Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1901-05-30
LIKE FLEECED LAM
CONDITION OF MANY INVEST
IN TEXAS OIL STOCKS
% * S<&N.'S
The Big Companies Can Be Demo
Upon to Control the Output-Au
mense Amount of Stock Sold WI
Is Probably Worthless.

The oil craze in Texas has subsidM
such a degree as to cause many NJ
to look into things in a practical
ner, and the outlook to the great
Jority is not very promising ForM
have been made and more will be n
but the small investors will have I'd
for them. Among this class are the &
sands of widows, seamstresses. ia
children and domestics. They have
ed their savings into the treasure
some one or more of the speculative
companies and have had visions of 1
and expected quick returns. Thew
sure to be disappointed. Experience
others in the past in chasing viii
schemes held forth no lessons or Vi
ings to them.
Nearly 800 ''oil companies have
organized in Texas during the
month, says a Beaumont correspond
and it is estimated by prominent
moter that 90 per cent of them
never pay a dividend. About 10 olI
every 100 have something BORDERING
the substantial to offer to the publi
the way Of speculative Investment
the others have nothing more thai
little tract or two Of land, bought fl
song, which is Situated somewhere
eastern Texas, and around which nd
fort has ever been made to find oil.
may strike oil, no one can tell anyt
about that, but their chances are ST
and if they ever do their stock has
watered until no oil we'll in the W
could pay interest on the inyestm
The promoters, however, come out
right, for they get big cash bonuses
of the treasury from the funds real
from the sale Of stock, so it does
make very much difference to t
whether oil is struck or not Then, t
are the heavy salaries Of the officer
be paid all the time the stockholdc
waiting for the well, if any is
bored, to get down far enough to
hope for oil. In the meantime it Is 2
able that the small investors are wor
and saving so as to be ready to gras
some other bubble" which may be f,
cd from speculative soapsuds.
Facts and Figures.
It must be remembered that the 2
majority Of the small investors are
resented in the small companies.
big companies, the ones which will /,
the money and control the output,
owned by the people who have plent
money and do not find it necesSar,
advertise their oil stock for sale. \
q first class gusher in the Beaumont
has been selling for $1,250,0OO. 1t
require another million for pipe lines
tankage and a quarter Of a million
other expenses before fuel oil mar
have been opened up. If the gus
would continue to gush as they are
doing everything would be profitable
the owners, but sooner or later the pu
will have to be applied and then {
dends will decrease. Even then it m
be possible to pay interest on the inv
ments Of the big companies, but the ?
poets of the smaller ones are exceed
ly gloomy.
Most Of the other companies are
italized from 100000 to $1,000,
Their stock is sold way below par
when the promoters get through with
treasury funds but little is left for
velopment purposes. Should these s.
companies strike oil and should the
average 100 to 200 barrels a day, W
would be a big we'll as wells go, the q
ton then arises what would they do
the product? The big gushers, even a
the pumps are applied, will supply all
fuel oil for which there is a market
many years to come, for it will be a
time before coal will be generally
planted. The gusher companies VII
amply provided with pipe lines and t
age and the smaller companies vii
completely at their mercy, even gran
that some one big concern does not c
in and secure control.