davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1910-01-09

BROSNAN-On January 2 1910. John T. Bros
nan, husband OF EHza5eth Brosna1 at his
home. No. p Hopkiason ave. Brocklyn- u
ternent in PENNSYLVANIA. on January 10. 1910.
CovEL-on January s. 1910 Addis j. wife OF
Charles H Covsi. at her residence. NO 7S7
Lincoln Place Brooklyn Fune.al services az
1:3O p. n. Sunday, January g. az No 787 lin
coin Place. Relatives and friends invited.
New-York tribune., 1910-01-09

Local oficiai RerorJl.--The following ohiclal
record from the Weather Bureau shows ;he
changes IN the temperature far the last tweaty-
four hours IN comparison with the corresponding
date OF last year:
New-York tribune., 1910-01-09

DE BEVOISE-Su6dsnIv, on January g. Ie1C
Mary Jane. widow Of John c. De Esvoise
Relatives and friends are respectfully invite
to attend funeral. from her late resldsaee
afternoon at 2.30 o'clock.
New-York tribune., 1910-01-09

DICKINSON-On January g. 1910. sarah Adsle
youngest daughter OF the late Jeremiah T. and
Isabella Dickinson OF New York Services az
the residence Of her nephew No. 29S WASH
inzton ave, Brooklyn. on Monday afternoon.
January 10. az o'clock. Interment az GFsen-
wood
The San Francisco call., 1910-02-20

paid cent pipe line charges, have paid
for their land, paid all development and
maintenance, and have paid in divi-
dends in the IL years of their existence
SEVEN DOLLARS AND SIXTY EIGHT
CENTS PER SHARE. Most of the
stock was sold at much less than par.
and it is now quoted on the market
at fifteen dollars and fifty cents ($15.50)
per share, and cheap at that price.
The Sauer Dough, before spoken of,
was capitalized at 250O00 shares of
the par value of so cents each. Their
early trials were something like those
of their neighbors, and their profits
have been typical. Only a portion of
the stock was sold, but this stock
there has been paid exclusive of the
$500. 900 paid for the land and the
sums necessary for development and
maintenance, dividends amounting to
nine times it's par value, and is at pres
ent paying at the rate of 10 per cent
per month. 1T should also be borne in
mind that while the lease is not yet
fully developed it has produced suf-
1icient oil, even at a low price. 10 pay
dividends amounting to S22.293 per
acre
The San Francisco call., 1910-02-20
COALINGA
By ALLAN G. Nichols, Editor of the oil Industry
Where five hundred and fifty wells are producing and
quarter million barrels per month Where fortunes have
been made and where untold wealth awaits development

six (46) wells. some of which are efsa,
years old.
Some of the wells in the older par, If
the Los Angeles field have been p-1-
ducing for more than 20 wears and
having been drilled very close together
have made in the neighborhood oC ar.
hundred thousand 1O0.0O0l barrels per
acre. vet here the sand is compare trsIv
thin and in no case is there anytb.rr
approaching a thickness Of 12J feet as
in the Premier.
There are several properties in -ra
state that have produced well over
100000 barrels tper acre on smaller
tracts. and the same rule should hold
good for both large and small holdings.
the only difference being that there has
not vet been sufficient time for the
larger properties 70 be fully deveIoued
for a sufficiently long time to be used
as illustrations. There are many hold
ings that have produced much more
than enough oil to account for a % per
cent saturation. Notably has this bel
the case in some of the older parts "
the Los Angeles field
The San Francisco call., 1910-02-20
ON THE WEST SIDE

On the west side developments have
been equally rapid. but as a general
thing the companies have had larger
holdings and the work has been slower,
owing to difference in formations. Then,
too. the west side wells nearly all
produce oil of less than % B., which
for a time was unstable. while the
product of the east side always met
with ready sale, but at ruinous prices
Now, however, when we have demon
strated that as a fuel oil it has no
competitor. when we have proven that
the market ever outstrips the constant
ly increasing production. when the
problems of transportation and mar
keting have been worked out. when
we are daily delivering our product
from Nome to Valparaiso and from
Denver to Toxic, the congestion in the
heavy oil fields is forever past
The first well to be finished on the
west side was Confidence No. /. fin
ished in 1901. This was soon followed
by Section Seven No 1. which came in
a gusher and which is said to have
produced in the >neighborhood of 2,OO0,-
600 barrels of oil. 1t flowed constantly
for over two years and is still a steady
producer
Among the many successful COM
panies in this part of the field it is
difficult to select a typical one. When
one tries to pick out name from
among the many that come trooping
down the aisles of memory the mind
becomes dazed. Such names as Cleary,
Smith, Kerr, Bryner, Bunting Garfield,
Spellaey, ingalls,. Dallas. Brix, Thomas
McNear, the Guibersons O'Donnell,
Robinson, Zeer, Mattson and scores of
others who have been successful in this
field are connected with the story of
its development so closely that it is
well nigh impossible to select a sample
company
The San Francisco call., 1910-02-20
]. PROBABLE PRODUCTION !.
:.


1t is a very difficult thing TO estimate
the probable value of an oil property
like this ne,~because we have so little
precedent to go on. There have been
very few leases of this size developed.
The Peerless in the Kern field has
produced enough oil to cover the entire
quarter section nine feet deep and has
paid dividends amounting to over seven
thousand dollars t$7.ooe) per acre, be-
sides buying and developing 160 acres
in Coalinga and a large tract in Sunset.
yet that company has only drilled up
one hundred and fifteen acres t1151 of
the original quarter.
The Merrill Crude. in the Kern river
field has produced twenty thou
sand 25.OO0) barrels per acre in thirty
months, and the Illinois Crude has pro-
duced well over one hundred and ten
thousand 11o,00O) barrels per acre, and
at one time actually produced three
thousand (3,000l barrels per acre per
month. yet these wells were never
large, never so large as the wells on
the Premier by half. but it is the steady
output every day in the year that
counts.
A tract of land in the north end of
the McKittrick field. comprising some
20 acres and belonging to several diff
ferent companies, has for the last year
produced pver three thousand fs.OoOl
barrels per acre per month from forty
The San Francisco call., 1910-02-20

!. EXAMPLE NO. 2


One hundred and sixty acres a t 10000
barrels per acre would give a total pro-
duction of $500. 600 barrels less the roy
atty of 1000, 600 barrels net, to the com
pany. At an average price for 20 years
of IS cents per barrel the returns
would be $4,000, ,0O0> Allowing 100000
for the original cost of the lease
$4,000 each for the drilling of forty
wells, $4,000 for buildings. equipment
pipe lines, etc. S360.OOO for operating
expenses-S1.5O 500 per month for twenty
years-the profit for twenty years
would be s1sO0,0OO
To which must be added the profits
of the company after the expiration OF
the twenty years.
For this example the expenses are
figured in very liberal manner, and
the production per acre is undoubtedly
too low.
Assuming the government estimate
of 10000 barrels per acre is too low
as applied TO this particular tract,
which it undoubtedly is, and that the
20 per cent saturation table as given
out by the California Promotion Com
mittee is too high a saturation for this
district. which it probably is not as
the sands here are conceded to be
among the richest and most prolific in
the entire state, it might be well to
take as a basis point half way be
tween the two. The amount per acre
on the 90 per cent saturation basis is
232, 200 barrels. A medium between the
two is 1880 barrels per acre
The San Francisco call., 1910-02-20
Money
OVER TWENTY-EIC MILLIONS OF DOLLARS
IN DIVIDENDS Have Already Been Returned to the
Stockholders Of the California Oil Companies Listed
on the Stock Exchanges OF San Francisco and Los
Angeles, and MONTHLY DIVIDENDS OF ALMOST
THREE-QUARTERS OF A MILLION DOLLARS
Are Nov Being Paid to the Fortunate Stockholders.

The growth Of the oil industry of this State has
been so steady that comparatively few people have
realized its importance or the tremendous profits to
be derived from an investment in the shares of the
companies.
$1,000 invested in the common stock of the Ameri-
Petroleum Company TWO years ago is paying
$1,000 per year in dividends and the shares can now
be sold for $4,000.
$1,000 invested in Lucille stock few years ago is
returning $4,000 per year in dividends and the shares
can be sold for S7332G
$1,000 invested in the stock OF the Fullerton Oil
Company win this year earn $4,000. and the shares
be sold for $6OS0O
$1,000 invested in Pinal at 60 cents per share has
paid In dividends much $2-9SS per year. and the
shares could then have been sold for S44SOO. That
$1,000 is earning s1,s9O per year in dividends
$1,000 invested in Sterling 80 cents per share
returning $S33S in dividends and the shares
be sold for $4,000.
$1,000 invested the stock of the Claremont only
comparatively short time ago is returning s159S in
dividends and the shares now be sold for S13653
$1,000 invested in Illinois Crude few months ago
at p cents per share now paying at the rate of $3.50
per year in dividends and the shares can be sold for
s224O
$1,000 invested in the shares of the Monte Crsto
Oil Company has paid in dividends much as $4,000
per year. and the shares can even now be sold for
$4,000
lneSe are only few Illustrations that readily
mind There are many more that little investiga-
tion viii bring forth.
But the illustrations given show that only 81 900
invested in these shares when the price was low is in
most cases returning the investor a comfortable in
while in several cases the holdings themselves
e sold at the market would realize an Independents
fortune
Fortunes have been made and fortunes will con
tnue be made from investment the shares of the
California oil companies
1t must be borne in mind that most of the com
panes mentioned above made their records through
period when the price for crude oil was much lower
than il is at present-in many cases it was only 25
20 and even as low as II cents per barrel
So that because Of the present price for product
and The advance in price that is surely coming com
Danes whose shares selling higher figures
than those quoted above are in relatively the same
position to make great profits for the investors
Taking it all in all. there has never been as prom
Using time for investments in oil shares the present
The industry is a sound stable business basis
The demand is increasing faster than the supply
Transportation facilities are assured and the price
OF crude oil is advancing
If YOU are already shareholder in the oil
companies of the State then you missing your op-
The San Francisco call., 1910-02-20
EXAMPLE NO. l


Using this table as a basis. and fig
uring on an average known depth of
sand of 125 feet under this property,
we have the stupendous toal of 1925
coo barrels for the entire quarter sec
tion, figured on saturation of twenty
(2O) per cent. This may be high es-
innate of saturation. but it has been
exceeded in the Los Angeles and Kern
river fields. also at Spindletop and in
Baku. Russia. Certainly not all the
oil could be saved. but most of it could.
and even if only half were saved and
that half sold at fifty (50) cents net.
the total amount received would be
$9,S24,OOO.
Following along this same line it
would take wei pumping fifty barrels
per day, 500 days per year. 1853 years
to exhaust the oil in one acre of oil
sand If this quarter section is drilled
up as intended, with forty wells. there
win be four acres instead of one TO
exhaust, which should take four times
as long, or practically sixty-three
years.
The United States geological survey
has estimated the production of the
west side fields at 10000 barrels per
acre This is too low, as applied 70
this particular property and mas been
more than doubled in other parts of
the state on property not considered as
good as 'Ehis. but for this illustration
it will suffice
The San Francisco call., 1910-02-20
ON THE EAST SIDE


The experience of some of the men
who We're early in the field would fill
a volume. A prominent and picturesque
character early on the ground was Bud
Spinks. He bought all of section TWEEN
ty-two (22) in township nineteen (19)
south, range fifteen G5) east. except
a 20 acre piece along the west side. for
approximately one thousand FIVE hun
dred dollars Isl 5000. The remaining
20 acres was owned by Axe1 Peterson
who wanted sixty dollars $500 for it,
Spinks demurred at this unheard of
price in these times and the matter was
finally settled by the dice box, the 20
acres of land against one hundred and
twenty dollars (s120). Spin<s won. He
held the land for some time and then
sold it to the Sauer Dough Oil Company
for three hundred thousand dollars
t$300,000). He has stated that he
sold it too cheap, but at that time he
did not think there was any more
money in the world than that much
He afterward offered a large advance
on the amount, but the Sauer Dough
would not sell. He sold one hundred
and sixty $500 acres to the Coalinga
Peerless, $50 to the octave and smaller
tracts to the Twenty-Five Oil Company
and Reward. and on the remainder the
Caribou Oil Company was organized.
This is another early company where
vicissitudes were many. They brought
their fuel oil from Canfield, had to build
road over the mountains to get it to
their boilers and also had to transport
water for long distances for both steam
and domestic purposes. After the wells
were drilled and splendid production
secured came the question of transpor-
tation The railroad was about 10
miles away and pipe was, purchased
for line. A brother in law of Spinks
named Hart, who had been mining in
Alaska, was to furnish the money TO
pay for the line. but the ship on which
he was returning was lost, and while
he was saved, the gold to the value
of nearly fifty thousand dollars
t$50.000) went to the bottom with the
i'll fated ship. The company finally
sold the pipe to the Union Oil Company.
which exacted contract for the oil
for a certain time and a pipe line
charge of 8 cents per barrel as two of
the conditions on which they would
come to the companyss relief
Now comes the SUNNY side of the
story. The Caribou oil Company, which
for long time sold oil at IL cents and
The San Francisco call., 1910-02-20
9 . . Q . . . . . , . . , . . . . .
: EXAMPLE NO.


One hundred and sixty acres at 131.-
$50 barrels per acre would give total
production of q ,O96.OOO barrels, less the
royalty, or 1850, 600 barrels net to the
company. At an average price for the
20 years of 70 cents per barrel and
with expenses of s1,1OO.O0O deducted
as in example No. >, the profit would
be s12,OS5.000
This. of course. seems large. but re-
member that the amount per acre has
been exceeded many times in this state
and that the Peerless has already pro-
duced. even counting their water troU-
bles, considerably more than half this
amount and is still producing a large
amount daily. This. too. in the Kern
river field. which has never been a
large producer from the standpoint OF
individual wells. and where nearly two
thousand (2,0OO) wells produce less
than the five hundred (5O0) wells of
the Coalinga fields.
Figured in any way, it is certain that
this piece Of property viii produce for
its fortunate owners many times the
amount of it's capitalization and there
seems no doubt at this time that the
stock will soon command a figure far
above par.
The San Francisco call., 1910-02-20
EARLY DEVELOPMENTS

( ~
Away back in the early eighties pros
pectors were attracted TO what is now
known as Coalinga by the seepage Of
oil and outcroppings of bituminous
| shales. though the first prospecting was
done for coal. A shaft was sunk and
several tunnels driven into the hill, and
while some coal was developed it was
not in commercial quantities or of COM
mercial quality.
Some time in the early nineties Row
land & Lacy, since grown rich by their
operations in the Puenta hills, sank
several shallow holes and announced
their belief that the undulating hills of
Coalinga Were vast storehouse of pc
troleum. They were succeeded by the
Elkhorn Petroleum Company, which
soon passed out of existence without
having accomplished anything worthy
of note.
In 1898 Barrett &, BarrieS of Fresno
organized the Producers and Consum-
ers' Oil Company and started the first
systematic work and drilling for oil in
this new wonderful held. Work was
started on section 90, in what has since
Three shallow wells were drilled and
some light oil produced. The wells
were near the edge Of the sand as has
since been proved, and the production
from the three was probably not more
than twenty five 900 barrels per day.
Three years later the property was
sold to the Coalinga Oil Company, head
ed by Joe Chanslor, now president of
the Associated Oil Company, and c. A.
Garfield. now a millionaire several
times over, director in the Associated,
organizer of the Mexican Petroleum
Company and kindred organizations.
and one of the men who developed the
original Los Angeles field, as well as
Kern river. The trials of this COM
pany in the early days We're many and
varied. Lack of capital, insufticiency of
equipment and distance from the base
of supplies were some of the difficult
ties these early operators had to con-
tend with, yet with the splendid te-
nacity that has ever made the Ameri-
can pioneer conspicuous, with the bull
dog spirit that would not be beaten
these men persisted in their efforts and
success crowned their labor They
drilled a number of wells but only
seven .of them Were productive, yet
from these seven wells. after paying
all expenses for drilling and mainte-
nance, this company has returned in
dividends one million seven hundred
thousand dollars (s1.7O0,000) in u.
years.
Then came the Home company, which
drilled in the Blue Goose well which
became known the world around This
was their third we'll, but came in first
a gusher, good for about 500 barrels
per day. This property made fortunes
for its owners and is still giving good
productions of light oil that commands
prices considerably in advace of the
market
From this point the tide of develop
ment swept both east and south, and
while this Home sand, as it is now
called, has not been encountered a any
other point, a wonderfully rich field
was developed in the east, even before |
the west side field that now produces
fortunes monthly was even prospected. |
The San Francisco call., 1910-02-20

WHAT WILL STOCK BE :
WORTH? :


Naturally the investor wishes 10
know what the stock in any given COM
pany will be worth mere. again. We
are confronted with a problem diffcu,t
of solution. Many stocks are now WORTH
from to 80 times their par value
where the property involved is no bet
ter. If as good. as the property in ques-
tion. The Lucille stock once sold at 5
cents. and some even lower 1t Is now
worth s12-25. West Shore sold at 50
cents; is now worth $3.50. and has paid
dividends amounting to nearly three
times the amount OF the capital stock -
this. too when they have never re-
eeived more than 25 cents per barrel
for their oil Pinal sold originally At
so cents; has since sold at $27. and has
paid dividends already of over four
times it's capital stock on tract only
partially developed. Sterling originally
sold at so cents; has paid more than
twice its par value in dividends. and
&he stock is now worth s3.s5. Kern
river. that sold at so cents per share.
has paid already practically its par
value in dividends and is now worth
$3.50 The Traders, on land adjoining
the Premier on the west. while still a
new company. is paying 10 per cent per
month
It must be remembered that most %
these companies. or at least many OK
them. have made their records on very
low prices for oil; for instance. the
Monte Cristo. which once sold at 10
cents per share and is now worth in
the nefghborhood Of So. still mas a
large contract to fill at IT cents. The
= eerless oil company. which has paid
in dividends nearly $4,000 per aereA b
the 166 acres they originally held, mas
had to work against the handicap OF a
8. 100000 barrel contract at 20 cents.
and is now getting much less than the
market price. If this company had Te-
ceived the present price for it's output.
presuming that the cost of production
would not have been increased. the
profits would have been at least SIX
times as large as if the oil is sold a 20
cents IL may cost 10 cents to produce
IT, which only leaves profit of 10
cents per barrel. II the price was 50
cents, there would be left at the same
rate of expense for operating 50 cents
per barrel. which would have enabled
the company to declare dividends OF
more than THIRTY THOUSAND DOT
LARS PER ACRE.
The San Francisco call., 1910-02-20

Situated nearly in the southwest cor
ner of Fresno county and. stretching
along the hills in great half circle
the Coalinga field is already nearly %
miles long and from two to four miles
broad. It's boundaries are being ex-
tended daily and already the greatest
field in the country in point of proven
acreage, it bids fair to be the. greatest
source of wealth ever discovered.
The San Francisco call., 1910-02-20

:. WHAT WILL THE SELLING i
: PRICE BE2


:: !.
It is by no means likely that the
price of oil will ever be lower than ar
present The problem Of transportation
is practically solved. The market IS
constantly growing every day The use
OF oil as fuel for road work for the
manufacture OF gas. in the arts and
sciences, is being steadily increased.
With the single exception Of Mexico.
which is an unknown quantity. the
production OF every known field is on
the decrease except California The
Appalachian fields have reached this
maximum long since and from this time
on will cease to become a factor. except
for the higher grades of refining oils.
Texas. Illinois. Oklahoma Kansas. Col
OradO, Louisiana and the other mid
continent fields show marked decrease
for this year over last. which also
showed a decrease over the preceding
year. Our foreign shipments. already
enormous, are increasing every year.
as shown by the United states bureau
of statistics Japan is in the market
for large amounts of oil on long tins
contracts. that so far no one has beesn(
able to NIL New railways across an
continent will be large consumers OF
the liquid fuel The far east thar
country almost without water power,
and without fuel viii soon be cIanor-
ing for our fuel The Panama canal in
itself large consumer of oil fuel. will
not only open up a large trade In oil
with the Atlantic coast, but the new
countries that will be developed by this
canal Will also become customers OF
California.
The best informed men in the busi-
ness are now a unit in prophesying
higher prices for oil such men as j.
A. ChanslOr. president of che Associated
oil
oil business. has stated within the last
four days that the price of oil ought
to be, and would be. higher All the
large purchasing companies. like the
Associated. Union and Standard are
showing their faith in the future by
signing long time contracts wherever
possible. The Southern Pacific railway.
owning large tracts of proven land is
only drilling up that portion where
there is danger OF other companies oh
tanning some of the oil from their land
through work on adjoining territory
This because they well know that
whatever may be the price of oil now il
will be much higher in 20 years.
Taking all these things into consid-
Grafton can there be a safer or more
profitable investment than in the stock
of = carefully selected. economically
managed oil company. where holdings
are of good size. whose operations are.
in a known and proven field and who
already have developed property and
an established markets This is an in
dustry that in less than 20 years time
in this state has grown to be practics
" double the combined output of N
silver. lead and copper. and whose crnAs
product at the wells is worth 40 ney.
cent more than the entire citrus cro->
packed in boxes and loaded ON cars FOR
shipment