The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-16
The Necromanoy Among the
Devotees Of Petroliana.
sn Lands, OIL Bersis Oh Cgmpaniss, OH
Stocks and Oil Sleek Boards.
The Bogus Company Swlndlers Eclipsed
BY The Petroleum Exchange.
How Stocks are Manipulated and the IN
'suspectiay Taken In and Done For"
"A Petroleum Ring and How IL
Operates,
&C., 10, do

"A FesTOAeuM xSAnS anO HOW ~
Operates,
'&c, &c,i DO
-es' --
Tasseof cur resavts who imagine that sis the nscso
msny in the petroleum line is confined 70 the orgAniza-
oA Of bogus oosnics ind the swindlina " unsuspcc
me parties In psaming on the stock by he managers
ass evidently posted in al the tricks q the p1tsoeum
~psvaors 7ss IL the age OF wonderful discoveries and
nventiops and the petroleum line bids fair 70 be a.
ferle In developing the now things under the sup as
any other department the record of events shows
when the discovery Of oil made thousands rushed
10 Pennsyyania engage in prospecting and boring
with brilliant visions sudden fortunes they pushed
forward old and young, rich and poor TO the new
nelde iscoyery Merchants iet their counting rooms
prescbsrs their ocks and instead OF laying
vp treasures in heaven sunk their treasures in oil
wels Farmers left their Psoughs and the lawyers
forgot their clients, 30 great was the rage for
petroleum. The whole oil region wild
wsCh excitement and filled with prospectors,
spectators and borcrs Of all srades There in al
hs great deal Of legitimate business but At the
s,ne no small amount of humbus Many Of the adven-
bad rushed the oil region with visions of i'm
aediae fortune but compelled to those bright
visions vanish the mist before the morning SUM- Oil
property could not be purchased without money nor
wells bored without capital neither Of which did many
of them possess for they had sought the oil region for
ithe express purpose Of making raise and becoming
niliionares.
But it said that necessity the mother Of invention
SUCH at least proved be the with many of the
petroleum Adventures Unable to accomplish anything
in legitimate way they rushed 70 the large cities and
commenced organizing bogus companies This dodge
answered their purpose for some time and they sue
ceeded in reaping large profits Our hotels were filed
with these adventurers and than one hotel pro-
pricor taken In and done for by these petroleum
sharpers the landlords Of hotels from the Fifth
Avenue down those In Corand street. very readily
testify Atength the public began their eyes opened
bat until large number Of unsuspecting people had
been feeced by their operations The result that
the @ fever began TO subsde and the rush and excite
nsnt in passed away leaving the oil business
more in the hands Of the legitimate parties
Events, however, show that the necromancy in the
petroleum line only snbded In the above branch of the
business TO break out in another All of q sudden
there appeared around Wall street petroleum
tsoke whose faces unknown to the business
munty. Who they were or hero they came from
mystery which the most thorough investigation and
careful research could clear up That they 10
b In large numbers dressed in accordance with the
most approved style, q fixed fact and that all
that was known In regard them The organization Of
petroleum stock exchange discovered to be part
- their mission. With the assistance Of few Of the
regular stock brokers and members Of the other
change, surcent to give color Of responsibility they
succeeded In accomplishing their object, and organized
board for the cypress purpose Of manipulating oil stocks
But they had not been In operation long In Broad street
before 70 discovered Chat there ring in the
all members Of the board not In the ring well out
aders who came within their grasp This ring was com
pete in al ts parts and although not conducted the
scientific principles Of many Of our political rings IT
accomplished the end for those Interested This
hm
rules TO suit themsevea These rules provided for the
calling and sale Of classes Of stocks which desg
saockA Those depomnated regular the stocks Of |
oil petroleum companies which have paid dividend-it
borrowed money through the legitimate earnings Of
the company wss all the same; in either case was
Escssnecus stocks were those no, introduced in the
beard under the regular list Stocks Of all companies
which had never pad dividends could come in under
rslss Of the board BY any member simply by sending
written notice TO tho President Of the board TO call such
csas currency stamp In this way any stock could be
introduced on the board The rule adopted for
lssm property 70 use Che exchanges 70 sell their stocks
Under these rules thore have been many very singular
s~cper.sioas vss sssrsiy pn. in i' the shade ali
RsnsrDences in W. street By the bulls and bears A
lev weeks nce eftock was Introduced on the List and
eold The seockwas held by but few parties when in
trodacsd Tk members Of the ring in the board sold [
about one ousand shares short Their contracts npay
TIE erect bbxgsn to Fss and tho conara put out BY
she members Of the rfns mot filed Under the rulcs
ihs oct for cash. and the bin 70 the seller Of ihs
sstA But - happened that the stock had raised
being member Of the ding, the board very quietly
passed resolution relieving him from fulfilling his
s;oCS no purch.ss and immodi.,sy foO~cs this
vi and ssgs dec son with another resolution peremp
soy Striking ,h.. particular stock from the ls. to be
eomed 10 the board But, singular 40 this per
i0nAnos, n beam comparison transactions which
have since taken place
fsw weeks since the stock Of petroleum company,
sndsr ths name Of Napoleon wls placed the list and
called under the rule fos miscellaneous stocka Il com
q which ives ave dOla The ring in the board jumped
n and sold short and 10 son ran down 70 one dollar
.ss . os sr on: ss. ana
Aiy daya Some Of the parties covered at the low ne
sSe delivered the sock and made handsome proni;
sn6sr Ne bsiisf ilss would 20 down still lower
largs quantity q the sock sold q two dollars op
3 socf oSsrsd ~ broken Which was taken ana the
.telk began % sdyanee. Those broken who sold
ne regular way. borrowed the stock, delivered
u md received thsr pay Now, this stock was borrowed
s~s sSov sep ~ amount Of monsy equal 70
market price OF the 6ock deposit with the person
o. whom s stock ~ Dosswsd until the same was re-
ana 40 additional amount was called for 70 make the
ne market price But this the borrowers refused 70 pay
vh The excspton Of one or two instances They were
mon requested 70 return the stock which they had Dor
,cwed This they refused 70 do although the stock
was then being offered the market Many Of tho par
ties had sold The stock which they had borrowed and
pocketod the money but nhsd In The market since
they sold IT. and they refused either 70 purchase stock
70 replace IL or increase their deposits
II 30 happened that the parties Who were caught In
th way belonged 70 the rang the board ana m their
swn Judgment had everything their own vay The |
broad street Petroleum Board In tbeiv asthma 1
alen, could make unmake anything in the petroleum
s.s s:d they resolved 70 e, this lMss matter 81
ersent 10 Iess than no time They had openly rspudi
eAsnsevs n this oourss The ring members consused
together, and found way 70 get Of Torn-
relieving themselves from their Contract