It might be added here, that the arithmetic and the facts did not agree, as the experience of oil men since will assert; but the matter looked plausible enough then. Nor was it strange that men's pulses quickened, and their hearts beat more rapidly than was their wont, at the apparent development of this new order of things.

The work now commenced in earnest. A tide of speculators and operators began to set in toward the oil regions, which would have overpowered that of California or Australia in their palmiest days. Nor did the excitement stop at the valley of Oil creek. It extended down the Allegheny to Franklin, and up to Tideoute. It was soon felt up French creek, and the Two Mile run, and eventually down the Allegheny for several miles below Franklin. Wells were sunk in all these localities, many of them yielding from two to forty barrels per day. Still the excitement was limited in its extent. It was long before it could make its influence felt in the Eastern cities. Capitalists there were slow to believe the marvellous stories that were told of the Venango oil regions, and kept aloof from the excitement. But it gradually worked its way eastward until Philadelphia, New York, and Boston, with the regions represented by them, were enlisted in the work.

It need hardly be said here that on the successful issue of the attempt to find oil in the rock, the partners, Eveleth & Bissell, at once set out for the Oil creek region. For them the vision was realized, and fortune expanded in a long, brilliant vista before them. These gentlemen continued to identify themselves with the petroleum business together, until the death of Mr. Eveleth in 1863, since which time Mr. Bissell has continued his connection with it, either alone or in com

PRICES OF LAND-LEASES.

73

pany with other parties. It is a pleasant task, too, to chronicle the success of these gentlemen, not only in developing the business, but in reaping substantial fruits from their connection with it.

The report of Professor Silliman referred to, is full and clear, yet, as he had nothing but the thick surface oil before him for examination, the result was somewhat different from what it would have been, had he been in possession of the light oil now found amid the rocks. Still he recommended it as a most promising illuminator as well as lubricator.

CHAPTER VII.

MODE OF PROCEDURE.

The

THE age of Petroleum had fairly dawned. fortune of the valley of Oil creek was now settled, and the price of lands throughout its whole extent, from the new well to the Allegheny, immediately rose to a very high figure. Sometimes entire farms were sold, but generally they were leased in very small lots. The terms of lease were at first easy, the operators giving one-fourth or one-fifth of the oil as a royalty to the owner of the soil. Gradually the terms became more exacting, until not unfrequently one-half and even fiveeighths of the oil was demanded, with the addition of a considerable sum of money as a bonus. Sometimes the proprietor of the soil required the proposed operator

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MONOPOLY OF LEASES.

to furnish him his share in barrels; that is, not only turning him over a third or a half of the oil, but furnishing him the barrels to contain it. With this arrangement, it afterwards come about that as the price of oil fell and the price of barrels advanced, the entire proceeds of some wells would hardly purchase barrels to contain the royalty share pertaining to the owner of the land. The consequence was, that all such wells were either closed, or the leases modified so as to be adapted to the new order of things.

These leases were usually drawn for an indefinite time, but required the lessee to commence operations by a certain time, and to prosecute the same with a reasonable amount of diligence, either to success or abandonment; and generally there was a clause to the effect that if petroleum was not found in paying quantities within one year from date of covenant, then the lease was forfeited, and the full control of the land reverted to the owner.

This matter of leasing land for oil purposes, at one time, amounted to a monopoly in some sections of the oil valley. The landholders in many places were men in very moderate circumstances. By great frugality, they had been able to live comfortably, but had no extra means with which to embark in speculations. Sometimes they had neither taste nor energy for this business, or lacked faith in the general result, but were willing that others should embark in the business by sharing the profits with them. There was no risk to the landholders, and the profit might be considerable. In this state of affairs shrewd and enterprising individuals made a business, for a time, of leasing all the lands in certain localities, with no intention of operating

LARGE COMPANIES-SMALL CAPITAL.

75

themselves, but with the design of sub-leasing to real operators. Sometimes these lands were leased in bulk for one-eighth or even a tenth as the share of the proprietor of the land, without any bonus; and afterwards sub-leased in small quantities, receiving one-third or one-half the product with a handsome bonus in addition.

In the earlier stages of the oil business, operations were usually carried on by large companies. By many it was considered much as an experiment, and many were unwilling to invest, save in small amounts. Others, who had but little to invest, thought they saw in these companies a mode of securing large profits in return for their small investments. The manner of forming and carrying on these companies was simple and primitive. It was, perhaps, really a partnership for the transaction of business, but was hardly so considered by many at the time. A few brief articles were drawn up, officers appointed, and a lease secured. Sometimes a member or two of the company were appointed to carry on the work. Sometimes it was given out by contract. Assessments were laid upon the members just as funds were required to carry on the work, and generally with the understanding that when these assessments were not paid within a reasonable time, the standing of the member so neglecting or refusing should be forfeited, together with any previous assessments he might have paid.

The first company organized at Franklin consisted of fifty members, the second of forty, the third of fifty-one; and the general assessments were ten dollars upon each member at a time. In those early days a well could be sunk as deep as was supposed necessary to settle the question of success or failure, for about one thousand dollars, the implements for boring and pumping costing

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INDIVIDUAL LIABILITY.

one thousand dollars more; so that the risk was not very great, even if the prospect of a large fortune was not particularly brilliant.

These companies, at the first stages of proceedings, were not chartered, nor had they any authority of law for holding or transferring real estate, any farther than as simple partnerships for the transaction of business. Each individual member of a company was, of course, responsible for the debts of the whole concern, should the creditor demand it at his hands. And as the hunter always aims at the finest deer in the herd, if he has but a single shot, creditors usually made use of the same discrimination in serving their processes. As many of these companies, after a single partial experiment, disbanded with debts of various kinds, the matter often became exceedingly embarrassing to certain members of the disbanded association who lived near the site. Many an individual who had never in his life been visited by an officer, had that privilege accorded him, together with that of paying the debts of the defunct association.

Such companies are now usually organized under the laws of Pennsylvania (Purdon's Digest), receiving a charter, conferring upon them certain rights and privileges, and restricting them to certain courses of procedure.

These large companies, in one respect, did a good work, and in others were damaging to the general interests of the business. As to the first, they assisted in developing territory that was doubtful, and getting up an interest in neighborhoods that had not been even partially explored, thus attracting the attention of capitalists from other places, who had the means and the energy to explore fully and satisfactorily. Their opera