South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-05-01

The iron and copper industries
have been among those showing
rapid expansion in the last ten
years. Yet this graph shows that
oil production has gained 900
while copper production gained
$50 and iron production 52ft
If the comparison were carried
into 1919 the contrast would be still
more striking for oil production is
keeping up at about the same rate
as I'm 1918, while production of iron
and copper has fallen off very
sharply But, of course. the present
very small production Of iron and
copper is due TO temporary condi-
tons.
There can be little doubt. there
fore. that the present high prices
FOR good oil securities rest on a
solid foundation. But it is neces-
sary to discriminate even more
carefully than usual between the
true and the false
Whenever any industry becomes
unusually prosperous. unprincipled
promoters take advantage of pub
lie enthusiasm to market worthless
stocks. That is the case in the oil
industry today. Oil companies are
being organized on no better basis
than rosy hopes and the stocks are
being sold to the public Some are
even exchanging the best securities
in the world-Liberty bonds-for
these partnership in wild or dis
honest schemes TO find oil where il
probably isn't
Even when the oil actually exists,
the value of the stock demands en-
tirely upon how much Of it is is
sued-a point which the hasty pub
lie rarely takes time to examine
\ million dollars of stock sold on
a basis Of $4,000 worth of oil
makes the stock worth very little.
The Future of Oil.
These fake promotions, however.
should not be allowed to discredit
oil securities OF the legitimate class
Some Of these may have been car
ried too high by the big public buy
ing Of recent months, but their value
is a subject for examination by in
other class Of stocks.
The general prospects Of the oil
industry are exceedingly bright
The uses 90 which petroleum is be-
ing put are widening every day.
Crude petroleum will soon be the
standard fuel for steamships. Hun
dreds Of new petroleum burning
vessels arc building and hundreds
more are being converted into oil
burners.
The use Of motor trucks is in
creasing by leaps and bounds. 1t is
probable that not much more than
a fair beginning has as yet been
made in the development OF this
form of transportation. Mr. Ford
says he is going To build an auto
mobile 20 sell for $3.50. II ne
that means further wide extern
sion of the use Of gasoline. or pos
sibly kerosene. for which adequate
carburetors have already been in
vented and tested.
No substitute Probable.
No real substitute for oil is prob
able. For years there has been
talk Of industrial alcohol in place
Of gasoline. and a new combination
OF gasoline and alcohol has been
patented by "a prominent company
and is stated 10 be superior 10 gas
oline alone for use in aeroplanes
and high grade motors. But such
fuels will have limited use. Good
old petroleum will continue 10 be
our main reliance
In some localities crude oil Is be-
ing used as a fuel by industrial
factories. II factories could be es-
tablished In Mexico. where heavy
oils are cheap and abundant. the
cost Of fuel could be greatly re-
duced by using oil But that would
require greater sta bilization OF
Mexican politics than is 10 be ex-
peCted at an carly date
The stock Market.
The stock market in general now
presents am "over-bought" appear