Showing posts with label George W. Parsons; William Hervey Bailey. Show all posts
Showing posts with label George W. Parsons; William Hervey Bailey. Show all posts

27 August 2011

Olinda Oil Field History: Origins of Olinda, Part 7

With the successful launch of the Olinda oil field, courtesy of a joint venture between Edward Doheny and the Southern California Railway (as owned by the Atchison, Topeka and Santa Fe Railroad), in 1897, it was not long before other oil companies came into being and then the battles in the courtroom followed. 

As noted last post, William Hervey Bailey, founder of the Olinda Ranch in 1887, teamed up with other investors to create the Richfield Oil Company (later Atlantic Richfield, now known as ARCO) to develop portions of the ranch for oil development.  Moreover, the San Francisco-based real estate firm of Eldridge, Easton and Company, which had also recently been hired to sell and develop land in the east end of Carbon Canyon located within the Rancho Santa Ana del Chino, was hired by Bailey's Olinda Ranch Company to do the same on his holdings.

With the formation of Richfield Oil, the idea was to transfer all viable oil lands within Olinda Ranch from the ranch company to the oil firm.  This was based on an agreement entered into between the two entities in April 1898.

Alas, a year later, problems arose amongst the principals involved in the agreement, when suit was filed in Orange County Superior Court in Santa Ana by Easton, Eldridge and Company (consisting of four men: George Easton, D. Easton, W. L. Valentine, and L. Phipps) against Bailey and the Olinda Ranch Company.  The allegation was that, although some Olinda Ranch lands that had bearing oil deposits were transferred to Richfield as stipulated in the Spring 1898 compact, other properties that were determined to have oil at some point before 1 April 1899 were not.  Easton, Eldridge and Company were asking the court to compel Bailey to transfer those properties and to pay for the plaintiffs costs and attorney's fees, amounting to $1000.

As often happens in matters of civil law, the parties found a way to resolve their differences without going to to the further and greater expense of a trial.  In early May, the Los Angeles Times reported that the case had been dismissed, because a deal was made out of court.  A four-party transaction involving the Olinda Ranch Company, Richfield Oil Company, George Easton (principal figure in Easton, Eldridge and Company) and a portion of the stockholders of the first two firms was consummated,

in which it is agreed that in consideration of the sum of $575 paid to the Olinda Ranch Company by the Richfield Oil Company and other valuable concessions, the Olinda Ranch Company conveys to George Easton of Los Angeles city fifty acres of land . . . transferred with this land are valuable oil wells which are now largely productive.

Clearly, despite the previous indications that there were four Easton, Eldridge and Company litigants, there was really just George Easton who was pursuing the matter and he seems to have obtained much or all of what he sought in the settlement.

Meantime, within a week, William Hervey Bailey moved to create his own oil company, although it is not clear whether he parted ways with Richfield to do so.  At any rate, he formed the Olinda Oil Company with $100,000 in stock and took on his son William, Jr. and Los Angeles investors J. W. Briggs, J. G. Mossin, and T. W. Phelps as fellow directors.

In August, the Times reprinted a lengthy article by the Santa Ana Blade, later absorbed into the Santa Ana Register, which gave some detail about the emerging Olinda field.  Notably, the unnamed Blade reporter referred to "the Santa Fe group of wells," noting that this name came from its ownership by the Atchison, Topeka and Santa Fe Railroad and its partner, Edward Doheny.  Also of note was that the crude generated from the "Santa Fe wells" "is hauled to Richfield Station, four miles distant," this being the Southern California Railway depot in present Atwood in Placentia.  The Blade also reported that there were ten operating wells and four others in the process of drilling. 

Meantime, there were a growing number of companies and individuals mentioned at Olinda in addition to the Santa Fe/Doheny enterprise.  These included the Columbia Oil Company (which has been mentioned in this blog fairly recently as a firm headed by William B. Scott, William R. Rowland and Harry Chandler, the main figures in the later purchase of much of Tonner Canyon for the Tres Hermanos Ranch) though the Columbia was then occupied principally at Brea Canyon; the Graham-Loftus Company (William Loftus, in 1910, provided a detailed update on Olinda progress, as covered in this blog before); Charles Victor Hall, another recent notable covered here, thanks to contact from a descendant; and the others mentioned above, namely Easton, Eldridge and Company and the new Olinda Oil Company.

According to the Blade, "so far as we could learn there have been no failures," which seemed to indicate that all drilled wells came up with crude, although the paper then drew the erroneous conclusion that "there seems to be every reason to believe that oil may be developed at almost any point upon the strike [geological formation] from Los Angeles to some point east of the Santa Fe development."  It was correct, though, that "the fields already partially explored will be greatly extended," and that, "the life of the wells developed is probably very great." 

As for extended activity in the fields, the next post will cover further maneuverings involving Olinda Ranch owner William Hervey Bailey as well as an important development for "the Santa Fe wells."

08 August 2011

Olinda Oil Field History: Origins of Olinda, Part 5

As noted last post, the Olinda Ranch, as established by William Hervey Bailey in the late 1880s, was promoted as an agricultural subdivision and struggled to do so through depression and drought for most of the 1890s.  Fortunes changed dramatically in 1897, however, thanks to the efforts of the Atchison, Topeka and Santa Fe Railroad and oil man Edward L. Doheny.

Doheny, born in Wisconsin in 1856, became a government surveyor while still in his teens, working in Kansas before leaving the profession to become a mining prospector in South Dakota, New Mexico and Arizona.  While living in Kingston, New Mexico, he met Albert Fall and Charles Canfield, who both figured prominently in Doheny's later exploits.  Doheny and Canfield worked together in mining, but did not experience financial success, so the latter went off on his own to another mining area nearby and made a small fortune.  Canfield then went off to Los Angeles about 1887, the same time that William H. Bailey made his purchase of the land that he named Olinda Ranch.  Although Canfield lost most of this money during the ensuing bust of the real estate boom, Doheny caught up with him in Los Angeles, arriving there in the Spring of 1891.

Hearing about the presence of asphaltum in the area, Doheny used a $400 investment from Canfield to hand-dig a primitive oil well just west of downtown starting in Fall 1892.  Within months, the well proved to be successful, though a small producer, and it inaugurated the Los Angeles Oil Field.  Despite his initial success, however, Doheny struggled to keep himself as a player in the rapidly-emerging and evolving industry, until he formed a partnership with the Atchison, Topeka and Santa Fe Railroad and its local subsidiary, the Southern California Railway.  This latter had a new line which went into Los Angeles through Santa Ana Canyon, passing through the area on what is now the track that parallels Orangethorpe Avenue through much of northeastern Orange County.

Doheny convinced the Southern California Railway that the emerging regional oil industry would allow the railroad to move to oil-powered engines rather than coal.  Because of the success of the Puente Oil Company, a company founded by William R. Rowland, former sheriff and scion of an early ranching family in the eastern San Gabriel Valley, with William Lacy and Burdette Chandler, which, in 1885, made a discovery of oil on the north side of the Puente Hills in what is now Rowland Heights, Doheny looked to nearby areas as possible sources of oil.  It should also be noted that surface appearances of asphaltum or tar were so common in the general area that the canyon dividing Los Angeles from Orange County on the eastern end of the Chino Hills had been known in the Spanish and Mexican eras as Cañon de la Brea, and a Mexican-era rancho of that name was created there.  Local ranchers used the raw brea to cover the roofs of their adobe brick homes long before any thought of drilling for oil was considered.

Doheny settled on the area in and around the Olinda Ranch and worked to obtain a lease for some 3,000 acres of the ranch from Bailey.  By the end of 1896, a test well was started at the hilly northern end of the ranch.  Readers of earlier posts in this series will recall that, in 1888, when Bailey began promoting the Olinda Ranch, advertisements noted the presence of oil in this area, but it was completely untested.  At least, until Doheny and the Southern California Railway entered the picture.  Working with an executive from the Santa Fe, the SCR's parent company, named Almon Maginnis, Doheny sited the well and began drilling.

At 400 feet, a shallow depth, oil was encountered, but the well was deepened to twice that depth.  Although the pump encountered typical levels of sand in the well, there was such enthusiasm for the potential of a major strike that the Los Angeles Times trumpeted the project before it was fully determined to be a producing well.  Indeed, in its 28 April 1897 edition, the paper announced that there were plans to have oil extracted from Olinda taken eight miles by a pipeline to Fullerton and the Southern California Railway line.  Addtionally, it was noted that timber was already being gathered about 500 feet away from the first well for a second one.

Interestingly, the paper wondered whether or not it was accurate to label this newly-discovered oil field as part of the Puente field, which was not only several miles to the northwest, but was part of a different geological setting.  Ironically, it was decided in short order that the new field should be referred to as the Fullerton field, though it was several miles from that small, emerging town.  The fact that there was a plan to send oil from the new wells to Fullerton seems to have encouraged state mining officials and others to refer to the new field by that name.



This is a ca. 1920s photograph of the Olinda oil field, which, upon the April 1897 announcement of the first well dug by Edward Doheny for the Atchison, Topeka and Santa Fe Railroad's Southern California Railway subsidiary, was first called by the inelegant name (even for an oil field) of Oil Center.

Meantime, the Times also pointed out that Union Oil Company, which got its start in Santa Paula in Ventura County, had obtained some nearby property for oil prospecting, while, up in Tonner Canyon, a tract owned by the People's Bank of Pomona was involved in negotiations for sale and development for oil, as well. 

In these early days when the geological formations and the science of examining and identifying these was still in a primitive stage, the paper reported that there was some confusion and uncertainty about the nature of the new field's structure. Lacking familiar means such as examining rocky outcroppings, prospectors would have to deal with the fact that "the whole country is upturned," presumably meaning not uniform as to surface indications.  Doheny's first well was sited close to an area in which brea was seeping to the surface and the second well was placed near another like tar deposit, in the expectation "that the rocks slope downward to the north" and thus indicating a direction where oil would be most likely to pool.

Two days later, on 30 April, another article promoted that new oil discovery, particularly noting that the Southern California Railway had its own source for oil, independent of middlemen, for its newly-emphasized reliance on the product for fueling locomotives.  While the first well was described as at 900 feet and not complete, there were already some 40 to 50 barrels of crude being extracted daily.  The railway, which had a twenty-year lease, was planning its pipeline, which, thanks to the geography of the new field, would allow oil to simply flow down to the company's tracks by gravity.

Interestingly, the paper reminded readers that, because oil prices had skyrocketed a few years before, the SCR had switched its use of fuel from oil to coal, but, now that there was every expectation of an oil bonanza at the new site, it was looking to return to oil.  The Times also noted that, as the orange industry comtinued to blossom (!), the need for more trains to ship the product out of the area was becoming more pronounced.  It also pointed out that, unlike in Los Angeles, where oil promoters had to deal with the lease of many small lots, the discovery of oil in the hinterlands of Olinda Ranch meant that developers could lease or buy larger tracts and not have to deal with the smaller parcels that could bring a host of issues.  Finally, the paper also stated that older maps, from the 1870s or so, indicated that the area consisted of "coal lands" because of the knowledge of existing tar seeps at the surface.  Of course, the adjacent "Carbon Canyon" also was part of that earlier identification of "coal lands" for the Olinda area.

By late May, another feature was issued by the Times, which, on the 25th, stated that the first well was still not done, but the output from the current apparatus was yielding some 50-60 barrels of crude per day.  However, the second well was in the process of being dug and "will probably be producing oil before many days."  There were immediate plans to begin the digging of the third and fourth wells, too.  In discussing the desire of the railroad to move back to oil-fueled engines, the paper reported that the advantages included less smoke, no cinders, and the resulting cleanliness of the cab meant "that the engineers can almost wear their Sunday-go-to-meeting clothes without fear of getting soiled."  The work of the locomotive firefighter would also be materially easier with oil than coal, while other workers on the cars would benefit from not having "to shovel coal till your back breaks."

As to the very earliest name of this new oil field, the first Times article of late April was eager to note that "this new metropolis has sprung unheralded upon the world, and probably this is the first time its name has been seen in print."  Even though there wasn't yet a proven well on the property, the paper saw fit to note that "yet the possibilities of the location seem unbounded."  Consequently, it was announced, the new name of the field was Oil Center and the by-line was so indicated.

Fortunately, the very direct, but clunky name of Oil Center did not stick and soon the Olinda appelation came to be accepted, even under the broader field designation of Fullerton!

11 July 2011

Olinda Oil Field History: Origins of Olinda, Part 2

Actually, this post represents a mild, but notable, diversion from Part One.  When William Hervey Bailey bought the land that he named Olinda Ranch during the great land boom of the late 1880s, he hired a real estate and mining speculator to work with him.  This was George Whitwell Parsons, who remained an agent and secretary of the Olinda Ranch Company through the 1890s.

Parsons was born in Washington, D. C. in August 1850.  He was the only son among four children of Virginia Whitwell, a native of Richmond, Virginia, and Samuel Miller Parsons, who hailed from Wiscasset, Maine.  His mother came from a well-to-do family and she went to Mrs. English's Boarding School at Washington, where she was a classmate of Jessie Benton, daughter of powerful Missouri senator, Thomas Hart Benton, and wife of the famed and controversial explorer and politician, John C. Frémont.  Samuel Parsons, an graduate of the first class at Yale University's law school in 1843, began his practice in Brooklyn, New York (which was an independent city until the 1890s) but met his wife at Washington, where the couple started their family before relocating back to Brooklyn. 

George was educated in public schools in Brooklyn and then attended a seminary at Blairsville, Pennsylvania before going back home to study accounting and bookkeeping at the Brooklyn Polytechnic Institute.  He was working as a clerk at brokerage and import companies while studying law at his father's practice (an apprenticeship known as "reading" with a law firm) on Wall Street, the financial center of New York and the United States.  George, however, soon tired of the law and migrated in 1874 to Miami, Florida, where he sold salvage lumber.

He then headed westward, landing in Los Angeles in August 1876, just after the town of about 15,000 was shaken by financial disaster and heading into a long period of population decline and business depression.  Almost exactly a month after his arrival, the Southern Pacific Railroad line from San Francisco to Los Angeles was completed and, in 1885, the Atchison, Topeka and Santa Fe Railroad (which had a huge stake in Olinda later on) built its line directly to the nascent city from the east.

Parsons, though, came at a bad time to Los Angeles and quickly headed north to San Francisco where he spent three years working as a bank clerk for the National Gold Bank and Trust Company. Always on the lookout for new opportunities, Parsons found one in a new mining town in the Territory of Arizona called Tombstone, where he migrated with the gloriously-named Milton Clapp.  Readers of the Chronicle may recall that Richard Gird, owner of Rancho Santa Ana del Chino and founder of the town of Chino, was one of the prime movers in the development of Tombstone.  As it turned out, it was 1880 when Gird sold out of his mining interests at Tombstone and bought the Chino ranch and Parsons was heading the other direction, arriving in the boom town in mid-February.

The tract map of the town of Carlton, identified at the upper left as being in "Olinda Ranch."  This 1888 map is provided courtesy of the Orange County Archives.


Parsons was a notable resident of that famous community for about seven years.  For example, as the rough-and-tumble Tombstone grappled with disorder and violence, Parsons was a member of the Committee of Vigilance's administrative wing, the "Council of Ten", seeking to root out lawbreakers in town.  He was a close friend of the famed Wyatt Earp and other major characters in the community.  In 1885, he helped form the library, one of the "civilizing" influences in the town and served as librarian.  More importantly, Parsons kept a diary, which he had started upon his mother's death in 1869, and continued it all through his years in Tombstone, up until mid-January 1887, when, news of the Los Angeles real estate boom reaching his ears, he packed up and headed back to the coast.  As to his diary, it has been one of the most important sources of information about Tombstone, including the Earp brothers, the O.K. Corral incident, and other historic events.

When Parsons reestablished himself at Los Angeles, he moved into the Argyle Hotel and hung his shingle at 41 South Fort Street in a real estate business with partner Maurice Clark.  Soon afterward, the two were hired by William H. Bailey to work on the Olinda Ranch subdivision, including the town of Carlton, which began its operations in early 1888.  Within a year, however, the great "Boom of the Eighties" had gone bust, though Parsons continued in real estate, as well as mining, and also retained his involvement with Olinda Ranch.  In fact, in 1894, when Bailey announced the shuttering of the Los Angeles sales office and the relocation of all company operations to the San Francisco main office, Parsons was company secretary.

Parsons was also an Arizona commissioner of deeds and notary public, but became well-known in Los Angeles as a charter member of the city's Chamber of Commerce, which re-formed in 1888, and was Chairman of the Mines and Mining Committee.  Due largely to his efforts, the Chamber was successful in 1894 in securing a State of California survey of Los Angeles-area oil lands, two years after Edward Doheny and Charles Canfield brought in the first successful oil well within the city.  Doheny went on, in 1896-97, to drill the first oil well at Olinda.

Parsons, whose active involvement at Olinda seems to have ended by 1900, continued to live and work in Los Angeles, dealing in real estate and mining.  He was reunited with Wyatt Earp, when the Tombstone marshal migrated to Los Angeles and when the lawman died in 1929, Parsons was one of the pallbearers.  Unmarried, Parsons died in January 1933, leaving a modest $25,000 estate, and was buried at Evergreen Cemetery in Boyle Heights.  A set of scrapbooks covering the years 1893-1920 kept by Parsons was donated to the special collections section of the library at U.C.L.A.