The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-07-13
State Charter Officials to Look
Over Oil Fields.
Applications Necessitate Inves-
tigation of District.
BENSON MAY BE MILLIONAIRE
State Bank Commissioner Elk.
tensive Land Owner.
Several Million Dollars Sold in
Only Short Time.

Members of the state charter board
are to study at first hand conditions
in the Augusta Eldorado oil and gas
fields. Numerous charter applications
during the last few weeks have led to
a decision to visit the oil district. The
trip will be made with a view of de-
termining the wisdom of approving
extensive stock selling schemes.
More than thirty new oil companies
most of them with headquarters in
Wichita-have received charters dur
ing the last few weeks. Twenty-Five
of these companies were permitted to
sell stock. Several million dollars
worth of stock has already been sold.
Most of the stock was taken in invest
ors in the frenzied oil district.
Through the promotion of these
companies, a number of new oil fields
have been opened and some of the
companies now own large producing
stock, sunk a few wells and retired
from the game. Their capital was
either not sufficient fully to develop
their leases, or a few dry holes dis
ccuraged promoters. AS a result of
these operations, Eldorado and Au-
gusta have developed an extensive oil
field Wells producing 1000 or 1900
barrels OF oil a day have oeen drilled
in the new district But the state
charter board wants to know more
about the operations and it was an
nounced today that the board would
make a trip through the oil field in a
few days.
w. F. Benson, state bank commits
sioner, is a member of the state char
ter board and also an extensive land
owner in the new oil district If pro-
duction on the Benson land is as
great as in adjoining fields, it is quite
probable that the state bank commits
s1oner will retire from public life next
spring with the rating of a millionaire.
May Become a Millionaire
Benson owns several thousand acres
of land in the Eldorado field He
has not leased his land. He has not
sunk a dollar in promotion or develop
ment schemes. He has merely waited.
II drilling being done on three sides of
Benson's land proves the territory is
as productive as that two miles away,
Benson's profits will be read in seven
figures.
Benson will accompany J. T. Bot
KIN, secretary of state; and S. NJ
Brewster, attorney general, in the trip
to the Butler county field. The three
men compose the state charter board.
They propose to gather first hand in
formation concerning the location of
leases OF various companies. They
will also study promotion and pro-
duction in the several fields On
their findings will depend the future
OF the big stock selling scheme pro-
NOTED in Wichita,
Probe Oil Companies.
Recently deputy from the state
bank commissioners office inspected
books of number of Wichita oil and
gas companies. The inspection was
ordered in an effort to determine the
promotion expense of certain COM
panies- In all instances, the state
charter board has directed that not to
exceed 15 per cent of the stock of the
company shall be used in the payment
of salaries and promotion expenses.
Rumors to the effect that several COM
panies have exceeded the speed limit
in the matter of expenses and that
other companies are promoting wild
cat" ventures have led to the decision
of the board to visit the field. 1t will
be the first personal inspection trim
made by state charter board in sew
era1 years.