The San Francisco call., 1901-12-15
OIL PRODUCERS
FIND NEW HOPE
Promise Of Solution of
Their Problem Is
Held Out.

The oil producers Of California have
now arrived at the most interesting time
in their career. The Associated Oil Com
pany has reached the point where many
oil companies are about to submit to their
stockholders the proposition to merge
their interests and to sink their identity
as individuals in one corporation Of great
strength. Some Of the oil-producing COM
panies have already sanctioned the plan,
seeing in il the only seeming chance there
is to prevent the producers from endlessly
continuing the ruinous competition that
has been progressing for many months,
and which has resulted in a price for oil
that is ridiculously low. considering that
oil has TO compete only with high-priced
coal.
Some companies will vote by stockhold-
ers on the Associated Oil Company's prop
osition in January. Others will find out
taken in February In the next eight or
Ten weeks the future OF the oil industry
Of California for a considerable period
viii hence be determined.
The action that has already been taken
by stockholders of companies that have
put the matter 10 the test OF vote would
that is sought will be accomplished. Apool
CT the product Of Southern California
wells, while retaining the individual or
ganizations of the several companies. has
suited in failure to keep up the price of
oil, although there was temporary relief.
Los Angeles and the Kern River country
ol-prOducing districts are in the same
condition in the matter of having large
surplus Of oil for which a market has
not yet been found
Looks FaVorably on Combine.
When the Kern River district field was
opened Los Angeles lost the San Fran
cisco market, which has since been large
~ in the hands of the producers Of Kern
County. Los Angeles looks favorably on
the combine Of the Associated Oil Com
pany Tor the reason that raise OF the
price for the Kern County product would
help all along the line.
The contracts which have been placed
by the Standard Oil Company in the East
for steamships to be used for the trans
portation Of crude petroleum call for YES
sells that are $50 feet long and will have
an TiniWom Wo4 &C capacity OF 1sSoO.OeO gallons Ions;
engaged in the European oil trade. The
Cramps have the contract for building the
petroleum carriers. The National Oil Re-
porter says that the expenditure Of sew
eral millions of dollars is called for as the
price to be paid for the vessels.
The National Banker of Chicago has a
remedy for the unloading of valueless oil
stocks upon unsuspecting Eastern pur-
chasers. Its proposition is that prospect
i've buyers should find out the exact loca-
lions Of the company and the character of
the company's land; the amount of capital
stock and what proportion the treasury
stock bears to that capital and what fin
14AlAc4 LAlbCACcl Tic anu the
stockholders have contributed; quantity
Of oil and production Of the wells Of the
company seeking to sell stock. There are
a good many companies" says the Bank
er, that have not even q derrick up, but
the financial test is their MANAGEMENT
and location" How the people are to as
certain these facts is not set forth.
Pennsylvania Fields Active.
According to the report Of the OIL City
Derrick there were 766 new wells COM
pleted in the Pennsylvania field in the
month Of November. There were then lO49
rigs and drilling wells, an increase being
shown Of 81 wells and 563 barrels new pro-
dUcdon. In Ohio and Indiana fields 541
wells were completed. The new produc-
ton was S621 barrels, and there were six
ty-one dry holes. At the end of the month
there were Ga rigs and drilling wells being
operated, decline of thirty-four
The tankage in the Kern River district
amounts to 1896, 600 barrels, which Is dis
tributed as follows:
The Southern Pacific Railway Company. 70
600 barrels; the Union OIL Company 20 O0o.
Standard OIL Company Completely 505 600:
Standard OIL Company (building). 525 600: pri-
Eate companies, 375, 600; San Joaquin 3S 6O0.
Reed Crude, 1000; Kern Oil 50, 600: Caufieid
5000; West Shore. $4,000 Imperial. ~ 600:
Monte Cristo. 30, 900: Sterling, 10000; Globe
10000 Petroleum Development, 35 600; Reve.
nue., $4,000 Thirty-three "A, ,000 Total barrels
tsnkage, 1, ,996, 600.