The Washington herald., 1919-05-14
VAST FORTUNES
TIED UP IN OILS
Worlds Demands for Fluid
And Products Bound
To Increase.

Ne country must go back to whale
~ OF sperm oil. tallow candles and
sNner commodities which were in use
letore the coEmercial availability OF
ecroieum had been demonstrated.
An estimate was made soon after
ne bradford oil wells began to show
asns OF exhaustion that the new
5ealth which had been furnished to
re country by the Bradford oil was
the aggregate larger than the total
tew wealth taken up to that time
rom the gold mines in California
At that time there were none but
Ague forecasts of the possibility of
discovering oil in other parts OF the
United States Gradually, and espe-
1ally with the opening I'D of the
ar west and with the ventures of
inspectors in Ohio and West vir-
hnia. discoveries of new resources in
etroieum were made. SO that at last
ne wonder was whether It might not
the course of time be found that
Nner parts of the country were
apaole Of yielding very rich returns.
asuy Ereater than those OF the
sradford region, through the discov-
~ and exploitation OF oil wells. To-
ay the United States Is pre-emi-
entity the oil producer of the world.
no since the European war began
pme OF the discoveries of very rich
neids have been almost marvel
Now IN New York City. in the Far
vest and in the Southwest there
Gems TO have been developed some
Ghing like a frenzy for investment
oil properties. Speculation is run
ing very hiEh. but 1t is chiefly
peculation based upon the belief
hat greater and greater value will
developed in oil properties west
the Mississippi River and in
,exas.
How great the excitement is in
lew York. comparable as II is with
he excitement which prevails in
exas and Oklahoma. is demonstrat-
by the phenomInal appreciation
a the market value of the stock
4 the oil company which was pro-
noted by the late John W. Gates.
hose who are fortunate possessors
4 say. 1000 shares of the stock of
his corporation found that there
ad been appreciation in a single
ay of twenty points in the market
alue of this stock The owner of
could have sold it and made a
cry large profit in case he bought
he stock a few years ago.
what Spectators Rely Upon.
The speculation is based upon two
Important considerations. One is the
ertainty that the worlds demand
Or oil and it's various products is
be steadily and even very great
' increased. The other motive for
peculation is found in the various
veports. some ofs them highly ro-
1antic. which tell of the sudden in
rease in wealth due to the discov-
I ~ OF oil in places where a few
ears ago it was not presumed to
zist. These are said to be reason
Bile bases for speculation. Men
rho thus venture are presumed to
ciscounting the future. The
tate of Texas. II is the understand
AK. is expected to produce in this
sIendar year 6o.000.0OO barrels of
IL. The daily production now is
rry large and no small part of it
ONES from regions where two or
hree years ago there was no idea
hat oil wells or pools lay beneath
nc ground.
The late Thomas A. Scott under
oOk to build a railroad across
'eXas. being firmly of the belief
hat he would establish a trans
Dntinental line to which would
ome large business. He had ear
ier discovered that trade follows
ne rails quite as rapidly and surely
: it follows the flag.
Eut the adventure was an unfor-
unate one. 1t oyertaxed the re-
Ources of Col. Scott and much of
he wealth he had gained earlier
ras absorbed in this railroad propo-
itiOn-
What They Did Not Know.
Later Jay Could took hold of the
uoperty with not very gratifying
fesults to him. Had either Col.
Cott or Gould had the slightest
killing that beneath tn" soil Of the
iEht of way over which this rail-
I Cd company was built there exist
Il very large pools and reservoirs
oil. the history of that railroad
far as Col. Scott and Mr.. Gould's
Ssociatio with ii is concerned
'ould have been different from the
ccord- Already in this column n
eport has been made OF the re-
,arkable increse in the quotations
offerings for the stock Of the
cxas and Pacific Coal and Oil Com
any. The par is 100. The market
aluo based upon bids for stock
yas recently a little in excess OF
1000. II was also reported at
hat time that there is no record
other stock whose par is 100
those market value increased in
xcess OF $4,000. That statement IL
hould have been said referred TO
he record of apprecistions of
49,
lew York City. Men who have
ad long experience in the securi-
les market would not recall any
ase where stock OF this kind had
greatly appreciated in this
Iarket in so short a time at least.
;ut there were in other parts of
5 he country much more sensational
lcreases in quotation for oil
tockS-
william J. Doran. OF Los Anre-
IS, calls attention to the fact that
1e Standard Oil Company of In
lana declared a stock dividend Of
900 per cent. all of which was Civ
a outright to the stockholders. The
ew stock Is. Mr.. Doran says. quoted
[ 500 bid. or at the rate OF $4,000
,r one of the original shares.
This probably makes the highest
.cord Of appreciation Of stock OF
ny oil company. 1t undoubtedly
,as due to the highly increased
alue of the properties owned by this
ompany. The belief prevails among
ome of the experts that increased
alues in oil properties are to be
-eated through the discovery and
kploitation of new wells. Texas
SENS to be an excellent neighbor
Z Mexico. when her riches in oil
- ,,-1ar capsiderofinn The Tsaxa.