Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1919-11-29
II ||IIL
YIELD FABULOUS
RETURNS SCARCE.
OIL. A NECESSITY, OFFERS FIELD
FOR uNscRuPuLous PERSONS
TO UNLOAD WORTHLESS
STOCKS.
PUBLIC IS EASILY "GULLED"
Company With Four Billion Capital
and $3.50 Working Capital
Proved Attractive Years
Ago.
PUBLIC is EASILY "GuLLED"

After every war In which the
United States has participated, the
people of the country have lined up
waiting for opportunity to plunge into
the current OF inconsidered specula-
ton. All that was necessary was an
assurance that "the waters fine" 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 unwise ventures
in the past and millions are being lost
to investors In the present craze for
stock gambling.
It apparently makes little difference
that these speculations may be based
on industries which have been proved
profitable and legitimate. The pro-
duction OF oil is one Of the basic In
dustrial operations. yet more fortunes
have been lost In oil stocks and oil
lands than In any other speculation
Crude petroleum Is necessity, 1t oom-
mands staple price, its production
is legitimate business, yet investors
in oil stock risk more dangers than
beset Livingston In Africa
The first oil boom occurred in the
early eos, just after Edwin l. Drake
and his driller "Uncle Billy" Smith
brought in the first drilled well in
Pennsylvania With the news Of
brakes success, people from all over
the nation nocked to Cenango county
in the hope of striking oil" and max
ing fortune over night
Land in favorable, localities sold
readily for from $4,000 to $1,000 an
acre and farms brought from $4,000
to $1,000, 900 each. Speculation Of every
possible sort among all classes went
on to such an unbridled extent that
It amounted to sheer madness. A
plot of two acres sold for half mil
lion, and 100000 was refused for
so acres. which had been traded for
yoke Of oxen less than year before.
Hundreds Of wells were put down.
but their owners, without adequate
capital or equipment, saw their means
vanish and poverty approach as re-
suit of the INSCRIPTIONS and merciless
dealings Of the land spectators.
Then came the first Of the gushers.
In year, oil was almost as cheap as
water and prices almos' ceased to
exist, sales being made as low as 10
cents q barrel. More fortunes were
lost, but demand was gradually stimu-
lated and prices increased until the
close Of the Civil War, the country
was ripe for another stampede.
The rush to the Pithole region fol.
lowed and with that rush came the
extensive operation of so-called stock
companies. In these companies, peo-
pie from all over the country were
heeced Of their earnings and specula-
tion in such shares was tremendous.
1t is estimated that the companies in
Pennsylvania alone at this period had
combined capital issue of over $780,
900, 1000.
Then the bubble burst again. Floods
and fires swept the fields. Produc-
tion was not maintained and the wild
cat companies toppled over right and
left like 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 among them. He lost all
his property in speculation and his
family was reduced to actual want.
His former associates made up q
purse 70 relieve his necessities. Sub
sequently the state granted him =
pension Of $1,000 8 year for the serv-
ices he had rendered the country.
This nation is facing similar era
of speculation at present. The meth
DDS of fraudulent promoters in selling
stock have been somewhat refined, but
the dangers Of get.rich-quick invest
ments are not less than after the Civil
War.
Repeated proof Of the dangers Of
stock speculation has been given. The
most secure protection against the
lure Of such investments is careful and
conscientious saving and regular. safe
and secure Investment in government
securities: War Savings Stamps,
Treasury Savinss Certificates and Lib
erty Bends. They do not guarantee
dividends semidaily except Sunday"
but they do guarantee security against
loss. coupled with sure profit.
Treasury Savings Certificates and
/ Savings Stamps have the advantage
Of always being casaabls for more
than was paid for 'hem. ff
Liberty Bonds, 1t present prices, Of.
fer an Investment opportunity that
will not be equalled gain, probably.
IN this generation. Financial suthori.
tiss unlts in predicting that all issues
VIII eel rsbovs par ~ two ere now
selling. @
AAARl " AIM YAllR