The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-10-28
Contract Signed by New York Bank.
ers for Eight Oil Wells.
THE WELLS ARE YET TO BE DRILLED.
VIII Be Put Down on the keth-Word
Property on Spindle Top Heights.
Work to Begin at Once.

Co, New York City, eight guaranteed gush-
ers. preparations for drilling to commence
at once They are all to be slx-inch holes
and will be drilled on the Keith Ward prop.
erty. These wells are TO become the prop.
erty of the Texas Consolidated OIL com.
pany, a S2,0o0,oO0 organization chartered
in New Jersey. This company has been
organized for the purpose OF not only pro
ducing its own oil, but mainly to enter |
this field to provide tankage. tank cars. pipc
lines and own control tank vessels. Tank I
age depots will he established in several I
OF the largest cities and Europe. MIR !
Spear says Eastern capitalists admit that /
Texas has wonderful oil producing pros
poets, but defer investments due TO the |
inferior shipping facilities at present That |
this oil is rich in Its cheapness as fuel
has been demonstrated; that wonderful !
market awaits its distribution, but tanks. |
tank cars, ships and pipe lines must come
first. Geo. G. Vidctto.
~
New Orleans Picayune
The biggest combination that the South ,
has ever known, rivalng the iron and steo
and oil and tobacco trusts Of the North and
East, is the combination Of fuel oil inter.
ests which has been the talk of fnancla,
and business circles for the last few weeks
Speculation has been somewhat lmpersonal
and, while many rumors of combinations
have gained circulation, no one has yet
been able TO locate the center around which
the great fuel oil trust was destined to
crystalline. Reports have placed that cen
ter at almost every point from Beaumont
to Chicago, with strong preference for
Chicago, but with all the talk very Nulc
attention has been paid to the part which
New York capital is destined TO play.
At The same time New York capitalists
have not been idle, and some Of the most
progressive men Of money have been wrest-
ling with the problem. Philip II, Potter,
known in wall street as the Same Old Pot
ter" has interested himself, and with him
is Luther w. Spear, of the Broadway bank
ing and commission house Of Luther w.
Spear & Co. These gentlemen have inter
ested themselves for years in oil and in.
dustrial stocks and they have been recos-
nlzed rs a very potent factor in the cot
ton movement and many other things OF
interest to the South.
Mr.. Spear has been at Beaumont for sex
eral mouths. He was recently Joined there
quietly perfected the much-iaiked oil rue
oil combination.
Both gentlemen were ut the St. Cna1its
! yesterday They ieft beaumont the vo Wy
| full OF the thousand and one detaus yet
| to be worked out in their big enterprise, IS
''You will have TO talk 10 Mr. spent
! said Mr. Potter when the Picayune repre-
| sentative asked him for particulars On
| YES, / know You all know me and az th9i;
! but I'm not going TO tax auoul tue o'
| combination. You see MI spear, ror,,,,tar
to see see" Mr. rs Spear.S So the reporter waited
| for Mr.. Speir, who put in his appearance
"4sE Mr.. Potter. said Mr.. Spear.
Wei, said Mi Spear, III must tell
lit became apparent to us some time ago
that there were Two great questions III
yolyed in the fuel OIL business;
First, the question of supply .,.,a,
| Second the question OF distribution
1.-THE question of demand was long aEu
settled. Europe has been taking me Gu
tire output of the Russian, oil helu' ahu
the eastern fuel oil product has never he ai,
| Iy euualed the demand in the section WheIe
| ii is produced, California oil never SER
ously entered into the problem; because ~
the small production and the limited Ie rev
for distribution This is manifest when !ot
consider that South American oil success
! fully competed with California Oh III y, y,
| cents per barrel This price was mum
tanned for considerable time by steau.
| importation of South American gu an ~
At this figure the Standard oil compan!
made arrangements to control the oulpu Nv
which virtually took the American produe
of the market. ,.,
when the Beaumont field was discovers
| some time was required TO demonsiTalS u u
fact that the supply was prneueeaiR 1 fron
haustible. One company had falIa a lFo ~
| the beginning, and today a barge loau OF o.
shipped by that company passed up III
| Mississippi river. Another company oI I'LL
| lied somewhat later has built pipe M
aud refinery, and third company , mas
| p;pe line in process of construction. nes
three companies represent only a sulau y !,
| portion of the oil producers OF BeS uln ~ !,
| vet they, with a few others. are the OIL
| companies prepared to sell oil. - ,
About thirty companies own gushers :, !
| the Beaumont field without having 9uS l.
cllites whatever to market their prodduIit
1T is like a big manufacturing dlslrl'
with nearly all the factories smut aoW ~,
These wells have been idle because me "
was no means Of distribution for the
product. ~, 49,
we have arranged TO do away with IN
condition by forming a comhinatlGn OF
large number of the Beaumont wells, an Az
putting up the necessary capital 70 mark
their eutnut. We have formed the TEX
oapltal Of 50 900. 600 We have secured
this combination eight gushers, ana
| have with us quite number on SP, Pr
Top Wnlcl VIII ne consolludAtu WIN ="
soon as their wells become producers, y
entire 50 1000. COO which we are furnlsull
for this enterprise. is 90 be devoted
| market the product of the consolidaLel col
panies We have already made contrac
For pipe line 70 the nearest port al
several other pipe lines will be pulit
soon as practicable.
1--WE have established an office IN Lond'
TO attend 10 the European end OF our pp
ness, which we believe 10 be fully as y
| portant at this time as the American iha
ket Our London market has already De
opened and our agents are now aI We
throughout Europe selling Beaumont o.
Rv the time our hrst pipe line Is go
pleted ships will be ready 10 carry me
TO Europe or wherever else u Is wanted
The European countries nave sjrlhse
regulations as to the specific gravity ~
infammahilitv az Imported oil. 10 me
these requirements IL Is necessary thht I
lighter products be distilled trcSl the Sea
mont petroleum, and for this purpose
have Contracted for an Immense renheil
capable of treating as mnrh oil as the ~
line can carry. The product OF TINS fel
inC process VIII much more than nay I
expense of re1ning. piping and irelgn,i gu,
that the European sales VII ne pfav''eA
clear profit.
.Do not think that we are negllecting !,
American trade, We are not we rean
the American trade Is far more lmnolu
than that Of Europe, and we ave nov
ranging for a line OF tank HteaMe,s ,
savannah Charleston Baltimore, ihilan
Thia. New York. Boston anl tfAav ~