Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-10-03
STORAGE PLAN FOR
OIL TRANSACTIONS
NIny Trndc In Warehouse Certificates
On Various Oil Exchanges III
The United States.

An Important measure that is irailght
with profitable business for Caiifoilia
stock exchanges and others, Is plan
for storing petroleum from southern
California wells In batteries OF large
steel tanks. and the Issuance thercnpon
OF certificates of storage in UNITS Oh
900 barrels. The purpose Is to make
these stored petroleum certificates hke
the grain certificates which are so eX-
tensiyclyf dealt in in Chicago, says inc
Boston Financial News.
Vice President Joseph Ball Of the Los
Angeles Stock exchange is now IN inns
city forwarding this matter through
conferences with Il number OF ctpltai-
lists largely concerned in California; IN.
z dertakinSs. III an interview, MI i i'a't
said:
leum production is we'll assured. Inc
productive capacity is q the volume OF
81, 100000 barrels year -Four Years
ago the entire production OF the United
States was but lSI,000.O0O barrcls. Can :,
fornia's monthly yield of petroleum rs
now; Just what the nations hnnma'
production was 40 years ago. Tl'c
most pressing problem before California
petroleum producers, and FOR al IN inc
east and west who are concerned III
California petroleum stocks. Is tho
ntorage situation. For the petroleum
producing fields OF the central west
southwest nnd east. the storage capacity
is about 1O000O,Oo0 barrels. California's
storage capacity is only about 29ooo.-
600 barrels, or only enough FOR ionr
months consumption. we need Ia
cilities for storing sufficient for u years
consumption For lack of storage ia
~ hnrraG' Cali
5fornia petroleum have been lost in seep-
agc--in one recent case. rapid and c0pi-
GUS fowage from great well ran OF
100000 barrels more than could be
stored, and OF that flowaEe great
deal was lost In scepagc.
TYPE OF STORAGE.
.The best type OF storage tank is
made OF steel; holds $4,000 bbls.. and
costs sl2.6oO. A properly planned and
constructed system OF storage and
pipe line distribution for Callfnrnia's
wells would give 1t great deal of bust
ness to the steel mills and kindred in
dustries find In talking with tho
heads OF all the clearing house banks
in California, that In the event Of the
carrying into being Of the purposed
petroleum storage certificates, the
banks Will lend freely upon the ccrtiti-
Gates rs collateral. and these certitl-
Gates will be listed on our Los An
geles stock exchange.
"The Los Angeles stock exchange
began few years ago with seats at
S.. Today scat sells at $4,000. The
exchange operates actively in 30 OIL
20 bank, 80 mining, rs industrial and
10 public service stocks, and dc>s
good deal In % kinds of bonds. We
have had but one failure Of II member
since the exchange was organized. All.
the members are residents. except one.
who Is n New Yorker, and who, being
on n pleasure trip in southern Cali
fornIa Iwhanstle exchange was formed.
bought seat for Sc. He was Proffer-
cd $4,000 for it3lately and declined to
sell.
General banking and commercial
conditions In southern California are
excellent. Apparently. we are. in all.
that relates to sound developments,
moving as rapidly as is healthy and
wise as to agricultural. mining. and
manufacturing. This is incontestablS
shown by the c!earances of California
banks" II EE