The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-07-02
IMPORTANCE OF TEXAS OIL.
Will Stimulate Manufacturing in This
State--Lower Freight Rates.


State-Lower Freight Rates.
Wall street Journal
II looks as though tho oil neld in Texas
might become a factor of large Importance
in the afairs of several railway and indus
trial corporations in the Southwest. Much
has been claimed in regard to the Texas
oil output, which has not been justified by
the facts. Bat, some reports have been
made which are entitled to consideration
DR. Hin OF the United States geological
survey believes that the Texas oil supply
VIII be found very large. It has been
known for years that oil has existed ia
Western Louisiana and Texas, generally in
the territory lying between the San JacIuto
aud the Sabine rivers. Wells which have
been opened at Beaumont, Texas, are pro-
ducing at an enormous rate, and bid fair
to furnish cheap fuel in a large territory
where the coal supply is meager and also
where the possibilities of an oil export
trade are very great.
In a report recently made TO a convention
at Dallas. 1t was stated that four barrels
OF oil of fortyytwo gallons each were equal
TO a ton of the best steam coal. Three
barrels were reckoned equivalent to ton
of the ordinary Southern coal OIL Is SELF
ing at the wells at 90 cents a barrel, or at
tho equivalent of 80 TO so cents n ton for
coai at the mines. The equipment for
burning fuel oil under boiler Is reckoned
at about 500 for the necessary piping,
pumps and valves, and about $500 for a
tank to hold 10000 gallons. Arrangements
nave already been made for piping oil
from Beaumont to New Orleans. with The
purpose of distributing fuel oil over a
large area for manufacturing and steam
The effect Of this may he important upon
railroads which have been accustomed 70
provide fuel at New Orleans, southern "a,
attention to the matter of oii.burning To-
| comotives, and other roads VIII adopt the
| same policy If the stability of the oil fields
and the experience of other lines seems to
| justify such action, Figures nave been
| prepared showing the saving that can be
| expected to accrue from the change, and In
| the case of Texas roads, the saving Is very
The effect Of this is unfayorable upon
the companies which have been shipping
coal to Southern ports. Buyers are re-
! ducing their orders in view Of large ran
! luz on in demand. This applies TO Ten,
nessee Coal and Iron to other Alabama
| coal producers. and to coal companies Of
| the indian Territory. They say that y
the oil supply continues on ~ awning h it,e
| railing off In the demand Tor coal at gun
| louisville and Nashville is meeting the
new conditions by making . rate on GOA
! from the Alabama fields 10 New orleans
| of 10 per ton, compared with 4l.lo PEI
! loA HlIlHIlO. Jnt GthAhflh aHAiFAo 'A'''
! lowered It's rates on coal and reductions
| will undoubtedly he forced wherever Goa
Is moved in large quantities.
some of the reports Of the saving thal
viii accrue to railroads are greatly exag
! geiated Figures have been given with re
lation 10 Southern Pacific which make on
saving greater than me total cost OF oil Tue
| cheap, the gain will probably be slight
while in districts Ike Western tern . Texas
the saving can be made large. Texai
itself derives a new SOURCE q wealth a. az !,
one which Will tend 70 stimulate manpfae
turing and other industries affected D.
cheap fuel
| the business growing out Of the genera
l-development of the State VIII probably
| make good the losses watch some Interest,"
may suffer from the new fuel Cheaper
ing the cost OF production whether
goods or transportation. never harms
Community in the long RIM while In IN
case OF Southwestern roads, very marke'
gain may result from cheaper fuel, larg
tonnage connected with the oil fields, an
the general growth OF business stimulates
thereby.