The Republican. [volume] (Oakland, Md.) 1877-current, 1884-01-12
Spectators in Oil.

Inc petroleum business during twelve
mouths past has been almost entirely
revolutionized, particularly the speeu-
lative markets. A year ago most
disastrous panic in the petroleum mar
k cts swept away fortunes large and
small. The millionaire lost thousands
and the merchant, in small way,
hundreds of dollars. A phenomenal
advance in prices, based on the rapid
decline of the famous Cherry Grove re-
gion, had induced rich and poor ali ke
to invest in oil for better future, and
all alike spread their money on in thin
margins, when an INSCRIPTIONS clique
of oil gamblers, with the aid of the
Standard Oil Company, the most nefa-
rious OF monopolies. conspired to bring
about a panic. The local money market
was wrought upon and made so string
ent that borrowers on oil collateral
were compelled to pay for money to
carry their oil at the rate of over
seventy per cent per annum. While
the holders of certificates were stagger-
ing under this onerous carrying-rate
the clique brought in well on the
Cooper tract, in mparatively new
territory, which had been nursed for
more than month for this purpose.
The well started atupwards of 500 bar
rels day, but to add to the consterna-
ton which followed its opening the first
reports greatly over-estimated the pro-
duction. As the market broke the mar
row margins gave out and brokers be-
came wild to sell out customers and
save themselves. A few DAYS latter
the tales of ruin and desolation began
to come in from every quarter, Banks
suspended payment, oil producers fled
in disgrace from their debts and numer-
GUS others were ruined financially
The widespread disaster produced by
that panic showed that oil speculation
had extended wonderfully during the
few weeks preceding, when the market
was advancing rapidly and the memoir
able panic marked the beginning of a
new era in oil speculation. Before that
time a few persons put prices up or
down at will and those who know what
the will of the Standard monopoly was
knew what the course of the market
would be. The first notable instance OF
contradiction to that sovereign will was
the blind pool which came into the
market last May with a capital sufli-
cient to control about One-half the oil
stocks or S15,000,000. For time the
Standard made an unsuccessful effort
to stem the rising tide, but finally the
bears of the trade turned against the
syndicate and compelled it to retire
without a profit, and it is confidently
asserted by many that it sold out at
loss on its investment Since then the
forces working in the market have been
powerful ones. Heavy New York CAPT
tai estranged from stocks has been
turned into oil as more profitable
channel, and the boom started on the
9th of November by the Standard
proved to be comparatively small af-
fair, owing to the resistance of this
capital, which, when the boom was
started, carried a large amount of long
oil, the selling of which broke the
market again and again rs it was forced
up, until the boom had to be abandoned,
temporarily ut least
To get the best possible view of the
situation at present | have questioned
several of the most prominent dealers
and producers. One broker said: at
is not now as formerly that one man
or few parties can manipulate the
market. While one clique or faction
are plotting to break the market and
force it down, another equally as strong
may be setting up the pins for Il bull
movement, in which case the balance
of power may be held by a compare
lively unimportant party. The capital
engaged in the business is so large that
any movement is necessarily slow com
pared with those of few years ago.
The time was, and it was not long ago
either, when the Standard could pick
up nearly all the certificates by bear
manipulation, and then easing up send
the market on boom while it unloaded
again. Now there are many investors
who buy on a low market, and no
matter what tactics are brought to bear
they hold on to their oil until they can
realize a good profit. This element
keeps u large share of the certificates
out of the Standards hands. The
Cleveland monopoly is still the greatest
factor in the market, but has not that
absolute power which it had. Oil Ciy
Cor. PHILADELPHIA Times.