The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-13
Rapid Rise In Prices Hax Given Inn
petus to the Sinking of Wells
i'm ALI the Fields.
INDIANA OIL NOW 81 CENTS
BIG GAME OF FREEzE-oUT BEING
PLAYED By THE STANDARD.
Scheme to XIII the Independent Pro-
ducers ~ Forcing Up the value
of Crude OIL beyond Reach.

PITTSBURG, April 12-The extraordi-
nary movement in the oil market this week
from s117 last Saturday to $3.50 yesterday,
with net advance of SO cents. has re-
vived the fever to the intensest degree.
There never was time in the history of
the business when the ''wild-catter was
more alert than now. Men are in the field
night and day looking for possible develop
ments Some idea of the activity in field
operations may be had when it is stated
that on April the number of new wells
drilling and rigs in course of construction
was 1,4o1. The monthly average of new
operations last year was only 232, and the
total number of wells completed was only
3.54s for the entire year. Whether the
present search is successful or not there
win be an enormous amount of money
spent in prospecting. The cost OF drilling
a we'll ranges from, 81 200 to 5000. The
amount Of iron casing required for each
well varies from 1900 to 5000 feet Es-
ttmating the present number of new opera
tons at 100. and the cost of each we'll at
$4,000. 1t Is seen that not less than 100000
Is now being expended in new work in all
the fields
The extent of the Industry is shown by
few comparatively aures The total pro-
duction of gold in the United States last
year was $43,000,0O0. The production of oil
for the same priod was 4S,5O00OO barrels,
which, at to-Gay's cash price, represents
value of s72s5oo,oo0 This quantity fell
short 6So0,Ooo BARRELS IN supplying the de-
mand, which was DRAWN from old stocks,
reducing. the latter to less than 1000 900 bar
rels on April /. Within the past few weeks
the Standard Oil Company Is estimated to
pave purchased $3,000,000 worth of terri
tory from individual producers. The most
IN pert NJ Of these purchases are the Ka-
tersve field FOR ss5odoo snd the 'e eigh nls
eight wells of the Wheeling Gas Company
A dispatch from wheeling saws: ~rhe
improvement in the price Of oil has in
creased the number of new wells in pros
are working full, with good business flow
Ing IN rather faster than for couple of
The Oil Exchange and the pipelines off,
ces We're closed to-day in observance of
day 81 rest a II il '1e ne or sIeenatora had
however, that tomorrow will see another
squirt in the price
CAUSE OF THE BOOM.
The Dispatch this morning says: A secret
meeting of the Producers and Refiners' Oil
Company. comprising the Independent pro-
ducers and refiners, was hastily called and
held at Butler last night to consider the oil
situation. The hurried gathering of the
anti-Standard interests is explained by the
sudden advance in oil during the past four
teen days. The rise from $l14 fourteen
days ago to $780, which price was reached
Yesterday. and which, strange to state; has
been forced by the Standard. is regarded by
9. direct. attack upon their existence The
Standard has reached for the independent
association and Is attempting a squeeze by
offering prices for crude which its opponents
cannot touch. Oil properties are being
bought BY the Standard at fabulous prices,
ana it Is the evident determination of the
company to hay out all the producers in the
country who will sell to it. and control the
A party. on the inside of the independent
producers and refiners' affairs said last
short stock but principally because the the
s n,anaa af y whipping the market along with
Of 6rsakng up the
Die excitement among those Interested in
the opposition, and they are meeting at
Butler tonight on this account. The main
spring of the present upward movement is
the desire to Kill the Producers and Re-
me ~ ~, Gompany. is a continuation of
Standard started in the business"
Reports from all oil centers confirm this
prices have advanced but little since the
boom, and 1t is apparently the purpose to
high prices on one hand and low on the
other Ii II expected by some that certifi-
It Is true that the Standard has asset set out 1T to
Kill the outsiders off. "A telegram to the
Dispatch from Titusville bears out the view
1.-THE ffrther leap Of oil today from lu 81 SO to
81 SO not only brought In more lambs but |
well seasoned sheep whose fleece has been |
the OIL market continues the chief theme of |
conversation. Aside from those who were |
}oIted to-day on the 10-cent reaction there |
nave been no losers to speak Of There are |
rev sellers to-day, and the profits of the |
phenomenal rise were confined mainly to
lnose who had previously purchased. there |
was bidding for calls at wide margins flom |
70 70 % cents away from the market bu: /
they We're not to be had at any price The
view mere OF the situation is that the crude
market, more particularly Pennsylvania
crude, so long held in check by the Stand I
ara, mas been running away, and that the
3 STANDARD ar not only has been attempting to
hold II. but Tor some purpose best known to
Itself has been whipping it along.
The producing patrons of both the Stand
pushing along the boom by holding their
.redit balances. and oil, even at the pres |
INT high figures. Is not obtainable in suffi-
All of the refneries outside of
he Standard have obtained their supplies
rom the Independent line and the produce
demand, and the Standard naturally re-
uses TO sell TO the outside refiners, they
ire hard pushed for crude.
1T is regarded as significant that the
standard is not having anything TO say now
II danger from Russia, TO which they di-
ected SO much attention but few months
lgo and talk OF deal between the two
treat powers is again heard. To your COR
respondent to-day Colorado man said
The meaning in part of this movement may
&c that In Pennsylvania. as in Colorado the |
ime is to be hurried when the crude market
sll be thing of the past when those who
efine will own their own production, and it
olks viii be- the ultimate ' refiners' N the
meantime the producers of Pennsylvania
appen to be in line to be benefited by the
1 tan az Bogram,me as I'VE Me as the eondi
there is now practically no crude
market and no producing interests as dis