New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-11-08
THE TRADING IN OIL.
TO STAY IN THE CONFERENCE.
THE CONSOLIDATED EXCHANGE WILL KEEP
THE OPTION SYSTEM IN SPITE of

rur OPTION SYSTEM IN SPITE OF
STOCK EXCHANGE RIVALRY
MI, ,, ot The Consolidated Stock and Pc
,ro,em Exchange have long been casting about Tor
means TO increase their business IN eruue peroiou.
A long period of duness made them eS"'ss' all"
finally IN June they adopted plan hf trading III
on;ons The rules OF the Conference OF OIL EN-
changes which Include the boards In the Peinsyvana
,otro,en, regions were altered at the solicitation OF
Tho Consolidated Exchange. and regular way trans
setions were made 10 mean the acceptance by tho
buyer of oil which the seller could deliver at his
ontion any time IN the month following that In which
the transaction occurred a clearing system was at
,acbed 10 the Plan ana for time the bears who arc
fond of manufacturing phantom petroleum were happy
business however. failed 10 increase under the new
scheme for a large number of influential operators
withdrew their accounts from the Consolidated TX
chang. The pipeline department grew in importance
and for time the orders which have Influenced
values OF crude oil have cmanaed from the stock Ex
change. Charges OF breach OF faith were at one time
whispered by tho Consolidated traders against the
Western oil boards which appeared to enjoy most OF
benefits of the actual business done even under the
now option plan. The West rejected proposition 10
preserve the option clearing system and estaoish
tomorrow delivery the regular way OF conducting
transactions or offers or bids. In the meantime lhe
price of crude oil steadily advanced on the continued
reduction Of stocks of petroleum above ground ana INC
crippling OF Russian competition. The Consohda'ed
traders still complained of lack of business.
Yesterday the Board OF Directors OF the Con7o'-
dated Exchange approved report oil special com
mittec composed of j. Gutman, S. White lr, ana u
X Couillard by which IN few days the dealeis ID
cash oil will hass post around which they may
gather apart from the dealers in options. Ihey VIII
hso have separate indicator TO record the proc OIL
rash OIL Tho option system will be preserved, how
rver and the regular May" rules VIII prevail Inc
committee in its report declares that the opposition
10 the option system is not deeprooted,' and dsap
proves any idea of severng relations with the Con-
ference of Oil Exchanges. To vindicatc the policy
of option trading the committee presents these figures
in barrels:
NewYork clearsnces from March 10 May 81 49, 100000
from August 90 october 81 (option system) 3oVooV"
no..o.s. 90 no M, rant $3.50 900
OIL City cIcarances May 81 1Q2 5l2 000
Decrease 40 63-10O per cent ocs'ooVo
There a time when the Consolidated EXCHANGE
members Dragged Of controlling and directing the oil
market in the Western exchanges They assert now
that an experience of three months under the OplOn
blan, compared with three months previous, shoWo
X smaller loss I'm trading at their board man al the
on City Exchange. The members also say THAI they
are better off than Stock Exchange brokers, IN mat
ihey can execute orders either In options al the COZ
solldated or IN cash oil at the Stock Exchange &C
cordinc as the difference In price favors operations
somewhat of an arbitrage nature. IL is hoped tnat
the expanding tendency of oil speculation may SOW
all questions the merits OF the STOCK EAchaiso
and the option system.