New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-28
Morton Oil, Preferred and Common.


MY earnest and steadfast conviction is that tnere
is not to-day in the United States Of America an Ia
vestment that combines the essentials OF saIeS doas
vested principal with superior returns better tn4 on
tho preferred and common stock of The Norton vi
Company, of Liberty Township Delaware OouA'''
1t is an ideal investment. ,.-.,, t,,,,,,or
1t has 3933z acres of oil producing land IN Ie JU
vein Of the rich petroleum district of Indiana. cos
II has IS producing oil wells and natural gas
r. has locations for % more wells. which, when
drilled. will increase the number OF producing WINS
Its wells are drilled all around borders OF ITS
property in order protect il from companies -
of the boundary drawing off of its land me itb
its great acreage has not as yet Deeh lo"'"e'
drill.
In all the drilling and testing of the property bur
one 'drv hole" has been encountered. This is very
extraordinary showing inasmuch rs dry IoteS IL
other districts average about one in every eight .
It's nroperv is held under perpetual leases proper IN
form. duly executed and recorded ,
The Company owns one of the most modern eqGlP
mens in the entire Indiana oil field consisting OF nVe
central pumping stations from which power 10 pump
Tho ror6re VOLS is distributed: fifteen gas engines, four
steam engines - horsepower boilers, thlry-on
ton small ranks Giving il altogether tankage capacity
of 10000 barrels 1t has also number OF com1orlaole
cottages which occupied by employees ,
1t has no bond issue no incumbrances no enuansie
ments and is involved II no litigation whatsoever
1t has no debts of any kind
Its pipes are connected by complete pipe line sys-
tenn with the Indiana Pipe Line Company one OF the
subsidiary companies of the Standard Oil Company ana
the highest market quotation
It's average monthly production has been nearly
1850 barrels month, for which it now receives u
cents a barrel
For the year ending October 81 1905, the books Of
The Norton Oil Company show that the Indiana Pipe
Line Company has paid for oil produced from It's Wes
the Of $129O3762. The total operating expenses
for the same year approximately $4,000, leaving
a net profit of Sill O37G2 to the business.
The Company begins the year a gross earning
basis Of at least $4,000 year, and before the end
Of the year its net profits are expected to exceed that
figure.
By the advance in price from So cents to 81 cents a
barrel which went into effect some time ago. over
$1,000 a month, an offset against more than two
thirds of the operating expenses. added to the in
Of The Norton Oil Company.
The price of Indiana oil has been high S1.31
barrel and old oil it will to that figure again.
and some believe that it will beyond it and reach
$3.50 barrel by July LIST next 1t is we'll known fact
that never in the history of oil production has there
been such lack Of supply as compared with increasing
demand.
Counting only the present production at the low
figure Of 1850 barrels month, the income of the
company. should such predicted advance materalize
that WITHOUT ADDING y CENT TO THE COST
OF OPERATION
Should the volume of production be trehled by the
drilling Of 10 wells throughout the interior the
property gross income Of over 100000 may he
IT THE EXPECTED INCREASE.
While the gross income of the business may be
TREBLED the basis Of 91 cents a barrel and while
I may he more than QUADRUPLED through the con-
jiuons that make advanced prices for oil imperative
within short time 1t is not at an ifely that the
cost Of operating the Companys plant win ever be ma
rerialIy increased.
The White River, which runs across The center Of
the property has high banks and good fall. 1t is
President Nortons intention to at once utilize this
wafer power that is now going to waste and make it
uFINe me machinery OF the plant This power be
economically haneSsed and this season it is equal
TO about 300 horsepower In the dry $50 horse
power may be obtained Much of the extensive mo
cIinery. all of which is practically new, can be dis
pensed with and disposed Of when the water power az
hand is introduced. The utilization Of this natural
force which President Norton estimates can be effected
at cost of not $1,000 will he estimates add n
half million dollars TO the actual value Of the property
Inc capitalization Of the company being only 81 600 600
Ihat means 500 added TO the book value the stock
by one Improvement item alone
1t is President Nortons intention. bv the introd1c
uon or TINS and other economies TO produce oil and
deliver 1t into the tanks Of the Standard Oil COmnanv
al price which for all cost of operation and main
tenance will not exceed cents barrel On the lowest
estimate warranted by the actual condition and outlook
III ue petroleum industry oil will sell for DOLLAR
barrel giving stockholders a clear proft of o. cents
o" me a04oL This will only represent advance Of
oil produced by The Norton Oil Company ''''
am offering 1000 shares of the 1Ocs preferred
stock OF The Norton Oil Company $131 a share and
WIN WIN every such share purchased I giving away
creaSlnS to many times that figure
~ Hi"I a share Norton oil preferred pays over
Than Amalgamated which nets investors nj nreseD+
selling price only little 80 and equal if NOT
LISTED on THE NEW YORK SrOCE[ FyCtEI W. NJ !
AND THE COMMON STOCK COSTING MOTH
~ c II TODAY WORTH AS MUCH OR MORE
THAN THE PREFERRED STOCK ~
The Norton Oil Company is capitoIIzod ~ 1 ?,
O0W0 OF which amount 100000 is 100 preferred and
100000 is common stock 20 PI'ieiIeu anu
The full dividend reqlIiroman+s oe +,o 500, -. .
stock amount TO only $4,000 2 wear " p- 'i01
Dividends on the preferred stock are narabIo o,,o
ter 500 per share on April st July LIST Octoher Is+
and January LIST of each year 7 oeI ISL