The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-06-02
OIL INDUSTRY HAS
ITSATTRACTIONS
Fields Such as Utah'S Promise
to Yield Handsome
Profits.


soon become one Of the important oil
producing states-a Pennsylvania ex-
pert who recently examined the san
Juan field says that Il viii be one OF
the greatest producers OF high-gravity
oil-not a little new interest in the in
duStry is being aroused among Utah
people A popular error in regard to
the industry is contained in the ap-
prehension. especially upon the bring
ing In OF new gusher. that there is
likely to be over production Of oil.
The fallacy of this becomes apparent
when is considered the rapid eNhaus-
ton of most OF the eastern fields, to-
gether with the rapidly increasing use
Of oil for fuel by railroads. by steam
ship lines and for stationary engines
and automobiles.
The fear of over-prOduction became
acute when the Beaumont gusher was
brought in. Large users OF oil can
celled contracts which they had, to en-
ter Into new ones by which the product
was furnished at ruinous prices: but
the gushers soon gave out and some Of
them were left with no supply at all.
The same fear was expressed upon the
advent OF the Lakeview gusher, but
the apprehension is less for the reason
that II has been learned that the spec
tacular producers are necessarily short
lived.
Production Less In 1909.
Although the search for new oil
fields has been undated in recent
United States last year actually fell
off 100000 barrels. to 17O,000.000 bar
rels. And, among the countries OF the
world, the United States produces more
than three times as much oil as does
Its closest competitor, Russia. The
production of Russia last year was 3D.
100000 barrels. 1t is more than prob
able, of course, that the increased in
terest in the industry will result in
increased production by the United
states this year.
Profits Of companies engaged in pro-
ducing oil frequently assume dazzling
proportions, without considering those
which are so lucky as to bring in
gushers like the Lakeview or the Beau
mont In fields like the Kern River.
where a buster" is almost unknown.
term of years, profits are not only at
tractive. but they have proven to be
sure. Results OF prospecting in the San
Juan field Of Utah indicate that it is
to be such a field.
The record of the Acme Development
company is said to be characteristic of
the Kern River field. With 20 acres OF
ground. the eight wells Of that company
have in three years paid for themselves
and. above all operating expenses, have
netted the owners more than $500. 900,
earning at the rate Of $1,000 an acre.
Pays $1,000 n share.
In 1896 g A. Garfield and J. 4.
Chanslor organized the Coalinga OIL
company. They had much difficulty in
raising money to carry on development
In the last eleven years the company
has paid TO stockholders approximately
$1,000 a share in dividends.
Among the more recently formed
companies the United Oil company, or
ganizcd in November, 1900, with 81
100000 capital. had difficulty in selling
stock at 25 cents share. The company
has now completed five wells with a
production Of 10000 TO 10000 barrels a
month. II declared fits first dividend OF
d n
| be paid June 10. IL is claimed that the
holdings of the company could be sold
at n price that would bring S1.20 a
share for the stock.
The Mascot oil company was organ
ICED in 1901. with a capital Of $4,000
/ At first the treasury stock sold as low
as p cents a share It IS now said q
| have a net producing income Of pei
cent on the par value OF the stock
| The Mascot has been paying 1 per cent
/ month since last February.
The Utah OIL company. organized In
/ $780, started with a capitalization OF
I $1,000 900. shares 500 par. The share.
sold in the company's early days around
/ $50. and now. with the capitalization
/ increased to S25.l3O.0OO, they are SELLING
! around S107 share. The company hac
paid in stock and cash dividends up tC
| the first Of the present year S21.S17,32I
! The Mexican Petroleum company. or
! ganized about twelve years ago by =
/ l. Doheny and G. A. Garfield. with
many ups and downs. the stock selling
| at one time as low as 8 cents a share
/ A considerable amount OF the stock wal
/ finally sold to pay scent assessment
Within a year after that the compan,
was on a dividend basis and the stool
advanced to $40 a share. The com
pany is now paying 10 per cent on pa
and bids fair to increase the dividen,
rate within a year. The total dividen'
paid up 70 January 1 last was S2,711,
1913.