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The San Francisco call. (San Francisco [Calif.]) 1895-1913, July 13, 1910, Image 7

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Withdrawal Order Deprives Locators of Rich Oil Area
ENTRIES BLOCKED
ON BIG SECTION
President's Order Withdrawing
2,482,750 Acres Causes Con«
fusion Among Locators
The far reaching effect of President
Taft's order, \u25a0withdrawing from entry
fome 2.452.750 acres of land In Califor
nia, has been gradually impressed upon
the oilmen of the state. That several
«~>f the largest independent operators
must forfeit many thousand? of acres
there is no doubt. That confusion and
litigation will result appears to be
I equally certain.
In some instances the operators have
expended vast sums of money in efforts
to hold their land. It is of record in
"Washington that Captain William Mat
ron of San Fram-Jsoo has expended
$750,001 to retain Imp acreage in the
Elk hills. He has ordered work begun
on 30 separate parcels of territory to
comply with the terms of the new law
passed by the last congress.
There were few as daring as Captain
Matßon and many will thus lose such
portions of their land on which they
have not begun operations. It is stated
that the Santa Fe Railroad will be
among the losers. Captain John TJarne
son and his associates have protected
the greater part of their best territory.
Strangely enough, or perhaps not so
strange after all; the Southern Pacific,
the Standard oil company and the As
sociated oil company ,wlll not suffer.
Th£. Southern Pacific naturally will
reap the advantage by reason of its
ownership of the alternate sections in
the oil belt.
The withdrawn area includes a strip
extending down the west side of the
San Joaquin valley and reaching in
places to the coast range mountains.
Most important, however, are the with
. drawals in the Devils Den. Elk hill
jand Buena Vista hills. In these sec
tions immense areas have been located,
but only here. and there has actual
work been done. This territory is re
garded as prospective oil land of the
richest kind. Only those claims can" be
held on which actual work has pro
ceeded. Under this ruling it is safe to
say that many square miles of the best
undeveloped oil land will be restored
to the government.
In the withdrawn area there are. of
rourse. big tracts that have already
pone to patent. In fact, within this
area are many farms that have been
worked for decades. These, of course,
are not affected. No patented land is
involved.
Thg withdrawn area also circles the
Coalihga. McKlttrick, Midway, Marl
copa and Sunset fields. Those compa
nies that have already struck oil or are
proceeding toward discovery under the
required conditions are all secure in
their rights. It is the locator who has
held his land and done no work who is
the loser.
There is some question as to the fu
ture disposition of these lands. They
are to be classified and then opened
for location ur.der such regulations as
congress and the secretary of the in
terior may prescribe. A bill was In
troduced during the last session by
Senator Kelson which provides for the
leading of these lands In prescribed
. • subdivisions for 10 year periods on- a
: 15 per cent royalty basis. The intent
•• of the bill is that the government shall
: " not relinquish title and shall receive
15 per cent of their gross product.
Congressman Smith of California and
, Senator Sn-.oot of Utah have introduced
bills providing for the payment of a
• prospecting fee, title to 160 acres to be
' bestowed upon discovery.
All are agreed that there can be no
.. doubt af= to the full legality of the
recent withdrawal order of President
Taft. That was predicated upon legis
lation enacted specially to make the
order possible.
Attorney A. L. Well, who represented
the California oilmen in Washington,
has given the whole subject close
study. In discussing the effects of the
new bill and the withdrawal he paid:
"Irrespective of the question whether
the president had the authority to with
draw the lands originally, the matter
is now fixed by statute. The with
drawal made by President Taft of re
cent date is a perfectly valid order.
"First, there are the men who have
done no work on the* land. When I
ea.y 'work' I mean substantial work, in
good faith, tending toward discovery.
If they have posted notices of location,
spent $!«0 a year, filed affidavits and.
done nothing else their labors are for
naught.
"Any man who was at work at the
time of the first withdrawal order of
September 27. 130S, and who has con
tinued at work ever since is secure in
his rights. There is absolutely no
. ' question as to his rights, even though
he hail not made a discovery on Sep
tember 27 and lias not made one since,
provided that he continues his work
diligently until he does make a dis
covery. These people are in a very
• good situation. For the first time in
•" the history of placer mining the gov
ernment has recognized the interests
of a locator prior to a discovery.
"Now as to those of dubious status:
In the first place those men who
" located before the withdrawal order
of September 27 and did no work, but
pimply held thp barren location, and
were not preparing to go to work, are
In no belter position than those men
who located after the withdrawal.
"The statute specially omits to pro
vide for the peculiar category of peo
>,le who had a location before the with
drawal and started work after the
withdrawal. In my Opinion, from the
statements of the officials of the land
office, they are apt to put a liberal
construction on the term 'actually at
1 work." I belie\"e that the man who can
phow that he was preparing to go to
• work will be protected.
"As to those who initiated rights
arter September 27, 190 i*. the statute
says that their rights shall neither
recognized, abridged 'or enlarged. This
means that they stand In exactly the
same position as though the with
drawal bill had not been passed. In
other words, if the withdrawal of Sep
tember 27, 1909, is void, their rights
are perfectly valid, provided they were
at work at the time of the second with
drawal, concerning the validity of
which there can be no question. If the
president's withdrawal order of .'Sep
tember 27, 1509, Is a valid order their
condition Is somewhat dubious..
"It is my- opinion that by withdraw
ing these lands again the president has
abandoned his original withdrawal. To
quote the peculiar phraseology of the
withdrawal bill: "The rights-of any
person who at the date of any order
\u25a0 of withdrawal heretofore or hereafter
made is a bona lide occupant or claim
ant, etc' This protects the rights of
any bona ilde occupant at any with
drawal made subsequent to the pas
- t-age of the act. It seems to me that
any person at work on land at-_the time
of the second withdrawal is absolutely
safe.
"This opinion Is subject to questions
that may arise bearing on the 20 acre
decision, officially known as • the- Yard
case. The placer mining law provides
that one man may locate 20 acres of
land, as a placer mining claim. Eight
men may unite and locate 160 acres
of land as a consolidated plaeeV mining
claim. Of course, one man may locate;
LAND HELD ONLY
BY ACTUAL WORK
eight different claims, making a total
of 160 acres. In this case he must
put down eight wells — one for every
20 acres. On a consolidated claim,
however, only one well need be drilled.
This is very important in oil mining:,
where wells may cost anywhere from
$10,000 to $100,000.
"Under the decision of the California.
pupreme court, affirmed by the United
States supreme court', and according to
the undeviating practice of the land
office for 20 years, eight men might lo
cate 160 acres as a consolidated loca
tion and at once convey it to one man
or a corporation, and the grantee can
go ahead and get his title by drilling
one well to discovery, just as though
it were still held by the eight..
"Last year the assistant secretary.of
the interior decided that if eight per
sons located a consolidated placer min
ing claim and conveyed the land before
discovery to one person or to one cor
poration, the location lost its attribute
as a consolidated claim, and one well
would carry title to only 20 acre 3. Of
course, if* the- property remained in the
hands of the eight locators until dis
covery was made, and was then con
veyed to a single grantee, one .well
would give patent to the full 160 acres.
There is no appeal from this decision
of the land office, and if the land office
stands .by its ruling: rather a- peculiar
situation will result. A single grantee
of a consolidated location will be un
able to get patent for more than 20
acres on one well. lam satisfied, how
ever, that the courts will protect, his
possession of the whole 160 acres as
against any person who sought to take
it from him.
••Take the case of an oil company
that has, bought 160 acres from eight
locaters prior to the discovery of oil.
It puts down one well and makes va,
discovery. On making an application
for a patent, the land office would re
fuse the application, except as to the
20 acres on which the well is located.
"\Vberear., if some third party attempted
to ko on the land the courts would
undoubtedly protect the corporation to
the extent of the whole 160-acres. '1
"All the lard in tlie. withdrawn "area,
on which no work is being: done, Js no
longer open to location. It' is the'in
tention of the government" to formulate
some legislation at the next session of
congress for the disposition of .this
withdrawn oil land. It is unlikely that
any oil lands -will ever be disposed of
by the government .under the placer
mining laws from this time on." ,
SAN JUAN FIELDS
ATTRACT ATTENTION
'Improved Transportation Facili-
ties Aid Oil Industry
The San Juan .oilf ields in Utah have
come In for increased attention by rea
son of the improved transportation fa
cilities to the territory. The Santa Fe
has made plans to \u25a0\u25a0. operate a , line of
automobiles from. Gallup, - N.. M.; to
Goodrich, the town in the. center, of- the
fields. The distance is 170 miles. There
is now a stage, road between the two
points, but the highway will be greatly
Improved for automobiles. The. citi
zens of Gallup and Goodrich are co-op
eratlng.with the Santa Fe. By the new
auto line the run from Gallup> to Good
rich will be made In a day. . \u0084 , -•\u25a0-''
There Is talk of a pipe, line- to Salt
Lake and In case* this is constructed a
refinery .will be built." ';::". .:.
It 1b stated- that by, September 1 some
50 rigs will .be In, operation. .-Contrac
tors are offering to drill :at $4 a.'foot
Amonj? the. companies (.operating" in
the San Juan field' are 'the following::
The San • Juan and. San Francisco, * the Good -
rich oil company, the San Juan oil company , of
Balt-I.«ak<». ihe Juno San Juan oil company of
Pan Francisco, the; Opden-Ssn Juan, oil com
pany and the Montello "oil company . of; Ogden.
tbe Columbine "oil ; company, the. Loheldone • oil
company of Moatrose. the : Young, oil company,
tbe >"orwood-Bluff City > oil company. : the ; Tellu
ride i oil company ,r, r \u25a0 the: London- and - San , Juan
oil company. -\u25a0 the Lime creek s oil company, . the
Colorado oil company, the : Western ' development
company, the:, Ystes & McClain -company •of
Colorado,' the Clark oir company of Seattle,' the.
McMoran oil company "of Spokane, the Ha«h
burger oil company \u25a0of V Waithington, ,'the'v Michi
gan-oil company ' of -Grand-: Rapids. 'Mich:,~ the
Arcola oil '.company, .the Pinnacle .oil: company,
the- JCavajo oil cotni»any, tbc. Redwood -oil «com
pany. \u25a0 the Redwing oil -; company, the Altec • oil
company, the . Connecticut oil \u25a0 company ; of»Oali
loriua' and.' a' score of others. • \u25a0 '\u25a0
THE- SAN FBANCISCO- GALL, WEDNESDAY JTJLY 13;:1910;
STOCK EXCHANGE
LOWERS ENTRY FEE
Board Votes to Enlarge | Scope
of Organization arid to En
courage Industry'
\u25a0 \u25a0 -...- \u25a0 . . -:•'.
Por a brief period the listing fee on
the San Francisco stock change will
be reduced from $100 tt> "s2o.* The pur
pose is to encourage some of the bet
ter companies that are' not connected
with the exchange to join. It is felt
that the demand for oil securities war
rants a.broader local market. An ef
fort has been begun toward this end.
A very lanje percentage of the listed
oil companies are- dividend, payers:
Holders of. these stocks are not inclined
to sell, for ' the " reason" that they are
abte-to enjoy ; a .very; high rate of in
come by holding on. ' :.
In the past it has been the policy
of the exchange to deny the listing
privilege, to nonprodueing companies.
This rule is to be. amended, but \u25a0with"
safeguards designed to protect the in
vesting public It is thetintention to
admit; to the board certain nonproduc
ing companies; in; proved territory^
.Some of the biggest cleanups have
"been made by the purchasers of stock
in the nonprciucers. The moment. they
have hit the flow theirvalue has multi
plied. ...-\u25a0 ;.>,/. .;;;; . : ;%;\u25a0\u25a0s , ..-' .\u25a0.-.;. \u25a0 ,;
• Xo : - stock will .be listed until the
committee /; of /. the exchange .\u25a0; has been
afforded .the 'fullest, opportunity for in
vestlgation.- • The ; system . of j organiza
tion, will.be* scrutinized, the land -hold-
Ings studied and the management sub
jected; to /inquiry. . . .. .v . ,
11 1 If InrI! n O Pa d by California Oil - f|k
lll Vl y tau b s ; ; *° y , A pr^H
$47,000,000.00 California laws insure H
t6investors^vTiiere-arc*H|
HUSUIUIC daiCiy ma ny,> 3 other .reasons^™
• why -careful investors are . turning -to \u25a0 Calif ornia> H
\u25a0 ' Q}\ .-* a s \u25a0 the'rr safest 'and Vniost} profitable]^'oppor-i M
-'\u2666 * tunity- of ; today! \Vrite "us -'for,. tHe" reasons why- H
'332: Bu^hSt t jSan Francisco. :.^j|
CALIFORNIA WELLS
SPOUTING HEAVILY
New Gushers Come lii and Old
Ones Are Flowing Freely Fol»
lowing a Cleaning
"With the "supply of the oil wells in
excess of the piping and market facili
ties, the last few > days have been
marked, by some ; spectacular additions
to the stale's output. The Consolidated
Midway, &ne. mile east of the Lakeview,
h£s:brokeiv loose with a flow estimated
as hlgfh f as • 10,000 barrels an hour. 'The
Miys' has 1 been- cleaned and: is pouring
forth' 4, 000 barrels. daily. The Pioneer
Midway is again delivering 3,000' bar
rels every, 24 hours.' 'The Midway
Northern lias struck a big flow'^of
which no authentic estimates have
yet .been received. ; The American
Petroleum has brought In a prize
gusher of 10,000 barrels a day in
Coaliriga.; The-Coalinga National's new
well is 'yielding 500 barrels. 1 Palmer
No. 2 in the Cat canyon field is again
gushingat a speed of 1.800 barrels.
This is" a 'good sized increase in the
daily production, and witlv it all the
Lakeview. continues in .' undiminlshed
".'.;' "; - — — — '- — : — ~ — '' \u25a0'\u25a0 '- — :—'-—: — '-— : +
' Map of the state, showing lands recently withdrawn by President 7 'aft.
. The withdrawn areas j are inclosed \ within heavy black Unesi The map was
prepared from such telegraphic data as are available at this time.
eruption. The. new strikes near by
appear ,to .have no ; appreciable effect
upon, this' monster of , the '' ; ' v
I The most sensational of the. new .per
formers is; thef Consolidated - Midway.
Advices; from^.Bakersfield bring -a re
markable tale \of this well's '•activity.'
Itfis probable that^there has been an
exaggeration of its' capabilities.
The dispatch from the fields states
that the ;well, which came in June 23.
was } given ' its head . last Friday -and
proceeded -to fill' to one-third its: capac
ity^ a '30,000 barrel^ sump hole in \)ne
hour.' -.\u25a0\u25a0.The standard of , measurement'
was; necessarily- indefinite, so the\ cx
.act/'flow:-wni*:not be "known until an
.accurate test fcari'j be , made. It' is ; said
that the, Consolidated Midway is under
such control -that it can be handled "at
will. It is 1 located;"just a mile to the
east of : the Lakeview. . ,
'According to the California Oil World,
[th'efMayit well has -.been flowing again
from/ 3,500 to j 4,ooo' barrels ' a . day. ,lv..The
work . of - installing a '.Texas' strainer,'
said 'thi«j same "authority, was success
fullyYdone.'.the bejng, driven
intothe sand .with ; a> rotary drill." .The
flow is steady and.- the/ gas -under per
fect/ control,': a ; blowout , preventer hay-;
ing*beenused. ;•' p- "^ ;' \u25a0',-;. -y ;\u25a0 \u25a0.:_ ' y -;
• .Th3' Palmer; No/ 2 was sanded up for.
two weeks, \ but/has 'cleared; Itsolf ;and,
at' las t" reports was'; sal J to be 'yielding
a,S00^1Jarrel3^ daily, j '. :•, - : ;
REPORTED SALE IN
MIDWAY IS DENIED
Isaac Strasburger Says He Will
Keep St. Lawrence Property
for Income Purposes
Advices from Bakersheld were received
yesterday to the effect that the Asso
ciate J^ oil company, [in line with its
recently, ..adopted policy of obtaining
rich 'producing territory, had acquired
the St. Lawrence property in the Mid
way. The report was denied by Isaac
Strasburger, \u25a0 chief r. owner of the St.
Lawrence. Strasburger said that he
proposed to keep the St. Lawrence for
income purposes. It has been a good
revenue producer and was one of the
first, successful . companies in the
North Midway.
It will be recalled that Strasburger
recently sold the Pioneer Midway to
the Associated for $3.00.0,000. - The pur
chase was made, by the big corporation
to make sure of ,en adequate supply
to meet: it s\ existing contracts. ,
'.-! It is no secret that the Associated
is short of oil. In the Pioneer Mid
.way it' has. acquired control': of one of
the most promising- portions of the
North Midway. "Well No. 2. which came
as a. great gusher and later sanded up,
is now yielding steadily at the rate of
3,000 -barrels a: day. . v
The supply, of the Associated has been
affected naturally by the formation of
the Producers' agency. A large per
centage of the independents have con
tracted their output to this co-operative
concern for a period of 10 years. -The
Associated ie not able, therefore, to go
in the market, as It. once could, and
draw hither and .thither as . It desired
for, the i needed petroleum. "When it set
out to make new contracts' it found a
very big proportion of the supply tied,
up to the agency. ;To meet the demands
of its growing 1 business it set about to
purchase' producing companies.
Some of the long term contracts
with the producers are in such shape
that the Associated may cancel them
if.it wished. It has shown no inclina-
tion to do this. On the other hand,
it is ; making no new term contracts.
It is buying on dally runs and paying
50 cents at , the well. ;
HOTEL FIRE SPREADS— Mayfield. July 12.—
Fire in the Cosmopolitan hotel this morning
.at I:}s rapidly spread through the ''building.
Fc«r a time the flames, threatened the business
district of • the town. ' --The" quick response of
the fire' department checked the blazts before
•> any serious daui.'i^" had resulted. - „" «
M'~ lIINfI QAM lIIAN fill f*fl LOCATION:
uUNU 3A33 JUA3V . UIL bU. southeastern utah
.... ; \u25a0\u25a0\u25a0 ::•/:\u25a0:\u25a0.: \u25a0\u25a0\u25a0 -v ..•*\u25a0:. \u25a0\u25a0:•: \u25a0-\u25a0• -;.\u25a0 . . • :\u25a0• \u25a0 \u25a0\u25a0 \u25a0 -...-\u25a0 -: :\u25a0: :- -: " V' >: ' :- Ns*yafcre^^ '^ : \u25a0\u25a0' \u25a0"'\u25a0\u25a0\u25a0\u25a0\u25a0\u25a0\u25a0 \u25a0' •: \u25a0\u25a0 ' \u25a0 '\u25a0.-\u25a0 :\u25a0\u25a0 \u25a0\u25a0 - \u25a0-'\u25a0 Vll*wl*Vi
\u25a0Or .-.-.:. \u25a0.-.• \u25a0 ;\u25a0::\u25a0._•>.\u25a0.:. «.•.-.. \u25a0\u25a0\u25a0.\u25a0..\u25a0.\u25a0.\u25a0.\u25a0\u25a0\u25a0\u25a0.\u25a0\u25a0.\u25a0\u25a0\u25a0\u25a0 \u25a0 \u25a0\u25a0\u25a0 \u25a0\u25a0. \u25a0\u25a0.\u25a0 :_\u25a0\u25a0\u25a0\u25a0\u25a0 \u25a0\u25a0 \u0084 \u25a0. - - -\u25a0 •\u25a0*\u25a0\u25a0.-.. .-\u25a0•\u25a0\u25a0>: > <: !iJß^MP?.'.'' : 'w^v>ij:- •'•'•\u25a0 ' \u25a0-.- '\u25a0'\u25a0: '-.\u25a0 '.''.\u25a0 •'\u25a0:- \u25a0 - .-. .* ".-\u25a0'\u25a0'- • ' .'".'. :
\u25a0 M R "r£rf A^ • :
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|SDVANeES TO 25c PER SHARE IN ONE WEEK
-'' ..Twenty • (?20>- dollars cash .'and twenty '(s2o>.- dollars a month for. four (4> months will pnrchaae I.COO shures of the capital
-^PtocV:oftheiJuno San Juanioll ; Company or, aJarger or, smaller, anionnt In. proportion. > Toe Pirectors haTe decided to' tf*e «T*ry on<»
Wan'opportunlty to' become a- utoct holder In oar company. ou the ground floor: We are very certain that for each SIW) tnTestert In this
;, company. ;rir>w;at'the;presentpnce,,wltUln: one year yon., will receive v ?1.0«X>. : And the profits may be Tery much larger than thi*.
|/iThls- proposition holds , Rood i for one -week only; So please; «et at once and secure yotar stock by pa.iinz one-Qfth down antt the balance
i'-afthe rate of, 20 .pericent: per month.' Should any one haTe misfortune, and- not be able t& pay the full amount the strwk will he •
to them 'for the ' amount tof : money \u25a0 tfrey ' hare . paid. The Juno Sail Juan' Oil; Company own* 500 acres of proven oil land and
v does? not;: have >. to /give all its prontSi to-. tUe land owners .for a lease. The San Juan district, comprising 30^00 mile* in southeastern
greatest oil' belt in -the world.;,. We 'are- In the; heart of i the: Goodrich -basin, where these Immense wells of all are struck
id'at-a depth" of ,frorn;2o(> to 500;f(>et. " Owing tothe high. grade of this nil one: barrel Is worth 5 barrels of California oil. Three oil
v'experts^who have "examined; our land, say our' stock :w!ll,be r . worth. $1.00 per.ishare wlthla one' year. "\u25a0 Our B<vml of Directors . are all
%-wealtby - and -suecessf ul : business .men who; have made' d'Mieeesstof their own business." *3lr. H.- E.* Peterson.' Jt. E., a man whose Judsr-
'siment, is I considered superior, says: i;*'ln from :two; to three^years this; will' undoubtedly protejto be the. most productive aa well as the
'largest] oil field: in -the -world." -;Mr.'-,P. L>.' .".Griffin.; a," noted ;' oil > expert.', says:,- -•*Thl« ,1« certainly- the .most premising- oil \u25a0 field I bay*
SfT»r 'seen. "AJ" AJ Mr. '/James- :R.V Martin."; O. ; H.vC,*-a-gentleman| wh6 has made afortnne In 'oil.» sa.wt; "There Is -no -other field la the
* f world f to my. knowledge where I nature bas prospected v the field as- In thi«icas«e. : I Intend to return to the fleM at once and begin active
I work." '4 Board of Directors: : , X>l\ B. : Moody,.-; capitalist ; \u25a0" J. X W.~ Wright. A. . W. . Wright & Co. : Thomaa R. Ea,wardn. manager J. W.
\u25a0j Edwards \u25a0 Co. ; J.^W. ? ' Rless. manager "Holman- Car .Co.; 11. W.vrostlethwalte, president Holmes Lime Co. .If you wish to secure stock
Vat '. once, ywrite' or; phone ',f or. further ; particulars. . '."Address - \u25a0 . ,*";;•'. . .\u25a0
" _! ~ • \u0084 tl .-' t JUiyO "SAN .JUAN' OIL, CO.
Room^3o6\Chr t onlcle;Bldsr^;phone Douglas 256. ; \u25a0 MOODY, President; R.'F.iTVELLS, Secretary. J
NEW MARKETS FOR
STATE'S OUTPUT
Producers Agency Will Soon
Announce Some Big Con*
tracts for Fuel
•While marketing conditions in the oil
industry- are still in an unsettled condi
tion." there is every progpect that the
Producers' agency .will have something
important to announce ? before, many
weeks have gone by. The officials of
the agency have been devoting their
full energies to the enormous task be
fore them— that, of providing, storage
and making new selling contracts. That
large contracts are in the process of
negotiation is well understood.
The agency members will meet today
in Bakersfield. This will be v the first
meeting since the amalgamation of the
Bakersfield and Coalinga bodies. The
notices for the meeting contain no in
fqrmation of special topics for consid
eration. •'*\u25a0";
Although the agency is long-on oil. a
few big contracts and its additional
pipe .line facilities would enable It to
market allthat now comes to Its tanks.
Within 90 days the first of the big
reservoirs will be completed near San
Luis Obispo. Other facilities for im
pounding^the surplus will be provided
as rapidly as possible.
. There appears to be pood ground for
the reports that the Standard, as well
as the Associated, is purchasing at cur
rent rates. It is stated that the Stand
ard has offered to contract for the out
put of the Consolidated Midway at 50
cents a barrel. The Consolidated Mid
way recently brought in a big pro
ducer near ; the famous Lakeview. After
a few days of activity this well broke
forth with a stream that is said to rival
that of its noted neighbor.
There have been persistent reports
that the panacea of all the ills that
ever beset the oil business lay in the
intended use of oil for the American
navy. It has been pointed out re
peatedly in these columns that
no wholesale change from coal to
petroleum was contemplated at this
time. It was explained, however,
that many vessels of the navy
were already using oil and that more
would follow. The situation is offi
cially set forth in a recent communica
tion from Secretary Meyer of the navy
department to Senator Perkins. His
letter follows: \u25a0 . -
"Department of the Navy, Washing
ton, D. C, June -21, IWO. — My Dear
Senator: Your letter of }he 17th Inst.
relalive to. the use of oil as fuel on
naval vessels has been received.
"In reply I would inform you that
oil is used as fuel quite extensively on
the vessels of the navy more recently
designed. In the case of the latest
destroyers oil is the only fuel used,
while in the later battleships both oil
and coal are used under boilers. •
"This fuel oil Is purchased by an
nual contract and is advertised for and
bids submitted in the usual way.
"The battleships fitted for fuel oil
carry about 400 tons each, and the
torpedo boat destroyers about 210 tons
each. There are at present built and
building 15 torpedo boat destroyers and
six battleships using oil as fuel. To
fill the oil tanks' of these vessels -would
require about 6.150 tons. and. of course,
the. amount of oil used would depend
upon the rapidity with which, the tank
supply was exhausted.
"In regard to the Delaware I would
state that this vessel is fitted to burn
both oil and coal. I regret very much
that I have not a photograph of the
Delaware which I could forward you.
but you will find a very good one in the
Journal of the American Society of
Naval Engineers for November, 1909,
vol. 21, No. 4. v V -
"As to the probable extent of the
use of oil as fuel in the future, of
course, I am unable to state. At the
same time all indications point to its
continued use.
"Trusting that the above remarks
will furnish you with the desired in
formation. I am faithfully yours.
"GEORGE I* VOX MEYER."
EASTERN FINANCIERS
TO VIEW OILFIELDS
Pearson's Magazine Starts a
Party of 12, t0 California
N. F. Wilson, president of the Lin
coln mortgage and loan company, has
received a telegram . from New York
stating that Pearson's Magazine is tak
ing a private car of 12 persons to the
California oil fields.
The party, which Is composed of
well known -Wall street men and
friends of the Pearson management,
left New York Sunday night for Los
Angeles over the -Santa Fe.
Invitations have been extended for
a banquet to the visitors at the Los
Angeles chamber of commerce, after
which the party will leave iji their car
on a tour of inspection of the principal
oil fields of California. A number of
leading "oilmen of the state will be
present at the banquet, among 1 them
several from this city. Wilson left
for the oil fields and will meet the
visitors in Los Angeles.
OREGON BANKER
VIEWS OIL FIELD
Financier Is Greatly Impressed
With Outlook in the Santa
Maria District
J. H. Robblns. a hanker of Oregon,
who has recently become financially
interested in California oil properties,
has just returner! from his first vislc
to the fields. He inspected the Cat
canyon territory near Santa Maria. He
Is deeply impressed with the future of
the fuel and regards oil property as a
most inviting form of investment.
"There were two things in partic
ular that very favorably Impressed
me regarding the Santa Maria field."
he said. "First, the very unusual depth
of the highly saturated oil sand, which
we are told upon good authority is fre
quently as much as from 400 to> 500 feet
In depth, and, secondly, its close prox
imity to tide water and superior
transportation facilities, which at this
particular time, owins to the congested
condition of the valley districts, im
presses one as be'ng: very important.
"During our visit at the Palmer
property last Sunday well No. 1 was
producing at the rate of about 1,800
barrels a day. No. 2. which we were,
told had been producing at the rat*
of TOO or 800 barrels a day, se-eminar!>*
throuprh its anxiety to show off a lit
tle for our benefit, began spouting at
a rate estimated at about 1.500 barrels
a day. We were told that the pre
vious day's run on these two wells, as
measured in the tanks, was approx
imately 2.500 barrels.
"We also visited the Cat canyon
\u25a0well of the New Pennsylvania, petro
leum company. recently completed,
\u25a0which- is being prepared for the pump
with . every evidence that it, like its
near neighbor, the Palmer, will fully
sustain the reputation of the Cat can
yon section of the Santa Maria field.
j "The final company on their Fugler
lease, just north of New Pennsylvania,
encountered the first sand at a depth
of 1.800 feet and is makinsr grood prog
ress toward a further substantial addi
tion to this district.
"Our final visit was to the property
of the Cat canyon oil company, which
is preparing to operate on the Mf-
Croskey tract, a short distance north
east of the New Pennsylvania and Pal
mer-Stendel property."
©11 Journal
2 If you have not seen a copy of th«*
"California Oil Fields" for the cur-
rent month be sure to semi for a
sample copy. It contains the first of
a series of articles by J. Witlway
Treadwell. Editor of the "California
Bankers' Maffazin.?," in v.-hirh he ex-
presses some very radical Ideas re-
garding the formation uf oil in Cali-
fornia. It is of prreat interest to in-
vestors and operators.
SAGAR-LOOMIS COMPANY, 1
Suite 533. Phelan Bids..
. San Francisco, Ca!.
GentlemPW—^Please sen.! me a sample
copy of ynur- oil Journal. '"California Oil
Fir Ms."" \u25a0wirli the underst^ndlnic that I am
tr> rfi-eivp a fr^e subscription to this paper
duriDK the time Mr. Treadweir* «p«rtal
artirl** arp running in same, pmriiiinir I
slrnifv vny drsfre to hav<> .Tfii rontimie
«pD»!insr nic th» paper, within SO days.
NAME
ADDRESS 1 C 2
YOU arc looking for an investment
in some proposition that will secure
results. Take my advice and buy
Columbine Oil Co. stock at 10 cent>.
Bound to advance, as there arc wells
on three sides of our property.
'Also have 1,000 acres of oil land for
sale in the great San Juan oil fields,
S. E. Utah, at a bargain.
Call or address
H, W. Huichinson
429 PHELAN BUILDING
Honir Phone CGSIS • 1C6713)
Hopkins, Mailman CoJ
STOCK BROKERS
332 Bush Street San Francisco I
7

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