New-York tribune., 1919-07-14
Oil Enterprises
Are Attracting
Staid Investors
Excess Profits of Large
Industrial Organizations
Along With Bank Funds
Drift Into Texas Fields
Financial Bureau
SDeciCI COrresDOudence


AUSTIN, Tex, July 12-It is shown
by recorded transactions that many
men of staid and conservative iudg-
ment, particularly along investment
lines, have entered the oil industry in
competition with the older and larger
we'll l-estabished operating companies.
What the outcome of the great influx
of new and independent capital into
the various branches of the industry
will be no one ventures to predict. 1t
is evident that the excess profits of
many large manufacturing enterprises
are being invested in oil leases and
producing wells in Texas.
The recent purchase of the exten,
sivc holdings OF the Gates Oil Company
by the Guggenhcims is an illustration
Of the general drift of outside capital
to the old fields Of this state. Already
several companies have developed into
big operating concerns through the de-
velopment Of their respective proper
ties or the purchase and merging of
other holdings. These growing cor
porations are following much the same
lines as marked the development of
such companies as the Texas Company.
The Humble Oil and Refining Company,
the Empire Oil and Gas Company and
host of others that are now impor-
tant factors in the industry.
Bankers Become Interested
Banking interests, not only of Texas
but throughout the East, North and
West, are giving substantial recogni-
ton of the stability of the producing
end of the oil business by making
heavy investments in the different
proved fields as well as in territory
that may be many miles removed from
them. From Maine to California men
are pouring into Texas for the purpose
of visiting the different oil fields and
satisfying themselves as to the truth
as to the scope Of development opera
tions and the opportunities that may
exist for profitable investments.
Along with these men there ebbs
and flows through the streets of Burk-
burnett, Ranger, Eastland, Desdemona,
Cisco, Breckenridge and De Leon, a
restless horde of persons attracted to
the scenes of excitement for no plaus-
ible reason. They are the typical BOOM
ers, promoters and get-rich- quick men
who are at home wherever they hang
up their hats. These men are ever
ready to swing any kind of deal, no
matter how unsavory it may be. They
have no compuuction about selling
worthless oil stocks, or floating ficti-
tious corporations.
More Pipe Lines Needed
More pipe line and gathering sys-
TENS are beginning to be badly needed
in the Burkburnett and Ranger fields
in order to handle the existing and
prospective production. 1t is asserted
by the smaller Independent operators
that but for the lack of pipe line out
lets there would be considerable in
crease of the actual output of these
fields week by week. While some eff
fort is being made by the Texas Com
pany, the Magnolia Petroleum Com
panay, the Prairie Oil and Gas Company
and probably other large operators to
meet the demands Of the smaller pro-
ducers by extending their common car
rier systems to the widening areas of
the different proven fields. the neces-
s'tics are Of such nature as to re-
quirc much greater pipe limo cxpan-
sion than is now planned.