The Hathaway Company

1929 - 2004, Santa Fe Springs, California

Introduction

Elwood Hathaway's small wooden derrick with drilling apparatus.
Small homebuilt wooden derrick with hand-
cranked draw-works and rotary table, built
 by Elwood and/or Julian Hathaway, 1920-21.
 

Small homebuilt wooden derrick with electric
motor powered draw-works and rotary table, built
by one of the Hathaway boys, circa early 1920s.

The presence of the oil was first confirmed in the greater Santa Fe Springs area by a well drilled in 1919 on the Marius Meyer property in what was then known as Sunshine Acres. It was not a big well, however, but it did set the stage for more vigorous oil exploration in the coming years. The real oil boom began in 1921 with Bell #1, which blew in for 2500 barrels a day and caused caused quite a commotion. The oil boom brought drastic changes to Santa Fe Springs almost overnight. What had been a quiet, neighborly community with gracious homes and gardens, outstanding groves and farm crops became a forest of wooden derricks and the population swelled to about 2000.

Oil promoters, workers, gamblers and prostitutes thronged to the oilfield to cash in on the black bonanza. Promoters rushed to set up big tents and sell interests in wells that were either soon to be drilled, or that were currently in the process of being drilled. "Suckers," as they were derisively called by the locals, were brought in by bus, given a free meal and then a high-pressure sales pitch. By the end of 1924 some 81-million barrels of oil had been pumped out of the Santa Fe Springs oilfield. By 1929 Santa Fe Springs was the state of California's largest producer of oil.

It was probably mid to late 1921 when Oscar R. Howard,  a prominent promoter and oil operator, acquired a lease and began drilling the first (J.E. Hathaway No. 1) of eight oil wells in the walnut and orange orchards on the ranch property. Each of the three young Hathaway boys were now thrust right into the middle of the action. Both young Elwood and Julian were enthralled enough with the oil activities and ensuing excitement that they each built miniature wood derricks equipped with some sort of rudimentary hole drilling apparatus. However, Julian was to be inspired to go far beyond this relatively simple first attempt at modeling a standard California oil rig.

Julian I. (Doc) Hathaway, youngest son of Jesse and Lola Hathaway, would hurry to finish his daily irrigation and other ranch chores, so that he could run off to observe and help on the nearest oil drilling rigs, many of which were conveniently located close at hand in the orchards on the Hathaway Ranch property. By the mid 1920s Julian's fascination with the oil industry had grown to such intensity that he was compelled to begin construction of a small, but very detailed replica of an actual combination cable tool and rotary drilling rig. Dubbed Hathaway No. 2, the little steam powered drilling rig with its steel derrick was completed and operational in 1928 (see The Perfect Derrick story). The elaborate and realistic looking steel derrick stood approximately nine feet tall. The steam powered rig had realistic operating mud pumps and a powerful little "twin" drilling engine that powered the miniature draw-works and rotary table. The miniaturized drilling engine, which was affectionately named "The Hathaway Twin," was designed and handcrafted by Julian Hathaway using resources on the Hathaway Ranch. Wood patterns were constructed and iron castings poured and the precision machining was done in the ranch's flat-belt driven machine shop. His little rig could drill holes a hundred feet or more deep, and faithfully replicated the operation of the full-scale oil rigs operating nearby. As a result, in 1928 the General Petroleum Company, one of the oil companies active in the Santa Fe Springs oil field, commissioned young Julian to tour various fairs and trade shows and demonstrate his unique drilling rig as an advertisement for the Company.

By this time each of the three Hathaway sons were very interested in the oil industry, although each one was to express it in their own distinctive way. Both Elwood and Julian Hathaway took the hands-on approach and were out in the oilfield working with the actual equipment and alongside oilfield operators and crew. Richard (Dick) Hathaway, in contrast, was more the historian, photographer and interested in the Hathaway Ranch side of the family business activities. However in later years he was just as active in the oil business, but with the daily office activities and parts and supply ordering and management necessities, rather than with the out-in-the-field operations.

Of the three boys, Elwood was probably the most traveled and socially inclined. Richard (or Dick) definitely preferred being and working around the home place, and was to become an expert when it came to dealing with the nutritional and health issues of cattle. He also worked side by side with his father, Jesse Hathaway, around the Santa Fe Springs, Lancaster and Castaic ranch properties. After Jesse Hathaway's passing in 1960, Richard carried on the ranching duties as before, but more or less carrying the load formerly accomplished by two people. Julian, the youngest of the three sons, definitely preferred to be working out in the oilfields, but he could often be coerced into attending family and outside social activities, which he usually resisted but once involved he thoroughly enjoyed the fraternizing. Above all, however, one thing that can be said about all three of the boys is that at an early age they were imbued with an exceptionally strong work ethic, and were never prone to just sit around or be lazy. They were usually either busy working, eating or sleeping, with a bit of social activity occasionally thrown in after the workday was over.

The Hathaway Company

The three Hathaway boys: Richard, Julian (Doc), and Elwood Hathaway.

The three Hathaway boys (left to right), Richard F.
(Dick) Hathaway, Julian I. (Doc) Hathaway (seated in
pickup truck), and J. Elwood Hathaway, October 17, 1962.

In 1929 the forerunner of the Hathaway (Oil) Company was formed, a partnership between Oscar R. Howard, Jesse Hathaway and his sons, and Ike Boroughs, who was superintendent for Oscar R. Howard. Julian Hathaway reportedly kept the books. Then, in 1932, the Hathaway Company was incorporated. Jesse Hathaway was the first company president. Elwood and Julian (the oldest and youngest of the three brothers) were both vice presidents, while Richard, the middle brother, was the secretary-treasurer. Once Jesse Hathaway stepped aside as president Elwood Hathaway became president, but the three boys continued to include their father in all major company decisions right up till the time of Jesse's passing in April of 1960.

The two brothers, Elwood and Julian (Doc) Hathaway, participated more or less equally in the drilling and production activities of the company, until one day when a dispute arose during the mid 1940s. The company was drilling one of its many wells on the Anaheim Union Water District "B" lease, near the little town of Brea, and in what was called the East Coyote (Creek) Oil Field. Both Elwood and Julian were working on the rig alongside the hired crew. Sometime at or soon after mid day Elwood and Julian hotly disagreed over some now unknown issue regarding the drilling of the well. Neither would back down or so much as give an inch and so they were at an impasse. Elwood reportedly stood in a huff at one side of the derrick floor, while Julian stood on the other, neither speaking to each other. Drilling activity came to a complete halt while the two brothers fumed and refused to compromise their position. The driller on the job was Floyd Preston, and after a while he slipped away from the rig and made his way to a telephone, whereupon he called the Hathaway Ranch, reporting the problem and probably asking for help in getting the situation resolved. Exactly what was said is unknown, but after the telephone call Floyd returned to the drilling site, but apparently said nothing about his call to the ranch. Everyone just stood around and waited.

Julian I. (Doc) Hathaway, Richard F. (Dick) Hathaway, and J. Elwood Hathaway, October 17, 1962.

The three Hathaway boys (standing left to right),
Julian I. (Doc) Hathaway, Richard F. (Dick) Hathaway,
and J. Elwood Hathaway, October 17, 1962.

It was probably about one hour later, the two "boys" still at odds, when a familiar 1939 International (Woody) Station Wagon turned off of Imperial Highway and onto Associated Road. By the time the International Woody had turned off of Associated Road and onto the dirt road leading down into the valley and back up the other side toward the drilling site it had been noticed by everyone on the rig floor, whereupon there was definitely a sense of apprehension over what was to come. The vehicle pulled up to the drilling rig and parked. The driver was Richard (Dick) Hathaway, and in the passenger seat was none other than Jesse Hathaway, the "boys" father. Jesse reportedly opened the passenger side door and swiveled to his side, facing out the door but he remained seated. He then motioned for Elwood and Julian to come down to the vehicle. They talked for some brief time whereupon Jesse closed the passenger door and he and his son Richard drove off and away. Elwood returned to the derrick floor and drilling resumed. Julian got into his pickup and drove away. From this point onward Elwood was in charge of drilling and Julian was in charge of the production aspects. Both were full time jobs in and of themselves.

In addition to his daily activities with the Hathaway Company, Julian Hathaway was also very active in the development of oil and gas related technologies, doing pioneering work in many areas, such as the Down Hole Free pump, Drain Hole Drilling techniques and the K-99 Dublin Drilling Bit. He loved his association and work with many well known and successful oil industry giants, including Fluid Packed Pump Company, Kobe (high pressure pumping systems), Sergeant, Dublin Engineering, Bowen Oil Tool Company (helping to invent and improve down-hole fishing tools) and Baker Oil Tool (helping in the design and improvement of down-hole cementing tools and surface equipment).

Of the three boys Elwood was probably the most socially inclined, followed by Julian, who preferred to work in the oilfields but could be coerced into social occasions. Once engaged Julian enjoyed the fraternization, while Richard generally preferred to remain at the home place taking care of ranch issues and Hathaway Company office duties.

The Timeline

During the heyday of the Hathaway Company from 1932 up through the late 1980s the Company was very active and one of the largest independent oil companies in California. An approximate timeline of major achievements follows.

Pyramid Oil Company Board of Directors, circa early 1980s.

 Pyramid Oil Company's Board of Directors. Left to right,
seated in front row: Jack Wood, President; Julian I. Hathaway
and J. Elwood Hathaway. Standing in back row: Rex M. Smith,
Thomas W. Bewley and Leon Zermeno, circa early 1980s.

Abandonment and clean-up of JALK 110.

The casing from the newly abandoned JALK #110 well
is visible sticking up at the bottom of the excavation,
which was required to remove soil contaminated with
traces of crude oil. The office building (at center left
behind the trees) and other storage and machine shop
buildings making up the Hathaway Company yard will
soon be demolished and the property redeveloped.

The End of the Line...

In its final years the only wells operated by the Hathaway Company were the wells originally drilled on the Hathaway ranch, and the JALK (Journigan, Agee, Lewis and Koontz) wells located on adjoining property. But with the advent of secondary recovery (a water flood project was initiated circa 1975) it was inevitable that these remaining wells would eventually go into rapid decline and water out. By the year 1999 the final decline of these wells was very evident with some of the wells producing little more than brackish water, a smelly but worthless mixture that was costly to dispose of and/or inject back into the oil zone under water flood.

Thus it was, with declining production and declining health Julian I. (Doc) Hathaway could no longer avoid the necessity of proceeding with abandonment and site remediation of the very wells that had initiated and cultivated his interest as a young man and that also enabled the Hathaway Company to thrive during the heyday of the Santa Fe Springs oilfield. Doc Hathaway was now methodically having to close down and abandon the last remaining remnant of what had been his lifelong love, and on the very ground on which he had been born in 1912. He did not quite finish the task, passing away before the last of the wells were abandoned and the sites remediated, not quite done erasing any trace of his past.

The closure and wind-up of all Hathaway Company business following the death of Julian I. Hathaway, in November of 2000, was carried out and completed by Patrick Park, son-in-law to Julian I. Hathaway, and Terry Hathaway, son of Julian I. Hathaway. It was a sad and somewhat ignominious end to the dreams and enormous effort put forth by the three Hathaway brothers who, along with their father, had founded a company that had once been vitally active in the U.S. oil industry. Today hardly a physical trace remains, just a few dusty photographs and a collection of memories cherished by surviving family.

Credits:

Julian I. Hathaway (deceased), Terry Hathaway and Kathy (Hathaway) Weber.

Photographs:

Hathaway Ranch Museum Archive, Francine (Hathaway) Rippy, Terry Hathaway and Patrick Park.