New-York tribune., 1901-09-27
TEXAS OIL INTERESTS.
LARGE CORPORATIONS SECURING con-
troll OF BEAUMONT WELLS
MAKING PIPE LINES CON-
MON CARRIERS MAY HELP
SMALL PRODUCERS

ever has been extended or widened little by this
extensive development work No yet
been successful in getting oil outside slight
elevation known Spindle Top Heights although
a large number of wells have been bored In the
adjacent wildcat territory. The belief Is
strengthened that oil in paying quantity will not
be found outside of the proved oil district
The problem that is worrying the small pro-
ducer of oil in the field is the marketing of
the product Ii is asserted that of the wells
brought in recently show daily capacity Of
S.Oc0 barrels. and from the best evidence obtain
able the subject. such the time required to
hll large storage tanks. and the word OF the oil
producers themselves there Is not a well in the
field which flows less than 10000 barrels daily when
permitted TO do Placing the average daily out
put to well at 10000 barrels and a simple cal
culation shows that the 1fty-two wells have
daily capacity of 156oOco barrels. The output for
year II all the wells turned loose and the
flow did not diminish would aggregate the enorm-
amount of $50. O0O0 barrels. and hundred
wells would produce nearly double that amount Of
oil
QUESTION OF MARKETING OIL. y
II Is wonder that the question OF marketing
the oil is already becoming troublesome. II the ,
traffic of every railroad in Texas was devoted ex-
clusively to handling the oil. and roads had
direct access to the Beaumont field. the present
output of the field could be handled promptly
Most of the wells are bottled up because OF this
lack of transportation facilities The daily ship
ments of oil from the field do not exceed 125.ooO
barrels II is stated by the oil producers that the
demand for the new fuel is much greater than
the existing transportation facilities afford means
of supplying. The only company which is now
making large shipments of oil from the Beaumont
field is the j. NJ Gurey Petroleum Company,
which is said TO be part OF the Standard OIL
Company. Most Of its shipments made by
water. II already has number of vessels IN the
oil transportation service. and has placed orders
for the immediate construction of several more.
In addition to its own transportation service this
company has entered into a contract with tho
Shell Trading Company. a powerful English
poration which handles large scale the OIL OF
the Baku field OF Russia. for supplying the markets
OF Europe with the Beaumont OIL 1t IS stated that
Gufrey Petroleum Company the low price Of cents
barrel for the oil delivered at the ship side at
are being epecfed bv the SbeJI Traiing SonnanY
at several points in EngIsnd and on the Co1tipsnS
S% with h, coal S n tn Wn,G G' the large
There several companies with limited capital
These companies owing to lack of capital. are un-
for the transportation and marketing OF their
product and as the larger companies and syndi- {
practically worthless so far as bringing in anyi
revenue to thsir owners Is nc @ The sisga
Petroleum Company and one or two other concerns
affairs the stockholders of the smaller companies
are much d.sapPointed J and some S Of these wells
only question Of time when The Eh0is 9is asId win
hands
some other powerful corporation
EX-GOVERNOR HoGG's SYNDICATE v
Former Governor James s Hogg who is at the
head of a syndicate which is already formidable
competitor of the j. NJ Gu1ey Petroleum Cons,
pany in the production of oil, is organizing COM,
pany with a proposed capital OF s25 OooOsG build
and operate extensive system OF pipe lines. tank
cars and tank steamers. Mr.. Hogg and his as
OF land in the heart OF The proved oil field on
Spindle Top Heights MI : hogg .sg says that this
says that land in the Baku oil feld OF Russia has
the productiveness of the Spindle Top Heights ]
land much greater than that OF the Baku dis
syndicate is owner OF 'gusher'' and is boring
three more wells, and also has a partnership in
wonderful field II Mr. Hogg is successful in car
cSnE cut w hs m o m efnd pee E o
the Beaumont field TO take their oil at given
That the railroads Of Texas and many
aCturlnS ConcvLilS Vl tiiS otdte dlC the
field is shown by the fact that oil burners
the wPrk pHs m can be- done and that Il viii be- only
short time before the new fuel will haye taken tba
place OF coal 70 great extent The Southern Pa
cifc. the Gulf Colorado and Santa Fe and other
large storage tanks points along their respective
lines. where they will keep hand supply OF oil
the Gulf. Colorado and Santa Fe and the SOUTH
ern Pacific have beer been already equipped with oil
ing. as compared with coal In addition using
ern Pacific. the Gulf Colorado and Santa Fe and
other Texas railroads have already placed large
orders with car building concerns for oil tank
with which handle the product of the Beaumont
field. The Southern Pacific is having one thousand
order for three hundred OF such cars.
This OF wealth has produced a prob
lem in taxation which the Texas Legislature has
been trying to solve. 1t is generally conceded that
product. but how the tax on the oil should be-
assessed is what Is worrying the political econOm-
lists of this State Governor Sayers recommended
the legislature. which is in special session.
that law be passed taxing the producers, re-
nners and dealers in Oil per cent on their gross
introduced in both branches OF the legislature
here and opposed the proposed before Iegis-
lative committees. and the rate was cut down from
of Representatives in this form. but defeated
In the Senate.
grounds that il would cripple infant industry
and that il exorbitant levy the product
They held that the State could Just we'll place
similar tax on the producers OF coal gold and
silver and various farm products: they asserted
ground out OF which the oil was already
rangement could be perfected Whereby the ON on and
land values could be properly separated they would
be willing pay ad vaIoreu tax on the oil bur
they unalterabIy opposed to paving a tax on
their gross receipts.
The problem was not settled at this special ses-
sion OF the legislature but IL is certain come up
again when the legislature in regular ses-
sion In the mean time the legislators the
oil producers will make study of the laws OF
Pennsylyania Ohio Indiana California and other.
plicated taxation question. with view OF arriving
at an equitable settlement of the difficulty
Governor Sayers has also been urged 70 recon-
mend the enactment OF law making oil pipe lines
in the Beaumont district Two OF then, run fro
Spindle Top Heights 10 Port Arthur Whila RE
Sne Paas e 6s ines in h aI Port OF
as private concerns, and the third is Conducted
fore subject TO legislative enactment declaring it
i0s 10 oe n common % carrier II is urged that BY maxi
opera operated under charter granted by the State.
tn S7d osrr1ar