The herald., 1896-04-11
OIL As II IS NOW QUOTED
TREASURER TURNER OF THE EXCHANGE
TALKS OF PRICES
He Thinks That the Producers nust Hang To-
Rether or Quotations Will Drop-Surplus
Oil nust Be Shipped Awav-If This Can Be
Done the 81 Mark Is In Sight

For some time the oil situation in this
city has been in a rather anomalous condi-
ton. On the one hand have been the pro-
ducers, headed BY the oil exchange. who
have made every effort to uphold and ad-
vance the price, and on the other certain
large consumers who have claimed that oil
was too high already and that they could
afford to pay no more for it, else they
would be forced to return to coal as a fuel.
As the price was gradually advanced and
contracts expired consumers were unable
to renew at the old rates and were obliged
to use their reserve supply and buy in
small quantities out in the field from par
ties who were willing to take less than the
established market rate. There were many
of these who, from one cause or another,
were forced to dispose OF their oil as fast as
1t was pumped into their tanks.
The course pursued by these men could
have but one effect, that of weakening the
quoted price. If, when the exchange rate
was 20 cents at the wells, party could
buy plenty of oil from outside parties at
so or So cents per barrel, he csfteinly
would not pay more. There have been for
some time certain San Francisco parties in
the field taking all the oil they could get at
go and even so cents, at which rates they
have secured several carloads per day,
while the exchange members were holding
on for their rate of rs cents. Owing to the
number of new wells recently sunk and the
increased flow in those deepened the pro-
duct has remained about the same as sew
eral months ago.
When the Enoch Talbot took her first
cargo of 5000 barrels to San Francisco the
surplus of many producers was exhausted
and the price was jumped a notch. Since
then sales have been discouragingly slow,
the bulk of orders being supplied by the
outside producers at cut rates, 30 much so
that certain exchange members have done
some tall thinking. "A week ago in these
columns it was stated that tho price of oil
was likely to fall, which was denied in
some quarters. In an interview with
Treasurer Turner of the oil exchange he
yesterday said:
"The situation today is just this: Unless
all the producers will join hands in ship
ping their surplus stock from this section
and helping to fill the tank vessel Enoch
Talbot, oil will be selling for 90 cents in
| side of two weeks. The price has been
stiffening in anticipation of the boat secur-
| ing and carrying north the surplus oil, but
| if she does not go and the producers con-
| tinue to pull in opposite directions, the
| price OF oil must indubtabiy fall. The
! exchange alone cannot support the market
at the present price. 1t must have the
cooperation of other we'll owners instead
| of being constantly undermined by them"
| Sitting by and indorsng Mr.. Turner's re-
| marks was G. M. Smith of the Union Oil
company, who fully agreed that some
| means must be taken soon to remedy the
situation. "If the other producers will
only come in and ship away their oil,
leaving just enough to supply
| the local market, the price
can be maintained and the long hoped for
81 mark will soon be reached" said Mr..
| Smith. "As long as we have no outlet for
the surplus disorganizations diminished
| prices must be the result"
1t is understood that at the meeting of
| the exchange directors last Monday they
were between the devil and the deep sea
| in other words, that there was no middle
ground to be taken. The price must be
| boosted and confidence maintained or oil
was bound to fall. In this line cents was
put on, making the rate So cents, f. O. b.
! If the Talbot can take away load of 5000
| barrels soon enough and relieve the mar
| ket, according to Mr.. Turner, the price can
be maintained. If not, then will come
reduction.
There are now nineteen new wells being
drilled and number of old holes deep
ened in the field. 1t is estimated that
there is held in the tanks at the wells
something over 10000 barrels, which
will be greatly increased by the new wells
| as soon as they come in. The exchange
| rate is rs cents at the tanks, but rumors
| of sales at 65 cents are plenty. If man