It would seem as if the oily region of this country is really being tapped in the jugular. The Pittsburgh Gazette of the 21st, publishes the following account of what is going on in the vicinity of Oil Creek, the particulars obtained from a gentleman from the heart of Oildom. The Gazette says:

The commercial cauldron seems to be boiling still higher in that excited Eldorado of Western Pennsylvania. The discovery of a new well, the next one that has been tested to the McClintock, has thrown far in the shade all other similar windfalls of a previous date.

Three weeks ago, a gentleman from Brownsville, Mercer County, was offered an interest of one-sixth in the Crosby Well, which had then obtained a depth of 100 feet, and was regarded as one that promised fair. He consulted his friends and declined the investment as being extra hazardous. Since then, the well has been carried thirty-one feet deeper, where an extraordinary vein was struck, which has been called the jugular vein of the whole oil region. A steam pump was procured and put down, and last week operations were begun, the result of which showed a yield of oil which far exceeds the most sanguine expectations of all concerned. Several gentlemen, by actual measurement and timing by the watch, made an estimate of the amount, and their calculations gave from two and a half to three gallons per minute, or from ninety to one hundred and twenty barrels per day! The enormous value of this well will be better appreciated by comparing with some of the best wells in the Oil Creek district.

The McClintock, on Oil Creek, three miles from the mouth, yields eighteen barrels a day. The Drake yields 12 barrels a day, though its capacity is supposed to be twice that much, the pumping apparatus being defective. The engineer has offered to give Mr. Drake twenty-one barrels per day and take the balance for pumping the oil up.

The Barneswell Well, in Crawford County, about one-fourth of a mile from the Venango line, yields twenty-five barrels daily. Its depth is 160 feet. When Mr. Barneswell had bored 120 feet, he sold a man from Ohio a one-sixth interest in this well and the whole tract adjoining, comprising some 200 or 300 acres, for $10,000, $500 down and the balance in annual payments of the same sum.

Mr. Evans, the blacksmith in Franklin who bored his own well, has been offered $100,000 for it. The terms he demanded were $20,000 down and a responsible bank to honor his check at any moment for the balance. He has also refused $5,000 a year rent for it. The Arnold Well has reached the depth of 120 feet. Six or eight veins of oil have been struck, and the proprietors are still going deeper.

The Franklin Company have bored 314 feet striking oil at 240 feet and commenced pumping last Friday. Indications fair. The Hoover Well, three miles below Franklin on the bank of the Allegheny River, has been bored 112 feet. Oil is sufficient quantity to pay has been found, but the proprietors are going deeper in search of the great vein struck by the Crosby Well.

The well of Graff & Painter, on Oil Creek, one mile from the mouth, is reported to be a good one. They were putting up an engine last week and will be pumping this week. At the mouth of Gordon Run, below Tidioute, on the Allegheny, in Warren County, a well six feet wide was sunk to the depth of ten feet, when the workmen came to a rock and stopped to go for their boring tools. When they returned, they found five or six inches of oil on the rock and dipped off 82 gallons. They are now boring the rock and expect great results. There are not less than 200 wells now in various stages of progress. In ninety days, it is estimated there will be 1,000.

Previous to the discovery of the Crosby Well, the excitement was excessive, but now it baffles description. It is pervading every class of men, merchants, manufacturers, mechanics, physicians, lawyers, and, it is said, has even invaded the pulpit. There is not a lawyer or merchant in Franklin who is not more or less concerned in the oil business. The farmers particularly have become almost infatuated and are mortgaging their farms to procure money at two percent a month to be invested in oil wells. The hotels are crowded, stages are filled to overflowing, and vehicles of every sort, private and public, are in constant demand, though still the wants of travelers are not supplied. The excitement in New York City is also intense, and daily arrivals from that vicinity are reported at the houses of entertainment.

It has been thought that this large increase in the supply of oil would deteriorate its price, but the following would seem to set at rest any apprehensions of that character. The firm of Evelitch, Bissell & Co., a very heavy house in New York, have sent out an agent to the oil district, who has bargained for all the oil produced by the Crosby, Drake, McClintock and Barnswell Mills, during the next five years. He agrees to sell the oil at a commission of five percent, and to advance ten dollars on each barrel shipped to the firm in New York, who have purchased a site in Franklin at $30,000, on which they are about erecting a very large refinery.

The character of the oil varies. Some is of a light transparent color, and answers best for burning. Other oil is darker colored, stiff and penetrating, and makes an excellent lubricator. Of the former sort is that produced in the Cosby Mill, of the latter that of the Drake and McClintock Mills.