El Paso herald. (El Paso, Tex.) 1901-1931, 1919-03-19
From Fl Paso Herald
March 9TH, Page 16
OIL EXCITEMENT
ANDIT5RE5ULT5
Some Comment On and In
side Information About
New Oil Fields.

Since an oil boom IS in contemplation in
FL Psso the story OF an oil boom in an
other town is not only very interesting
but also touches on the Instructive.
when the oil boom hit Tulsa. Okla.
Il was an overErown country village with
about 20 900 people The slN-story national
bank building was the most important
Following the oil craze score OF small
companies were organized, just as is being
done IN Texas today As new gushers
spouted daily. excitement mounted sky
ward and the first Investors rapidly &C
cumulated wealth until they became mil
uonaires-
In eight years after the oil was discoy-
cred Tulsa had grown 20 a city OF $4,000
people with one 15-floor building and is
10-story buildings The national bank had
grown from a bank IN a small rickety
building capitalized at $4,000. TO a bank
in one Of the most costly. large and pre-
tentious buildings in the city with
capitalization Of S25.0oo.0oo.
New Game.
when people first venture into the oil
game they scarcely know how TO step
In e Paso the OIL craze Is new and Il Is
the opinion OF many that buying stock IN
the oil companies is Ike throwing dollar
bills on the winds small are the
chances Nevertheless. many small com
panies have made conservative investors
Robert NJ. 1IcFarIin. organizer OF the
McMann OH company. was born on a farm
in Ellis county. Texas He went TO Okla
horna with Few dollars and Invested u
in oil and lost all Of It He would not give
up and the little 1fc3fanu OIL company
continued little time ago he and his
associates sold out 70 the Magnolia Pc
troleum FOR $4,000. o0o-
This was a small struggling company.
Many were reluctant &c place their mcneJ
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 oil
stock and as soon as vel shoots rush
70 the stock exchange and place their
stock on the board These men are what
the real oil bears call 'tenderfeet-" And
q has been demonstrated that a tender
foot" who has not the nerve 20 stick with
q, never makes any money worth while.
The 1914 on company is another small
one whose holdings consisted OF 100 acres
in the Hesldton field. After paying
monthly dividend for two years. the own
ers sold out 20 the Magnolia people and
500 worth Of outstanding stock They had
drilled Il wells on thelr tract before sell
Perhaps OIL e safe. perhaps Il = not
But the practical business man viii
realize that II he loans his money on black
soil al OF per cent interest. drouth IS
liable % make T. necessary for him 20
foreclose on the mortgage and then the
land viii really not be worth selling
Gambling in Dirt
ne HaIAA-aE never AHAa EAa4 NN0 Tn
very. very conservative investor IS IN the
same boat, Il has been shown
The gambler Is 2 gambler and the OIL
business Is business Gambling and bust
ness do not 90 well together
The very conservative man hangs onto
his coin until the well shoots; then he
PUSHES 20 get his stock. when Il Is SKY
high over par. But soon the well settles
down and almost at the same time the
dividends 90 down Hence" SAYS this
man that company pays no dividends
It Is the consensus Of opinion that It viii
take 10 years 20 put under way the de
veIopment OF TEXAS oil fields 10 any great
extent
Many banks 60 to the vail There are
many OH companies going 20 the wall. The
public in general knows that there are
good and bad stores at which 90 deal Oh
companies can be analysed in the same
Getting Down to Production.
II Is estimated that where the wells are
put down one TO each 10 acres, they wiz
not settle below 90 per cent OF the initial
production. Initial production is worth
$500 10 $500 per barrel and settled produc-
tlon IS worth $1,000 per barrel
Settled production is easy 20 sell As an
example. take a small company with
stock Of 500. 900 and $50 acres Of ground
properly developed with one ven 70 ee go
10 acres or Il wells in all The IS Welis
will make about 5000 barrels Of settled
production after a year and the company
can very easily dispose OF its holdings for
about $1,000. 600. Divided among 100000
worth OF stockholders this would bring
each one IN the neiEhbcrhood OF $4,000
Therefore go after the company with the
rs BARRELS PER HOUR
Is RECORD OF Oh. WELL
Reports state that the Flncher No
we'll OF the Gulf Production company. In
stephens county. Texas, was making last
Monday about 225 barrels per hour. OF
more than 5000 barrels per day II is one
Of the deepest wells in that part OF the
field.