The Redwood gazette., 1902-08-13
NOW SP0UTING MONEY.
Star-American Oil Well Gushing Forth
Gold for the Company.

UlQer QaGe OF j ulF ZOtu IlOu. dS.
A. Larson, head gusher Of the Star
American Oil Go. OF Walnut Grove.
writes from Beaumont, Texas, to
the Walnut Grove Tribune, saying
that W; J. Marvin had just arrived
there and had been placedin charge
of the Star-American pumping plant.
"When I return home, continues
Mr.. Larson, 1T will be with the
satisfaction of knowing that our
company will soon be able to pay
handsome dividends. With the
price Of oil increasing with a steadi-
ness and rapidity that is bringing
visions of enormous wealth and fre-
uuent dividends to holders of stock
in reliable companies, the advance
has been so marked that it has di-
rected the attention Of oil from spec
ulative stocks, and put 1t in the
earning ability OF the various COM
panies.
';Oil was sold last week in con-
siderable quantities at 30 cents per
barrel, f. 0. b. at Gladys City, /
mile from Spindle Top. OF course
the sales at that price did
not constitute a majority Of the
sales, but there was enough OF these
and for sufficient quantities to war
rant a belief that these early con-
tracts at that price are harbingers
OF brand new price level in the
neigh borhood of 50 cents or more per
barrel. A prominent and well-in-
formed broker made the statement
TO me that oil would be selling al
30 cents per barrel at the we'll, not
f. O. b., anywhere in comparative
ly short time. The Beaumont field
is so situated that it cannot be
frozen out by the Standard or any
other trust; for the proximity O
deep water relieves the producers
here from all danger Of being shu
off from the market by the lack O
trans portation facilities.
Il think that Beaumont oil will a
some time during the next few years
become too valuable to be used as
fuel; not that 1 apprehend a genera
decrease in the supply, but because
the demand for it for refining pur
poses will increase beyond all pres
ent anticipations. The reinerie:
that are going up here can produce
products whose market value will
average from So to IS per barrel
and the cost of refining will bea
only a small relation to those sums
Oil will therefore be too valuable t,
them to permit it's use as fuel, ant
they will be in a position to bid s.
high that it's economical value a.
fuel will be destroyed, but there i
always the value of oil as fuel t.
protect the producers against an,
effort on the part of the refneries t.
beat down the price on oil.
Beaumont, and in fact the south
is prosperous. The principle in
dustries are. oil, rice, stock AM
lumbering-all you might say in it
infancy. Good unimproved ric
lands can be bought for from $S t.
$50 per acre that will be worth from
$40 to s75 per acre in few years
There is considerable buildin!
going on here, large brick busines
blocks and a large number of resi-
dences. Bricklayers receive So.
and carpenters 81. 50per day, eigh
hours work, but no work is to b.
| had in either of the above trade
unless the applicants belong to tn
labor unions.
| Beaumont is we'll governed cit,
of about $4,000 population, but th,
streets are in deplorahle condi
tion especially after a heavy rain
but improvements are going on a.
rapidly as possible. A large force
of men are now building sewerag,
aud I was informed that 5000. .00(
would be expended for that purpose
this year. A vote will also be tax
en- this fall on the question Of issu
ing $500. 900 in bonds to be expend
ed for pavements. Beaumontis sur,
! to ba N "a p,otroralic of Tho south :.