Los Angeles herald., 1910-10-06
NEWS OF THE MINES I
PROSPERITY IN OIL
FIELDS TO CONTINUE
Local Industry Takes on Inter-
national Aspect ct-PetroIeum
Market Branches Out

To all who are looking into the fu-
ture of the oil business. especially
from an investment standpoint, there
are many indications filled with great
promise The past ten years has seen
wondedful prosperity accompanied by
periods of adversely But withal a net
dividend record of over $40,000,000 Is
the best indication Of the stability of
the industry and its profitableness.
Without a market for the consump-
ton of oil there would be no profit in
its production. With a bigger market
than tie supply can fill it will readily
be seen that prices will add materially
to profits. The producers are getting
their share of the profits that come
to those who handle the oil in its every
form, either in the crude state or in
the finished product.
Whenever, however, there has been
a sudden increase in production inter-
ested parties have started the cry of
oVerproduction. The apparent over
production has disappeared in short
order, even as the mists are cleared
away by sunshine. Prices have had
an advancing tendency for the past
four years, and last year, the largest
productive one in the History of the
business, saw the highest prices paid
for oil at she well. Why was this? Be
cause the ultimate consumer saw that
California would be able to supply him
with oil for fuel for an indefinite
time, assuring him of the advisability
of changing his fuel from coal to oil.
FUTURE is ASSURED
That the future of the oil business
is assured in it's every form is evil
denced by several significant circum-
stances that have lately occurred.
The announcement is unofficially
made that the navies of the United
States and England will soon adopt
the use Of oil instead of coal for fuel
Other nations perforce will follow
This means a market for an enormous
quantity of oil each year. California
has shown the world 1t has the oil
and the world is responding by turning
to oil for fuel not only because it is
vastly better even if it cost more
than coal. The principal reason for
the change is because oil can be OBJ
tanned. Until the past year oil could
not be secured by these large consum-
ers.
Probably the most significant event
is the fact that Admiral Evans has
seen fit to enter the oil producing busi-
ness on a large scale. The admiral Is
accounted as a keen man with an eye
for business, with an eye to the fu-
ture and the admiral sees great things
ahead for the oil business in Califor-
mia.
The Union Oil company of Califor-
mia is about to issue $20,000000 worth
of bonds for the purpose of drilling
1000 or more wells and it can safely
be assumed that these wells will be
started upon receipt of the first
money from the issue.
The Associated is calling upon all
its contracts for the delivery of the
maximum amount of oil and the
Standard is reported even to be reduc-
ing instead of increasing its storage.
The United States government has
never until recently given much con-
sideration to its oil territory yet under
government control, but at this day
the question of the disposal of these
lands is one of the big ones of the
present administrator.
Investors should get wise to the sit
uation; to the great, really great, i'm
portance of the oil business and its
bearing on the future. By so doing
one is sure to make handsome profits.
The oil business is not for today or
tomorrow, but it is for the next dec
ade, the next twenty years, the coming
century.
Just put yourself in the position of
the man who squatted on the prairie
a. few years ago ahead of Jim Hills
Great Northern railroad. He Travelled
q comprehending Swede. He travelled
with his family to a remote location
miles away from human habitation.
He did it quietly. In looking over the
country through which the road was
to pass Jim Hill encountered this man
and asked him why he settled so far
from civilization. The Swede's reply
was, "I thought YIN Hill would build
a railroad through here and my land
would be valuable"
If anyone thinks the oil industry
has by any means fulfilled its limit of
development; that the product has by
any means fulfilled its ultimate des-
tiny in the accomplishment of revolu-
ton in industries and naval affairs,
he is mistaken. The business is eX-
tending an dexpanding every day and
the years to come will prove the truth
of this forecast.
Up to within the past three or four
years the oil industry of California
was regarded largely as a purely local
affair. 1t has now developed into one
of international Importance. 1t has
passed the boundaries prescribed by
it's early Votaries. 1t is interesting
those who have money to invest in
an industry of such great Importance.