The Washington herald., 1918-12-19
Financial NeuJ.--Stock Market Prices
GREAT DEMAND
FOR TEXAS OIL
Holland Tells Story Of Com
pany's Remarkable
Development.


When men of capital think it worth
while to bid a thousand and twenty
dollars for each share of a corpora
ton. although the par is only one hum
dred and the dividend which the cor
poration pays is only 6 per cent. then
II is certain that capital believes that
wealth possessed by the corporation Is
so great as to justify an offer OF over
a thousand dollars a share A day or
two ago reliable reports of the onering
OF a thousand and twenty dollars a
share for the stock OF the Texas and
Pacific Coal and Oil Company were in
circulation. The understanding was
that notwithstanding this unparal-
leled offer not share passed from the
owner to those. who were anxious to
buy the stock Men who have had ex-
perience in the. securities market say
that, with a single exception. never
has there been such a rapid and great
ADVANCE in offers for stock as has
been the case within a year for the
stock OF this Corporation. Since this
.offer does not represent any specu-
lative activity but only Investment
purpose II can be reported without
any suspicion OF attempt to influence
the market, that the history of this
rapid advance Is without parallel ex-
CGpllnB IN Lne case WheEe certain
corners have been manipulated so
as to force the market price for stock
10 very high figure. Corners are,
however temporary things. They are
passed speedily. although often, 10
financial loss for those who attempt
to go around them
But in the case of this corporation
there is both physical wealth and hid
den but certain wealth. There may
come a development of the oil industry
or That part OF il controlled by this
corporation such as in all the history
OF this industry was never known. 1t
is one of the great romances of the
industry. comparable to the discovery
OF unsuspected and great deposits of
precious metals. A few years ago this
corporation was exclusively occupied
IN exploiting coal in Northern Central
Texas. Relatively speaking it Vas a
small corporation. the control being
in the hands OF New York business
men and the financial sponsor was
New York private banking house. For
nearly thirty years this business.
small in its way. but remarkably prof
table. was carried on and the owners
Of the property did not have the
slightest suspicion that riches greater
than coal were theirs. waiting to be
discovered and then exploited. BY ac-
Cident almost. certainly by chance,
il was discovered that underneath the
soil were great deposits Of oil. and
men of science. having made a study
Of conditions. reported that In all
probability one of the greatest oil
pools i'm the world. certainly in the
United States. lay beneath that soil.
\ little over a year ago the stock
Of this company was quoted at t5Out
10. Early in the year it began to
il was parted with Then in the
spring of this year IT jumped again
until bids for il were at the rate of
$500 a shsre. There was an increase
Of capital by a million dollars which
the stockholders Mere privileged to
accept at par. Notwithstanding this
phenomenal increase the stockholders
constituted a very close corpora ton,
as close as any in the United States.
From time to time during the summer
bids were made Jumping from day to
day one hundred to two hundred dol
lars a share until in October there
were would-bC purchasers who were
willing to pay as much a $500 a share.
Now bids little in excess of $1,000 a
share are being made and no one can
tell how rapidly or high these bids
will continue although il is doubtful
whether any conceivable amount of
money can be offered sufficient to
tempt stockholders to part with their
stock
Aside from the very sensational in
crease in the market quotations or at
least in the bids for this stock and
the highly romantic interest associat-
ed with the discovery of vast wealth
not until recently suspected. there are
certain industrial and economic rea-
sons which this phenomenon sug-
gests.
OIL Prince, Almost King.
II anyone is willing to pay more
than $1,000 for a per cent stock.
the par value of which is one hun
dred, that disposition must be in
part at least due. to the belief that
oil is to become Of greater and
greater value and importance--fn-
American industrial life When il is
remembered that the production of
oil in the United States in the year
1917 amounted to 341. 200. 900 barrels.
and that $4,000. 600 barrels Of one of
the by-prOducts Of oil. namely. Iub-
ricating oil, were produced in that
year. some idea can be obtained Of
the enoTmity of this industry.
Nevertheless many of the -experts
are OF the opinion that unless new
and very great oil fields are dis
covered our oil resources will have
been exhausted in about sixteen
years The apprehensiOns that this
may be so is turning the attention of
competent chemists to the produc-
tion Of oil by the synthetic process
precisely as by a process of this
kind glucose has been obtained from
one of the by-produCts of sugar OIL
consists chiefly of hydrogen and car
bon. There is carbon in plenty and
there is hydrogen in plenty upon
which to depend for working, ont a