The San Francisco call., 1901-10-06
|. &c OIL CORPORATION is FORMED
Continued From Page Thirteen.

Incorporation also authorize the construc-
tion of water craft for deep sea and in
land service. ElI
Power is given to purchase any and all
oil wells; to construct and maintain tele-
phone lines; to buy and sell water; TO
make tubular and other forms of steel,
iron and wooden ware; to erect power
rights to secret processes for the refining
of the crude oil or other man1pulationS OF
oil and its products; to issue stocks and
bonds; practically to do anything except
to build and operate railroads. The op-
erations of the corporation are not con-
fined by the ARTICLES of incorporation to
the State of California or to the United
States, but may extend to foreign coun
tries. Drilling for Oil and exploring for
all sorts of materials connected with the
oil industry, such as bitumen, natural gas
and asphaltum, are some of the important
purposes.
Appraising the Properties.
The men connected with the movement
to bring about the consolidation of the
Kern and McKittrick fields, under one
took great pains to ascertain the values
Of the actual producing companies in the
two districts and appraisements were con-
fined to companies that have demonstrat-
of oil in paying quantities. To find the
facts not only were the books of these
companies consulted but the capacity Of
the properties was actually tested by the
experts selected to go into the fields.
In addition to this the geological struc-
ture of the several locations was consid-
cred with care to ascertain the manner
in which the oil strata were laid down.
When this had been done the chemical
constituents of all the oils taken out by
the various companies were determined in
chemical laboratories situated near the
wells expert chemists being employed to
make the tests. In short, everything was
done that could tend to throw light upon
the actual and prospective values of the
properties.
When this was nearly completed pre-
dictions were made by persons who SEEM
ed to be interested in preventing the for
nation of the proposed combination that
the companies would pull apart when the
question of valuation of their properties
came up This difficulty would seem to
have been overcome If the belief of the
representatives of the several companies
who have conferred with the promoters
concerning the future action of their
stockholders is verified.
Two Opposing Interests.
There have been two opposing interests
to have the price of oil put down. The
other wishes to have oil pay a profit to
the producers. From this latter impulse
has come the organization of the Associ-
ated Oil Company. w. 8. Porter of Los
Angeles, who has handled other large
deals was brought to San Francisco some
time ago to work for the consolidation of
interests His pay was made contingent
upon the success of the enterprise. His
fees will reach very large sum,
enough in fact, to constitute a fortune
for most men. Mr.. Porter opened an Of
flee in the Mills building and has devoted
all his time since his arrival to the work
in hand.
Henry Ach said last evening that the
proposition of the Standard Oil Company
to construct a pipe line from Bakersfield
to tide water had no concern for the men
who compose the Associated Oil Company.
The purpose of the new corporation was
to handle the product of the fields and a
pipe line was considered by the promoters
| to be essential to success in that direction
| Whether the line would run to Stockton
or to some other place was matter OF
detail to be considered when the time
comes
The size of the issue Of bonds to be
| authorized cannot be forecasted A bond
issue will be necessary to provide the
money needed to construct the pipe line
sailing or steam vessels to be operated
tanks, power houses and power plants,
water plants and other accessories and in
dispensable parts of the great enterprise
| the Associated OIL Company has been in
| pOrnora fed t0 carry on