Albuquerque morning journal., 1913-05-30
nrYING on STOCK

Stock companies nre necessary %
order that capital mag ho second 81
rificient amount 60 carry on over
fairly lurfe oh;erprises nul whci
ihc man with llitio money f. asked
To- invest it in minine % oll uldortak.
inf5 it la wen for him io consider
several things
i can he afford 10 lose the mon.
m u is % eamhia whore The reward
nae ho lafae. hnt wher The chaneog
aro thai he never VIII neain soc The
color of Tie cash h. is parting with.
lf he can afford % take tho chance.
be- mHy hc 4 hle winner
q WIN the munngomcnt Of tho
company BE honest and cffie.cut9
should II tack IN either particular. n
would De quite ns sell if the money
were dumped into DE river
Qulie We important la kuowl.
edke OF What one Is buying For ex-
1mrie II company ia Incorporated
iof ono hundred thousand dollars and
sioos IS aold oa that haais. the man
who puts one hundred dollars into n
Is buying irio The entcrprlse on boa.
ls uf one hundred thousand dollars
value ~ Illustrate again. that hum
drcd daliara entities him 60 a one
thonmndth interest In the business In
other words. of every one thousand
dollars 81 net profit made by the
company he is entitled 20 one dollar
for hlf rart
decade ago u Was customary for
companies 60 take up mining claims
or On omlms organize companies FOR
prphahs one hundred times the value
~ the property the organizers OF the
company taking ia Payment fer such
holdings NJ They hal The larger part
af the stock rhey would then sell
pafi of The stock in the treasury
which eonla hc ured Tor dceelopnent.
sometimes. aud nt the aama time
would work of. at a lower price frc.
uieulls. stock held ~ tho organizers
of "a, eonipany themselves. that non-
IS eoinR Into their pockets
Tho plnn waa 10 make money out
of the stock sales Instead of out of
lhe output af the property They play
ga for large stakes In the surcst sort
al way 49, and l2 The postofflcc de-.
partment got after ihcm II was
learned ihat ng such schemes the in.
Ycstnra of the country were being
windlea out Of moro thnn hundred
million dollars annually quito a nun.
hcr oi ihnse eei.rch-qnlck gentlemen
Wcrr sent to the penitentwry for lanr
terms
onp 81 tho Old sine fNoHtc WHY'S
81 fieoeins the public WIS 20 eapith-
lac properly TINT mlghl have i pos-'
Hhie whine of flfy Thousand dollars,
"a five millions Then the stock
would to prt on ihc nmtkct a. ten
GENTS q aharr or at five cents q share,
The indnccmcnt always was held out
than it mieht 90 TO par. IN which EVENT
the purchaser would mako a thousand
per cent on his meuoy. 81 two thou-
sand
Tho hiseer Tho capital stock the
hctier fl sounded to tho man who
knew nothing q such things lie did
MOI roaize ihat &c ton cents share
Dig was NWne property II fvr
hundred ihausand dollurs whleh If ho
naa gee hundred thousand dollars it
miHhi ho ihN ho would not pay ten
ihpu~ad dalAfs fsr
Thcte viii be- many oll companies
ofsaniaed ln Scw Mexico. und il Isl
uta there should he for it mRcs
money VI @ lose all tho money they
Who - in on sane naIs have op.
paflunHy to nuke Rreat dNl OF
ouuof ol Ca lose an the money they
lpYest i{nt wlu should 81 loaiecd "a
oarofnh Is Nhether thrre o. romnn
alie hope ID the enterprise shonla
sue4uta that tae reward would likely
W. eaual e tho rlsk
For instance It may cost liNo tbou-
sand dollars 10 dnH well deep
anaueh 60 iest particular point fof
ml 4 nev cost Twenty-Five thousand
annafa l unusual depths are to be-
reached and unforeseen difficulties
nra encountered ordinarily It should
MOI eesi mure than three thousand
aaiil a. dfiH t'ipuHand icet
AHofhcf lhing is that nai mere ihan
three Yells ahaaid 81 necessary %
isat any limited locality Il that nulns
per of wells arc drilled and no - h
found common seiee would "a, Tint
it should bo abandoned It ~ b.
faand Ia payine auhntiliet then me
field eil nnance itseli
Furthermore there should he ne
shaaphi that wells xleh as now are
pfodn einr thousands u barrels u oil
i day VII be found IN New Mexico.
While there is such possibility it
would be- foolish 80 assume that Il s.
probability II i true that one well