The regional oil boom helped define North Texas culture. Oil provided additional opportunities beyond agriculture for employment and economic growth. Towns swelled as spectators and investors rushed to collect this black gold. Local communities such as Electra, Burkburnett, and Wichita Falls became nationally recognized as oil producers. Wartime demand for petroleum created North Texas millionaires.
FUN FACT: Both authors grew up in North Texas. Laura Galbraith grew up in Burkburnett, while Joseph Hadwal grew up in Wichita Falls.
Located north of Wichita Falls, the community of Burkburnett was the epicenter of the North Texas oil boom. Prospectors “from the bleak shores of Maine to the sunny beaches of Southern California” ventured to Burkburnett to claim their share of the black gold.[1] This gold rush served as the background to the Jack Conway 1940 adventure film, Boom Town. Starring Clark Gable and Spencer Tracy, this feature film depicted two oil prospectors in search for success during the Burkburnett oil boom. Romantic overtones are projected upon the rapid and chaotic expansion of North Texas oil. Such romanticism can be evidenced in the film’s prologue which characterizes oil as “the life blood of today’s world.”[2] These oilmen were “made of the bone and blood of pioneers…that is America.”[3] In reality, the oilmen preferably pursued riches rather than the sublimity of existence. However, these romantic characterizations gave tribute to the pioneering ambition of the oil operators. Local accounts suggest that the town was “overwhelmed by the crowds of men who…swarmed in to work or to get rich, or both.”[4] Wichita County would eventually produce over “827,590,411 barrels of oil” which defined the economic development of North Texas during the twentieth century.[5] This oil boom helped to characterize the home front experience during the latter part of the Great War.
Oil companies had been applying “for space” in Wichita County since 1912.[6] However, none had tapped the Townsite Pool which gave rise to the Burkburnett oil boom. Local legends describe the oil discovery as mystical, deriving from a dream that a North Texas cotton farmer’s wife, Mrs. Fowler, had experienced. Mrs. Fowler was stated to have dreamt that “there was oil beneath the farm.”[7] In an interview by the Wichita Daily Times, Mr. Fowler states that “dry holes…had been drilled close around,” however such discouragement did not dissuade Ms. Fowler who insisted “that there was oil under the town” of Burkburnett.[8] On July 26, 1918, “Mrs. Fowler’s forty-fourth birthday,” the infamous Fowler well struck liquid gold showering an estimated “4,000 [to] 6,000 barrels.”[9] Legend states that Mrs. Fowler picked “the exact spot for the drilling” of the Fowler well.[10] Godsend or accidental luck, Mrs. Fowler’s discovery led to the creation of over “289 incorporate companies…in Burkburnett” by January of 1919.[11] The Texas Historical Commission stated that “the area soon had close to 3,000 wells and several refineries.”[12] The Boom Town caused “money from all over the country [to be] poured into Wichita Falls” and North Texas which was “made into still more money”.[13]
Enormous wealth was generated by the roaring oil production. Local accounts describe “sidewalks [as] jammed” with people and that “[m]en [had to] push and elbow their way along.”[14] Like the scenes of Boom Town, the streets were coated with “a mire of slime that was almost knee deep.” [15] This sludge was mixture of horse manure, “black, slimy, glistening oil,” and the record rainfalls of 1919.[16] The year 1919 continues to be regarded as the wettest year in Texas with precipitation totaling 41.93 inches.[17] However, amongst the grit, millionaires were realizing their riches. By November of 1918, Wichita Falls would host “its eighth refinery.”[18] The Chickasha Refinery Company plant was expected to possess a “1,500 barrel capacity at the outset with facilities for increasing it to a 2,500 barrel plant.” [19] The company reportedly “capitalized at $300,000” with the authorized sale of $150,000 worth of stock.[20] Adjusted for modern inflation by the U.S. Department of Labor inflation calculator, this capitalization would be worth an estimated $4,663,350.99.[21] Such investment evidences perceived economic opportunities and forecasted gains. The abundance of refineries suggested that investors expected oil production to expand. Financiers were not concerned with overcrowding the market. New wells were continually being discovered. Possibilities for oil production existed “in Sunshine Hill and the Iowa Park shallow field.”[22] These wells were estimated to produce 200 barrels and additional wells elsewhere were “just waiting for the cement to set” to begin drilling.[23] By November 1918, the “average daily production for the Wichita Falls district oil fields…reached 44,200 barrels” while Burkburnett led “with a production of 50,300.”[24] Lands across North Texas such the “Red River Valley Lands” were being tested for possible oil production.[25] Farmers and local townsman were made into millionaires overnight. The possibility to obtain riches were boundless. Mr. Fowler stated that he was “glad to have been instrumental in bringing good fortune to so many.”[26]
During the Great War, the United States “produced 266 million barrels of oil” which accounted for “some 67% of world supply.”[27] An advertisement in Wichita Falls by Central Producers Oil Company claimed the “[t]he Mid-Continent… [was]…supplying more than one-third of the oil production in the United States.”[28] The advertisement called for financiers to invest money into the startup. Caution should be used when evaluating advertisements due to overzealous claims. However, the ‘Mid-Continent’ was producing a substantial portion of US oil. According to The Mining Congress Journal, “the Mid-Continent field, which extends from Kansas though Oklahoma into northern Texas and Louisiana” produced “more than half a million barrels of oil daily” representing “more than half of the total production of the United States.”[29] In 1917 and 1918, Central and North Texas were listed among the top oil production fields in the nation.[30] Wichita County produced 11.5 million barrels of oil in 1918 and “seven compression plants that produced nearly 3.8 million gallons of gasoline.”[31] The gasoline industrial output alone was estimated to be worth more than $574,000. Oil certainly benefited the ambitions of North Texas businessmen. However, the oil industry also contributed to the war effort and Call Field Aviation Base. The Central Producers Oil Company reprinted a statement made by Federal Fuel Administration Oil Department Chief, Mark L. Regua, that oil production was “helping to win the war.”[32] Identical sentiments were expressed by the Call Field Stabilizer which prized North Texas oil as representation of “Democracy, freedom and crushing of German ideas”[33] Oil was highly valued by the aviation field for both its utility and essentialness to the airplanes. The Call Field Stabilizer published an article calling for stoppage of “every possible source of waste or inefficiency” regarding gasoline.[34] In order for “efficiency being produced abroad” on the warfront, the “domestic use of gasoline” should be subjected to “every effort…to eliminate wastage.”[35] Placed on the same page as the article regarding gasoline conservation is another article titled “What Germany Does About Oil.”[36] Germany is praised for their “[g]reat care…of petroleum products.”[37] This article’s placement serves to motivate readers through fear of German ingenuity to conserve fuel, despite the abundance of oil being produced in North Texas.
After Armistice Day and ensuing celebrations, the U.S. War Department began discharging soldiers. The Wichita Falls Chamber of Commerce issued invitations “to the soldiers to locate at Wichita Falls when they return to civilian life.”[38] Chamber President R. E. Huff stated that “plenty of opportunities [are] open to the young men of Call Field in Wichita Falls.[39] According to the Wichita Daily Times, “very few of the officers or men….have not made some investment” and that these soldiers were “thoroughly interested in…Wichita Falls.”[40] Although such uniform enthusiasm may be disputable, millions of dollars were being pumped from the wells that surrounded the North Texas communities. Local entrepreneur Frank Kell was named president of one of the earliest “million dollar” companies of Wichita Falls.[41] The Allies Oil Co. was merged with the Sanders-Taylor Oil Association which resulted in the capital stock being raised to $1,000,000, with assets totaling around $715,000.[42] Adjusted for modern inflation using the Department of Labor Inflation Calculator, the Sanders-Taylor Oil Association’s capital stock would be worth an estimated $15,544,503.31.[43] Many oil companies in North Texas sold stock to raise the financial strength to purchase assets needed to start and continue oil operations. The influx of oil money enabled Wichita Falls to create a stock exchange. The exchange opened on January 21, 1919 and was located “at the corner of Seventh and Ohio.”[44] Below are stock certificates issued by various oil companies in North Texas.
Also featured is a cash ledger from the Perishing Oil and Gas Company. According to Dr. Ralph Fritzsch, Midwestern State University Professor of Accounting and Departmental Chair, Pershing oil is engaging in initial capitalization. The actions recorded on the ledger indicate the first several months of operation. No revenues appear to have been recorded and no salaries have been paid. However, the company has accumulated stock and notes payable. Dr. Fritzsch stated that many companies during the oil boom initially invested within other corporations to spread risk.[45] Oilmen either struck liquid gold or were without any financial gain. This plight is illustrated in Boom Town by the apprehension Clark Gable’s character’s felt when initially investing with ‘Square John’ Sand’s oil operation.[46] Companies had to reinvest in other’s operations to avoid bankruptcy. The stock certificates of Perishing Oil Co. also evidences this stock investment strategy. Liberty Petroleum Company bought many Perishing Oil Company stocks. Although Liberty Petroleum Company’s intent cannot be completely derived from the stock certificates, the stock purchases suggest that oil companies reinvested in each other
Many believe that the black gold found within Wichita County was the “richest oil sand ever found in Texas.”[47] Great wealth was made by those entrepreneurs lucky enough to strike oil. Yet, the oil boom is estimated to have only “lasted just three or four years.”[48] However, the effects are visible. The iconic skyscrapers which tower over the Wichita Falls city center tribute the oil empires of Wichita County. Although many of these buildings are now up for lease, they symbolize the pioneering ambition of the many oilmen who ventured in search of wealth.
Citations
[1] “S.L. Fowler Tells of the Organizations of Company And Gives Wife the Credit,” Wichita Daily Times, 19 January 1919.
[2] Boom Town. Performed by Clark Gable, Spencer Tracy. Metro-Goldwyn-Mayer, 1940. DVD.
[3] Ibid.,
[4] Dorothy Crowder, Tales Of The Red River Valley (Wichita Falls: Humphrey Printing Co, 1988), 136.
[5] Brian Hart, “WICHITA COUNTY,” Handbook of Texas Online (http://www.tshaonline.org/handbook/online/articles/hcw08), accessed March 30, 2015. Uploaded on June 15, 2010. Published by the Texas State Historical Association.
[6] Wichita County Archives News Paper clipping, Wichita Daily Times, 20 March 20.
[7] Dorthy Crowder,Tales of the Red River Vally, 111.
[8] S.L. Fowler Tells of the Organization of Company And Gives Wife the Credit”, Wichita Daily Times, 19 January 1919.
[9] Fowler Discovery Well, Wichita County Archive, unpublished application to Texas Historical Commission for historical marker, Wichita Falls, Texas.
[10] Dorothy Crowder, Tales Of The Red River Valley, 113.
[11] Fowler Discovery Well, Wichita County Archive, unpublished application to Texas Historical Commission for historical marker, Wichita Falls, Texas.
[12] Texas Historical Commission, Fowler Discovery Well, (Burkburnett),Texas Historical Marker.
[13] “S.L. Fowler Tells of the Organization of Company And Gives Wife the Credit”, Wichita Daily Times, 19 January 1919.
[14] Dorothy Crowder, Tales Of The Red River Valley , 136.
[15] Dorothy Crowder, Tales Of The Red River Valley, 114.
[16] Dorothy Crowder, Tales Of The Red River Valley, 114.
[17] Texas Almanac, “Extreme Weather Records,” Texas State Historical Association,http://texasalmanac.com/topics/environment/extreme-weather-records(accessed 30 March 2015).
[18] “Eighth Refinery Will Be Erected At Wichita Falls,” Wichita Daily Times, “17 November 1918.
[19] Ibid.,
[20]Ibid.,
[21] United State Department Of Labor . “BLS Inflation Calculator,” Bureau Of Labor Statistics, http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=300000&year1=1918&year2=2015 (accessed 29 March 2015).
[22] “Shallow Field Now Attracting Much Attention,” Wichita Daily Times, 17 November 1918.
[23] Ibid.,
[24] “Oil Production Wichita District 44,300 Barrels”, Wichita Daily Times, 28 November 1918.
[25] Ibid.,
[26] Dorothy Crowder, Tales Of The Red River Valley, 113.
[27]Alexis Flynn, “Oil Revolution,” Wall Street Journal; 100 Years Legacies: The Lasting Impact of World War I, http://online.wsj.com/ww1/oil-revolution (accessed 4 March 2015).
[28] “Demand for Oil Growing Faster than Production; Output Must Be Increased to Meet Needs of the World,” Wichita Daily Times, 26 May 1918.
[29] J.O. Lewis, “Interest in Oil Industry Unprecedented – The Situation,” The Mining Congress Journal 5, [January 1919]: 316.
[30]“Petroleum Production in 1918 was 345,500,000 Barrels,” The Mining Congress Journal 5, [January 1919]: 56.
[31] Julia C. Smith, “Wichita County Regular Field,” Handbook of Texas Online, http://www.tshaonline.org/handbook/online/articles/dowmw (accessed 3 March 2015).
[32] Wichita Daily Times, 26 May 1918.
[33] U.S Aviation School at Call Field, The Call Field Stabilizer, Wichita Falls, Texas (15 September 1918): 8.
[34] Ibid., 20.
[35] Ibid., 20.
[36] Ibid., 20.
[37] Ibid.,, 20.
[38] “Opportunities Are Here”, Wichita Daily Times, 8 December 1918.
[39] U.S Aviation School at Call Field, The Call Field Stabilizer, Wichita Falls, Texas (15 December 1918): back cover.
[40] “Opportunities Are Here”, Wichita Daily Times, 8 December 1918
[41] “Million Dollar Oil Company Of Wichita People”, Wichita Daily Times, 11 December 1918.
[42] Ibid.,
[43] United State Department Of Labor . “BLS Inflation Calculator,” Bureau Of Labor Statistics, http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1000000&year1=1918&year2=2015 (accessed 29 March 2015).
[44] “Stock Exchange To Open Tonight At 7th and Ohio,” Wichita Daily Times, 21 January 1919.
[45] Dr. Ralph Fritzsch, interview by author, Wichita Falls, TX, 27 March 2015.
[46] Boom Town. Performed by Clark Gable, Spencer Tracy. Metro-Goldwyn-Mayer, 1940. DVD.
[47] Jeff Landrum, Reflections Of A Boomtown (Wichita Falls: Humphrey Printing Co. 1982), 198.
[48] Dorothy Crowder, Tales Of The Red River Valley, 121.