TJHLK MORNING OKEGOKTAJf, SATURDAY, JATJART 13. 1900.
THIS IS YOUR OPPORTUNITY
PORTLAND HAS STRUCK OIL
YOU, TOO, WILL "STRIKE OIL" IF YOU ACT AT ONCE!
Price and quality being equal, will the people of
the Pacific Northwest buy the product of a home
refinery?
Yes.
Is coal oil made from California crude oil as good
as coal oil of Eastern manufacture?
Yes, it is better. It has been proven in fair com
petitive tests that coal oil from the California crude
gives 25 per cent longer light, with less smoke and
odor, than the best Eastern coal oiL We are ready
to repeat these tests at any time.
Portland Refining' and Oil Company
PORTLAND, OREGON
" What is the daily output, in .coal oil, of an oil re
finery of capacity to handle 500 barrels of crude
oil per day?
Approximately, 200 barrels.
What is the average daily consumption of coal oil
in the Pacific Northwest?
Approximately, 4464 barrels.
What proportion of the entire coal oil consump
tion in the Pacific Northwest would be supplied by
the Portland Refining & Oil Company, with a 500
barrel per day plant, as at present projected?
Four and one-half per cent.
Who supplies the remaining 95V2 per cent?
The Standard Oil Company "The System."
INCEPTION As a result of investigations made by the secretary of the Manufacturers' Association into the possibilities
of an oil refinery in Portland, an enterprise of this nature is projected, under the name of "Portland Refining & Oil
Company. " The movement having received the indorsement of the board of directors of the association, necessary steps
for the organization of a corporation to carry on the proposed business are now in progress, under the direction of its
secretary, Mr. Colin H. Mclsaac, and subscription lists are read' at the office of the association for the signatures of
all who may wish to subscribe for stock in the Portland Refining & Oil Company.
OBJECT The object of the Portland Refining & Oil Company is to install-and operate an oil refinery in or pear Portland,
on a site to be selected, affording both water and rail transportation facilities direct, the projected refinery to be of
capacity to handle 500 barrels of crude oil per day.
CRUDE OIL Without doubt the operation of an oil refinery in Portland will stimulate the dcvclqpment of the oil fields of
the Pacific Northwest, but pending the time when crude oil can be obtained at our doors, wc must seek it elsewhere, and
a satisfactory arrangement has been perfected for the necessary crude oil from the oil wells of the Santa Maria district
of California.
TRANSPORTATION The owners of the Santa Maria oil wells operate a pipe line to tidewater, from which point tank
steamers will convey the crude oil to the refinery, located at tidewater in Portland.
The products of the refinery will be distributed by the companyrs tank steamer to various distributing points at
tidewater in the Northwest, such at Seattle, Tacoma, and points in British Columbia and Alaska, as well as by rail in
the company's tank cars to Spokane, Boise, Pendleton, Albany, Medford and other points where it may be expedient
to establish tank stations.
C OMPETI'JL'ION With the above facilities for transporting the crude oil to the refinery and the finished product, to the con
sumer, the Portland Refining & Oil Company will be in position to successfully meet all possible competition.
MARKET While there are now about fifteen independent oil refineries in California, there are no refineries at all north o
San Francisco Bay, and the entire Pacific Northwest, including British Columbia and Alaska, is the best oil market to
day on the continent, it being reliably estimated that the product of a 1000-barrci per day refinery can be readily
placed in this territory.
The Orient also offers an inviting field for the extension of our oil market, and it is safe to predict that within ten
' years the oil industry in the Pacific Northwest will have reached a capacity of 10,000 barrels per day. Even such an
output would represent but a small percentage of our natural proportion of and participation in the petroleum industry
of the United States, for, according to figures published by the Commercial Geographical Society of Paris, the United
States is the largest crude oil producing country in the world, its output for 1004 having been 15,000,000 tons.
In passing it is pertinent to refer to a popular but wholly mistaken idea entertained by many that the growing use
of gas and electricity is routing coal oil and gasoline. . This is not the case; on the contrary, the consumption of coal oil,
. distillates and gasoline is steadily increasing, and the products of the oil refinery are admittedly indispensable com
modities. Particularly is this true of gasoline, the increasing use of automobiles and gas engines creating a rapidly
growing market for this product.
COST The plant of the Portland Refining & Oil Company, located on a ten-acre site, with capacity, at the outset, for 500
barrels of crude oil per day, will represent an investment of approximately $250,000. This figure includes cost of the
refinery site, tank cars, tank wagons, tank stations and warehouses, and other necessary equipment complete for oper
ation of refinery and marketing of its product, and also $50,000 to be set aside as the working capital of the concern.
An? IN ORON.fC-
YIELD It is reliably and conservatively estimated that
in value $2000 per day, while its net average daily profit
will approximate $1000.
MAnP IN OREGON.
inesc ngurcs arc laKcn irom inc lonowing csumaie ot
yield, percentages and prices, on the basis of 550 barrels
of crude oil in 26 hours, and the attention of all interested
ML&TiUtiwSo ncrsons is narlicularlv directed to the facts here set
' forth, viz:
ESTIMATE Yield from 550 barrels crude oil (24 and 25 gravity) in 26 hours1 run:
33 barrels or 13S6 gallons, 6 per cent gasoline (S6, 72, 63, 63 deg.), average
per gallon $ 0.15 $ 207.90
110 barrels or 4620 gallons, 20 per cent gasoline (52 deg.) OS 369.60
82.5 barrels or 3465 gallons, 15 per cent coal oil (120 fire test water white).. .14 485.10
S2.5 barrels or 3465 gallons, 15 per cent special water white or canners' oil. . .08 277.20
55 barrels or 2310 gallons, 10 per cent stove oil or 41 deg. distillate 04 92.40
SS barrels 16 per cent asphalt, 40,480 lbs. per ton 12.00 242.8S
77 barrels or 3234 gallons, 14 per cent lubricating distillate (which can be
worked up into engine and cylinder oils ranging in price from 12c to 50c
per gal.), per gal JO 323.40
22 barrels or 924 gallons, 4 per cent loss in vapor and foreign matters con
tained in cmde oil ..
550 barrels, 100 per cent gross daily yield $1,998.48
COST OF PRODUCTION Crude oil delivered at refinery, 550 bbls. at $1... $550.00
Process of refining 550 barrels at lc per gallon 231.00
Expense of maintaining business, estimated at 10 per cent of gross yield. 199.S4 9S0.S4
NET AVERAGE DAILY PROFIT. $1,017.64
If "The System" reduces the price of coal oil in
the Pacific Northwest with a view to eliminating all
profit- in this territory, would such methods cripple
and destroy the business of the Portland Refining
& Oil Company?
No. The territory of the Portland Refining &
Oil Company is not necessarily confined to the Pa
cific Northwest, though such territory would natur
ally be its first market. We can, if we wish, ship
our coal oil to California ports, while British Co
clumbia, Alaska and Oriental ports offer an unfail
ing market for the products of an oil refinery
located at tidewater in the Pacific Northwest
Will "The System" reduce the price of coal oil
in a very large proportion of its entire territory
in order to cripple the business of a 500-barrel per
day refinery in the Pacific Northwest?
No.
Why not?
Because "The System" is WISE. If you don't
believe this, just watch the daily papers. And
"The System" will grow more WISE as the ad
ministration of President Roosevelt proceeds.
PROFIT AH in any degree familiar with the oil business
will at once apprehend that the. above figures are safe and
reliable, while others are referred to the daily papers for
market quotations on oils and gasoline, where they may
quickly satisfy themselves that the selling prices used in
the above estimate are conservative. At this date coal oil
is quoted at 15 cents, the above estimate being at 14 cents
per gallon; gasoline is quoted at 17 to 26 cents p'er gallon,
while the highest figure used, in the estimate is 15 cents
per gallon.
The fact is that after a thorough investigation of the oil market, the cost of crude oil, re
fining, selling, etc., the estimated percentage of profit of the refinery is found to be so large
that we have in the above statement used maximum figures for expense and minimum figures
for income, with the result, in round figures, of an annual net profit of $365,000 on a total
investment of $260,000.
Surprising as these figures are at first glance, a mere cursory investigation of the subject
will satisfy any one that they can be verified; and, in any event, the lucrative nature of the oil
business is so very generally known that a long dissertation on the subject is quite unnecessary.
In brief, the opportunity which the Portland Refining & Oil Company gives the investor is
the best business proposition that has yet offered in the Pacific Northwest, a land of great
opportunity; and while all good things in the past have been handled by the few, the Portland
Refining & Oil Company offers the many an unprecedented chance to invest conservatively in
an enterprise wherein success is assured.
Will the Portland Refining & Oil Company be in
position to meet all legitimate competition?
Yes, and any attempted illegitimate competition
as well. As long as the Columbia River is an open
waterway, and as long as the Pacific Ocean affords
an open commercial highway the business of the
Portland Refining & Oil Company can be carried '
on independent of the railroads, if need be.
How?
Tank steamers will take the California crude oil
from pipe lines at tidewater in California and de
liver same to the refinery at tidewater in Portland.
Tank steamers will carry the coal oil from the re
finery to Seattle, Tacoma and British Columbia
ports. 'Coal oil in packages can also be carried by
water to these ports.
EXPERT REFINER Wc have secured the services of a refiner who has' during many years of experience thoroughly mastered the
knowledge of extracting oils and other by-products from petroleum, or cmde oil, since we well understand that the possession
of this expert knowledge is a most essential clement of success in the business of refining.
INCORPORATION The Portland Refining & Oil Company will be incorporated with a capital stock of $500,000, divided into shares
of the par value of $1.00 each. Subscription lists arc now ready for signatures.
Sufficient stock will be sold at" once to establish the business of the Portland Refining & Oil Company as above outlined,
the remainder to be kept in the treasury for use when it is considered expedient to increase the capacity of the plant.
STOCKHOLDERS All stockholders of the Portland Refining & Oil Company will be given a voice in the election of its officers
and directors.
Any one wishing to purchase stock in the Portland Refining & Oil Company, or interested in learning more -in detail concern
ing .the plans of that company, is invited to call upon or address the undersigned. ' ' " "
COLIN H. McISAAC
Secretary Manufacturers' Association, 308 Chamber of Commerce
PORTLAND. OREGON
filijjH I BY ENCOURAGING THE ESTABLISHMENT OP ' 1 : "T-
jfipgj I LOCAL INDUSTRIAL ENTERPRISES AND THE
IHH I CONSUMPTION OF ARTICLES OF HOME PRODUC- ' .
Ij xiujN xuu aooiojl jjm xxixi rim riiU i JMLcini or
HOME LABOR,
KEEPING THE MONEY AT HOME MEANS' PROS
PERITY FOR THE COMMUNITY IN WHICH YOU
LIVE, PROSPERITY FOR YOUR NEIGHBOR, AND
PROSPERITY FOR YOURSELF.
SUBSCRIPTION BLANK
1906.
MR. COLTN H. McISAAC, Secretary - r
Manufacturers' Association of the Northwest, 308 Chamber of Commerce, Portland, Oregon.
Dear Sir: I do hereby subscribe for Shares of the Capital "Stock of the PORTLAND REFINING .
& OIL COMPANY, a corporation of Portland, Oregon, and hereby agree with the shareholders of said corporation, and with
said corporation, that I will take said Shares so subscribed for, and pay said corporation therefor at such time or times
as such payment shall be required by its Secretary.
The capital stock of said corporation is $500,000, and is divided into 500,000 Shares of One Dollar each.
(Signature) ;
Can the entire output of the Portland Refining &
Oil Company be disposed of without resorting to
rail transportation?
Yes. The output of our refinery as at present con
templated can readily be disposed of in Portland
and Seattle; as much more could daily be sold in
Alaska.
Is there any reason to believe that the Standard
Oil Company will interfere with the business of the
Portland Refining & Oil Company by reducing
prices to a basis eliminating all profit on coal oil in
this territory?
No. "The System" will not eliminate its own
profit on 25y2 per cent of the coal oil consumption
in the Pacific Northwest to rid itself of a 4y2 per
cent competitor.
Send in your subscription
at once, or if you wish any
additional information, write
or call and we will be pleased
to answer your questions
(P. O. Address) f. :
KfiH i , - .