The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-06-27

of the leading men Of this city who have
made a careful investigation of the Kern
river oil fields, as to the correctness OF
the statements contained in this letter;
and my object in writing you is to COO
rect an impression which seems to be
abroad, that there is no merit in the
California oil fields. T.. N. WOOD.
Such of the above statements as are
the result of Mr.. Woods personal OBJ
servation are no doubt accurate. This
tabular informal ton is doubtless taken
from newspapers and pamphlets printei
in the oil regions, and should be verified
by all men interested III the subject OF
oil production. There is little or moth
ing in the communication of Mr.. Wood
in conflict with the article printed in
these columns on Tuesday, advising the
people of this state to avoid wildcat oil
speculation. Many of the wells which
We're being bored when Mr.. Wood
visited California in March are now
lessened since that time, according to
the statements of Intelligent and reliab,e
observers who have lately investigated
the oil business. Mr.. Wood quite agrees
with the Inter Mountain as to most OF
the oil concerns now fleeing the public.
and was himself instrumental in bring
ing to book the officials of the Diamond
company, who had Systematically swim
died the public, and even imposed on
our correspondent himself to the extent
S
doubt that of the 5000 oil companies in
corporated in California 1000 are tizzles
| or frauds. Ultimately the California
oil product will be in demand, but it is
not an illuminant and therefore not
nearly so valuable as the Pennsylvania
| and Texas oils. AS a substitute for coal
and wood, however, it will be worth mil
lions of dollars annually to the Golden
state. The main criticism is that the
| owners of Oil lands are working the
public instead of their sinking machin-
cry. If there We're such certain ana
| enormous profits in the oil concerns as
the Diamond company pretended to be-
| lieve, there would be no need of hawk
49,
| Montana to raise a working capital. II
Oil were in such abundance and such de-
mand as the oil companies claim, the
latter would not be trying to sell stock
| enough to cover their land with ma
chinery, but with a simple and modest
start would put down a we'll, and soon
have so much money from the sale of
oil that not a share of stock would be
| allowed to slip away from them. They
would keep it all and revel in millions.
The fact is, however, that such fraud
uent concerns as the Diamond had no
oil and no oil land, and when an inves-
tigation was begun, collapse followed.
Many such concerns are doing bust
| ness on leased land which they capt.
| talize at fabulous amounts. If by
any chance they should discover Oil, no
stockholder would live long enough to
see the color of his money in the form
of a dividend. 1t is ridiculous to expect
that a piece Of oil land capitalized at
several hundred thousand dollars is
going to pay profit with oil at present
prices, and it was for that reason that
the Inter Mountain advised extreme eau
ton on the part of intending investors.
Some of the companies are honestly
managed and have good prospects, bat
discrimination is prime essential tc
successful investment at distance Of
1900 miles, and so the Inter Mountain
was only performing a duty to the public
in sounding note of warning. 1t doe:
not say there are not square Oil oper
ators or producing wells, but it does sa,
they are scarce. Within the past few
days such reputable citizens as Judg
Dixon, Hon. w. H. Dewitt, Georg
Casey D. NJ. Newbro, o. Hight and Johl
, Caplice have returned from California
with distinct impressions of the oil bust
: ness as a result of personal investga
ton or reliable information. They viii
= confirm the utterances of the Int
h Mountain. AS to the Diamond company
, Mr. Woods himself will cheerfully cor
, roborate the statements of this news
paper.
:. Much of the stuff printed in the O
4 regions about the Oil companies, thri
prospects and profits is unreliable. S
t are the tables of production and con
d sumption The reputable press of Cali
: fornia is denouncing the wildcat con
:. Germs in vigorous terms and ridiculin
the capitalization of much so-cal!e
oil land upon which not a grease spe
- has yet appeared A wildcat oil we'll
"a quite as disreputable as wildcat quart
= mine. Conservative men will do we'll
avoid speculation in either, no matte
1t where it may be located, far or near.
e men desire to take a chance with the
10 money, let them invest it only after
ID personal investigation or upon the a: