The San Francisco call., 1910-01-30
THE LOCAL SITUATION

In spite Of the unsettled condi-
tious Of the Eastern stock markets ,
the heavy selling OF securities prac-
Tcallv controlled by Eastern cap
ftal: The consequent downward ten
6eucv of values: the heavy losses
incurred by the spectators and
thc resultant disturbance on the
stock exchanges throughout the
country. the market for California
oil shares listed on the exchanges
in San Francisco and Los Angeles
has remained firm with a steady de-
rnand and good volume or
business.
There have. Of course. been the
ordinary fluctuations, but with very
Jew exceptions no losses have been
recorded and some substantial
gains have been made
This emphasizes the stability of
The oil shares Of this state for Id
restnlent. and on this account, as
veli IS Tor the larger dividend re-
arms 70 be obtained, we have Tor
i some time been advising our clients
20 sell out Eastern securities on
he high points and replace them
with the good oil stocks OF this
state. Those who did so have been
able to sit back and let the other
fellow do the worrying.
Associated has declined through
disappointment in regard to the
generally looked for dividend an
nouncement. 1t Is the opinion or
many close observers that the prlce
has touched bottom and there has
already been a slight advance from
the low point OF Tuesday.
Palmer has met with another at
tack from the bear element and has
suffered a setback.
Monte Cristo has held fairly
steady at prevailing quotations.
Illinois Crude has advanced to
a bid and = asked, wieh sales as
high as S.. The rumored intention
Of the management to acquire ad-
ditional property and so increase
the already very profitable produc-
ton has undoubtedly strengthened
the demand for this issue.
Premier has been IN strong dc
mand al slightly fuctuating prices
during all OF the week. 1t sold up
10 Sl25 and closed Sl221z bid and
offered at Sis. On account OF
fluctuations many orders have been
placed AT z limit too low to permit
of their execution; otherwise the
volume OF business on this issue
would have been much greater. As
the shares are being absorbed prin-
cipally for investment, the price
viii. in our judgment, have steady
upward tendency, and many intend
ing investors who hope TO secure
the shares at a lower price will
eventually pay higher for them.
This is, in the majority of cases,
the result of a low limit order
Where one buyer is fortunate
enough TO secure the shares at his
limit there are dozens who follow
the market up al an advancing
limit. and finally purchase at higher
figures.
The shares of the Premier Oil
Company we regard at this time as
the best investment OppOf lunlly TOT
very large dividend returns and
consequent increase in value The
knowledge that the company will
soon 90 on a dividend basis has
created a great demand for the
shares and the price has steadily
advanced in the past month from.
about 90c 10 as high as Sl25 per
share
We. have been familiar with the
coupany's property and manage
ment from its organization and
have steadily advised investment in
the shares. With a present produe-
tion of about $4,000 barrels per
month from only 10 wells, and ap-
proximate earnings at the rate of
"a per cent per year net on the
entire capitalization, the returns
from the property. when the 40
wells. are completed. should permit
Of dividends that few companies
are now able to pay. We recon-
mend the purchase of Premier at
the market