The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-04-30
RAILROAD NEWS.
Details. Of the Santa Fe's Big
Oil Deal.
Invests 100000 in Kern
River Oil Fields.
PAID 81 PER SHARE.
Shares Originally We're Sold
For Is Cents.
Deal Was Made by President
Ripley in Person.

The details of the Santa Fe's big ST.
100000 deal in oil have just been mad
public. and viii be of interest to all
railroad men. The announcement of the
deal was made some days ago in the
state Journal The Santa Fe is about 10
take over the holdings Of the Petroleum
Development company, a corporation
controlling nearly $500 acres situated
in the Kern river field about eight miles
1.orth of Bakersfield Part of the COM
pauy's holdings is owned in fee, and the
rest is held on long time lease. Exprets
estimate that not less than one-third
OF the total is proved oil-bearing terri
tory. The CON pany's lands are capable
of producing 50, 600 barrels month Inc
output has exceeded 10000 barrels, trat
amount being the requirement neces-
sary to meet the c0mpany's demands
because Of a five year contract entered
into with the Santa Fe a little more
than two years ago.
SHARES AT 81 EACH
Edward I. Doheny, Godfrey Hotter
hoH the late w G. Nevin of Los Ange-
les. and A. B. Butler of Fresno included
the original owners of the Pelroleuln
Development company Addltlonai
stockholders, who VIII paruelpaIe n tIle
proceeds of the sale to the Santa re IN
clude H. NJ. Mcintosh of Chicago and
w A Bissell, assistant traffic manager
of the Santa Fe. of san Francisco
1t is understood the cash price for the
property will be 81 230. GOO. or on basis
of about 81 a share The capitalization
of the corporation is $125O00 Revenues
allowed to the sellers to the last moment
of actual transfer VIII swell the pur-
chase figure to $1,415,000
1t is understood four stockholders VIII
be benehciaries in the sale. The for
tunate quartet includes E. L. Dohenv.
a. 3. Butler, W. A. Bissell and h M
Mcintosh. Transfer of the property was
erected through E. l. Doheny of Los
Angeles, who first obtained an option
on all the stock outstanding and then did
business with President Ripley direct.
The deal has been hanging fire since
sent from Santa F,e headquarters in
Chicago to Los Angeles in order to
make inventory of the property The
examination was concluded last week,
and the titles having been found per
feet the first cash payment in the deal
will be made at once from Santa Re
headquarters in Los Angeles FL L.
DOheny viii obtain tWO-thirds of the
purchase price, the remainder to be dI-
vided among Messrs- Butler, Bisseil
and Mcintosh. The sale is the most inn
pOrtant cash transaction of its descrlp-
ton ever made in California
President Ripley was induced to take
the property because of the contract
with the Petroleum Development com
pany providing that the Santa F'e rail-
way company should take its entire
production.
THERE IS MONEY IN OIL
The fuel sold, for nearly two years,
has aggregated 10000 barrels a month
at SO cents a barrel. Oil can be pro-
duced at 10 cents a barrel. after de-
Quoting interest and other charges,
efecting a net profit of so cents a bar
rel to the Santa Fe. 1t is estimated
that at the price paid for the property
by the Santa Fe. the company viii earn
three-quaFters Of the money by the
time the hve-year contract at 9S cents
a barrel shall have expired.
When the Petroleum Development
company was organized in the summer
of 1899, only 1000 of the 1925 600 cap
ital was paid in, and some of the orig
1nal promoters in the enterprise were
taken in at about Is cents a share for
their holdings. The company. since it's
organization, has paid out $4,000 as
profits and surplus. returning to some
Of the investors about ago per cent. in
two years.