The San Francisco call., 1901-10-27
NEW USES MAKE
DEMAND FOR OIL
Increased Consumption
Is Made Sure by
Rehneries.
Railroad Into the Sunset
District Is Ready to
Operate.

There is talk In Southern California
about large increase in the capacity OF
| the oil refneries in Los Angeles, which
will tend to consume the crude oil and
| to make a market. At Bakersfield the
| Dupage Oil and Refining Company has
| been incorporated, with Bakersfield as
the principal place of business. At Los
| Angeles the Franklin Oil and Refining
Company has been incorporated. 1t is
announced that the purpose of this COM
pany Is to acquire the Franklin refinery
in Los Angeles and to operate it. Ac-
cording to the accounts that come from
the south the American Refinery in Los
Angeles will soon reopen its doors.
The Pacific Refining Company, which
main mai ti line e Of the Santa Fe. Just outside
of the city limits of Bakersfield, will
have daily capacity Of 900 barrels when
| it is completed. Most significant of all
the refining schemes is, of course, that
of the Standard Oil Company, which will
operate on large scale on the shores OF
! While the ref1neries are thus in line to
| help The oil producers to a market, the
other causes that lead to a demand for
| the fuel oil of California are active. The
| fuel has been introduced in the mines of
the mother lode in Amador County, to
some extent, and the use of 1t will un-
has largely supplanted the coal mined in
| Amador County. The principal competi-
! ton is now with wood. Five companies
are arranging to carry out the contracts
for the supply of oil for the reclamation
districts on the Sacramento and San
| Joaquin rivers.
Tanks for 25OO barrels are in construc-
tion at Antioch, which will be filled from
| the Oil cars, and a barge with a capac-
ity of 2500 barrels will carry the oil to
| where it is required for use The sup
position is that the reclamation districts
| alone will use from so 900 to 20 900 barrels
of oil a year at the beginning.
Combine Makes Progress.
While there are no new. developments
to report in connection with the work of
the Associated Oil Company otherwise
known as the combine of producing COM
panies in the Kern and McKittrick fields,
the promoters appear to be satisfied with
ticable that certain papers that were ops
posed to the combination when it was
first reported in The Call to be a success
are now saying that it is good thing
Since the company took shape the price
of oil has advanced.
1t is reported that the. new contract
for oil is at considerably higher prices
than were named in the old one. This
would seem to indicate the belief of the
railroad people that the price, will go still
higher, which is the general opinion Of
all observers of the trend Of the oil in
dustry and of the interests more or less
bound up with it.
A scheme for an ambitious combination
is reported to be in incubation in the
East. This has been given the name of
the Western Oil Mems Association. The
headquarters are at Toledo, Ohio. The
arncunced purpose of this organization
is to bring into cooperation the produc-
States, Canada and Mexico. The States
mentioned as likely to be included In the
organization are Ohio, Pennsylvania, West
orning, Kentucky, Kansas and Louisiana,
Only vague idea of what the project
actually amounts to or what it signifies
has as yet been given currency.
Three companies of Glasgow capitalists
are reported to have been recently en-
gagged in getting leases in Barren County.
kertucky, of what are supposed by them
| to; be oil lands. Leases have been pur-
chased to about 80 900 acres There re
wells in the county that have been operat-
ed for some years, but they are small pro-
! ducers.
Owners Wait Developments.
There is less development work going on
: in California than there was some months
ago. Owners of oil properties who are not
compelled by the terms of contracts to
: push work are waiting for the combine
, to get into working shape. The date of
the actual beginning of the operations of
the Associated Oil Company may not be
many months hence. The stockholders of
t bearings of fthe combination thoroughly
: explained to them by their directors when
they come 9 @ together to finally determine
stockholders of the Reed Crude OIL Com
! pany has been called and will be held
/ early next month.
The rails of the Sunset Railroad have
been laid for the entire distance Mixed
= trains will run over the line until the traf-
| fic warrants the separate running of pas
. senger and freight trains. Extensive de-
velopment in the Sunset district is now
expected to take place.
T General activity is reported in the FILL
more and Santa Paula oil fields in Ven
tura County.
! The Government has published a report
j concerning petroleum, in which the gains
t in production in different States for the
s year 1900, as compared with the preceding
year, are given as follows: California
9 ], 1,457, 3S9 barrels; West Virginia 2 2S5 045
Ohio. 1,22o,6 ,622; Indiana, 1905 210; Texas
167,026.