J.W. McKinley, writing to the Pittsburg Dispatch, gives the following account of the California oil field at Newhall:

On the edge of the town is located the refinery of the company, connected by pipe lines with the wells, a few miles distant. Leaving Newhall, we drove to Pico Cañon, the principal producing territory of the region. As we approached, we saw, away up on the peaks, the tall derricks in places which looked inaccessible; but no spot is out of reach of American enterprise and perseverance. In one of the wildest spots of the cañon, about thirty men were making the mountains echo to the strokes of their hammers upon the iron plates of a new 20,000 barrel tank. Along the cañon are scattered the houses of the employes of the company, most of whom have recently come from Pennsylvania. Near one of the houses was a graded and leveled croquet ground, with a little oil tank on a post, for lighting it at night. Farther up we came to a cluster of producing wells, with others at a little distance on the sides of the mountains, or even at the top, hundreds of feet above our heads.

The first well was put down about eight years ago, but more has been accomplished in the last two years than in all the time previous. One well which we visited has produced 130,000 barrels in the last three years, and is still yielding. There have been no very large wells, the best being 250 per day, and the average being about 90 barrels, but they keep up their production, with scarcely any diminution from year to year. Drilling has been found difficult, as a great portion of the rock is broken shale lying obliquely. The tools slip to one side very easily, and a number of "crooked holes" have resulted. One driller lost his tools altogether in a well, and finished it with new ones. The cost of putting down a well is from $5,000 to $7,000, depending upon depth, etc. Most of the wells are from 1,200 to 1,500 feet, but some have yielded at a much less depth. One well of 270 feet depth produced 40 barrels per day for about three years, has been deepened, and is now yielding even more. Another one of 800 feet is said to have produced 200,000 barrels in the last five or six years.

Drilling has been very successful in striking oil in paying quantities wherever there were indications of its presence.

The Pacific Oil Company now has 27 wells producing or drilling, and during the last two years has been rapidly widening the scope of its operations. It has now from 30 to 40 miles of pipe lines, and is preparing to lay 20 miles more, to connect its land with ocean shipping at Ventura. The producers of California have a great advantage in their proximity to the ocean, which gives them free commerce with the outside world. Crude oil is now sold at $3 per barrel in Los Angeles, and the oil companies are making immense profits. There is a very large amount of oil territory as yet undeveloped, and a rich reward awaits enterprise in these regions. In the Camulos District, which lies west of the San Fernando, are even stronger surface indications of oil than there were in the Pico Cañon. We first went up the Brea Cañon, in which are numerous outbursts and springs of oil. Ascending the mountain west of this cañon, we could plainly see the break in the mountains crossing from the San Fernando through this district to those beyond which have been developed. A couple of miles farther west, the Hooper Cañon stretches back over two miles into the mountain, and is full of oil. Great pools of oil fill its water courses, that are dry at present.

Hundreds of barrels of oil must be wasted away and evaporated during a year. A well put down only 90 feet by horse power, struck light oil in considerable quantity, and, had it not been for the death of one of the owners and the consequent suspension of operations, would doubtless have yielded in large quantities at the depth of a few hundred feet.

The mountainous territory between these two cañons will probably in a few years be the scene of great activity. In the Little Sespe District, a few miles west of Camulos, a 125 barrel well was struck at 1,500 feet recently. The Santa Paula region, a little farther west, is also yielding large profits to the parties developing it.