El Paso herald. (El Paso, Tex.) 1901-1931, 1919-03-07
OIL EXCITEMENT
AND ITS RESULT.
Some Comment On and In
side Information About
New Oil Fields.

Since an oil boom Is in contempla-
ton in Fl Paso the story OF an Oh
boom in another town is not only very
Interesting but also touches on the
Instructive
When the oil boom forst hit Tula.
Okla. it was an overgrown country
village with about 10000 people. The
six story national bank building was
the most important building in town
Following the oil craze a score OF
small companies were organized. just
as is being done in Texas today As
new gushers SpOuted daily, excite
menu mounted skyWard and the first
investors rapidly accumulated wealth
until they became milliOnaires.
In eight years after the oil was
discovered Tulsa had grown 70 a city
of 10000 people with one IS floor
building and 16 ten story buildings
The national bank had grown from
bank in a small rickety building, capt.
tailed at $4,000, TO a bank in one
of the most costly, large and preten-
tious buildings in the city with a capt.
talizatiou OF S25,000, COO
A New Game.
When people first venture into the
oil game they scarcely know how 10
step. In FL Paso the oil craze is new
and il is the opinion OF many that
buying stock in the oil companies is
like throwing dollar bills on the
winds so small are the chances
many small companies ,
have made conservative investors
wealthy.
Robert " AIcFarlin, organizer Of !
the NcMann oil company was born I
on farm in Ellis county, Texas. He 4
went to Oklahoma with a few dollars /
and invested ii in oil and lost all Of
It, He would not give up and the 4
little McAfann Oil company continued /
A a D Hn
,lates sold out 10 the Magnolia Pc
-roleum for S55,000.000-
This was a small. struggling com
lanv. Many were reluctant to place
heir money in its stock Those who
lid, are now on easy street" pro-
-ided they invested enough in the
company.
Different Kinds Of Investors.
There are some men who invest IN
III stock and as soon as a well shoots.
ush TO the stock exchange and place
heir stock on the board These men
re what the real oil bears call ten
erfeeL" And II has been demon
trated that a "tenderfoot' who has
lot the nerve 20 stick with IL. never
makes any money worth while.
The 1914 oil company Is another
mall one whose holdings consisted Of
90 acres In the Healdton field After
aging a monthly dividend for two
ears. the owners sold out TO the Mag
Ola people and realized enough on
he deal 10 pay S5S.00o on each 500
forth OF outstanding stock They
ad drilled II wells on their tract be- ]
pre- selling.
Perhaps oil is safe perhaps It Is
Of But the practical business man
iii realize that II he loans his money
n black soil at 6 or s percent in g
crest q drouth is liable TO make It !
ecessary for him 10 foreclose on the :
.0rtEage and then the land viii 4
sally not be worth selling-so he :
.ses-
Gambling in Dirt. I
Inc gambler never gets rich and the T
cry very conservative investor Is IN s
De same boat. It has been shown ;
The gambler IS a gambler and the :
D business IS business. Gambling :
nd business do not go well together +
The very conservative man hangs ;
lro his coin until the vel shoots. a
len he rushes TO get his stock. when d
is sky high over par. But soon the g.
ell settles down and almost at the =
me cime the dividends 90 down =
fence says this man. that com =
any pays no dividends I an out
UGH money They are crooks" The >
nth OF the matter is-he didn't I
It is the consensus Of opinion that It s
IN take ten years to put under way u
AEN N4lae---- "a HAalH Oh AAEAAa 70
v great extent "A
Many banks 90 to the wall There
e many oil companies going to the
all The public in general knows
at there are good and bad stores at In
lich to deal OH companies can be n
alyzed In the same manner. oil
Getting Down to Production IL
is estimated that where the wells "a
e put down one 70 each ten acres. Il
sv viii not settle below 40 percent
the initial production. Initial pro CT
elton is worth $500 10 $500 per bar pl
and settled production IS worth Ie
BOO per barrel
Settled production IS easy to sell. III
G flush Is difficult TO sell As an OF
ample, take a small company with su
stock Of $4,000 and $50 acres of
1und properly developed with one pr
II 70 each ten acres or 10 wells in dU
The IS wells viii make about FL
% barrels Of settled production I sa
er q year and the company can very IT.
~ DISPOSE Of its holdings for about at
100000. Divided among 100000 alb
rth OF stockholders this would Ia
ng each one in the neighborhood
$4,000. Dr
therefore. go after the company kl
IN the right holdings
BARRELS PER HOUR