The San Francisco Call. Newspaper, January 3, 1902, Page 1

VOLUME XCL—NO 34, SAN FRANCISCO, FRIDAY, JANUARY 3, 1902. PRICE FIVE CENTS. FORTY-MILLION-DOLLAR OIL COMBINATION B ON BEHALF OF PRODUCERS TO BETTER EXISTING NEW OWNERS IN GONTROL OF NOATH PAGIFIC Local Syndicate Closes Big Deal and Plans for Future. Will Change Road to Stand- ard Gauge and Mcdernize Ferry-Boats. img to Increase Population Along Lines d Please Those Who Reside Permanently Across the Bay. R rday aft- y meetings to t run betwee San be over- ley Junc- we propose rst c conve: ss equip- nces and n is complete c d from the C Counties Power immediate steps t of the rail- Cazadero in on and do all o ke travel on this not only desirable but a endeavors Price Is Not Given. member of the syndicate, said: most of them Power Com- North Pacific Coast We bought 15 ase e is not for " n negotiating for some s not until this 1 was completed. ve bought a splen- y and we shall spend rove, the road. We our motive power. and ferry-boats more try and in- and reside perma- County. We think we any people to live over in Fin County in the winter as well as summer if We give them the right _ Continued on Page Two, o n Anselmo | | N « e——, 7 XN 2 ) X 708 q A < ANTIELD.. PRESIDENT .. OFFICIALS OF THE ASSOCIATED OIL COMPANY WhiCH HAS PREPARED TO ASSERT ITSELF. | Huge Industry " Is Given a New Chance. The Season of Ac- tive Operations Opens. HE great corporation known as the Assoclated Oil Company, with capital stock of $40,000,000, actually began business in this city yesterday, inaugurating the year with an event of great,sig- | nificance in relation to the material in- terests of this State. No move of equal importance has ever been made in Cali- rnia with so little of show. The an- ncement of actual operations will be a prise to many oil men who are not yet in the Many of the largest ofl producing companies in California have now definitely disappeared in their indi- vidual capacity, having been taken over, lands, weils and property of all kinds, by the new organization, and with this trans- fer go contracts for the delivery of 3,000,- 000 barrels per annum for a long term. Fully 5 per cent of the productive ofl territory north of Tehachapi is represent- ed at this time. A large additional per- centage will come in when the questions concerning titles are determined finally. | Stockholders in many companies have authorized the sale of their properties to { the Associated Oil Company in addition to those already merged and taken over. According to W. §. Porter, who is the general manager of the Associated Oil Company, the present capacity of the companies that have been merged in the Associated Ofl Company is 4,000,000 barrels per annum. These few general state- ments indicate the importance and mag- nitude of the new business enterprise which opens its real transactions with the new year. Having been formed to bring about more stable and satistactory con- ditions emong the ofl producers of Cali- fornia and to insure profits to the stock- company. i — ' WHAT ORGANIZATION MEANS. HE Associated Oil Company, which is the largest organizafion of oil producers in the world, owes its origin to conditions that suggested combined action as the only ‘mieans of a betterment. Its success means that there will be better brices for oil, that consumers will be assured of always having an adequate supply to mect their deinands, and insures stability and uni- form methods in the development. of ene of the grealest industries of California. While there are some large companies that have not yet joined the Associated Oil Company, their products are de- livered under contract and consequently wili not disturb the market. poration the Associated Oil Company’s activities may take a very wide range and result in the estab- lishment of a pipe line and other utilitics for the good of oil producers. ! - . Under the articles of incor- S holders of producing California oil .com- panies, the Associated ® Oil Company's progress is attended with great interest The fate of Invested millions of dolla and the future of an industry that has the promise in it of equaling the gold output of the State are largely at stake. This is understood and is conceded to be the fagt in business and financial circles from one end of California to the other. Engage Fine Offices. The first meeting of the board of direc- tors of the Assoclated Oil Company for the new year was held jn the Mills build- ing yesterday afternoon. As soon as the quarters are ready the company will re- move to the Hayward building on the cor- ner of California and Montgomery streets. Permanent offices have already been en- gaged and they wil! take up the greater part of the top floor in the structure named. As will be seen, the millions of barrels of oil that are contracted for and which will be delivered by the Associated Oil Company constitute a large present volume of business. That this will be very largely increased in the near future there is every reason to suppose. New uses are constantly being found for petroleum, new markets will be devel- oped for it, new refineries will create a demand, and the future seems very bright to oil men who a few weeks ago faced depression and disorganization that seemed to be irremediable. The officers of the Associated Oil Com- pany, who will direct its energies, are all prominently connected with the oil busi- ness of California. C. A. Canfield is the president, W. S. Porter the general man- ager and J. O. Chanslor, Burton E. Green and Fgank H. Buck are the executive board. These are all leading names in the oil industry of California. Several months ago exclusive informa- tion of the plans of the Assoclated Ofl Company was given by The Call in con- nection with the announcement of the in- corporation. the great enterprise have been busily en- gaged in presenting the plans to the large oil companies. Stockholders have been called upon to vote on the general proposi- tion and success has been almost uninter- rupted. Time has been necessary to al- low the stockholders to take final action. Among the larger companies that have been absorbed by the Assoclated Oil Com- pany are the San Joaquin Ofl Company, Canfield Oil Company, Kern Oil Company, Green & Whittier and Reed Crude Oil Company. These have great records as producers. May Build Pipe Line. No one connected with the Assoclated Oil Company had any statement to make yesterday concerning the immediate plans of the combine. The articles of incorpora- tion embrace a wide range of purposes which are authorized. The most striking of these is the construction of a pipe line if it is deemed advisable from Bakersfield, in the heart of the Kern River district, to some point on tide water to be designated. & Since then the promoters of 4 2 The cost would be several millions of dol- lars, but would' insure the producers of a way to get their oil economically to market independently. Tanks are to be erected as they are needed, of sufficient capacity to care for all the oil that is handled and these must necessarily hold hundreds of thousands of barrels of oil in the aggregate. Craft for deep and coast use may be constructed. Power is conferred by the articles of in- corporation to purchase oil wells; to con- struct. and maintain telephone lines; to buy and sell water; to make tubular and other forms of steel, iron and wooden ware; to erect power-houses and to fur- nish power; to patent rights to secret pro- cesses for the refining of crude petroleum or gther manipulations of oil and ‘its products; to Issue stocks and bonds; prac- tically to do anything that might fall within the province of an ofl company with the exception of the building and operating of railroads. Drilling for ofl and exploring for all sorts of materials connected with the oll Industry, such as bitumen, natural gas and asphaltum, are among the important purposes enume- rated in the articles. Experience Points Way. Since the incorporation of one huge oil company, of which the -Associated Ofl company is the realization, was originally proposed, the producers of Los Angeles have tried an experiment based upon the continuance of the individual existence of the oil companies and handing over the Companies Havin Rich Wells Unite. ] Contracts Cover a Very Large Demand. marketing of the output to a committee of an association which was formed. The device proved ineffective when it was put to the test of experience. The purpose of the Los Angeles experiment was to raise the price of oil in the home market only temporarily. Oné sort of obstacle after another was encountered and the association went to pieces after acrimo- nious meetings of which the principal net outcome was an agreement to finally dis- agree and to market individually as be- fore. The Los Angeles surplus of ofl has consequently accumulated, prices have fallen again and there has been gencral demoralization in the south, paralleling in all essential particulars the conditions that have existed in the ofl flelds north of Tehachapi for a period of many months. Very likely it was well that the Los Angeles experiment should be tried at that particular time. One favorable effect upon the fortunes of the ofl producers of the State has been the conviction of large producers that the properties must be handled as one to secure absolute unity of action and have only one coherent body to deal with. In the opinion of the officers of the Associated Oll Company, as they, were expressed yesterday, the price of oil must be made permanently better by the actual operation of the agencies which are now made possible in the field and in the market. The only competitor in the fuel market with oil is coal and the newer fuel has jargely displaced coal. In Los Angeles all power plants are operated with oil fuel. In this city there are more than Continued on Page TWo, EGINS BATTLE CONDITIONS MUST WAIT UNTIL NEXT WEDNESDAY City Attorney Decides That New Officers Go in January 8. Walter Martin Resigns From the Board of Park Commissioners. Mayor Phelan May Appeoint Thomas Jennings to Fill Vacancy—Su-~ pervisors Agree on Stand- ing Committees. R The City Attorney decides that the offi~ cers chosen at the last municipal e | tion will not go into office until the be- ginning of January 8. In other words, the present officers who were inducted into office January 8, 1900, were elected to serve two years and that their term of service will not expire until the last hour of January 7, 1%2. Coming down to a fine point, Mayor-elect Eugene E. Schmitz is not entitled to succeed Mayor Phelan untfl 12:01 a. m. Wednesday, January 8. It is presumed that the incoming Mayor will cheerfully await the dawn before dis- turbing Mayor Phelan, but the latter may find it more convenient to surrender the works shortly after midnight than to rise early after dawn. Notwithstanding the opinion of the City and County Attorney, the officers-elect of the Union Labor party, headed by Mayor Schmitz, wili demand their offices on Monday. Under decisions of the Supreme Court this seems to be the only safe plan for them to pursue, as that court has held in a number of cases that where an offi- cial fails to demand his office at the time | at which he rightfully believes it to be due, then he forfeits his claim to it. It | 1s not the desire for two extra days of | office that is actuating them in this move- lmem, but a simple precaution against fu- ! ' | | | | ture compileations. The incoming Mayor had made hig cal- | culations to step in on Monday, January | 6 at high noon. It may please him to signify noon of Wednesday, January S, | as an acceptable time. If Mr. Schmitz | were a Democrat of the Jacksonian school | he would rejoice at the opportu | taking office on January 8, as that day is | the anniversary of General Jac great victory over the British at Orleans. The old Democratic campaign refrain was: New | | Where was Andrew Jackson then? | He was up to his neck in mud and blood, Fighting the battles of his countrymen. Probable Appointees. The new Mayor Is sure to have a warm | time over the distribution of the spoils of | victory. There are forty applicants for every place at his disposal. He is bound to make thirty-nine political enenties | every time that he signs a commission, | He has been considering the advisability | of appointing a full set of Commissioners | for every board and giving the appointees | & chance to go inte court and make legal | battle for possession of the goods. On re- | flection he decided to test his power to | displace existing Commissioners by ap- | pointing a brand-new Board of Education. It was reasoned that Mayor Phelan was | particularly unfortunate in his selection of Educational Commissioners and that the public would regard nearly any change in the board as a change for the better. It was considered further that the members of the board by their own con- duct in office had intensified the public displeasure which was provoked when Mayor Phelan commissioned them to look after common school affairs. The Mayor- elect is sure that the public would com- mend him for making a clean sweep of this board, hence it would not be surpris- ing if the test of his power should be made in this direction. There is no question as to the new Mayor's right to name eight Commission- ers and political gossip is to the effect that he will appoint as follows: Fire Commissioner—Thomas Boyle. Board of Works Commissioner—No selection. Police Commissioner—A. Gruenberg. Election Commissioner—A. Bouvier. Park Commissioner—John Stanton. Civil Service Commissivner- selection. School Director—A. Roncovieri. For the place that will become vacant on the Board of Health no one, it is said, has been decided upon, although Dr. Joha F. Dillon, late candidate for Coroner, can have it if he desires. It is commion gossip at the City Hall that Mr. Keane of A. Ruef's law office will succeed Charles Fay as Mayor's see- retary. Supervisors’ Committees. The burden of appointing the standing committees of the Board of Supervisors will not be imposed on the new Mayor. The Supervisors themselves have grace- fully resolved to lighten his work in this particular line. To-night they will hold a final conference and exchange views. The chairmanships will be allotted as follows: Street Committee—Peter J. Curtis. Police—Dr. Charles Boxton. Finance—H. U. Brandenstein. Judictary—A. Comte Jr. Public Buildings—George R. Sanderson, Hospital—Dr. A. A. D’Ancona. Charter Amendments—Henry Payot. Public Utilities—Samuel Braunhart. Artificial Lights—Horace Wilson. Fire—L, J. Dwyer. Printing ahd Salaries—James P. Booth. ‘Water Rates—Joln Connor. _— 4 . Coptinued on Page Four, -