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."
Showing posts with label Olinda Ranch Company. Show all posts
Showing posts with label Olinda Ranch Company. Show all posts
27 August 2011
12 August 2011
Olinda Oil Field History: Origins of Olinda, Part 6
After the first oil well at Olinda was brought into production in April 1897 by Edward Doheny in association with the Atchison, Topeka and Santa Fe Railroad's Southern California Railway subsidiary, matters moved rapidly toward the development of the area, which was called the Fullerton field.
In June 1898, the Los Angeles Times did a brief profile on the Olinda Ranch, noting that the 4500-acre parcel was subdivided during the great Boom of the Eighties a decade before "with a townsite in the middle of the tract, named Carlton." It referenced founder W. H. Bailey and his transfer of the ranch to the Olinda Ranch Company. Yet, as the paper pointed out, "few sales were made, and most of the townsite has now been transformed into acreage," meaning larger lots of probably the 5, 10 and 40 acre ones promoted for the ranch outside the Carlton townsite.
Of note, however, was the fact that a new entity was entering the field at Olinda (fortunately, the name "Oil Center" proposed in April 1897 went nowhere!) As reported by the Times, this was the "Richfield Oil Company," which, the paper continued, "has secured extensive rights of development, pipe-line privileges, etc., from the Olinda Ranch Company, and proposed operating not only directly, but by subleasing lands for oil development . . ." Observing that "the Olinda Ranch lies south and west of the Santa Fe wells," which was not technically the case, as the "Santa Fe wells" were within the original Olinda Ranch property, the paper noted that W. L. Watts of the California Mining Bureau had visited the ranch to assess its oil-bearing potential. Because of Watts' favorable report, the Richfield Oil Company, later the Atlantic Richfield Company now known as ARCO, was formed to work the field.
Also of interest is the fact that Richfield was then composed of "San Francisco and local capitalists" and that oil men in the Orange County and surrounding areas would have the opportunity to sublease from Richfield. Readers of this blog's posts about the Rancho Santa Ana del Chino will recall that, during the 1890s, a San Francisco-based real estate firm, Easton, Eldridge and Company, were hired to market and sell sections of that ranch. When the incorporation papers for the Richfield Oil Company were filed, this was done by Easton, Eldridge and Company, thus providing another tangible link between Olinda and Chino.
On 3 July, the Times reported that the Mining Bureau's Watts as back in the area reviewing oil properties from Puente Hills to Olinda and further east and south along what is now known as the Chino Hills, but then considered part of the Puente chain, to the Santa Ana River. Watts, however, believed that there was no indication of oil bearing lands anywhere east of Olinda, which has proven to be the case. As a sidenote, some attention was paid in the article to Watts' investigations in a canyon near the Southern California Railway's Gypsum side track (this, of course, being Gypsum Canyon) and that a favorable indication of coal was located where existing efforts to mine the material had already been made. Coal Canyon, naturally, is where Watts was conducting his investigation. In 1900, Watts completed a report, including a series of maps, that were the first comprehensive effort to examine and interpret the oil lands of southern California generally, including the new Olinda segment of the Fullerton field.
As to Richfield Oil Company's efforts, an article in the same paper from two weeks later, noted that "work on the first of a series of wells to be put down on the Olinda ranch commenced this week." Commenting that oil experts were favorably impressed with the potential at Olinda, the Times reported that "if expectations are realized, plans made for an extensive pipe-line sustem will be put in effect at once." This system was projected to run "from the ranch to Richfield station on the Santa Fe [Southern California Railway]." This refers to the station at what became Atwood, along today's Richfield Avenue in Placentia, where the railroad track still runs parallel to Orangethorpe Avenue. From that point, the article continued, "from Richfield, over an easy route, the line will be run to this city [Los Angeles], coming in at the west-end depot of the Southern Pacific. From there it will be run to Los Alamitos, where, it is said, the sugar factory will be supplied with oil for fuel," a contract apparently being imminent. By sugar factory, this was a sugar beet facility like the one Richard Gird established at Chino, though, eventually, sugar beets as a source of sugar dissipated in favor of protected tariffs for production from Louisiana and Hawaii's sugar cane fields.
As to the wells owned by the Santa Fe Railroad, an August 1898 feature in the Times noted that 8000 barrels of crude were extracted and shipped from Olinda by the company in July and that expectations were for a larger proportion in August. Well #1 continued to be the best producer, at 125 barrels per day, but an unspecified number (probably a few) were also in production. Of course, Well #1 is still in operation today and is a feature of the Olinda Oil Museum within the Olinda Ranch housing subdivision on the old Santa Fe property. Another tangential tidbit: the article referred to two officials from the Santa Fe being at Olinda looking over the situation, one of these men being Chief Engineer for the company, Fred Perris. He, of course, is the namesake for the Riverside County city of Perris, a station stop on a company-owned line (once on the California Southern Railway) from San Bernardino to San Diego.
More on early Olinda oil fields next time!
In June 1898, the Los Angeles Times did a brief profile on the Olinda Ranch, noting that the 4500-acre parcel was subdivided during the great Boom of the Eighties a decade before "with a townsite in the middle of the tract, named Carlton." It referenced founder W. H. Bailey and his transfer of the ranch to the Olinda Ranch Company. Yet, as the paper pointed out, "few sales were made, and most of the townsite has now been transformed into acreage," meaning larger lots of probably the 5, 10 and 40 acre ones promoted for the ranch outside the Carlton townsite.
Of note, however, was the fact that a new entity was entering the field at Olinda (fortunately, the name "Oil Center" proposed in April 1897 went nowhere!) As reported by the Times, this was the "Richfield Oil Company," which, the paper continued, "has secured extensive rights of development, pipe-line privileges, etc., from the Olinda Ranch Company, and proposed operating not only directly, but by subleasing lands for oil development . . ." Observing that "the Olinda Ranch lies south and west of the Santa Fe wells," which was not technically the case, as the "Santa Fe wells" were within the original Olinda Ranch property, the paper noted that W. L. Watts of the California Mining Bureau had visited the ranch to assess its oil-bearing potential. Because of Watts' favorable report, the Richfield Oil Company, later the Atlantic Richfield Company now known as ARCO, was formed to work the field.
Also of interest is the fact that Richfield was then composed of "San Francisco and local capitalists" and that oil men in the Orange County and surrounding areas would have the opportunity to sublease from Richfield. Readers of this blog's posts about the Rancho Santa Ana del Chino will recall that, during the 1890s, a San Francisco-based real estate firm, Easton, Eldridge and Company, were hired to market and sell sections of that ranch. When the incorporation papers for the Richfield Oil Company were filed, this was done by Easton, Eldridge and Company, thus providing another tangible link between Olinda and Chino.
On 3 July, the Times reported that the Mining Bureau's Watts as back in the area reviewing oil properties from Puente Hills to Olinda and further east and south along what is now known as the Chino Hills, but then considered part of the Puente chain, to the Santa Ana River. Watts, however, believed that there was no indication of oil bearing lands anywhere east of Olinda, which has proven to be the case. As a sidenote, some attention was paid in the article to Watts' investigations in a canyon near the Southern California Railway's Gypsum side track (this, of course, being Gypsum Canyon) and that a favorable indication of coal was located where existing efforts to mine the material had already been made. Coal Canyon, naturally, is where Watts was conducting his investigation. In 1900, Watts completed a report, including a series of maps, that were the first comprehensive effort to examine and interpret the oil lands of southern California generally, including the new Olinda segment of the Fullerton field.
As to Richfield Oil Company's efforts, an article in the same paper from two weeks later, noted that "work on the first of a series of wells to be put down on the Olinda ranch commenced this week." Commenting that oil experts were favorably impressed with the potential at Olinda, the Times reported that "if expectations are realized, plans made for an extensive pipe-line sustem will be put in effect at once." This system was projected to run "from the ranch to Richfield station on the Santa Fe [Southern California Railway]." This refers to the station at what became Atwood, along today's Richfield Avenue in Placentia, where the railroad track still runs parallel to Orangethorpe Avenue. From that point, the article continued, "from Richfield, over an easy route, the line will be run to this city [Los Angeles], coming in at the west-end depot of the Southern Pacific. From there it will be run to Los Alamitos, where, it is said, the sugar factory will be supplied with oil for fuel," a contract apparently being imminent. By sugar factory, this was a sugar beet facility like the one Richard Gird established at Chino, though, eventually, sugar beets as a source of sugar dissipated in favor of protected tariffs for production from Louisiana and Hawaii's sugar cane fields.
As to the wells owned by the Santa Fe Railroad, an August 1898 feature in the Times noted that 8000 barrels of crude were extracted and shipped from Olinda by the company in July and that expectations were for a larger proportion in August. Well #1 continued to be the best producer, at 125 barrels per day, but an unspecified number (probably a few) were also in production. Of course, Well #1 is still in operation today and is a feature of the Olinda Oil Museum within the Olinda Ranch housing subdivision on the old Santa Fe property. Another tangential tidbit: the article referred to two officials from the Santa Fe being at Olinda looking over the situation, one of these men being Chief Engineer for the company, Fred Perris. He, of course, is the namesake for the Riverside County city of Perris, a station stop on a company-owned line (once on the California Southern Railway) from San Bernardino to San Diego.
More on early Olinda oil fields next time!
03 August 2011
Olinda Oil Field History: Origins of Olinda, Part 4
From its creation during an immense southern California real estate boom in 1887-88, William Hervey Bailey's Olinda Ranch was intended as an agricultural subdivision, promoting "fertile farms" and "beautiful villa sites." Early ads, as noted in a previous entry here, promoted the raising of fruit, grain, alfalfa and other products with an "ample supply of water for irrigation and domestic use." In addition, promotional materials trumpeted the "now building" Anaheim, Olinda and Pomona Railroad, which, evidently, was going to go north and south through Brea Canyon between the established towns of the former and latter. Notably, there was mention of a $50,000 plant to develop "immense deposits of asphaltum" found on the northern portion of the tract.
The great boom went bust, however, by the end of the Eighties and the 1890s proved to be a long, dreary decade of drought and depression. As noted in other posts here about Richard Gird's struggles to develop his new town on the Rancho Santa Ana del Chino, the real estate marked remained moribund for that period. But, like Gird, Bailey made efforts to promote his subdivision despite prevailing conditions.
In late Summer 1891, for example, a small article appeared in the Los Angeles Times about Olinda Ranch, subtitled "Where Orange Land May be Had at a Reasonable Price." The piece noted that, while oranges could not be raised everywhere in the region, it could be done at Olinda for under $200 an acre in 5, 10 and 40 acre parcels. Described as "beautifully located on gentle, sloping ground, commanding a magnificent view of the surrounding country," the ranch was noted as being "on the Santa Fe line," meaning the railroad line of the Southern California Railway, a subsidiary of the massive Atchison, Topeka and Santa Fe Railway then engaged in a storied battle with the Southern Pacific Railroad for control of western America's burgeoning railroad system. Actually, Olinda Ranch wasn't exactly "on the line," though a spur line was constructed from Atwood (now a neighborhood in Placentia) northwestward to the ranch.
The article also claimed that the parcel was "just far enough from the ocean—about 13 miles—to escape fogs and yet insure [ensure] a temperate climate all year round." This also tinkered a bit with the truth. The distance to the Pacific from Olinda is more like 20 miles and while dense fogs may be very rare now, a certain blogger who lived in Placentia thirty years back can well remember heavy blankets of fog in the area. Still, the temperate climate part is basically the case. Another example of toying with accuracy was the statement that Olinda "adjoins the celebrated Chino beet sugar ranch," although, of course, a few miles of the Chino Hills and Carbon Canyon separate the two. While noting that there was an existing "orchard of bearing orange and other trees," the piece went on to say that the tract's land was "adapted to vegetables, grain and stock."
In fact, regarding the last item, there was an attempt to graze cattle on the ranch during this period, but it proved unsuccessful or, at least, not profitable, as the Olinda Ranch Company advertised in the Times in August 1892 for the sale of registered Gallaway cattle, bulls, cows and calves "at a bargain" through an Anaheim office.
The following year, the Company tried trumpeting some success with a field crop, as the Times noted in a June 1893 issue that "a field of red Texas oats on the Olinda ranch, near Fullerton, has yielded this season the large crop of five tons of hay to the acre, which sells readily at $12 per ton."
Two years later, in December 1895, the Times published an article about castor bean growing, citing The American Cultivator's discussion about the difficulties in raising the crop, used as a "purgative" or laxative, because of the need for very rich soil and "peculiar" and costly machinery to hull the bean from the pod. Although the Cultivator noted that some farmers in Kansas and Missouri were raising the bean for a St. Louis market, the further expense in pressing the oil from the bean was also viewed as an issue. Consequently, the journal opined that the bean was better raised in small home gardens for local use rather than on a larger farm-based scale. Undeterred, the Times offered the rebuttal that "in this region the harvesting of the bean does not entail any such trouble." It went on to say that, "Mr. Bailey, who owns the Olinda ranch in Orange county, informs The Times that he obtained 2 1/2 cents per pound in San Francisco for the hulled beans which he raised." The paper reported that Bailey, who offered that growing castor beans was basically like raising corn, simply had the pods spread upon the ground in the hot sun, which effectively hulled the beans without machinery. Moreover, the Times observed that "Mr. Bailey finds that his castor beans pay about $30 to $40 an acre" and concluded that "this is enough to warrant the farmers in Southern California to pay some attention to a crop which can be easily marketed."
This did not prove to be the case and the difficulties of promoting and selling the land, even as Bailey did so in his native Hawaii, advertising Olinda in the Hawaiian Gazette newspaper, for example, during 1896, led him, in Spring 1897, to transfer the main office of the Olinda Ranch Company from Los Angeles, where it had been for almost a decade, to San Francisco, across the Bay from his home in Oakland.
Still, by Spring 1898, the agricultural and ranching possibilities of Olinda were being touted, as the Times, in early April reported that, due to the efforts of San Francisco real estate firm Easton, Eldridge and Company, sales of two tracts totaling some 90 acres brought in $12,500. Notably, the connection to Chino comes to the fore here, as Richard Gird hired the same firm to market and sell his ranch during the same period. Moreover, the buyers of the two Olinda parcels were "cattle men from Arizona, one of whom is feeding cattle on the adjoining [!] Chino ranch, with pulp from the sugar factory." Gird, as blog readers might remember, bought the Chino ranch with money made at the Tombstone, Arizona mines he helped found and develop and these ranchers were associates of his from that territory.
Whatever may have transpired with this stock-raising activity, the 1898 piece hearkened back to something touched upon, but not heavily emphasized, in earlier promotional efforts about Olinda. Namely, the piece observed, "in the hill section of the ranch are oil deposits, which are reserved. Several wells have been sunk here by the Southern California Railway Company" and it concluded by reporting that "another sale of several thousand acres of this ranch is pending."
Indeed, Olinda was on the verge of a transformation from a stagnated subdivision intended for farming and cattle ranching to a new enterprise that would make it far more famed than William Hervey Bailey or anyone else, for that matter, could have foreseen a decade before.
The great boom went bust, however, by the end of the Eighties and the 1890s proved to be a long, dreary decade of drought and depression. As noted in other posts here about Richard Gird's struggles to develop his new town on the Rancho Santa Ana del Chino, the real estate marked remained moribund for that period. But, like Gird, Bailey made efforts to promote his subdivision despite prevailing conditions.
In late Summer 1891, for example, a small article appeared in the Los Angeles Times about Olinda Ranch, subtitled "Where Orange Land May be Had at a Reasonable Price." The piece noted that, while oranges could not be raised everywhere in the region, it could be done at Olinda for under $200 an acre in 5, 10 and 40 acre parcels. Described as "beautifully located on gentle, sloping ground, commanding a magnificent view of the surrounding country," the ranch was noted as being "on the Santa Fe line," meaning the railroad line of the Southern California Railway, a subsidiary of the massive Atchison, Topeka and Santa Fe Railway then engaged in a storied battle with the Southern Pacific Railroad for control of western America's burgeoning railroad system. Actually, Olinda Ranch wasn't exactly "on the line," though a spur line was constructed from Atwood (now a neighborhood in Placentia) northwestward to the ranch.
The article also claimed that the parcel was "just far enough from the ocean—about 13 miles—to escape fogs and yet insure [ensure] a temperate climate all year round." This also tinkered a bit with the truth. The distance to the Pacific from Olinda is more like 20 miles and while dense fogs may be very rare now, a certain blogger who lived in Placentia thirty years back can well remember heavy blankets of fog in the area. Still, the temperate climate part is basically the case. Another example of toying with accuracy was the statement that Olinda "adjoins the celebrated Chino beet sugar ranch," although, of course, a few miles of the Chino Hills and Carbon Canyon separate the two. While noting that there was an existing "orchard of bearing orange and other trees," the piece went on to say that the tract's land was "adapted to vegetables, grain and stock."
In fact, regarding the last item, there was an attempt to graze cattle on the ranch during this period, but it proved unsuccessful or, at least, not profitable, as the Olinda Ranch Company advertised in the Times in August 1892 for the sale of registered Gallaway cattle, bulls, cows and calves "at a bargain" through an Anaheim office.
 |
| This detail from a 1924 California State Mining Bureau map shows the Olinda area, including the abandoned Carlton townsite, the Santa Fe Railroad spur line from Placentia and parcels still held by the successor to the Olinda Ranch Company, the Olinda Land Company, headed by William H. Bailey, Jr., son of the founder of the ranch. Courtesy of the Workman and Temple Family Homestead Museum, City of Industry. |
The following year, the Company tried trumpeting some success with a field crop, as the Times noted in a June 1893 issue that "a field of red Texas oats on the Olinda ranch, near Fullerton, has yielded this season the large crop of five tons of hay to the acre, which sells readily at $12 per ton."
Two years later, in December 1895, the Times published an article about castor bean growing, citing The American Cultivator's discussion about the difficulties in raising the crop, used as a "purgative" or laxative, because of the need for very rich soil and "peculiar" and costly machinery to hull the bean from the pod. Although the Cultivator noted that some farmers in Kansas and Missouri were raising the bean for a St. Louis market, the further expense in pressing the oil from the bean was also viewed as an issue. Consequently, the journal opined that the bean was better raised in small home gardens for local use rather than on a larger farm-based scale. Undeterred, the Times offered the rebuttal that "in this region the harvesting of the bean does not entail any such trouble." It went on to say that, "Mr. Bailey, who owns the Olinda ranch in Orange county, informs The Times that he obtained 2 1/2 cents per pound in San Francisco for the hulled beans which he raised." The paper reported that Bailey, who offered that growing castor beans was basically like raising corn, simply had the pods spread upon the ground in the hot sun, which effectively hulled the beans without machinery. Moreover, the Times observed that "Mr. Bailey finds that his castor beans pay about $30 to $40 an acre" and concluded that "this is enough to warrant the farmers in Southern California to pay some attention to a crop which can be easily marketed."
This did not prove to be the case and the difficulties of promoting and selling the land, even as Bailey did so in his native Hawaii, advertising Olinda in the Hawaiian Gazette newspaper, for example, during 1896, led him, in Spring 1897, to transfer the main office of the Olinda Ranch Company from Los Angeles, where it had been for almost a decade, to San Francisco, across the Bay from his home in Oakland.
Still, by Spring 1898, the agricultural and ranching possibilities of Olinda were being touted, as the Times, in early April reported that, due to the efforts of San Francisco real estate firm Easton, Eldridge and Company, sales of two tracts totaling some 90 acres brought in $12,500. Notably, the connection to Chino comes to the fore here, as Richard Gird hired the same firm to market and sell his ranch during the same period. Moreover, the buyers of the two Olinda parcels were "cattle men from Arizona, one of whom is feeding cattle on the adjoining [!] Chino ranch, with pulp from the sugar factory." Gird, as blog readers might remember, bought the Chino ranch with money made at the Tombstone, Arizona mines he helped found and develop and these ranchers were associates of his from that territory.
Whatever may have transpired with this stock-raising activity, the 1898 piece hearkened back to something touched upon, but not heavily emphasized, in earlier promotional efforts about Olinda. Namely, the piece observed, "in the hill section of the ranch are oil deposits, which are reserved. Several wells have been sunk here by the Southern California Railway Company" and it concluded by reporting that "another sale of several thousand acres of this ranch is pending."
Indeed, Olinda was on the verge of a transformation from a stagnated subdivision intended for farming and cattle ranching to a new enterprise that would make it far more famed than William Hervey Bailey or anyone else, for that matter, could have foreseen a decade before.
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