The central record. (Lancaster, Ky.) 18??-current, 1919-11-20
INVESTMENTS TO
YIELD FABULOUS
.}ETURNS SCARCE
OIL. A NECESSITY. oFFERc FIELD
FC7 UNscRuPuLous PERSONS
% UNLOAD WORTHLESS
STOCKS.
PvoLIC IS EASILY "GUlleO"
Company With Four siIiion Capital
and $3.50 Working Capital
Proved Attractive Years
Ago.

After every war In which the
United States has participated. the
people OF the country have lined M
waiting for opportunity to plunge into
the current Of inconsidered specula.
ton. All that was necessary was an
assurance that the waters tne" to
send them in.
The majority never again got their
financial heads above the surface.
Hundreds of millions OF dollars have
been lost in these uuwise venture
a. the past and millions are being los.
to investors in the presen; crazs fer
stock gambling.
y apparently makes little difIer''ce
tina; these spcculatioIs may be based
OF industries which have been proved
profitable and legitimate. The pro-
ductiol of oil is one OF the ba .c ia.
cdstrial operations. yet more for,'ays
have been lost in oil stocks ald oil
lands than In any other specula, on.
Crude petroleum Ia a necessity. il con-
mands staple price its production
is a legitimate business. yet invest Jrs
in oil stock risk more dangers than
beet Livingston in Africa
The first oil boom occurred in tho
carly Sos, just after Edwin L. Drake
nIri hts drillor "Uncle Billy" Smith
brought in The first drilled wei, in
Pennsylvania With the new -
brakes success. people from al over
ha I'D
in the hope OF striking oil" and maxi.
ing a fortune over night
Land In favorable localities sold
readily for from $4,000 TO $1,000 an
acre and farms brought from $500. 900
to $1,000. 900 each. Speculation of every
possible sort among all classes went
on to such an unbridlsd extent that
II amounted to sheer madness. A
plot of two acres sold for half q mil
lion, and 100000 was refused 70.
so acres. which had been traded Cor
= yoke Of oxen less than q year before.
Hundreds Of wells we're put down.
but their owners, without adequate
capital or equipment. saw their means
vanish and poverty approach a. q re-
suit Of the INSCRIPTIONS and merciless
dealius. Of the lana ,,sru,.,or,
Then came the frst Of the gushers.
In year. oil was almost as cheap as
water and nr,ce. a,no.. .....d 90
axist. saIes beinr MAD. .. ~ =. IN
cents . barrel. More fortunes were
lost. but demand was gradually stimu-
lated and prices increased until the
close of the Civil wa, the corn,rv
was ripe for another stamneds
The rush to thu Pitbole rerion fol.
lowed and with that rush came tbs
extensive operation of so.c.Iled s,ock
companies. In these companies peo-
pie from all over the country we're
feeced of their earnings and soecnI..
ton In sucb shayss Vas ,remandou.
II is estimated that the comnap,a. m |
pennsylvanis alone AZ this nsr,od ma
a combined capital issue of over $780, |
100000.
Then the bubble burst again. Floods |
and fires swept the fields. Produc. |
ton was not maintained and the wild |
cat companies toppled over right and |
left like a row of bricks, carrying
down to ruin thousands who had in.
vested their entire capital.
Drake. the inventor of modern drill.
Ing methods, who knew oil as few men
knew It, was amorg them. He lost all
his property in speculation and his
family was reduce1 to actual want.
His former associates made up a
purse to relieve his necessities. Sub
seauentiy the state granted him
ensioh OF si'ooo year Tor the serv'
icss ne mad rendered the country.
TINS nation is facing a similar era
d speculation at present. The meth
'os OF naduieht promoters In selling
'tock nave Deen somewhat renned, but