El Paso herald. (El Paso, Tex.) 1901-1931, 1919-04-02
.uAD AND YOU
From FL Paso Herald. March s.
.0IL EXCITEMENT
. ANDITS RESULTS.
Some Comment On and In
side Information About
New Oil Fields.
by n. A. MICHAEL.


Since an oil boom Is in co1tenpla-
I ton in FL Paso the story OF an oil
I boom in another town is not only
very interesting but also touches On
Z the instructive
When the oil boom first hit Tulsa,
Okla, Il was an overgroWn country
village with about 10000 people The
six-story national bank building was
I the most important building in town.
Following the oil craze a score
OF small companies were or
gained, just as Is being done in
Texas today. As new EuEhers
EpOuteG daily, excitement mounted
EkyWard and the first investors
rapidly accumulated wealth until
they became milli0naires.
In eight years after the oil was
] discovered Tulsa had grown to a city
[ Of $4,000 people with one Is floor
building and Is ten-story buildings
Z The national bank had grown from a
bank in a small rickety building, capi-
tailed at Sl50,000, 70 a bank in one
Of the most costly. large and preten-
lous buildings in the city with a capt.
taization OF S25.o00,000.
A New Game
When the people first venture into
the oil game they scarcely know how
to step. In Fl Paso the oil craze Isl
new and it 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.
Nevertheless many small companies
have made conservative investors
wealthy.
Robert II McFsrlin. organizer of
the McMann Oil company, was born
on q farm in Ellis county. Texas he
went TO Oklahoma with few dollars
and invested Il in oil and lost al Of il
He would not give mp and the
uttle McEIann OIL company con
his associates sold out to the
Magnolia Petroleum for 1900
600.
This was 4 small, struggling
company. Many were reluctant to
place their money in its stock.
Those who did, are now on @easy
street, provided they invested
enough in the company.
Different Kinds OF Investors.
There are some men who invest in I
oil stock and as soon as a wei shoots, 1
rush 20 the stock exchange and place
their stock on the board These men /
are what the real oil bears call ten
oerfeeL' And IL has been demon !
strated that a -tenderfoot'' who has
not the nerve 20 stick with it never |
makes any money worth while
The 1914 Oh company il an
other small one whose holdings
consisted Of 100 acres In the
HelldtOn field. After paying q
monthly dividend for two yearH.
the owners sold out to the Mau-
noAn people and realized enough
On the deal to pay s5S.O0O on each !
500 worth Of outstanding stock.
They had drilled II wells on their
tract before selling.
Eernaps OIL is safe, perhaps Il Is I
not But the practical business man
VIII realize that II he loans his money |
on black soil at s or s per cent in /
a - L. ra-H al
necessary for him 70 fOreclose on the I
mortgage and then the land viii /
really not be worth selling-so ne
loses
Gambling IN Dirt.
The gambler never gets rich and the !
very, very conservative investor is in I
ne same boat. ii has been shown
The gambler il n gambler and
the oil business il business.
Gambling and business do not 20
well together
The very conservative man hangs
onto his coin until the vel shoots;
then he rushes TO get his stock. when
u Is sky high over par But soon the
vel settles down and almost at the
same time the dividends 90 down
Hence" says this man. that COM
pany pays no dividends. I am ont
much money They are crooks The I
truth OF the matter is-he didn't
know
Il - the consensus OF opinion
that IL viii take ten year, TO put
under way the development Of
Texas oil fields TO any great ex-
tent.
Many banks 60 to the wall. There
are many oil companies going to the ]
wall The public in general knows
THAR there are good ana bad stores at !
which 70 deal OIL companies can be I
Analysed In the same manner.
Getting Down to Production
L IS estimated that where the wells I
are put down one TO each ten acres, l
they viii not settle below 40 per cent /
Of the initial production Initial pro-
ductiOn IS worth $500 to $500 per bar
rel and settled production is worth I
$1,000 per barrel
Settled production r. easy TO sell. /
but flush Is difficult 10 sell As an
example, take a small company vita !
a stock Of 100000 and $50 acres Of /
ground properly developed with one I
well 20 each ten acres or Is wells in /
all The IS wells will make about
5000 barrels OF settled production
after q year and the company can
very easy dispose OF its holdings for /
about $4,000 900.
Divided among 100000 worth
Of stockholders this would bring
each one in the neighborhOOd Of
$4,000.
Therefore, 40 after the company
with the right holdings