El Paso herald. (El Paso, Tex.) 1901-1931, 1919-04-15
Many Are Gambling
Not Investing

Those who prefer put their cash in districts in
which oil has been developed welcome 70 the choice
tie temptation Is often 10 invest haphazari I'm
whatever makes the most aIluring promises.
Stock selling companies the point that fortunes
been made In oil in Texas within the past year.
that other fortunes win be made and that hundred
IoIIar stocks have mounted into the thousands.
That Is an but one is too apt overlook the
other fact that while fortunate individuals have
made fortunes I'm oil, others less fortunate have lost
fortunes. but the few hundreds OF dollars which
they could not afford TO lose Many more have secured
little return but very much. hundred bar
rel well has little chance OF enriChing the stockholders
Of a company capitalized at $4,000 to 100000.
The chances that more fortunes will be lost in
this oil gambling than made Lots OF the money II
most Of it. which people sink in oil stocks. win stay
The above statement is too conservative II Charles
Springer chairman OF the state council OF defense OF
New Mexico and State Land Commissioner Nels Field
right. The former Is quoted having issued the
following public warning about i'll considered oil stock
Investments:
eat the rate things are going there win be about ten
be made by few well TO do" Land Commissioner
Field endorses the statement
The mistake not be made Of assuming that only
the big oil companies are worthy Of reliance and that
all Of them should be examined critically before invest
ing cent.
The honesty Of the heads companies their expert
IN oil production, the capitalization
the amount OF promotion stock the location
land the the geology or production in its
vicnity-a these demand consideration
one risks his money. The risk is great enough under
the best circumstances. The BIGGEST companies with
lots OF capital and abundant securing ex-
pert assistance In securing sites and drilling for o often
lose Readers OF oil will that the Texas
company has had number dry holes other CON-
panes have been more fortunate.
The unfortunate fact Is that Texans and others IN
the Southwest tossing their hard money 10
us company Or tnat without even the most superficial
examination Most OF the people buying stocks know
nothing whatever OF the oil Industry and they swallow
as ruth whatever they told. Their money goes
they get stock certificates in return They may get
money In the form OF dividends later they may
not The Dallas News says that many OF the buy
ers OF tie stocks poor people who to
lose the So per per cent which il thinks
they win almost certainly lose.
The enormous OF the stock selling game out
OF BuFkburne has attracted Texas parts OF
the United States experts in the OF Fleeing pub
lie through worthless stock certificates The honest
clement among the promoters Is greatly
bered BY the gentry who merely TO make money
out OF the certificates that the public LONGER has
good chance for even honest gamble in the game
which is being dealt out them"
The Journal mentions the Burkburnett field only for
Illustration taking occasion In another paragraph TO
pay Its respects TO certain adventures IN
Conlanche field, but IL also acknowledges the aprcht-
ness OF many other companies I'm the BurShurnet and
other he3ds who have conducted their affairs Iegii-
matey and competontly Safeguarding the Interests OF
stoekhoiders-and getting OIL Il calls attention how
companies were capitalized only at from $4,000 10
100000. -- '''''O0 l"
The man with 500 or $500 which he fs thinking NJ
putting INTO a stock selling company may say
"But how am to investigate? ] ask as MANY oues-
ions as can think Of and am shown maps and what
purpoFt 70 be bank references. can't afford 20 On over
% the fields and investigate for myself and know no
BODY there 70 investigate for me-
The answer IS:
IT you can't afford TO inyestasc you can't afford 10
ose In case OF doubt stay out