The Washington herald., 1919-05-27
GAMBLERS RUSH
FOR OIL STOCKS
Epidemic of Speculation
Now Sweeping Over Coun-
try, Declares Holland.

uJB bNNAoANS
In the days, some years ago, when
reports came from the Far West.
especially from the Rocky Mountain
region. OF discoveries Of precious
metals. and there were stories told
of almost fabulous riches which came
to the owners of stock in mining
properties which at one time were
deemed Of little value, the American
public was seized with a mania for
speculating in shares Of gold and sill
yer companies. There was no DIM
Guilty in persuading the people to buy
shares, they being tempted by the
fact that the shares were offered at
very low pricl, sometimes as low as
q dollar a share. Hundreds of millions
Of dollars in these stocks were taken
from the people. Not until there was
widespread demonstration Of the fact
that it was like throwing money
away to buy shares in these gold and
silver mining companies did the
American people at last learn their
lesson and refuse longer to be
tempted.
An estimate was made of the
amount of money which the peopl-
invested in the shares of worthless
the course of few years. The esti-
mate showed that the aggregate
amount of these losses was greater
than the aggregate amount of gold
and silver which had been taken from
rich mines.
Speculation Rampant.
Today reports from many parts of
the country suggest that a mania
-,,,fo,,s ,,,ar,ta1 sr.e.culafiye arjderfic fs
spreading among the people. the
symptom of which Is the purchase of
stocks in oil companies. So many have
been the romantic and almost awe
inspiring stories of the sudden de-
velopment Of vast wealth from oil,
especially In regions where a few
years ago no one dreamed that oil
pools existed beneath the surface,
many people seem to have lost their
heads. being easily tempted to in
vest in stocks of oil companies. There
appears to be no way by which this
epidemic of oil speculation can be
stopped. II seems to be useless to tell
the people that there is no necessity
for marketing with the public stock
Of oil companies which are realizing
large returns upon their investment.
The owners of these companies are
not COnpeileu 10 pcOOle J1clT SlOChs
But in some parts of the country.
especially in the Northwest. also in
the East. statesmen for oil companies,
who are able to talk persuasively.
are disposing of many thousands Of
shares. Some day the public will
awaken to the fact that speculation of
this kind is not only pure gambling
but gambling with all of the chances
favorinE the seller OF the stock.
Yesterday an estimate was made of
the amount of money which the
people have already invested in cheap
oil stocks. 1t amounts to many mil
lions The frenzy still prevails and
II will not pass away until the people
as a whole have learned their lesson.
similar to that which was taught.
when cheap gold and silver mining
stocks were fioated throughout the
United States.
Millions in OIL.
Nevertheless the outlook is for
steady increase of the wealth of the
country through the discovery and
development of new oil properties, an
increase which in the aggregate may
amount to hundreds of millions.
Notwithstanding the eagerness and
courage with which capital is devel-
oping new oil properties. there seems
to be fear lest the annual production
of oil will not be great enough to
make it unnecessary to draw upon
the reserves.
An excellent authority has said that
Notwithstanding new production of oil
we are still drawing upon our re-
serves. There seems to be some ap-
prehension lest the reserve supply be
cut down more and more. All thi is
due to the increased world demand
for oil. especially for fuel. for gaso-
line, for lubrications. and for the by
products. There is no doubt that we
have already entered upon what many
call the oil age. and the future de-
velopment of the industry as well as
the progress of the worlds demand
for oil will be watched with the keen
est interest by business leaders and
bv those who look for n constant in
crease in our exports of oil. Should
there be a falling off in production or
great diminution of the reserve there
may be danger that our great inter
national commerce in oil may be i'm
paired.
Object Lesson In Conservation
Sometime ago James Mitchell. a
man of unusual business capacity.
energy and foresight. contemplated
establishing a plant in Alabama for
the manufacture of nitrogen obtain
ed directly from the atmosphere.
Some unforeseen complication rose
which delayed his plans. Then
when he was about to resume op-
erations he discovered that the
property owners in the vicinity of
the contemplated plant had fixed
prices for the land which were
prohibited.
Nevertheless MIR. Mitchell. who is
a citizen of New York. still con-
templates manufacture of nitrogen
for commercial purposes where by
mosphere- He is especially inter-
ested in the subject of conserva-
tion of our exhanstible natural re-
sources and has gone so far as to
cause a set of photographs to be
made which demo---==Ie to the eye
the conservation which the en-
ployment of hydroelectric plants
makes possible. The corporation
of which he is the head is. the
owner of coal mines and it was
the purpose to use this coal for
the creation of steam energy with
which to operate one of the plants
After careful test it was found
that there was need of the services
of $50 men to produce the equiva-
lent of 5000 horsepower in cleo
tricity.
On the other hand the photozra mis-