The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-10-26
AN IMPORTANT DECISION
Rendered in an Oil Case by District
Judge Martin.
SMALL COMPANY SUED ONA CONTRACT
Was Protected BY tho Court When an
Attempt Was Made 20 Assign
tho Contract

/ 0ereQ hlQCG IApldAI AllIn bANNN 1AoNS'NAsf
January 10, 1901, was given out by Judge
Martin this afternoon when he refused to
perpetuate an Injunction and dissolved a
restraining order already issued and also
| refused to appoint receiver for the Iude-
pendence OIL company upon the application
Of the Texas company, which is reputod as
being one OF the big concerns of the coun-
try.
| In soaking Of the decision tonight Judge
| Joe Duff said that the decision was by far
the most important ever made in Jefferson
| county. II means the preservation OF hun
| dreds Of little companies and the very life
Of Spindle Top Is Involved,
Hon. K. c.. Dun was also seen by The
Post correspondent aud was quite jubilant
over the decision, stating that 1t meant
millions OF dollars saved 70 the county and
| that are to follow It. ali Of which are Of
| similar character.
On February 2s. 1902 the Independence
| the TeIns Fuel company, by the terms of
which II bound Itself to deliver monthly to
| the Texas Fuel company 1000 barrels OF
barrel Of forty-two gallons each Soon
afterward the contract was 80 amended,
with the consent OF both parties thereto
Ts o6b 1To Ts rased Of from ON to
| barrels subsequently the Texns Fuel com
| pnny assigned all It's holdings and the c1n-
| tract made with the Independence on com
| pany 10 the Texas company and was alb
sorbcj by II, the capital stock having been
increased from $4,000 to S3,0oo,OOO.
| The Independence OH company nado one
! delivery OF oil as required by the contract.
! aud then learning OF the absorption Of the
! Texas Erel company by the Texas company
refused 10 longer recognize the contract
MS binding upon itself and served notice to
| that effect upon the Texas company. The
Texas company got out temporary In.
| junction restraining tho Independence on
| company from operating Its well or selling
| the product thereof, to which another Oh
company that had purchased 100000 barrels
vas made pnrty.
Is that the contract made by II with the
! Texas Fuel company was for the sale Of
! personal property on credit and was per
| sonal TO the Texas Fuel company and non
nssignable: also that the assignment Of the
contract TO the Texas company was with
out the consent Of tho defendant and was
void The defendant Bso contended that
a suit for specific performance Of an eI-
ocutory contract 10 sell personal property
can not be maintained IN Texas.
~
The Southern Pacific has Just closed
deal with e1-Mayor c. Il. Smith Of Port
Arthur by which the railway company be
comes the owner of SIX and one-hAlf acres
Of land at Welch. La. This is for the pur-
pose OF sinking oil wells. The company
believes that at WEIGH the oil will be found
In quantities sufficiently large to keep them
going for a long time and make them indie
pendent entirely OF Spindle Top This
would be most pleasing to all parties con.
cerned for It Is believed that It would re.
suit In better service out of the field here
Mr. Smith and associates have already
bored one well ut Welch. IN which the cas-.
Ing was blown out and gas and oil came
unrestrgined until the well choked itself
The surface Indications are such as TO lead
10 the opinion that oil will be found Their,
IN large quantities. Mr.. ]. S. Cullinnu
OF the Texas company and Mr.. s. ". Scott
Of the Export OIL and Pipe Line company
have each purchased property there with a
view to developing It,
~
The No. 5 we'll OF the Export OIL and Pipe
Line company, which was mentioned this
morning, still shows the same remarkable
pressure. Speaking Of II, the OH Inyetors'
Journal OF November / will say:
Always to expect the unexpected is IN
Irish buli' that is fast being converted
into Spindle Top proyerb.
The latest freak is the Expert oil and
Pipe Line company's No. well, situated
In block 81. Kelth-ward tract This well
is otherwise known as the o'NeiI well, and
before becoming the property of the Export
OIL and Pipe Line company, was owned by
the Hogs. Sw9yne syndicate,
In the recent sale by the syndicate OF ten
producing spindle Top wells to the FIX
Port company, THIS well changed hands.
Details OF the transaction were published
IN the OIL Investors Journal at the time
The deal was the largest that had been
Sonsummated In some time aud the proni-
| nence or the companies who were parties
TO the contract lent especial interest to It.
AS the Export company htted up It's
newly acquired wells with pumps and APP
paratus, II numbered them. Export No 5
was the NTH one equipped and was only
made ready for business day or so ago.
on the sd the pump was started and the
wei was found to produce satisfactory
yield The next day when It was opened
all I'm the neighborhood were startled TO
near the roar that had been foreign 10
The pipes and Joints on the pipe line
| connection between the we'll and the stor-
age tank, about 500 feet distant, were
seen 60 strain and CULVER AS the pipe
lines route 70 the tank Is very cirtuitous,
/ II was feared the Joints would give away
az some OF the sudden turns Of the pipe.
The T that defects the dow OF oil down
Into the storage tank was torn from It's
faSienlngs and the steel pipe beat up and
down much as would a rubber IRE hose
with an unattended nozzle. The exhibit
tlon drew large crowd TO the scene.
Several proposals were made to climb the
tank and secure the wildly waving pipe
end, but none were 50 foolhardy as to at.
| tempt t. The well gushed probably bali
hour, and then gradually diminished 10 n
point where I could he controlled The
! wells unusual behavior was probably due
to the fact that Il has been closed for some
time and the agitating caused by the pump
the day before released the accumulated
gas. Tne well Is said to have always been
an excellent producer.
~
ia Kennedy, the beaumont man who Is
interesting himself 10 the electric line from
Beaumont 10 Houston. states that the Britt
company has brought IN a good ioOo-barrel
well on this side OF Sour Lake by a con
siderable distance mud the concern expects
TO continue on down Pine Island bayou to-
ward beaumont believing that oil VIII be
found along the waterway FOR a long dis
! tance. Mr. Kennedy seems quite en-
thuslastlc over his railway and thinks that
the country through which II win run viii
soon become the richest strip In the world.
~
Hon. H. A. Greer, the present representa-
tive from this district and the general at.
torney for the Guney company returned
this morning from Pittsburg. where he has
been for the past two weeks. Mr. Greer
states that the company which he 10 with
is preparing for additional expenditures IA
order 70 facilitate the shipping and the
genera business. Everything they do VIII