The San Francisco call., 1905-08-26
May Bring About
Better Prices
at Wells.


A story Is In circulation that the
price of oil at the California wells may
be raised as the result of a possible
deal between oil companies. The rumor
is interesting to thousands of owners
of stock in oil companies in this State,
but there is no way to ascertain the
intentions of those In control. The story
originated at Los Angeles. but is heard
here on the street Some of the con-
siderations that brought credence to
the rumor south of Tehachapt are con-
tanned in an articlein the Los Angeles
Times. which in part follows.
The second part OF the deal is said to be
combine OF the Union and Associated by the
terms of which they will cooperate in the
market to get better prices for oil through
business. That would be likely to
Worldwide deal. 30 to speak. as both the
Union and Associated are reaching out for
trade In South America and the Orient.
According to reports, neither company viii
lose it's identity Each will retain Its own
property and manage Its business, but there
will be harmony instead OF the fierce compe-
titiou hitherto existing. There Is every reason
to to lss loss of dsn or paSs with sns
part of its property. Its officers have again
and again so declared, both in official papers
between lT6 600 and 100000 acres OF oil lands,
approximately four-ffths Of the entire terri
and Bakersfeid pipe lines from the Santa
Maria field to Port Hartford and from the
Fullerton, oiinda and Whittier districts to
San Pedro; large tankage at principal ports
on the Coast and ships to enable 1t to reach
many points independent Of the railroads, 1t
pendence It IS possible. however. that an
agreement of mutual advantage may be
reached with the Associated.
ciated control 5even-eighths of the oil terri
| tory of California. By their own production
and through their contracts with producers
! they probably control at least half the out
| put
| Forty millions 10 the capitalization OF the
| is outstanding. Nearly half 10 held by the
| Southern Pacific and the balance chieny by
t although % some % Of these h have sold out. There
are several million shares probably scattered
among small holders, but as the stock Is all
managed by trustees with practically absolute
power there is delay or check upon deals
! contemplated. Its stock is now selling In
The Union is capitalized at $40, ooo, coo, half
| OF which has been issued. Most OF this Is
held within the directorate and by system
| of pooling adopted, 1t is absolutely In the
| hands Of the men who now control the com
pany. Stock is selling at about SIPS share,
It will be thns seen that a combine of any
| kind between these companies will involve an
| issued capital of nearly S43. 900. 900.
LARGE FIELD OPERATIONS.
The standard Oil Company is report
ed by the Bakersfield Echo to be pump
ing oil into it's reservoirs in the Kern
River district at the rate of 10000 bar
rels a day. Fart of this comes from
that supplied under contracts and a
part is being drawn from the steel
tanks. The Echo says:
The $50 O00- barrel reservoir, which was one
of the first the Standard had built, Is being
emptied also. The roof of the reservoir has
fallen in from faulty construction and re-
pairs are necessary. The Standard still has a
large force of men and teams at work build
Ing new reservoirs.
The Union OIL Company has begun a large
reservoir on the land recently purchased from
John Enos in the Kern River field.
The Associated Oil Company has a big plow
team breaking ground for its reservoir No. 4.
All of the agency,s oil is going into the reser-
volrs now, well large amount of other
oil. tt
The Illinois Crude OIL Company has struck
streak of joyful luck in its we'll No. 4.
which has recently increased its production
to 800 barrels per day. This makes it the
biggest well the Kern River field ever pro-
duced.
The former yield of the well was $50 barrels
per day. Some time ago it went to water and
produced enormous quantities of the thin and
unremunerative fluid Then 1t took another
turn. this time for the better. and 1t is the
record breaker for the field.
There is considerable movement of oil from
the Sunset field, most of it being used for road
Sprinklfng. Inc larger part, II not all OF 1t,
goes through the hands of the Road Oil
Company.
IF the Sonora Union Democrat is not
mistaken there is a good outlook for
activity on the East belt near Sonora.
That paper says:
The East belt section is in expectation of
mining boom--net a bubble-like affair whooped
up by lot of hurrahing to keep a certain
class of promoters from starving to death, but
a substantial increase In the mining industry
by the addition of many more miners to the
working forces the opening up OF several new
claims of unquestonable value and the to be
naturally expected generous gain In bullion
production
What is known the Murphy ranch. pat
erted land at Deer Flat, this county, Is tra-
versed by fifteen parallel gold bearing veins,
ranging in width from one to FIVE feet. assays
from all yielding returns quite satisfactory to
anybody familiar with big property values.
4 test run on ore from the Bluebell mine,
a northern extension Of the Mohican. has just
been completed at the Driesam MILL Ten tons
were crushed and a bar Of gold Weighing $3.50
was the result.
A force of men is engaged In putting in the
tramway from the New Albany mine to the
Grizzly MILL located about 5000 feet below
on the river bank This crushing plant will
keep its twenty stamps dropping on ore from
both mines. they now being under the same