El Paso herald. (El Paso, Tex.) 1901-1931, 1919-11-18
IT IS RIGHT POLICY TO GIVE OUT
ON OIL COMPANIES

GENUINE pubIic service was rendered BY the Texas
railroad commission when 1t decided to inform stock
holders c. oil companies the ndon Of the
which they have financed In this action it is carrying
out the spirit Ct the law enacted BY the legislature
curing oil companies operating in the state to file quart
ery reports with the commission, stating their holdings,
operations production income Not only the stock
holders but the whole oil industry VIII be benefited No
honest man VII suffer There are crooks II the Oh bust
ness, just there are IN most everything else. They
have injured the industry than all the busters that
have been brought il and it is at them that the new
law IS directed
Certain restrictions IN giving out information were
necessary The commission has been swamped with in
ques, letters Of such nature running into the thou
sands daily, and there way to tel whether or not
the ingurers bonafids stockholders. Also the
mission found It physical iPossibility to furnish in
formation to al who sought II large per eentage OF
the inquiries in regard to companies still N the pro
motion stage and these the commission has no con
troll Texas has no blue SKY law and prospective investors
must lock elsewhere than 90 the railroad commission for
Information promotions
It is to the stockholders IN producing companies that
the commission be- ard promises to Be under its new
policy Of ieasurahe benefit If any stockholders have
reason believe they not getting tie dividends to
which they are entitled, they car through the commits
sion ascertain the financial status Of their company its
production its receipts and It's expenditures. Such re-
ports many instances win dproye suspicious Of wrong
dong by company Officers II SONG cases they may DIS
close irregularities and i the remedy VII be at hand
is the investor not the speculaor that needs pro-
lection The average investor Is not concerned IN STOCK
quotations He did not invest merely to sell at profit
he placed his money in oil stocks in the hope Of receiving
good returns On his investment He made gamble for
investment he would have bought government bonds OF
other kind Of securities with small interest rate
assured But instead he sed losing al II the hope Of
big things II his company makes an honsst eIIoIs -
gets no production be has for complaint But
his company drills and gets oil be expects, and rightly 50,
share the profits, according to the amount Of his IN
Vestment.
The railroad commissions new policy means that
stockholders VIII virtually have access TO the books Of
their companies and VIII what IS being done with
their money The first to welcome such policy should be
the companies Themselves If they being operated By
honest men With accounting to their stockholders
thew would under suspicion dividends do not meet
enectatons Oh companies have big overhead expenses
and most Of them set aside portion Of tneT revenue fo
would be unable to understand Why their dividend checks
were not larger
some companies in which e Pasoans interested
already have production which brings them IN three
holders are shown that these companies are spending large
sums n developing their properties these stockholders WI
ezpect dividends n proportion
N Psso residents hsve invested something ike two
million dollars IN oil stocks Some Of the companies IN
which they are interested already paying dividends
Others have production and VIII soon Be Il positions 70
bern returning money to their stockholders sun otels
zrs drilling uh excellent prospects. few have drilled
mi foura no oil and one two have made no effort az
5eveopeut Future investments VII depend on the re-
trne received On those already made II has been shown
that A1za1a New Mexico people are ready 70 1lsA -ne
money when they believe they have fair chance o. gooo
reurns But they win choose the safer lines o. invest
ent If fhsv ind that after company meets az rs
expectations production they are not getting an 70 Ve
they entitled - .,.t
the stockholders VII Be protected Il means more q
the oil industry than any number Of gushers An me
ueope want Is assurance Of square deal ana enia dcloa
tain It IS that stockholders do not know about the az
fairs Of their companies It VII only De because -ay ~
not take The pains 70 inquire
o