The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1865-01-05
Oil Investments.

Just now the oil fever RACES. It RACES
everywhere-infests all atmospheres, and
has drawn all classes into its dazzling
whirl of speculation. Hitherto it has
been confined mainly to the great cities
and other centres of trade but it has
now rami6ed into every rural district in
the State, and all want to take chance
in the brilliant lottery of tickle Fortune.
In view of the fact that Franklin county
is likely to invest half a million or more
in the stocks, we venture few susges-
tions for the consideration of our readers.
l. Never invest in non producing oil
lands more than you can lose entirely
We do not mean by this that such. invest
ments must always prove loss but we
do say that they will prove a total loss
nine times out of ten, and proftless forty
nine times out of fifty. OF two hundred
and fifteen Oil companies now organized
in this State, not more than twenty OF
them are paying bona fde dividends out
of the revenues from their wells. Three
fourths of the remainder will prove divi-
dendless or total loss to the stockhold
ers.
2. Never investin any Oil stock, good,
bad or Indifferent, more money than you
can spare from your legitimate business
without embarrassment 1t is never wise
to do SO, for even with the best prospects
loss is possible Wells may fail to pro
duce-Oil may fall in price; titles may
prove defective, and scoundrcls may plum
der in the management of these as well
as other corporations, and it is best to be
safe against all such contingencies.
8. Make such investments entirely in
cidental to your regular business on which
you depend for livelihood. 1t will prove
a costly appreciation OF wealth if it diyerts
farmers, tradesmen aud other business
men from their daily pursuits, while if
they operate with their spare capital
only, and even bear in mind that it is a
tide of speculation only that must ebb and
flow with the infations and depressions
of trade, most judicious men may profit
by it as it passes, and it will leave them
richer IN purse and no poorer in fitness
for industry when it fades away. Be ev-
er careful that the substance is not aban-
doned for the shadow. The dog tried
that when crossing the stream with the
meat in his mouth, and lost both. Men
will be no wiser.
1. Invest to the extent, of your surplus
means in companies with certain revenues
There are such in the market, and it wants
but a little care ana discrimination to dis
tinguish them If it is an ascertaineh
fact that company has positive yield
Of oil equal to ten or twenty per cent. on
the cash capital, with good lands and am
pie reserved capital for Development, it is
fair to conclude that capital is not likely
to be lost in that company. 1t is reason
ably certain to pay good interest, and the
stock will have a steady market value e
quail to its original cost, while the efforts
for development are all in favor Of the
holders True even such companies may
fail but the chances are largely in favor
Of the dividends
5. 1t is not best to invest all III any one
company. While it is the most prOfta
Die at all, it is at the same time the most
precarious, and it is Lut the part Of dis
erection to try two Or three good companies
instead of one. IF either develops sue
cessfully, the others may fail and the op-
Grafton still prove profitable on the whole
6. Make such investments through
some reliable person at home. In the
cities the business Of selling stocks to ru-
raj friends is a profession, and men are
expected to take advice and at the same
time be responsible for results Most Of
our leading business men in the centres
of trade throughout the country either are
operating in such stocks, or are well in
formed on the subject, and as a rule, they
cannot afford deliberately to mislead those
who counsel with them. They may err
in judgment but generally they will add
vastly to the safety Of such investments.
.G0m5crsJmy Repository.