Los Angeles herald., 1909-12-19


II joining Los Angeles, e. l.
Doheny and C. A. Garfield. the two
oil kings, first discovered large guam
titles of petroleum in the country ad-
joining Los Angeles on the northwest
side in the year 1892.
After working many weeks in an
endeavor to find oil, they were on the
4th of November of that year repaid
for their efforts by sinking a well at
West state and Patton streets which
proved their theory that oil was pro-
durable In large quantities in that part
of the country. The attention of oil
men from all over the country was
Immediately called to this part OF the
country, and the result was that With
in a year and half several hundred
wells were in operation during the
year of 1894 BY the end of the year
1906 this number was increased to
about 1850.
BY the sudden influx of so many oil
men and oil wells the market for pc
troleum was greatly diminished, the
price dropping from $2.10 barrel, the
price in 1892, to as low as 20 cents
barrel in 1895 and 1896.
BY the latter part OF 1906 the drilling
of the wells was largely suspended
and the consumption rapidly increased,
thereby causing the price of oil to
jump from 25 cents a barrel to $1.SO.
This price prevailed until Coalinga and
the Fullerton districts were discovered
by Mr.. Garfield and Mr.. Doheny, re-
spectively, in the year 1897.
Within two years after the discovery
of oil in Coalinga by Mr. Garfield a
field of seven wells had been drilled
and were paying dividends to Mr.. can
field and those connected with him
over a million dollars. Although oil
had been discovered in that section
before Mr. Garfield reaped his harvest,
he was the first to be successful and
consequently received big prices for
his oil. At the present time these
same wells are paying a dividend of
over $4,000 monthly.
While the discovery of the Fullerton
district by Mr.. Doheny was as impor-
tant as that of Coalinga, Ii did not
prove so financially to Mr.. Doheny as
that of the Coalinga district. The dis
covery was made through contract
which Mr.. Doheny had with the Santa
Fe Railway company, and owing to
this fact they reaped the greater part
of the profits derived therefrom.
The first we'll in the Bakersfield dis
trict was secured by Mr. Doheny in
May, 1899, when he organized the Pc
troleum Development company. The
Brea Canyon Oil company was also or
ganized in the same year. Both OF
these companies were in the Fullerton
district.
Mr.. H. G. Wylie, now general man
ager of the Mexican interests, was at
this time associated with Mr.. Doheny.
What became one of the largest pro-
ducing companies in the district was
organized by Messrs. Garfield and
Doheny, and was known as the Can
field Oil company. Three-fourths of
Tie 29th section of the Kern river dis
trict was owned by them. 1t is still
considered a large producer.
These same parties owned land in
what is called the Midway district
amounting to over 1900 acres. The
Petroleum Development company,
under the management of Mr.. Wylle,
was handling over 80 per cent of the
oil produced in the Bakersfield district.
Mr.. Dohenys interests in these lands
was bought by Messrs. Chanslor and
Garfield, and the property now owned
by the Atchison, Topeka & Santa Fe
railway was developed. The railway
company purchased the property of
the Petroleum Development company
and its stock from Mr.. Doheny.
Accompanied by A. p. Maginnis,
Messrs. Doheny and Garfield made a
prospecting trip to Mexico during the
year 1900, where they acquired a prop
erty comprising 44S,000 acres, now the
property of the Mexican Petroleum
company of California. During the
past three years this company has
paid dividends amounting to about
50, 100000 and carried on a development