Los Angeles herald., 1910-03-04
RAILROAD WOULD
CUT OIL PRICES
SOUTHERN PACIFIC NOTIFIES
LEASERS
CORPORATION SAYS 1T WILL PAY
ONLY FIFTY CENTS
Attempt Is Made to Frighten PRODUCE
ers on Company Property Into
Believing Petroleum Mar
ket Has Declined

COALINGA, March 3.-The Southern
Pacific company has notified all the
companies leasing oil property from 1t
that hereafter they will only pay hity
cents a barrel for oil at the wells,
reduction OF 12la cents barrel. Inc
reason given for the decrease is the re-
duced market value Of oil at the pres
ent time, and that the big company
does not propose to pay the hlgher
price.
The railroad company has a contract
to purchase what oil it wants from the
leases at the market price, which Is
now sxty-three cents barrel.
Coming at the present time, when
the Independent agency has control Oh
the situation, and the pig inarkee, tha
ing companies are trying to keep the
price of oil down so that they can
make good on their contracts, and
the Southern Pacific is simply follow
ing In the wake of the Standard IN
making a stab to put lower value on
fuel oil to keer the price from go
ing up. A..
Standard came out about three months
ago with an offer of forty cents q
barrel for light oil, thinking 1t could
scare the California Oilfields Limited
into making another contract.
Lucille Joins Agency
The Lucille OIL company has Joined
the agency. IL,
The action was taken at meeting
or the stockholders, held at the COM
pany's office on section 8, and comes
as q surprise TO everyone as the Au-
cile was given up long ago by tne
agency officials as being an imposslDll-
ity. The Lucille people had even gone
SO far as to make their own Market
and lately completed pipe line TO the
railroad spur and built a loading rack
for private use.
County Assessor Cummings has sent
out 10 every lease and well owner IN
the oil fields of this county an assess
ment statement for 1910 for the leased
lands and possessory interests, 10
he Allied out by them. These state
n,e,its are printed in blank form ana
should have listed upon them all lhe
assessible interests of the lease tlat
are held by the owner on the hrst
Monoay i'm March, as everything Is, ac-
rorCine to law, supposed to be assessed
ON the first Monday in the month, ana
nossessory interests held prior 10 or
after the first Monday in March are
not assessible. ,, :,
Cutten & Loeb have just organized a
new company comprising men working
in the oil fields for the purpose pl en- "a,
ploring and exploiting the Utah OH
Thev have secured some of the best
properties in the oil belt there.
Field News in Brief
The Boyohester, on is, 2l-15. Is down
1900 feet in 10-inch casing.
The Peerless Oil company is lnstail,
ing an air compressor to work the ola
wells. 49,. on
Well No. / of the Twenty-Five Oh
company has completed redrilling ana
it is expected to bring in producer
in a few days. -. 1,.tao,,
Comwen No. came In last Friday
with a 150 barrel production ana httie
sand Is in evidence.
The Azores, in the south nelo, Is
down 32sO feet in 6-inch pipe. There
is a strong gas pressure and the IN
dications are for the bringing In OF a
good well. J. ao,,,,
237O feet on 6. Ellis, with S-inch caslhg'
and expects to go into the sand WITHIN
the next 100 feet. There Is heaVy
nressure of gas in the hole.
'rhe Six .Acres Oil company, on o. Il
* has landed the 16-inch stoVepipe at
ZOO feet, with only run OF seventeen
davs from time Of starting.
For the past five days all seven WeIls
of the british Consolidated (P. M: ID.
e OK were pumping at the same time.
No 8 spudded in Wednesday. Ihe new
az O0O-barrel tank is completed anu
readv for storage.