Los Angeles herald., 1910-04-28
GLOWING FUTURE
FOR OIL INDUSTRY
More Than 10000 Men Are En-
pIoyed in CaIfornia's Fields.
Dividends Paid
by ALLAN G. NICHOLS

OIly al NAH CtiluIy Olu kllt Oll III
dustry in the United States has al
/ ready exported more than $2,000,000
300 worth of the refined material. In
other words, in fifty years the total
amount received for refined oil ex-
ported has been greater than the value
of the entire production OF gold in the
United States since Columbus discov-
cred America. Since 1866, the year In
which sixty small casks were sent to
Franco as a experimental shipment,
the amount exported has been greater
in value than the production of gold
I'm the entire world for the same pc
riod, Within the memory of living
man the infant has grown to a giant
industry that gives employment to TO-,
900 men in the fields and refinerles
alone. and whose annual pay roll
amounts to millions of dollars.
The spring pole rig used along OIL
creek has given place to modern ma
chinery operated by carefully trained
men. The OK trains that hauled oil in
barrels over roads unworthy of the
name, have been succeeded by thou
sands of miles of steel pipe line, great
trains of oil tanks and the modern oil
carrying ships, whose capacity in some
cases is over 10000 barrels.
Starting with Ttusville in 1859 the
wave of development has swept In ever
widening circles until now nearly
every country in the civilized globe has
been prospected for oil. Tremendous
fortunes have been built up either from
the production of the crude material
or from the refining and transporta-
tion of the same.
CALIFORNIA DEVELOPMENT
= AIa
Union have the results been more i'm
portant than in California. While our
oil is not so high in gravity and not
SO valuable for refining purposes, 1t
has solved for us the fuel question,
the one most important in the develop
ment of any country. Cheap fuel is
cheap power, and power is the main
spring of civilization.
By the use of fuel in this state the
great railroad systems have been able
to nav dividends on account of the
money saved by the difference in the
cost of the transportation Of fuel.
While development work was started
In California at an early date, no great
amount of oil was produced until the
late eighties, when fuel oil was pro-
duced in large quantities in the city
of Los Angeles and after II was dem
onstrated that here was fuel low
in price and high in efficiency the In
dustry grew rapidly.
After the development of the great
Kern river field. whose production was
ideal for fuel purposes, and after tho
railroads had adopted the new fuel,
came the question of transportation
which for a time was very serious
one, but this problem has now beer
solved by the building of pipe lines.
the construction of tank cars and the
building of tank ships. so that at the
present time the consumer and pFo-
ducer are in close touch.
The amount received for crude oil
for the year just past will be In the
neighborhood of $40.000O00. sum al
most double the value of the gold pro-
duced in the same time and well in
excess Of the combined output of gold.
silver. lead and copper. The value of
tho crude oil at the wells is at the
present time largely In excess or the
aggregate value of the entire citrus
crop packed in boxes and loaded on
cars for shipment.
The refining industry has moro than
kept pace, with the production ana
transportation. There are now thirty
five refineries in the state, ranging
from the two-still plant to the enor-
nous $12,000.000 refinery of the stan
dard oil company at Point Richmond.
These refineries manufacture praeu-
cally everything that Is made from
crude oil, with the exception of paraf-
sIuIoUI1O moIJ eppm sic. ApeeIlE
'suIJJBIBd e 9I!nb9I
fine. yaseline and the ointments which
lubricating stock are lubricating 80 per
cent of the wheels west of the Miss
issjppi river and the crude oil is fur
nishing power for something ike 4o
ner cent of the same wheels.
BIG DIVIDENDS PAID
The amount of money invested in the
oil Industry In California is extremely
hard to estimate, but it is many mil
lions of dollars, while the amount re-
turned to the owners of oil lands and
stockholders in oil companies is con-
stantly on the increase. Listed stock
companies have paid in dividends S27,-
100000. It should be borne in mind
that this only accounts for about
eIghty-five companies. whereas the
number now in existence is something
like 900. While of course, not nearly
all of these 900 are dividend payers,
there are more that pay dividends
whose stock is not listed than the num-
her of companies whose stock is daily
called on the exchanges. Such com
NAMES as the Standard, whose divi-
dends are enormous: the California OH
Fields Limited, who for several years
have maid from 80 to 40 per cent per
annum, besides doubling their holdings,
do not list their stock, and the enor-
NOUS amount paid in dividends does
fah n1Otp1.