Raynors HCA 2017-09
This lot is closed for bidding. Bidding ended on 9/7/2017
A very rare war-date Union officer's letter, 3 2/3pp. 4to., written by Lt. Col. Luther Stephenson, Jr. [WIA Gettysburg, 2x Petersburg, Va. 6/18/64 & 6/22/64 and future brevet brigadier general], 32nd Mass. Vols., Titusville, Pa., Sept. 6, 1864, addressed to Col. and BBG Francis J. Parker. Disgusted with the progress of the war, and apparently hoping to go into the oil business with Col. Parker, Luther Stephenson traveled to the newly discovered oil rich region of Pennsylvania. Here he reports on the pros and cons of investing in the oil market. Notably, he visited the oil wells of the soon to be wealthy and influential James Willis Dalzell (1837-1898) who in the early 1860's went to Titusville, Pennsylvania in order to tap into the crude oil that literally flowed out of the ground. Dalzell sunk and then operated many highly successful oil wells and needed to only remain in the field until 1865. Relocating to Pittsburg he became a well-respected businessman and civic leader. A natural born leader and having a keen sense of management, Dalzell help founded many successful business including the Standard Underground Cable Co. Stephenson's letter, reads, in part: "I arrived here yesterday…the soil is very much like Virginia…the roads in horrible condition..it is very difficult to obtain accurate information even by visiting the wells. Everybody has 'an axe to grind'…there are as many parties ready to sell 'rights'…purchasers…comes in crowels to try their luck in this new lottery…a grew may failures are made yet. A person if he has the means and the perseverance generally makes his pile…wells are generally exhausted and fail…yet after one has failed…another within ten feet [of] it…get oil. No man can tell without sinking his well…the matter…is a matter of luck…you might expend $3000 in digging your well and not get enough oil to pay for working it. I visited…the Noble & Delamanta…and the Dalzell Farms or territories…Noble & D. Co. have a flowing well which they work themselves…commenced flowing about 16 months ago. It yielded 2500 bbls pr. day. It now yields 400 bbls. Men who are experienced…say that it will gradually ease to be a flowing well…and will [then] yield 100 bbls. per day. This Co. however have territory which has not been improved and which would probably guler out…Dalzell and McElkeney both have an interest in the same property. They lease the rights to sink wells and receive 1/6 of all the oil obtained…Dalzell also have another territory which they lease and work themselves which is yielding 100 bbls per day…it is the best of the three I have examined today. I have been able to find out much about the Union. There are crowds coming here today to make fortunes in this new enterprise and high prices are paid for good claims…the large companies have the advantage…stocks must pay for a time. The great mass of failures are sustained by private individuals who lease their rights of three companies. They agree to sink a well and to give this Co. a certain proportion of the oil obtained. If they fail they lose the amount expended. The Co. loss is not in expenditures [but] by…loss of] anticipated receipts from the wells. If one well in ten is successful if pays at the present price of oil. One question to be considered is whether the supply will not exceed the demand on account of the great amount of new territory that is being developed and from which oil is obtained. It costs a good deal to work these wells, labor and material, are so high now. I have made inquires about Story Farm and it is represented to be 'good territory'. I shall reach it tomorrow…I overheard the agent of the Dalzell say…that the stock would be higher whether he ascertain would be worth anything…they have reduced the digging of the well …as far as depths a[re] concerned, 420 to 460 is the proper depth in this section. If oil is not obtained in 460 feet it is useless to go deeper. This fact was ascertained [by seeing that ] many wells were abandoned…the principle topics among the people of New York was the draft. They had draft on the brain…the towns along the Erie R. R. were paying $1000 for men to serve one year and $200 & $400 in addition for two and three year men. Most of them are raising the funds on scrip…the town debts in some cases must be very large. I ventured to ask some enthusiastic Republicans how they would be able to furnish men for the next quarter…they said that 'this' draft would furnish all the men that would be necessary, Gen. Grant had said so. I ventured to express…that it would require 500,000 more men to conquer the South and…I saw myself pointed to afterwards as a traitor. What credulous people these Republicans are…Stephenson." Minor toning, else VG.
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