The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-08-16
CONlRACTS NOT WANTED
fOf furnishing Fuel OIL by the Big
Beaumont Companies.
MORE WELLS ARE TO BE DRILLED
A Revival Of the Industry on Spindle Ton
Is ferecast-Burt Refinery is Laying
Pipe Line.

ing there arrived In Beaumont a gent,enn,
from Bowie, VINO came for the purposa Of
ouying 5000 barrels of oil, 10 be used as
quickly as the cotton season opens. wnicp
is IN the next six weeks. He male know,
his desires as soon as he arrived hu+ st,,,i
thnt he would positively deal enly with lne
I"rser companies, claiming that he wanted
TO be absolutely certain thnt he could hol5
them 10 any contract they might make. H.
started out and ran across the Gurey com.
pany hrst and they talked nicely and Do.
itely enough 10 him, He asked them abau,
the contract ana they stated that they
would be willing TO furnish him the OF a,
AZ cents per burrei, but that even this DC
ure could not be made until they had re-
ce.ved combination OF instructions from
P!ttsburg. This looked .ather hlgh to MI
Biackman. and he went on to look for ,hc
Higgins Oh and Fuel company, who aru also
big people He asked them about It, and
they smiled bandly Qf corporation may
do such thing and said they did not
have enough oil TO make price that would
be attractive. The purchaser felt little
peculiar about the situation and went to
the Waters Pierce Oil company, and they
sonable figure to him, for the value Of It is
too great as refining proposition 1t is
said that one OF two other of the larger
institutions made similar responses TO the
inquiry and one Of them remarked that IN
october Beaumont oil would be worth 81
instead OF 10 cents The above is the most
striking Illustration OF the present strength
of the market. and 1t shows also that abso-
iutely no contracts can he taken from the
larger people for future delivery.
Spindle Top is having sort OF second
awakening. There have been started there
in the last few days eight new wells and
one oil contractor stated to The Post cor
respondent this morning that he had in the
last three days sixteen inquiries for drill
ing contracts, and that three of them had
been placed with him and he would not be
surprised to get the others, 1t is con
fidently expected by this particular oil wei
drller that September will see the begin.
ring of renewed activity on the hill and II
sort Of second boom will come In the WY
Of new wells. The prices that are beiag
PAID the men there are Just the same now
MS they we're during boom times, and q good
drillcr can get $40 per day as readily to-
morrow morning as he could have on one
that, this same contractor stated that II
the people would but stop moment they
would see that well today Is worth more
money than a 10000 barrel gusher WAS
then. At that time they were selling sh-
solutely no oil, stocks being the only sub
ject Of traffic Later on they had to Sc
their oil at cents. and they were holding
white elephants then with each we'll. Now
they can get even say the minimum OF
1000 barrels per day, ana they get 30 cents
per barrel for il, and therefore make.
much larger profit than they ever have be-
fore. A thousand barrels can be sold AMI
even at 20 cents the amount Is $500 per day
in revenue. Ard now the entire product
can be sold. There Is no wondering bout
market, no wondering If a customer can
be- secured. for the customer Is clamorlng
for the oil, The demand is even so strong
that one of the large refining concerns thnt
is beginning to take on oil made a contract
yesterday to equin and pump the wells OF
producing company for half the oil, and
agreed furthermore to buy the other half
at a good figure.
The Burt refinery Is laying seven-inch
pipe from the field to the refinery on the
river. n distance Of about three miles. and
will soon be receiving oil there as vel as
Ia their storage tanks of TO the right They
faye in storage 100000 barrels of oil al.
ready and are said TO be buying heavily.
49,
More machinery arrived for the Penman
Steel and Iron Tank works today and the
crews are now doubling up and working
nights; even the officials spending the
greater portion Of the night at the plant
MAJ machinery t in place. They viii be in pretty
good shape Monday, or short time there
after. Vice President Stat states that the
heavy demand Is simply grinding them to
the ground.
There will soon be another experiment
with the Saratoga oil and thorough
analysis will be made by Mr.. Steiner, the
chemist who tried It before and found Il
Of such excellent quality that he feared
the crude had been doctored. He declined
to Issue n certificate before and this time
when he gets the time Ne Will give It
thorough test He Is spending consider.
the Union OIL Refining and Fuel company
started and is also in New Orleans a great
deal, so that 1t may possibly ne me
weeks before he can make the announce
ment. In the meantime those who are IN
terested In Saratoga feel confident that the
oil Is the most valuable ever round ID tne
South and that they viii have absolutely
M trouble In securing S1.75 per barrel Tor
ID as soon as the rehneries are In operation
~
The Texas Big Four oil company Is pllc-
ing its new steam head in position and WI
he ready TO get oil through that source IN
the next few days
Mayor F. NJ. welsch Of Alexandra, La
Is here today and has closed a big contract
for fuel oil TO be used by the city Of Alex
ondria. They adopted Beaumont oil rs
their fuel a very short time after II was
discovered aud the mayor thinks there is
nothing like II now. He will return nome
tonight. c. y. Hodges & Co, made the denl
For h The mayor spent great deal OF the
time today ut Spindle Top.
A new we'll was started today for the
San Jaclnto oil COMPANY by Contractor w.
p sturm. II will he their No. 3.
~
Dan Walllng has returned from trip 10
Csntrsctor sturm went east on the South
ern Pacific this morning
Mr.. ]. A. Paulhamus is once more set
tied down IN his office mere ,, -,
Mr. +. NJ. Kiser left for the Mexican OIL
fields over the Southern Pacific last night
~
There was considerable excitement caused
here this afternoon by an explosion on the
southern Pacific main line in the center
Of the city. 1t came from an oil tank on
n switch engine and did no damage ana
hurt no one a very large crowd congre-
gated in a remarkably quick time.