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The Daily Oil Report

(Galveston Daily News, January 22, 1901)

Beaumont, Texas, Jan. 21---Lucas Well People Will Pipe Their Product to Port Arthur And Store It--Shut Out Was Feared---Prosecuted Their Quest For A Right-Of-Way With Secrecy On Their Account---Will Store Oil in Tanks--And Have It Ready For Distribution By Land And Sea---Another Busy Day.

The question of what disposition is to be made of the oil from the Lucas well which has been agitating the public mind for more than a week has been solved at last. The oil will be piped to Port Arthur and stored there in immense tanks and shipped from there in tank steamers. It is of considerable moment that this great well is to be disposed of independently of the Standard Oil Company, for the time being, at least. Standard Oil Company representatives have been in this city ever since the well has been struck, and just what they were doing could not be determined.

Whether they (Standard) have ever made a direct offer for the product is unknown, but it is known that the owners of the Lucas well prosecuted the securing of a right-of-way for a pipe line and a site for their plant at Sabine Pass with a great deal of secrecy, and it is said that they did this because the Standard Oil Company was endeavoring to shut them out from the sea coast, if possible. It is considered that the proximity of this well to deep water has been its most attractive feature to oil men, and one of the most troublesome features of the Standard Oil Company.

Whether the owners of the well will continue for any real length of time to market independent of the great monopoly is of course very uncertain. The rumor that John H. Galey, part owner of the Lucas well, who is negotiating the disposal of the oil, will also build refineries at Port Arthur is without foundation. Mr. Galey does not yet know whether there will be refineries or not, and will not know until he can determine the quality of the oil.

It is understood that the steel for the tanks at Port Arthur has been ordered, and it is known that 100 car loads of pipe is expected to arrive here in the next few days. When the pipe comes, it will be distributed along the right of way of the proposed pipe line, and gangs of men will be employed to lay it. This will require only a few days, but it will take considerably longer than that to build the tanks. The first tank to be built will have a capacity of 150,000 barrels.

It is the purpose to store enough of this oil so that any future demand for it can be met. Then, too, it is a well-known principle that in this business, oil in the ground can not be sold to prospective buyers. It must be in tanks and in sight. Of course, extensive storage and tankage reservoirs will also be built in this city to supply the rail trade. But the Port Arthur pipe line will be built first, because they will desire to ship the oil away by steamer for test purposes and to supply the eastern markets.

Numbers of oil men came in last night and this morning, and excitement keeps up with wonderful strength. The hotels are crowded, and private citizens are coming to the rescue, offering spare rooms to the hotels and to meet the demand and to furnish comfort for Beaumont's guests. A slow, drizzling rain began this morning and has kept up with steady persistence all during the day. Visitors are getting a taste of this mud which is as wonderful as is the oil. Spirits are considerably cooled by the rain and the inability of the prospectors to get out into the country.

Several well drilling rigs arrived here this morning, and will get to work some day next week. Captain Lucas is preparing to move the now famous rig from the Lucas well and start another well on the property of the Gladys City Oil Company. Captain Lucas has three new rigs coming. One of them will get to work in this neighborhood, while the third will be sent to High Island to drill on the property of Capt. C. T. Cade. Stern Brothers of Corsicana have a rig which will get to work this week and the Southwestern Oil Company will also begin boring in a day or two.

J. A. Paulhamas has a new rig which arrived today, making three which he now has in this county. (Ed. Note: Paulhamas was drilling at Taylor's Bayou when the Lucas gusher was brought in.) There is a constant rumor that Mr. Paulhamas has stuck oil in the southern part of the county, but no positive information can be obtained on that point. That Mr. Paulhamas will be the next lucky man in this field there can be little doubt, however. Other than a few oil leases, there have been no important real estate deals today, although there are hundreds of offers and negotiations for lands.

Orange, Texas, Jan. 21---It is learned here this evening that J. W. Link, a prominent real estate man, bought 800 acres of land today from L. Miller for $14,000 cash....Mr. Link says...that an oil well will be put down at a point not far from where the Southern Pacific Railroad crosses Cow Bayou.

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