Sketches in Crude-oil: Some accidents and incidents of the petroleum development in all parts of the globeMcLaurin, John J. (John James)
History
Sketches in Crude-oil: Some accidents and incidents of the petroleum development in all parts of the globe
McLaurin, John J. (John James)
Petroleum -- History; Petroleum industry and trade -- North America -- History
The story of the Story farm does not lack romantic ingredients. William
Story owned five-hundred acres south of the G. W. McClintock farm, Oil
Creek, the Dalzell and Tarr farms bounding his land on the east. He sold
in 1859 to Ritchie, Hartje & Co., of Pittsburg, for thirty-thousand
dollars. George H. Bissell had negotiated for the property, but Mrs.
Story objected to signing the deed. Next day Bissell returned to offer
the wife a sufficient inducement, but the Pittsburg agent had been there
the previous evening and secured her signature to the Ritchie-Hartje
deed by the promise of a silk dress! Thus a twenty-dollar gown changed
the ultimate ownership of millions of dollars! The long-haired novelist,
who soars into the infinite and dives into the unfathomable, may try to
imagine what the addition of a new bonnet would have accomplished.
The seven Pittsburgers organized a stock company in 1860 to
develop the farm. By act of Legislature this was incorporated on
May first, 1861, as the Columbia Oil-Company, with a nominal
capital of two-hundred-and-fifty-thousand dollars—ten-thousand
shares of twenty-five dollars each. Twenty-one-thousand barrels of
oil were produced in 1861 and ninety-thousand in 1862, shares
selling at two to ten dollars. Foreign demand for oil improved
matters. On July eighth, 1863, the first dividend of thirty per
cent. was declared, followed in August and September by two of
twenty-five per cent. and in October by one of fifty per cent.
Four dividends, aggregating one-hundred-and-sixty per cent., were
declared the first six months of 1864. The capital was increased
to two-and-a-half-millions, by calling in the old stock and giving
each holder of a twenty-five-dollar share five new ones of fifty
dollars apiece. Four-hundred per cent. were paid on this capital
in six years. The original stockholders received their money back
_forty-three_ times and had ten times their first stock to keep on
drawing fat dividends! Suppose a person had bought one-hundred
shares in 1862 at two dollars, in eight years he would have been
paid one-hundred-and-seven-thousand dollars for his two hundred
and have five-hundred fifty-dollar shares on hand! From a mere
speck of the Story farm the Columbia Oil-Company in ten years
produced oil that sold for ten-millions of dollars! Wonder not
that men, dazzled by such returns, blind to the failures that
littered the oily domain, clutched at the veriest phantoms in the
mad craze for boundless wealth.
Public-domain text, read in full here on John Shaqi.
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