The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1864-10-29
THE OIL FEVER .
GOOD AND BAD COMPANIES.
HOW TO OPERATE.

Next 10 the question, "what is gold to-day ?"
follows the query, GLOW is oil Z" II Is either ono
the other with those who, desertiug the lcgiti-
mate channels Of trade are interested" either in
gold or oil. Not only In this city, but in the
State, the oil fever runs higher than ever All our
exchanges received from the "Wes:ern country
the valleys Of the Allegheny, and even from
Western Virgiuia-smcl Of oil, md are unctuous
10 the touch In 1860 and 1861, when the cOntl-
gion was widespread, thousands were aiiscted by
IT, Now millions Of our people nave Deen con-
tnmiuated by the popular mania, and either buy
the "stocll" or deal in oil.
In 1851 the prodigous development Of the oil
region was ahead Of the wants OF the world.
Mankind had not YET got usel 70 t9f strong
scented but valuable production. There WAS
some demand for IL, but not q demand equal to
the supply. In 1862 the whole machinery Of the
oil region was going. oil was poured out in im-
meuse quantities and comparatively speaking,
there were no buyers. Tho price went down,
down, until it got us low as twenty five cents per
barrel Tor crude petroleum at ihe wells, and It
sold ln this cty ScrarcCWS per gallon, including
the casks The original investors bcclme very
much discouraged. Their money WAS al gone.
Their hopes oil big dividends were udely dis
PEELED. ThDy had plenty Of oil but no customers,
and not 90 -ccurc the oil which came from lowing
wells was m,rc profitable than to cNpend labor IN
Under this pressure the oil business faded into
D0'hiuvIC-s. lt Wa- voted "plHyGt out" Speyu-
atoIs who invested with the hope %. making
business and i1plrited their stock. lC they owed
insialmonts uponth0r shares they would not pay
them. They CJncIudtd 90 leo everything go.
Conn aratiyely spenking, the oil region became %
dCscrt-Wcl's were abandoned, dCrricks, engines
tanks, buildings aud all were left as thuy stood
when it was discovered that the business was
worthless. Even &C this day, when there has
been an entire change in the prospects of tho oil
business, these dccayiug examples Of ili-advised
speculation are still seen on the hills and the val
leys Of Ncupugo and Warren, telling in loud
tones The story of want Of prudence in the be-
ginning, aud a want OF faith at the end
The victims oi the grsJ fever were despoilcd be
cause they were hasty. They expected that a
new product, yielded by the earth with uneNlm-
pied bounty, wOuld be promptly adopted by
mankind But mankind must he taught, aud
learns slowly. Those who in 1862 abandoned
the oil regions Of Pennsylvania, and threw away
their iuyl stmeuts, have little abstraction in view
ing the turn which the business has taken in
1864. They know that the oil region produces
no more than il did when they were interested in
its Development, but they know that what has
made them poor has made others enormously
rich. II they had but "ieh on" they might have
been men Of wealth upon small capital. They
risked their money, but they could not risk deaY.
l hey could not wait, and 50 they lost everything.
We have every interest in the proper develop
ment Of the oil business, but we are opposed TO
gambling speculations and to operations which
would be more legitimate among those "who
fight the tiger" than those who profess TO act
according 70 financial rules and with intelligence.
There is money to be made, much money, by
those who invest in honest, prudent, wcll-marl-
aged companies, which are intended to get oil
out Of the earth and not out of the pockets OF the
subscribers There are good producing oil COM
panies, anG there are bad non-producing swim
dies. Let every one who operates in oil stocks do
so with his eyes open. If he invests in a sound
producing company, let him not, like the foolish
victims of the first oil fever, hurry TO get out of
"the scrape" because there has been fall in
prices, or cessation of demand. He should
reflect that every business has its fortunate and
unfortunate times, and that the reverse of to-day
may lead to great success tomorrow. If he
holds on he will come out all right. II he sacri-
fees his interests he will regret his precipitaucy
hereafter To the party who invests in a swindling
oil company no advice is necessary. His money
was lost from the beginning. No prudence can
recover 1t, and no imnraGence increase his loss.