El Paso herald. (El Paso, Tex.) 1901-1931, 1919-04-14
DFWEI OPMENT NEAR HOME IS BEST;
MANY ARE GAMBLING, NOT INVESTING

DEVELOPMENT Of new oil territory parusniaIIy OF
u lands in the vicinity Of FL Paso, IS Of Importance IN
such oil activities as Fl Paso people may engage IN the
future This applies broad way, to west Texas New
Mexico and such parts Of Arizona as nave shown inolca-
tions Of being oil land When invest their money in
the hope Of securing oil locally they not only hope to en-
h themselves also to promote the fortunes Of their
and the latter important as the former
Those who prefer 10 put their cash N districts IN WHICH
oil has been developed welcome to the Choice but the
temptation is often invest at haphaZard N whatever
concern makes the most alluring promises
Stock selling companies the point that fortunes
have been made in oil in Texas within the past year; that
other VIII be made and that hundred dollar
stocks have mounted into the thousands
That IS al but is too apt to overlook the other
fact that while some fortunate individuals made for
oil others less unfortunate have lost, not for
tines but the few hundreds Of dollars which they could
not afford to lose Many have secured some little
return but not very much. hundred barrel well has
little chance Of enrhing the stockholders Of company
capitalized at $4,000 to 100000.
Repeated admonitions 70 the public would not be so
necessary 1t not obvious that oil stock buying has
cautious investing their money, the greater number
gambling with Teckessness than If they were
playing the TOulst wheel In the Of the Wheel the
gambler can at the number and the color
which he puts his coin gambling OIL he moth
ing, but takes somebody elses word for everything.
The chances that fortunes VIII be lost IN this
oil gambling than made Lots Of the money, If not most
Of 1t, which people sink in oil stocks VIII stay sunk
The above statement is too conservative, If Charles
Springer chairman Of the state council Of defence Of New
Mexico and state land commissioner Aels Field are rgn
The former quoted having issued the following public
warning about Ill considered oil stock investments:
AT the rate things going there VIII be about ten
times as much money lost by poor people in oil viii
be made BY few well to DO" Land commissioner Field
endorsed the statement.
Arizona has law requiring stock promotions Of what
ever kind 10 be vsed by the state corporation commits
sioa before selling permits issued and the inquiry
each concerns affairs is SOMEWHAT searching It may
be mere coincidence that comparatively few oil stock
statesmen are operating in that state
The mistake must be made Of assuming that only
the big oil companies are worthy reliance and that all
the stock selling companies should be avoided But AL Of
them should be examined critically before investing cent
The honesty Of heads Of companies their experience
oil production, the amount Of capitalization and the
amount Of promotion stock the location OF the land and
the nature Of the geology production IN its vcnitya
these matters demand consideration before risks his
money The Ts great enough under the best crcun
The biggest companies with lots OF capital and
abundant resources for securing expert assistance
curing sites and drilling for OIL often lose. Readers Of
oil VIII recall that the Texas company has had
Der Of dry holes ard other companies have been more
fortunate
The unfortunate fact is that Texans and others IN the
southwest tossing their hard earned money to this
company that without the most superficial exau
nation Most OF the people buying stocks know nothing
whatever Of the oil industry and they swallow Truth
whatever they are told Their money goes and they ges
stock certificates IN return. They may get money IN
the form Of dividends later, they may not The Dallas
News says that too many Of the buyers Of the stocks
people who cannot afford to lose the e5 cent out
Of 100 per cent which It thinks they VIII almost certainly
lose.
That there are fraudulent incompetent oOmpa-
MES among the honest and competent that pro
noting stock sales is the apparent conviction Of the OIL
Trade Journal, which, IN its February issue, said:
The second why there is beginning to develop
strong feeling against the worthless stock promoters IS
The fear that when these gentry have folded their tents
gone there VIII remain behind many individuals who
have money through them that feeling may develop
sntagouistic the legitimate oil industry feeling which
business Of Texas would hate very much to see spring