Perth Amboy evening news., 1918-07-11
CAUTION
IN OIL STOCKS
Board of Trade investigates
Company That Has Recently
Opened in This City.

A number of stock selling schemes
have been launched in this city within
the past fortnight, and have come un-
der the investigation of Irving B. Lin
coin, secretary of the Board of Trade.
The latest scheme is that OF the ElR
Bason United Oil Company, who rent
ed a store in Smith street, set up q
miniature oil well to show how oil Is
pumped, and is selling stock in their
concern. II is understood that consid-
cradle stock has been sold. In regards
to this enterprise Mr.. Lincoln said to-
day:
'srhe opening of the selling ofice in
Smith street of the Elk Bason United
Oil company, brings home the import
ance of warning the inexperienced In
weston against investing his money in
numerous stock selling propositions
which are now thrust upon the public,
before a thorough investigation has
been made.
These various companies promise
fabulous returns. with no backing for
their statements and offer to take gov
eminent bonds for which the people
have saved TO help win the war.
"The Elk Bason United OIL Com
|pany Is only one Of many, but 1t Is an
example. The conspicuous facts IN re-
gard to this company are: They refuse
to give a financial statement. There
is no director this side of the Missis-
sippi river. The par value of the o
Is ten cents. but the agents are SELL
ing the stock for eighty cents, or ten
times its par value.
1.-THE highest stock selling on the
stock exchange yesterday sold for only
two and one-half times its par value.
when the agents were asked what
set this enormous price for their
rANoL 49, ukoKoA khaN Nhafr hon ~ nj
directors had met and decided to in
crease the price of the stock. This ex-
ira seventy cents. for which the in
weston pays for the privilege of buy
ing the stock, goes into the offers of
the promoters" said Mr.. Lincoln.
1.-THE agent also stated that in a
year or two, stock will be selling at 81
or more a share. But" said Nj.
Lincoln. 'the stock Is not OF the mar
ket and Is not listed In any stock ex-
change or any curb and therefore has
no stock market value. The only way
that one could sell the stock would
be to go out and peddle 1t the same
as is done by the promoters.
mo dividends have been paid up
to the present time n 1t was stated
by the agent that probably none
would be paid for a year, at which
time possibly ten per cent. would be
paid In otner WORDS. ten per cent.
paid on a ten cent share for which
you have paid eighty cents means
that you get one and ~one-quarter per
| cent on your investment, and o are
running a risk of losing practically
every cent of your money
at this time when the government
needs every cen II can get and will
give four and ~one-fourth per cent,
and the best security In the world,
the people of Perth Amboy should
think long and investigate thoroughly
before throwing their money away,
and should loan their money to help
win the great war for which We are
fighting" said h secretary.
The Chamber of Commerce OF the
| United States. the treasury depart
ment and man national publications
are warning the American people
against investing their one In
these highly s~pecuiated and doubtful
~enterprisea The Board of Trade
working In the interest Of this city
warns the people who are working
land saving 70 thoroughly investigats
before investing In enterprises thai
have no standing. whose methods arc
questionable. Instead, they are urged
TO put their money In the hands OF
the government where they car gel
the safest security n a liberal re-
turn