern field. the Northern
Oil Company has a refinery at t1ndlay, u,
and the Chicago concern viii! have one at
others will be built at Toledo. Indianapolis,
Marietta and at Corsicana, Tex. The North
ern Oil Company already has made large
purchases in the Ohio field and has made To-
county, of that State, and it is currently
rumored that the same company Is ooking
This company is now negotiating for the
large number of wells and leases owned
throughout the Indiana and Ohio fields
owned by John Clauss, of New York. city.
The company has made extensive purchases
in the Findlay district and is figuring on
more territory there. The new concern will
have millions Of capital back of II. There Is
still room for many in the great Indiana
field, but up to the present time the Stand
ard has put many millions of money into
The history OF the oil market in this State
shows how widely the prices have varied.
In 1890, when only 80. 375 barrels were pro-
duced, the average price a barrel was a
fraction over 81 cents. During the next year
the average was a little over 50 cents. II
dropped to 40 cents in 1891, and fell TO 81
cents in the next year. 1t was IS cents In
1893. As cents in 1894: 64 cents in 1895; So cents
was up to s. cents. In 1881, when the oil
industry began TO show its strength, the
amount of oil produced in this State reached
creased very rapidly In the following years.
it reached its highest point in 1896, amount
ing that year to 4Sso.7s2 barrels. In 1887 it
dropped to 4.353,13S barrels. Last year there
was a further decline to 3,751,S07 barrels. The
producers ace of opinion that the pipe
a further decline. The oil industry has been
worth a good deal of money to the people
of Indiana.
1t is estimated that by the close of the
present year that the soil of Indiana will
have given up nearly 100000 barrels OF
crude oil. which represent about s15,OO0.0 900.
the Standard oil Company, Manhattan OIL
Company and the Indiana Pipeline and Re-
timing Company, and the money has been
paid to producers in cash. or in certificates
cash. From The producers this money has
Where oil IS found. Some of it, usually an
eighth. and sometimes a sixth. has gone to
the farmers, who lease their land for drill
merchants have to be paid for material
Used in and about a we'll. The derrick
builders and the drillerS and tool-dreSSerS
come in for a portion of the money and the
men who operate the well after II becomes
a producer are paid, their wages. The tank
builders, vino supply the receptacles in
[ which the oil is stored temporarily, get a
share of the distribution. Then the pro-
Queer puts down. into his pocket what is
LETT. II anything is left, or uses the profits
in sinking new wells.
| klauser Bros. have just disposed of their
lease on the 142 acres of the Little and Byal
farms, in Jackson township. Wells county,
upon which there are four producing wells
with a daily output of twelve barrels. The
consideration was $1,000. and Bradstreet &
O'Donnell. of this city, were the purchasers.