The San Francisco call., 1901-11-03
VITAL ISSUES
FACE OIL MEN
Directors of Associated
Company Moving
With Care.
Situation at Los Angeles
Affects Producers and
Market.

The leading interest OF the men engaged
in California's oil industry now attaches
to the work oS the directors of the Asso-
clated Oil Company, who have been con-
ferring in this city during the last week.
IN the success OF the combination that is
proposed as a part Of their plan, the ac-
tive producers of oil north of Tehachapl
are vitality concerned. A majority of the
leading companies in the Kern and Nc
kittrtck districts are represented upon
the Board of Directors. The general
trend Of the work Of the directors has
shown that they are proceeding with
care.
The Bakersfield Californian says that a
pipeline from the present terminus of the
Sunset railroad to section "a, u, "A IN the
Sunset District has the backing of people
who are largely interested in the oil in
dustry, and that the preliminary surveys
for the line have been made. The propo-
sition is to reach the best part Of the ter
ritory and to give an outlet to the rail-
load direct.
1t is expected that the refinery at Ba-
kersfeld now under construction for the
Pacific Refining Company will be in rum
ming order by the nrSt of the coming
year. Soon after that it will be turning
out large quantities of refined oil and
asphalt. spur track of the Santa he
has been laid TO it. At first oil will be
brought directly by rail from the Kern
River, Sunset and McKittrick districts,
but will probably be piped after a time
to save expense. The plant Is conSidera-
bly, lower than the oil wells, so that the
piping could be accomplished with COM
paratlve ease, especially If distillates are
used to thin the oil.
A great deal of space has been devoted
by the Los Angeles papers to the narra-
uOn or the troubles that the oil producers
of the Los Angeles field have had over
their agreements concerning the market
ing of oil. When the president Of the Oil
Producers Association committee wrote
to Ed Strasburg, president of the Oil
Storage and Transportation Company,
suggesting certain changes In the con-
tract with the Storage and Transporta-
ton Company, Strasburg replied in sub
stance as follows:
We still believe the contract as origin
ally prepared by us to be a good working con-
tract for both parties. and would be pleased to
handle the oil Of many producers in the
Les Angeles field would be willing to have
US sell their oil under the same. Instead OF
the Storage Company selling a certain num-
Der of barrels OF oil per month now belonging
to themselves, propose changing that clause
for not to sell of our oil until July I.
1902, provided We secure oil enough under such
contracts to supply our requirements; AFTER
which time we would want the privilege o.
disposing Of ali OF the oil we might have on
hand at the rate OF 5000 barrels per monLn.
This would give the producers who give US
their oil to handle the benefit OF all contracts
we now have
Now Act as Individuals.
According to the Los Angeles Herald
there were representatives of 26S wells at
the meeting when this letter was read.
The result Of the deliberations was that
while as united body Of producers the
association is dead the organization was
maintained for the present. A resolution
was adopted in which the right OF the IN
dividual well owner to sign with the
Storage and Transportation Company was
conceded. Some of the producers signed
the same day with the Storage and Trans
portation Company, the contract to take
effect November 1. President Strasburg
said that If a sufficient number of pro-
ducerS came In his company would act as
sole agent and would refrain from doing
any other than the business Of the sign
ers. If, however, sufhcient number
failed to come in the Storage and Trans
portation people would reserve the right
to get what business they could upon the
their agent will meet to nix the price or
oil. but the Storage Company will be the
sole judge as to selling and no committee
will be given power to sell the oil or pro-
ducers on the outside. On the day of the
meeting and the following day between
10000 and 5000 barrels of Oil were pledged
to the Storage and Transportation Com
pany by the local producers Concerning
the new arrangement the Los Angeles
Herald says:
Without doubt any one choosing to be hyper
one or the other of the contracting parties
desires only to observe the letter while ignor-
left for some sharp practice. But dlfhculties
of this kind the law, however rigidly 1t be
framed, cannot ODV1aIe. IN the medQllIne tn6
arrangement IS the best that offers. and Il
will be interesting to note Just how many OF
the producers think so.
Search for New Field. Y
The Western Oil and Development Com
pany is drilling sixteen miles from any
producing well, being Just north of Buena
Vista Lake, and the operations are
watched with interest, for there is a posSi-
b.llty that a new field will be developed.
The drill is reported to be down some
thing more than 5C0 feet.
The Pacific Oil Reporter says that It has
become evident that the life of the Texas
oil wells is exceedingly short and that
the Texas oil Is of an inferior quality.
For these reasons there is no justtfca-
ton for anxiety on the part Of the Califor-
mia producers because Of any competition
that may come from Texas. The same
journal predicts that refining oil will bring
more wealth to the State than will fuel Oil.
California ought to be exporting immense
quantities of refined oil to Japan The
following instance Is given as illustrative
of this claim
\The British ship Palgrave q few days ago
sailed from Philadelphia for Japan with 100, 600
cases OF refined petroleum. At the same time
for the land Of the Mikado sixteen vessels, all
to carry cargoes OF refined petroleum. amount
ing In all to 1s41T. goo cases. which with the
cargo OF the Palgrave will amount to Is. .470, 900
gallons It Is wonder our California To-
hneries are anxto1sly awaiting new and large
discoveries Of refnable petroleum. The Pacific
Coast OIL Company needs five times the amount
OIL Company.