The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-03-12

which owes her prosperity to the rich
ness of her oil sands.
Every train brings in people from all
districts of the United States.
Lease and land buyers, stock pro-
moters, capitalists, well drillers and la
borers.
A wholesome good nature prevails
among all this motley throng for all
are interested in oil and oil means
money. 1t is not the purpose of this
article to boom Chanute but to give
some pertinent facts about the Cha
mute oil and gas fields. And as Cha
mute is the heart of this great field a
few words may not be amiss. Chanute
is city of 1000, well paved with brick
and has the best brick buildings of any
city of her size in the west. The city
owns her own electric lighting plant,
waterworks and has five large gas
wells with which she supplies her citi-
zens light and fuel at nominal cost.
The city charges ten cents per month
for each gas light and 81 per month
for heating stove. No trust can con-
troll the heat of this community for ma
lures gas has solved that problem and
the city has taken advantage of this
and dispenses it to her people.
There are three well defined trends
of oil in the Chanute districts
Every operator has a theory of the
location Of oil in this field, but the fact
is that very nearly as many good wells
have been found out of the trends as i'll
them, proving that besides the natural
trends the oil must lie in large pools
A year ago all companies which could
not get land in the proven field and
commenced drilling a mile or so from
the developed wells were called wild
Caters" or people that were taking a
large chance on finding oil; and while
to be a successful oil man one must be
something of a Spectator the Wild
CATERS almost invariably found oil
and proved up new districts.
The whole field is underlaid with oil
1t is true that one may sink a well
and find "duster'' or dry hole but
this is often done within couple of
hundred feet of a successful bumper"
Again well may be sunk on a piece
of ground that has no evidence of oil
and strike a good flowing we'll The
percentage of dry holes is very small
compared to the successful wells that
are sunk The Kansas Derrick reports
show that during the month of De-
cember, 1903, 76 wells were completed
and but II aba ndoned or about Is per
cent of the total In the Chanute dis
trict up to January 1, 1904, there had
been 61S wells completed and all pro-
ducing. 30 wells drilling and eight new
rigs building. In a short time the
whole district will be dotted with wells
One reason that there is not more wells
is that it is very hard to get drillers
and rigs. Every one in the field is
busy and rigs have to be engaged
months in advance to drill. Another
reason is that the men who got IN
Chanute early have thousands of acres
of lease holdings that no companies
have yet been formed for development
purposes and many are handicapped
for want OF money to develop their i'm
mense holdings. It requires money and
lots of it to develop a field like Cha
mute. Some idea may be gained when
one takes in consideration that 100
acres of land will give room for Ga
wells. 1t costs very near 81, 400 to sink
and put in each well successfully, in
Guiding tanks, casing, etc, so that the
cost of developing 100 acres would be
about $50 600. A company would be
making a revenue from the time that
they had the first four wells completed
but to be a success they would have to
put all the income in for a year or so
to develop the balance of their hold
ings.
Kansas people have not Weakened to
the fact that the oil fields are the
most wonderful fields in the world
probably it is too close to home for
their appreciation, but the men who
have made money in Chanute today are
lHOSJlY all men from Iowa. missouri
and other states.
The oil fields lay dormant for over
twenty years before the great produc-
ing possibilities were known. 1t is
almost as easy to get in on the ground
floor row as it was a year ago, the
field is yet in its infancy and is Just
commencing to produce.
A faVorite method with great many
is to organize company, purchase a
lease and sell stock for developing
purposes. Another method with a great
many spectators is to buy stock in a
new company that has good holdings.
Most of this kind of stock is always
sold for about one-tenth of it's par
value and almost invariably advances
in price after the first or second well.
Stock of this kind is valuable for it
will pay dividends and as the develop
ing of wells increase there is no limit
to the amount of dividends that it
may pay. AS an illustration, Col. G.
G. Isett of the Isett-Irvin company
put IN $4,000 sinking wells. During the
last nine months of 1900 their oil wells
paid them $4,000. or over per cent On
$500 600
There are quite a few companies that
are now paying per cent month div
idends. AS some of the stock was sold
at 10 cents a share this is 120 per cent
on the original investment.
viii the oil hold out is a question
that is often asked. There is no tell
arg INV many years ludl d we'll IS ROOu
for. The experts say that the average
we'll in this field is good for from 20 to
80 years.
Unlike the Beaumont field, the oil
does not gush. but lying in sands it
slowly percolates its way out and
steadily yields a certain amount daily.
Quite number of wells have come
in with 40 10 400 barrels, but the aver
age yield Of large and small wells is
a trifie less than five barrels daily. A
two-barrel well in California and Penn
sylvania is considered profitable to
pump.
Some idea may be gained of the
profits of the business when you know
that oil sells for S111 in the tank. A
fve-barrel well would pay $3.50 per
day, or $2025.75 per year, S62575 more
than the we'll cost; quite a nice margin
VIII the Standard Oil company con
troll the output of the field?
tc