The Wellington enterprise. [volume] (Wellington, Ohio) 1867-188?, 1884-03-12
Spectators in Oil.

The petroleum business during twelve
months past has been almost entirely
revolutionized, particularly the specu-
lative markets. A year ago most
disastrous panic in the petroleum mar
kets 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 alike
to invest in oil for better future, and
all alike spread their money on in thin
margins, when an unscrupulous clique
of oil gamblers, with the aid of the
Standard Oil Company, the most nefa'
rious of monopolies. conspired to bring
about 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 a well on the
Cooper tract, in comparatively new
territory, which had been nursed for
more than month for this purpose.
The we'll started at upwards of 500 bar
rels a day, but to add to the consterna-
ton which followed its opening the first
reports greatly over-e 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-
ous 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 memor-
able panic marked the beginning of a
new era in oil speculation. Before that
time 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 capital suili-
cient to control about one-half the oil
stocks or Sl5,000,0CG, 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 profit, and it is confidently
asserted by many that it sold out at a
loss on its Investment. Since then the
forces working in the market have been
powerful ones. Heavy New York capi-
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 large amount of long
oil, the selling of which broke the
market again and again as it was forced
up, until the boom had to be abandoned,
temporarily at 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 ut
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 bull
movement, in which case the balance
of power may be held by a compara-
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 beal
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 nc
' matter what tactics are brought to beal
1 they hold on TO their oil until they CAL
5 realize a good profit. This elemen
I keeps large share of the certificate!
out of the Standards hands. ThC
D Cleveland monopoly is still the creates
S factor in the market, but has not tina
: absolute power which it had. ON Citl
a Cor. philadelphia Times.