Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1919-08-03
The Rush For Oil Stocks

averages. This also applies to the
efficient oil companies, and most of
the large oil companies are as eff
GENTLY managed and operate upon as
scientific lines as any Of the large
insurance or banking corporations.
AS mentioned above, the demand
for petroleum exceeds the production
and this condition is likely to last for
some time. Last year the amount of
oil moved from producing farms in
the United States was 339,0O0,O00
barrels. The consumption in the United
States was 397,OOO,OOO barrels. It
was necessary to take 27,00O,0O0
barrels out Of storage and to import
36,500,000 barrels in order to take
care of this consumption and to make
up for the 100000 barrels exported.
The investor, however, should buy
oil securities with his eyes open. He
should know beforehand whether he
is making an investment based on
established position, or whether he
right or knowledge in a company of
is specializing on faith. or whether
he is gambling on the slim chance of
making a great deal for little
Oil Securities Should Go Up.
Securities of oil companies of
proved earning power and substan-
tial assets, especially those forming
within themselves a complete cycle In
J the oil industry, have come into their
own in the financial centres of the
country. The reason for this changed
attitude in regard to the securities
of reputable oil companies are many,
but it is only sufficient to view the
economic position of the industry to
realize why securities of such COM
panies have become favorites even in
conservative investment centers.. The
oil industry is the one industry upon
which there is little doubt as to the
effects the reconstruction period now
before us will have. Oil is King, and
upon petroleum and petroleum pro-
ducts will come the heavy burden of
the reconstruction of the world.
Ocean going vessels will be driven by
oil, either through internal combus-
ton engines or under boilers to pro-
duce steam. Motor trucks and trac-
tors by the thousands will be used
throughout all war devastated lands,
and to operate these will require pro-
ducts of petroleum in various forms.
The steady increasing number of
| pleasure automobiles requires more
and more gasoline and lubricating
oils. To the already numberless uses
for petroleum and petroleum pro-
ducts new forms are being added al
most daily.
Earnings of substantial oil COM
panies are large. On the strictly in
vestment securities issued by such
companies the purchaser receives an
| adequate return on his money, and
on their more speculative securities,
such as common stocks, large divi-
dend disbursements are the rule, and
in addition with the growing popu-
larity of these securities, and the al
ready large and steady increasing de-
mand for their various products,
there are excellent prospects for ma
terial advancement in the securities
of these companies. To the investor
in the well established, properly man.
aged and conservatively financed oil
companies, the future has much of
promise, but to the purchaser of
stocks of wildcat companies, hastily
organized, financed largely for the
benefit of the promoters. and with
good management only in the sale
and distribution of their securities,
There can be held out but little hope
even for the return of a part of the
funds which have been so unwisely
invested.