The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-23
OIL SHARE TAKERS
SET A NEW RECORD



spect Of affording legal protection against
the strategems OF the crooked promoter.
there is a perfect orgy Of speculation in
stocks whose weakness any bank could
demonstrate II the bank was asked,
which K usually Is not.
This condition Is revolving to all the
honorab BILE companies, whose reputation
and dividends are based on years OF
patiently acquired knowledge of the oil
business in all its completely or on ex-
traordinary luck matched with capital
which is Tin oil" to stay.
Public Not Discriminating.
The business OF these companies is
producing and selling oil. They may
sell stock. too. blu: its value is the value
Of the oil and oil lands they own and
tire machinery Of its production and
distribution. II the Sublic could only
SEQ the distinction between the corpora
tons that are primarily oil companies
and the companies that are primarily
stock selling companies lot of folly
and financial ruin would be averted
But one trouble Is that every once In
wilhelm long while--a CORPORATION
that started with the sole intention of
getting money out OF stock promotion
does, in spite Of itself. as It were. strike
oil, and 1t is enabled by this unexpected
event to turn respectable" and eyentu-
ally settle down in the oil business and
occupy a front pew with the best of
them.
Once In SO often a wildcat concern
makes good on the promises which II
uttered in the confident belief that they
were first class liea Buyers of its stock
others to take a chance with other wild
caters.
After the Long Chance.
Usually the money disappears for
good, but the long chance of its reap
pearing with more added unto 1t is what
causes even ordinarily cautious individ-
uals to gamble on stocks that apparently
have nothing back OF them but wind.
DISPATCHES from the oil fields tell Of hard
listed countrymsn milling around a table
In an open field and eagerly giving I'm
their greenbacks for shares in a corpora
ton whose name they don't even know.
The real identity of a lot OF the stocks
that are being sold right here In New
York Is about as obscure
There is nothing more speculative than
most oil stocks. The best advice 10
be obtained in Wall Street is that
the small investor who cannot afford 10
take risk should keep away from all
put inc wen estapiSneu companies whose
names and proof of reliability can be
obtained from any reputable bank OF
broker.
There are other companies with good
prospects and personnel and Legitimate
demand for money for development
which ask the public to subscribe for
their securities and rightfully so, but
the prudent bank or broker will be care
ful in giving advice to distinguish be.
tween the investor who canDot afford tc
take any sort OF a chance and the in
weston who can.
Paradise of the Takers.
OF all the oil produced In 1917 In
oklahoma-a favortte field for the fakei
because OF the many real wells drilled
there-stock promoting companies pro.
duced only one-slxth Of / per cent. OF
~every 1000 barrels OF oil that came
ont OF the ground only half a barre
was produced by stock promoting com,
panies. Only one in every thirty OF
these companies produced any oil.
The best company of tie lot produced
only S1.25 worth for each 500 of rs
capitalization, What chance for m,
shareholder there? The typical fakInS
company Is not interested In prod,c.
uon' except for Just enough 70 adysr.