Arizona republican., 1919-07-05
Oil Company Advertisements


 An oil company which had several advertise ments printed in this paper, recently has issued circular which has been widely distributed and in which this statement appears
 "The companys detail report was given the Arizona Republican and they accepted the same and published advertisement which is ap- bearing Wednesday and Sunday of each week. This should be sufficient evidence that worthy of your support"
 This leads to the statement that The RepuD- liean is in way sponsor any oil stock selling concern. It is apparent particular company wishes to convey by inference the idea that by reason of Investigations made by The Republican the matter of it's stability merit is unques- toned It must be distinctly understood that such statements entirely unauthorized by us and that such appeals should least be questioned by pros- pective stock buyers It is probably unnecessary to state that the Arizona Republican has advised the offending company that further advertising from them will be accepted by
 With the great outpouring of oil advertisements following the Texas discoveries there came one of those problems which perplex reputable newspapers The Republican had previously accept the advertisements of certain companies operating this state because of suspicion that operations were not entirely in good faith.
 Some of the companies formed for the develop ment of Texas properties composed of reputable business Their claims were not extravagant rather abounding only in hope. The average reader must have gathered from them that they were asked to invest comparatively small for the prospect of large gains which by no means assured
 Other advertisements were received from com panies of whose either knew nothing to their credit if not to their positive dscredit We could not, therefore accept their word regarding the  operation. Before printing their advertisements we required report them if the surface show ing disclosed no fraud published the advertisements In other when the reports were unsatisfactory or when we knew something to the .discredt of the operators, rejected the advertisement.
 The situation further complicated by the manner in which many, if not all the companies were organized. Hitherto in accepting oil adver- ments we had been guided by the attitude of the state corporation commission toward the eompanos. If they could pass the investigation of the commits sion which mvc more searching than t!at of newspaper could he, assumeo that they were at least fraudulent But it happened that nearly all of the companies formed for operation in the Texas fields did not come under the supervision of any regulatory body Some for the purpose of avoid ing the delay occasoned by incorporating under the laws of Texas. and others because their operations
  so-caled trust agreements.
 The state corporation commission laid down blanket rule against the recognition of companies formed. We could not do that since as we have said, we knew some of the companies to be composed of reputable and reliable business men who were only taking a chance were inviting others to join them Our publication of their advertisements was guaranty of nothing but belief in the in tegrty of men whom knew. It was not a guar anty of investments.
 AS to the other oil companies whose advertise ments printed could not even guarantee the integrity of the promoters. Our publication of the advertisements only sgnified that in as careful an inquiry it possible for us to make we had discovered surface signs of fraud.
 When is asked to buy oil stocks at few cents or even dollar or two share he is thereby apprised that his chances of winning are exceeding ly remote The speculation, though legitimate if the companies are honestly managed; if the money derived from sales of stock invested in the develop ment of the companies properties and the payment of legitimate expenses. The promoters, however honest, could guarantee the existence of oil sand and if oil sand discovered the existence of oil in paying quantity. Much less could The Republican offer such guaranty It could only say to it's readers: We have not discovered, and have no reason to suspect fraud here"
 These advertisements in The Republican do not mean that the companies worthy of support" or that there is certainty likelihood that in vestments in their stocks will be profitable. They mean only that The Republican has found no reason to believe that the money invested will be applied any other purpose than that of trying find whether there is oil in the holdings of the companies Every one who knows anything about the law of chances is how remote is the probability of finding oil at any designated place. The best oil experts fail more often than they succeed.
 MIRACLES
 By Edmund Vance Cook