no fools."

"We a'n't, a'n't we," said the coachman. "There you are right, and to show you that you are, I'll now trouble you for your fare. If you have been amongst the thimble-riggers you must be tolerably well cleared out. Where are you going-to-? I think I have seen you there. The fare is sixteen shillings. Come, tip us the blunt; them that has no money can't ride on my mail."

Sixteen shillings was a large sum, and to pay it would make a considerable inroad on my slender finances; I thought at first that I would say I did not want to go so far; but then the fellow would ask at once where I wanted to go, and I was ashamed to acknowledge my utter ignorance of the road. I determined, therefore, to pay the fare, with a tacit determination not to mount a coach in future without knowing whither I was going. So I paid the man the money, who, turning round, shouted to the guard, "All right, Jem; got fare to;" and forthwith whipped on his horses, especially the off-hand leader, for whom he seemed to entertain a particular spite, to greater speed than before. The horses flew.

A young moon gave a feeble light, partially illuminating the line of road which, appearing by no means interesting, I the less regretted having paid my money for the privilege of being hurried along it in the flying vehicle. We frequently changed horses; and at last my friend the coachman was replaced by another, the very image of himself-hawk nose, red face, with narrow-rimmed hat and fashionable benjamin. After we had driven about fifty yards, the new Coachman fell to whipping one of the horses. "Dthis nearhand wheeler!" said he, the brute has got a corn." Whipping won't cure him of his corn," said I. Who told you to speak?" said the driver, with an oath; "mind your own business; 'tis n't from the likes of you I'm to learn to drive 'orses." Presently I fell into a broken kind of slumber. In an hour or two I was aroused by a rough voice-"Got to 'oung man; get down if you please.' I opened my eyes-there was a dim and indistinct light, like that which precedes dawn; the coach was standing still in something like a street; below me stood the guard. Do you mean to get down,"

64

said he, or will you keep us here till morning? other fares want to get up." Scarcely knowing what I did, I took my bundle and stick and descended, whilst two people mounted. "All right, John," said the guard to the coachman, springing up behind; whereupon off whisked the coach, one or two individuals standing by disappeared, and I was left alone.

CHAPTER XXXV.

I went on to an old city where I remained two days, passing my time as best I could-inspecting the curiosities of the place, eating and drinking when I felt disposed, which I frequently did, the digestive organs having assumed a tone to which for many months they had been strangers-enjoying at night balmy sleep in a large bed in a dusky room, at the end of a corridor, in a certain hostlery in which I had taken up my quarters-receiving from the people of the hostelry such civility and condescension as people who travel on foot with bundle and stick, but who nevertheless are percieved to be not altogether destitute of coin, are in the habit of receiving. On the third day, on a fine sunny afternoon, I departed from the city of the spire.

As I was passing through one of the suburbs, I saw, all on a sudden, a respectable-looking female fall down in a fit; several persons hastened to her assistance. "She is dead," said one. "No, she is not," said another. "I am afraid she is," said a third. "Life is very uncertain," said a fourth. "It is Mrs. -" said a fifth; "let us carry her to her own house." Not being able to render any assistance, I left the poor female in the hands of her townsfolk, and proceeded on my way. I had chosen a road in the direction of the northwest; it led over downs where corn was growing, but where neither tree nor hedge were to be seen; two or three hours' walking brought me to a beautiful valley, abounding with trees of various kinds, with a delightful village at its farthest extremity; passing through it I ascended a lofty acclivity, on the top of which I sat down on a bank. and taking off my hat, permitted a breeze, which swept coolly and refreshingly over the downs, to dry my hair, dripping from the effects of exercise and heat of the day.

And as I sat there, gazing now at the blue heavens, now at the downs before me, a man came along the road in the direction in which I had hitherto been proceeding; just opposite to me he stopped, and looking at me cried-"Am I right for London, master?" He was dressed like a sailor, and appeared to be between twentyfive or thirty years of age-he had an open manly countenance, and there was a bold and fearless expression in his eye.

“Yes,” said I, in reply to his question; "this is one of the ways to London. Do you come from far?" "From

-" said the man, naming a well-known sea-port. "Is this the direct road to London from that place?" I demanded. "No," said the man; "but I had to visit two or three other places on certain commissions I was entrusted with; amongst others to where I had to take a small sum of money. I am rather tired, master; and, if you please, I will sit down beside you." "You have as much right to sit down here as I have," said I; "the road is free for every one; as for sitting down beside me, you have the look of an honest man, and I have no objection to your company."

"Why, as for being honest, master," said the man, laughing and sitting down beside me; "I hav'n't much to say-many is the wild thing I have done when I was younger; however, what is done, is done. To learn, one must live, master; and I have lived long enough to learn the grand point of wisdom." "What is that?" said I.

"That honesty is the best policy, master."

"You appear to be a sailor," said I, looking at his dress.

"I was not bred a sailor," said the man, "though when my foot is on the salt water, I can play the part-and play it well, too. I am now from a long voyage."

"From America?" said I.

"Farther than that," said the man.

"Have you any objection to tell me?" said I.

"From New South Wales," said the man, looking me full in the face.

"Dear me," said I.

"Why do you say 'Dear me?'" said the man.

"It is a long way off," said I.

"Was that your reason for saying so?" said the man.

"Not exactly," said I.

"No," said the man, with something of a bitter smile; "it was something else that made you say so; you were thinking of the cɔnvicts."

"Well," said I, "what then-you are no convict.” "How do you know?"

"You do not look like one."

"Thank you, master," said the man cheerfully; "and to a certain extent you are right-bygones are bygones-I am no longer what I was, nor ever will be again; the truth, however, is the truth-a convict I have been-a convict at Sydney Cove."

"And you have served out the period for which you were sentenced, and are now returned?"

"As to serving out my sentence," replied the man, "I can't say that I did; I was sentenced for fourteen years, and was in Sydney Cove little more than half that time. The truth is that I did the government a service. There was a conspiracy amongst some of the convicts to murder and destroy-I overheard and informed the government; mind one thing, however, I was not concerned in it; those who got it up were no comrades of mine, but a bloody gang of villains. Well, the government, in consideration of the service I had done them, remitted the remainder of my sentence; and some kind gentlemen interested themselves about me, gave me good books and good advice, and being satisfied with my conduct, procured me employment in an exploring expedition, by which I earned money. In fact, my being sent to Sydney was the best thing that ever happened to me in all my life."

"And you have now returned to your native country. Longing to see home brought you from New South Wales?"

"There you are mistaken," said the man. "Wish to see England again would never have brought me so far; for, to tell you the truth, master, England was a hard mother to me, as she has proved to many. No, a wish to see another kind of mother-a poor old woman whose son I am-has brought me back."

"You have a mother, then?" said I. "Does she reside in London?" "She used to live in London," said the man; "but I am afraid she is long since dead."

"How did she support herself?" said I.

"Support herself! with difficulty enough: she used to keep a small stall on London Bridge, where she sold fruit; I am afraid she is dead, and that she died perhaps in misery. She was a poor sinful creature; but I loved her, and she loved me. I came all the way back merely for the chance of seeing her."

"Did you ever write to her," said I, "or cause others to write to her?"

"I wrote to her myself," said the man, "about two years ago; but

"Life is very uncertain," said I.

"That is true," said the man, with a sigh.

"We are here one moment, and gone the next," I continued. "As I passed through the streets of a neighboring town, I saw a respectable woman drop down, and people said she was dead. Who knows but that she too had a son coming to see her from a distance, at that very time."

"Who knows, indeed," said the man. "Ah, I am afraid my another is dead. Well, God's will be done."

"However," said I, "I should not wonder at your finding your mother alive."

"You wouldn't?" said the man, looking at me wistfully.

"I should not wonder at all," said I; "indeed, something within me seems to tell me you will; I should not much mind betting five shillings to five pence that you will see your mother within a week. Now, friend, five shillings to five pence

"Is very considerable odds," said the man, rubbing his hands; "sure you must have good reason to hope, when you are willing to give such odds."

"After all," said I, "it not unfrequently happens that those who lay the long odds lose. Let us hope, however. What do you mean to do in the event of finding your mother alive?"

"I scarcely know," said the man; "I have frequently thought that if I found my mother alive I would attempt to persuade her to accompany me to the country which I have left-it is a better country for a man—that is a free man-to live in than this; however, let me first find my mother-if I could only find my mother"

"Farewell," said I, rising. "Go your way, and God go with youI will go mine." So we went down the hill together to the village through which I had already passed, where we parted, the sailorLooking man going his way and I mine.

After walking about a dozen miles, I came to a town, where I rested for the night. The next morning I set out again in the direction of the northwest. I continued journeying for four days, my daily journeys varying from twenty to twenty-five miles. During this time nothing occurred to me worthy of any especial notice. The weather was brilliant, and I rapidly improved both in strength and spirits. On the fifth day, about two o'clock, I arrived at a small town. Feeling hungry, I entered a decent-looking inn-within a kind of bar I saw a huge, fat, landlord-looking person, with a very pretty, smartly-dressed maiden. Addressing myself to the fat man, "House!" said I, "house! Can I have dinner, house?"

[TO BE CONTINUED.]

PROPHECY FULFILLED.

How died the poet Eschylus?

That hero of ancient Grecian verse,

Who carved with his sword an enduring name,
And twined it with verse as a wreath of fame.
As he walked near Gela in a field
Pond'ring some mystery deep and sealed,
Engrossed in thinking, down he sat,
And to think the better took off his hat.
An eagle chancing to pass that way,
In her talons a tortoise taken as prey,
Espying his head so shining and white
Like a cobble-stone, she paused in her flight,
Thinking, perhaps, that it might be well
To drop the tortoise and crack its shell.
Released from her talons it downward sped,
And cracked-not its shell-but the poet's head.

MORAL.

When rhyming, 'tis always an excellent plan
To keep the eyes open as much as you can,
Lest some passing eagle, by instinct le 1,
Let fall a tortoise, which strike on your head.
D

ITS IMPORTANCE AND MAGNITUDE-THE MODE OF CONDUCTING BUSINESS-UPS AND DOWNS OF TRADE--PECULIARITIES AND IDIOSYNCRASIES-ITS ORGANIZATION AND MANAGEMENT.

Nearly every one is more or less familiar with the discovery of petroleum on Oil Creek, Pennsylvania, and its tributaries, and the wondrous results which have grown from it. When it was first placed before the world as an illuminator, the question of "cheap light" had become a problem of difficult solution. The whale had been so persistently hunted, and so many thousands of them destroyed, that the timid leviathans had taken alarm and sought refuge in the frozen north, among whose icebergs and floes their pursuit was hazardous in the extreme, and the results disproportionate to the difficulties encountered and distances to be traveled. Petroleum was only known as a medicine and liniment, when Colonel Drake undertook his daring experiment near Titusville, from which has poured streams of light into the dark places of the earth, carrying comfort into thousands of homes which else had been illuminated by the tallow dip or firelight. This was the inception of a vast business whose ramifications extend to the four quarters of the globe, which gives employment to thousands and tens of thousands of people.

RIVERS OF OIL.

It is not our purpose, in this article, to go over ground which has been repeatedly tilled, but to write of one of the branches of the production, refining and handling of the great staple, which has grown from zero in 1860 to the magnificent proportions of the present day. At first there was no market for the article, excepting the little which was required for the ills of human flesh. Gradually its value as an illuminant became known, the amber crude gave place to the golden refined, and the carbon being eliminated sufficiently, the present bright light was given to a needy world. Soon the demand increased to such an extent that the drill was set in motion at several points along The Creek." The result was "gushers" of such enormous size that there was soon no demand at all commensurate with the supply. The rocks literally poured out rivers of oil, which ran to waste down Oil Creek and spread in countless iridescent hues upon the broad bosom of the Allegheny River. At the wells ten cents a barrel was the best price obtainable for even such proportion of the product as was needed, and the barrels were of more value, several times over, than the lambent fluid itself. The means used to market the commodity were by teamsters, who hauled it in barrels to Ol City, there to be loaded on steamers, or it was placed directly into barges at the wells and floated down "The Creek" at high water, or "pond freshed" if the stream was low. Pittsburgh was the then center of the oil trade. From that city came the buyers who bought the "actual stuff," receiving it from the producer, "planking the cash down," then and there. Where Oil City now stands was not even a respectable hamlet at the time oil was discovered, but as well after well was struck, demand increased and the price of oil appreciated, and the scattered village expanded. It began to hum with industry, its streets were alive with teamsters, the air resounded with the shouts and oaths of busy, excited men.

The great oil excitement of 1863, 1864, and 1865 set in, which sent such a whirl of speculation through the land, and set the dril 'bouncing" in all parts of old Venango county. All this time the oil itself was handled, no pipe line was known, and "certificates" were an unborn thought. So long as oil was found where it could be floated down partially navigable streams, or such as could be made so by pond "freshets," to the Allegheny, just so long was the barrel and barge in the ascendant, and ruled the entire line of procedure. Just so long the teamster was the chief factor in the business, and mud the almost insurmountable obstacle. In February, 1865, came

the striking of the "United States" well, on Pithole Creek, and with it a new problem for solution. Here was oil to be moved many miles, either to Titusville or the river, and as Pithole Creek was not, nor could not be, utilized for transportation, the teamster became more important than ever. His enemy, mud, however, gained the ascendency, for so very bad were the roads in either direction, that in the spring and fall of that year, three barrels were a load for a four horse team. With oil being poured out at the rate of thousands of barrels per day from flowing wells, on the Holmden and other farms, it soon became an almost impo-sible matter to get it taken to market at a price which would afford a profit.

A PIPE LINE.

But Yankee ingenuity was never foiled, when it came to the pinch, and so it proved in this case. A genius conceived the idea of laying

a line of pipe from Pithole City to Titusville, and pumping the oil through it. With almost magical celerity the work was done, and lo! the problem was solved, the teamster gone, the mud dried up, and cheap, certain, and economical transportation had. How breathlessly was the end of that two-inch pipe at Titusville watched to "see if oil would come through," and when the amber jet gushed forth from it and struck in regular stream upon the bottom of the tank. a shout went up which made the welkin ring, and announced a new era in the onward march of our great industry. Out of this discovery came the present c mplete manner of handling the vast production of to-day, as compared with that of 1865. From it grew the exchanges, the certificates, the broker, the clamor and the clangor of those busy marts of trade.

Our purpose is to treat of these institutions, and especially of the Oil City Oil Exchange, the parent, the leader, the "market-maker of the world," the center from which radiates all the life, soul and virility of the petroleum trade. Where millions of barrels of oil change hands every business day of the year. Where "giants in these days" hurl "great blocks" of oil to and fro. Where the "bulls and bears" fight battles as serious in their results as those of the late war, but where the "bleeding" is done in "bank accounts." Where single transactions frequently involve checks of $50,000 and $100,000. Where fortunes are made and lost in a breath. Where the market "goes up" and "lay dow is" result. Where "down she goes" and the bulls are "squeezed." Where margins are "called" and put up" without a murmur. Where the buzz of the "whipsaw" is heard in the land to the much undoing of him who seeketh riches too quickly, causing, in many instances, the severance of the "whipsawed one" from the exchange. Where the shores of the silent sea of the past are strewn with the wrecks of many a goodly vessel which set sail on its troubled waters, buoyed by hope and navigated by confidence. Where personal honor is at a high point, and the services of the "Arbitration Committee" are seldom called into requisition. Where the "rules," adopted for the government and guidance of the members, are as strict as those of any organization in the land. Where a surging mass of humanity gathers about the "bull-ring" and "hammer" or "whoop-er-up" the livelong day. Where the click of the telegraph and the sharp cry of the messenger boy are incessantly heard. Where unique and apt nomenclature, the coinage of the brains of busy workers, is ever in use. jokes, practical and peculiar, are given and taken with unexceptional good humor. Where is constant strife and the exercise of quick and caustic wit, but no personal difficulties, no lasting animosities. Where all is quiet and peaceful, until the sound of the gong starts the roar and whirl of the waves of trade, which subside as quickly when the electric tintinnabulation announces the closing hour. Such is an oil exchange, such par excellence is the Oil City oil mart.

THE BEGINNING.

Where

This giant of business, this great representative of oildom and the petroleum supply of the world, grew from very small beginnings. In the early days of interchange of views and a crude attempt to handle a representative of the oil bought and sold, instead of the "actual stuff," the trading was done in a car of the old Farmers' Railroad, which then connected Oil City and Titusville, which car was especially set apart for the use of the oil men who came to Oil City from Titusville. This was in 1867, and this car was the first oil exchange. Soon speculators began to find the need of a permanent organization and a definite place for the transaction of business. About December, 1869, such an organization took place in the office of Messrs. Owston & Sowers, where Griffith's drug store now stands. Across Center Street was the office of the Pacific and Atlantic Telegraph Company, and a portion of their room was used by the youthful Exchange. In the summer of 1871 they moved to the Sands Block, at the corner of Sycamore and Railroad streets, but were ousted by fire during the following winter. They then opened for business in the Opera House Block, but subsequently built a "lean to" near the Empire Transportation Company's office. This was the building used by the Oil City Oil Exchange until 1873, when the organization received its quietus from the excitement incident to the memorable "shut down" and "stoppage of the drill," resultant from the great "South Improvement Company" fight.

་

street and another on Seneca. Business commenced at eight o'clock in the morning and continued until nine or ten at night, as circumstances or the whims of the members dictated. There was but little order or system, and no safety against "lay downs" excepting the honor of members; it is but justice to say that this was generally sufficient, as it had been in the beginning of the oil business, and to the time now alluded to.

PIPE LINES.

At this time there were in existence several pipe line companies, each and every one competing for the business of the producer. The "lower oil region" was pouring out its thousands and tens of thousands of barrels of oil which were handled by the United, Union, Relief, Kains, Conduit, American Transfer, Grant and Antwerp, together with a number of smaller lines.

The modus operandi of transferring the oil from the well-tanks to the large iron receptacles belonging to the various pipe lines, or their patrons, was by means of a network of two-inch iron pipe connected with each of the tanks at the wells, and the oil either run by gravity or pumped into the large tanks aforesaid. All the expense and labor of the work was, and is, performed by the companies, who charged thirty cents per barrel for thus taking the oil, caring for it, and loading it on cars or barges, as the case might be. This greatly relieved the producer and middle man, as the outpour of petroleum had again begun to exceed the demand, and the well-owners would consequently have been much embarrassed had they been compelled to care for their oil, as in days of yore. Out of this facility of handling grew the

CERTIFICATE.

The pipe lines above mentioned issued acceptances to their producing patrons for the oil entrusted to their care, which were really promissory notes, the lines agreeing to deliver the number of barrels of oil named in the acceptance, to the holder thereof, at any of the loading racks of the companies. These were the representatives on paper of the actual oil in the tanks of the lines, and were good for their face at any time the individual holding desired the crude petroleum. These "certificates," as they were soon, and still are, called, afforded the long-desired medium for handling large lots of oil speedily and without any bother. The middle-men seized upon them with avidity, and at once inaugurated that spirit of speculation which has since grown so large and extended into all parts of the country. Where before had been a limited business, done in a great measure by due bills of individuals-the solidity of which depended on the credit and standing of the person or persons issuing themwas now a regular, systematic arrangement, with corporate chartered companies back of it, and the confidence thus engendered left nothing to be added to induce heavy trading.

The Oil City Exchange began at once to grow in importance, its numbers increased, its daily transactions became of greater moment, and all was life and activity. Brokers" multiplied, and orders arrived with pleasant frequency. A regular "brokerage" price of six dollars and a quarter per thousand barrels was established. It soon became evident that business would be much simplified and the dangers of speculation and mistake lessened by dealing exclusively OD the floor" in certificates of one thousand barrels or upward, and eliminating entirely all fractions of a thousand. This course was adopted, and maintained to the present time, there being no certifi cates among the trade of less than one thousand barrels, and very few for a larger quantity. The price bid for and sold at was, and is, that of the ruling figure per barrel, it being manifest that a multiple of one thousand would readily occur to all when the oil was paid for. The cash system was established at once, and no deviation has ever been made from it, the oil bought and sold always being paid for when delivered. A fluctuation of five-eighths of a cent per barrel was also adopted, or six dollars and twenty-five cents a thousand barrels. This was probably settled upon because of the convenience of adjusting brokerage charges.

CONSOLIDATION,

During the year 1876 a very active competition occurred among the various pipe lines, which had increased in number more rapidly than the business would warrant. Business was done at such rates of transportation that the managers and stockholders saw that, unless some change was made, ruin would inevitably be the result. To remedy the difficulty a consolidation was effected between the (old) United Lines, Antwerp and Oil City, Atlantic, American Transfer, and Sandy pipe line companies forming the basis of the present organization, known as the "United Pipe Lines." The new company was chartered in March, 1877, with a capital of $3,000,000, and J. J. Vandergrift chosen President, J. R. Campbell, Treasurer, and E.

Its

Hopkins, General Manager. These gentlemen still hold the same positions, with the exception of Mr. Hopkins, who has been removed by death, Mr. W. T. Scheide now being the efficient General Manager. In the same year (1877) the Empire, Columbia Conduit, American Transfer, in McKean County-Olean, Hunter & Cumings, Keystone and Relief pipe lines, were purchased, and the stock of the United Company raised to $5,000,000. Subsequently the Union, Karns and Tidioute and Titusville pipe companies were bought, thus completing the consolidation of all the lines of moment in the oil region. Since the union of these companies "The Tidewater Pipe Company, Limited," has been formed, and is the only line of any importance competing with the "United." pipes being laid in McKean County alone, of the producing districts, and its outlet being at Williamsport, its certificates are not dealt in extensively on the floor of the Exchange, hence our readers will understand that in speaking of "certificates" hereafter, "United" acceptances are alluded to, and those only, as they form the medium of barter and transfer. Under the new arrangement the operations of the "United" were largely increased, and every facility afforded the trade for speedy, safe, certain and easy transaction of business. Although the "United" did not wish to become, and are not, strictly speaking, a storage company, they were forced by the rapid development of McKean County and the resulting astounding outpouring of petroleum from its thousands of wells, to build hundreds of immense iron tanks in which to store the surplus production. To enable them to do this, it was found necessary to establish rates of storage sufficient to transact this new phase of their business without loss to themselves or their patrons. They fixed upon one third of one per centum per barrel as the charge to such of the producers as had storage in the "Lines," in other words, those which owned or had rented tankage connected with their pipes. Certificates issued by the "Lines" to producers not in this position mature when dated, and begin to take at once a storage charge, or "freshening" in the language of the trade, of one cent and a quarter per month, or twelve dollars and a half for each thirty days they are left unrenewed. For "freshening" one, or any number of days fewer than fifteen, the "Lines" charge fifty cents per day. Such is now the immensity of the business and the increased number of "certificates" that the ordinary methods of "freshening" do not suffice, and "carrying" rates from day to day are paid and received among the members on the "floor."

CERTIFICATION.

At the time of the reorganization of the Oil City Oil Exchange, there was no such system known as the certification of checks by the banking institutions, but each dealer's check was received as good, and no query raised in regard to it. Subsequently, experience taught the necessity of some safeguard, as several "lay downs" of magnitude demonstrated the need of something more than individual honor and responsibility. There was devised the "certified" check, which is now universally used as the medium between man and man in the purchase and sale of oil. It is plain that it would be as impossible to transact the business of the Oil Exchange by the actual exchange of currency in each transfer of certificates, as it would be to handle the 80,000 barrels of daily production without the aid of pipe lines. A "certified" check is simply any individual's check marked "good" by his banker, the bank then being responsible for the amount written thereon. These are used by the several dealers and brokers who deposit them at their bank. The banks have a kind of clearing house arrangement, settling with each other every day, paying and receiving differences, as the case may be.

FLUCTUATIONS.

Within a year the fluctuations allowed "on the floor" have been changed, they being reduced to one eighth of one cent per barrel, or to give a clearer idea to the reader, we will assume that the opening price is 83c per barrel, or $830 for a thousand barrels, the next change would be either 83c or 82c, as the market changed.

MARGINS.

The same necessity which called into existence the certification of checks, also brought about the margin system, and incorporated into the rules special provisions in regard to their being "called" and "put up. Any member can, in making a sale or purchase, "call" margins upon the other party, or be called upon, and the person being "called" must "put up" within an half hour thereafter, or the oil can be "bought in" or "sold out" at the option of the caller and the expense of the delinquent. There is, however, an exception to this rule in "futures," i. e., oil disposed of at seller's or buyer's option for a specified period. The actual working of the rules in everyday practice will be explained further on.

OFFICERS.

The present perfect organization has been the result of long experience and close observance of the inner and outer workings of the business and its needs. The Oil City Exchange now has a president, vice president, treasurer, secretary, a board of ten directors (the president being ex-officio a member of the board), an arbitration committee, to whom is referred all questions of violation of the rules, and a floor committee, to maintain order during the sessions. and to take cognizance of such violations of the rules as may come under their observation. The Exchange owns its own building, each member holding a share of stock which represents his equal interest with all the other members in its ownership. The president presides at all meetings of the Exchange and at those of the board of directors. The arbitration committee has very important functions. If any member violates his contracts, is guilty of fraudulent conduct, or in any minor manner breaks any of the laws governing the Exchange, this committee metes out his punishment, which can be fine, suspension, or expulsion, as it may determine. It is not, however, the court of last resort, as a member feeling himself aggrieved can appeal to the board of directors, whose judgment is final. These officers and committees are chosen yearly, by ballot, and retain their position for the twelve-month.

A DAY IN THE EXCHANGE.

We will now take the reader with us into the large and beautiful room used for business, with its frescoed ceiling, its "bull-ring," its luxurious seats, its raised dais surrounding the "bull-ring," and its crowd of excited dealers and brokers. We will suppose he makes his entry by the Seneca Street doors, the main entrance. He first finds himself in a vestibule with a pair of green doors before him with circular glass windows, on which are inscribed, "No admittance except for members." This is, however, not an insurmountable obstacle, as we, his guide, possess the open sesame to the cave within. Pushing through these doors he finds himself in an alcove, spacious in extent, lighted by two large plate glass windows, a chandelier hanging from the ceiling. and a fountain plashing melodiously in its glass basin. On his right he discerns an opening through which he catches a glimpse of the large room of the Western Union Telegraph Company, sees the focus of the net-work of wires which he has seen outside, making "unwritten music paper against the sky." On his left is the arched doorway into the readingroom, where, as it is not yet the hour of convening, he espies many members engaged in chess and checker-playing or perusing the morning newspapers. Ere he enters this doorway, we ask him to affix his signature to the visitor's book, and we place ours on the right of his. He is now "registered" and has the "right of the floor" for the day and can go in and out, wander about, read, write, sleep, or smoke, as he may see fit-in the proper places. From the vestibule he passes into the main room and finds himself in a spacious chamber with frescoed walls and ceiling, the dome being lighted by three windows of heavy glass. Directly in front of him is the rostrum of carved black walnut with the president and secretary's desks, and on the right and left corners bronze figures of knights in armor supporting tinted, engraved globes covering gas jets. Looking aloft he sees pendant from the ceiling a pair of beautiful chandeliers of twelve lights each. Immediately on his right and left are the Center and Sycamore Street entrances, and at the other corners of the main hall are the smoking and wash-rooms respectively. Again casting his eyes upward he sees a gallery running around the entire chamber, where visitors are allowed access at pleasure. Starting from the face of this gallery, at regular intervals, are gas brackets of three lights, in harmony with the center chandeliers. Examining more minutely he discovers on his left, occupying the entire space between the Sycamore Street entrance and the wash-room door three large blackboards which are covered with figures. Approaching more nearly he finds on the center and largest one, the shipments, charters, runs and business of the exchange in gross thousands, for the preceding month. On the right hand board are the shipments, and their average, charters and their average, and the amount "required to fill" for the present month. On the left hand board, the current price of refined oil in New York, Philadelphia, Baltimore, Antwerp, Bremen and London, for each day of that week, both morning and afternoon quotations being given. The larger board is also used, to give notice of any business of the Exchange or any meeting of directors or committees, which it may be advisable to communicate to all the members.

EXPLANATION.

"Shipments," as displayed on the board, mean the amount of oil shipped from the oil regions, on the day specified, by the United

Pipe Lines; "Charters," the quantity required to load vessels taken up on charter on the day indicated. The average of each is the division of the total by the number of days of the current month which have passed into eternity. “Amount required to fill," is the aggregate of all the capacity of engaged vessels which have not as yet been loaded. In other words, the shipments represent the quantity of oil taken away to the seaboard, either by pipes or in cars, the "charters," the amount to be shipped abroad in vessels engaged that day, but which may not be loaded for weeks to come, and "required to fill," the total which is necessary to be placed afloat before the contracts made can be discharged.

He

Having studied these figures as long as he pleases, the visitor turns and inquires, what is that for? The cause of the inquiry is an oblong enclosure made by nickel-plated pipes raised on posts of the same material, about four feet from the ground, inside of which is strewn sawdust. His guide answers: that is the "bull-ring," or "bull-pen," around which the members congregate to transact business, and is designed to keep the crowd apart, thus preventing a jam and crush in moments of excitement. He gazes around the room and sees a number of gentlemen, singly and in groups, some reading, others conversing, others receiving or sending dispatches, others smoking, and all quiet and apparently unconcerned. looks at the clock and notes the hands are pointing toward ten, he also observes to the left of the clock, as he stands, a gong, hung against the wall, and surmises what that is meant to do. About this time a gentleman mounts the rostrum and calls out: "What am I bid for Forest Oil Company stock?" and again, "What am I bid for Oil Exchange stock?" This is the morning call of stocks. This disposed of, his attention is attracted by the members gathering around the "bull-ring," filling the entire space about it, and flowing over on and occupying the raised dais. He becomes interested as he observes the close scrutiny of the clock, the references to watches of those out of range of the Exchange timepiece, the suppressed excitement, an i eager play of feature. As the hands mark the hour of ten, the gong he has before scrutinized, gives its alarum, the same electric spark sounding similar bells in the Titusville, Bradford, Parker, Pittsburgh and New York exchanges. Presto, what a change! Where was calmness, quiet and order, is now a babel of sounds, a hurrying of feet and commingling of gestures, confusing in the extreme to the uninitiated eye and ear. He hears shouted, "I'll give three-eighths for five." "You can have it." "I'll take twenty." "That lets me out." "Let her rol.." "I'll sell ten at a quarter." "I'll sell ten more." "Who will give a quarter for fifty?" "I'll give three-eighths for ten to-morrow." "Bull it up." "What can I get ten carried for?" "I'll give seventy cents on twenty." "Half for ten sellers next week." "I'll sell ten buyer's first six, ninety-two and a-half." "I'll give five-eighths for seller's March." "I'll sell running out to-day at an eighth." "I'll give eighty-five for ten buyer's March, M. U." "Look out for general average." "This certificate wants a fire-slip." "I'll give ten dollars to put ten to-day at two and a-half." "I'll give it to call at eightyfour to-morrow." "Whoop-er-up," etc., and all this amid a roar and noise which further confuses the listener to whom this nomenclature is like so much Greek. To the members all is as plain as a, b, c, but a word of explanation is necessary for our readers.

In the instance presented above, the opening price was eightythree and three-eighths cents per barrel for "spot" oil, or certificates deliverable and expiring that day or needing "freshening" the following day. The "quarter" and " half" were the fluctuations of one-eighth above and below the opening figure. The "five," "ten," and "twenty" refer to the number of thousands of barrels bid for, or offered. "Ten to-morrow," indicates the bidder did not wish to purchase oil which he would be obliged to take the day of purchase. "What can I et ten carried for? I'll give seventy cents," shows that the party making the bid desired to have ten thousand barrels of oil carried over until the next day, for which he was willing to pay seventy cents per day on each thousand barrels, being either unable to get accommodation in bank, or deemed it more desirable, perhaps, on account of "general average," to get some one else to take the certificates, returning them to him on the morrow. In such case the borrower may be "short" on the market, and thus gains the freshening," making that much clear money by the transaction, but he, if he actually "carries" the oil, assumes all risk of "general average," and pays the pipe line storage charges, returning the oil freshened." "General average" is a very important factor in the calculations of the dealer in pipe line certificates. The pipe lines agreeing, in all instances, to return the same quantity of oil received by them from the well-owners, it naturally follows that

66

some provision must be made to cover losses which may accrue from lightning, bursting of tanks, or other casualties, which do occur and are likely to transpire at any time. They have therefore adopted the course, in the event of destruction of oil, of levying a pro rata assessment on all the crude petroleum in the tanks in their lines. This falls alike on the outstanding acceptances and credit balances, is a just and equitable method, and a cheap insurance for the owners of oil. The trade has given it the name general average." "Buyer's first six" means that the purchaser has the option to call the oil at the price named, any time on or before the 30th of June, 1882, but must receive it at that time. "Seller's option is exactly the reverse of the last mentioned. "Buyer's March M. U." is an option for that month precisely like that previously stated, the M. U. meaning margins up. This is a mere pleasantry, as margins can be "called" at the option of the seller or buyer on any and all transactions, 'spot" or "futures." "This certificate wants a fire-slip," shows that a general average has occurred, and a slip setting forth that the requisite number of barrels and fractions of barrels of oil have been purchased of the lines to restore the certificate in question to its full value of one thousand, has been procured by the last holder of that particular acceptance. These are duly numbered to correspond and attached to each certificate as required. The offer to give money for puts and calls indicates the offerer wishes to secure the privilege of "putting" or "calling" the quantity named during the period of time mentioned, and only shows that he has an opinion that the market may reach either point, or possibly he has formed the idea that there is about to be a decline or advance within the specified time, and secures his put or call as an insurance to buy or sell against. For instance, he secures a call at eighty four cents the following day, the ruling figure then being eighty-three and a half cents; he believes in a decline, and immediately sells the same number of barrels at the then price, expecting a depreciation and consequent profit, but feeling that if he is mistaken, and the market advances, he knows exactly what he will lose, and can not get seriously hurt in the event of a sharp and rapid appreciation.

Thus the trading goes on hour after hour, with sufficiently rapid fluctuations to keep the excitement up most of the time.

PRACTICAL JOKES.

Suddenly a pause ensues. Our visitor sees one member after another desert the ring, until it is as lonely as it was before the gong sounded. There is a lull in business, and apparently the interest se warmly manifested a few minutes before has died out. Some of the members begin to indulge in practical jokes, hats are knocked off, various calls are heard, imitations of animals and birds are frequent, and sometimes a regular carnival of fun sets in, all good-humored, but none the less spicy. A short time since a merchant of the city, who is a genial, jovial gentleman, and indulges in a broad-brimmed silk hat for his usual wear, was made the victim of a practical joke of an exceptionally funny character. An old hat as closely resemb ling his as possible was procured. He was then induced to come into the Exchange, and being a member and frequent visitor, came entirely unsuspicious, when a crowd gathered around him, and his own shiny castor was slipped from his head and passed out of sight, and the decoy hat kicked into air. The deception was complete. Foot after foot elevated the now crushed headpiece, and all his ef forts to rescue what he believed to be his own new tile, were futile. The uproarious laughter and fun were contagious, the oldest and most staid members joining therein, none enjoying it more than the victim himself when his own hat was returned to him unharmed.

Woe be unto the luckless countryman who finds his way into the Exchange unheralded, and whose curiosity leads him to investigate the mysteries of the ring. If the genii of Aladdin's ring had ap peared before him, rising from the ground, he could not be more astonished than he is by the tricks and performances of these modern genii of the bull-ring, and of which he is the innocent and unsuspecting victim. The favorite method pursued in such cases, is to inaugurate a sham fight on either side of the stranger, fiste flourishing back and front of him, angry words and loud talking at each other, pushing to and fro, with the appearance of a general scrimmage, until he betakes himself to flight under the impression that he has been in mortal danger among howling bedlamites.

All these our visitor takes as part of his initiation into the mys teries of the oil trade. He is shown the beautifully engraved accep tances issued by "The United Lines" and the freshening and fireslips attached thereto. While this is being done some prominent dealer or broker receives a telegram, and saunters up to the "ring." Quiet reigns again; the "boys" stop their fun, a rush is made for the ring and the trading begins again with renewed vigor and noise,