Deming graphic. (Deming, N.M.) 1903-1948, 1920-06-15
DON'T SPLIT" YET

Tie Graphic realizes that caIplhs
criticism doesn't accomplish anything
thul Obstructive criticism Is all that MS
nam, implies. aud that criticism WIN
out constructive suggestion seldom hc
c,mrli,hcS much however. the Glhphlc
,.iu.,l out the danger of speculation
ia leases i'm the vicinity Of the Florida
OF wen west of the city and the lana
owners have taken the steps necessary
10 prevent this speculation from ham
rornc the drilling operations. They
INV. done more: they have taken II
unar themselves TO sell their own leases
y.ieu nooled aud turn the money IN Tor
,ts,. in the Florida cOmptny, that the
,yul.rntion work ma" 80 forward Win
out interruption. The plan contemplateS
nnluring 10y means Of lease selling
rather than stock selling.
The inability Of Field Manager John
W Clark 10 finance the well 10y selling
from u block Of stock turned over 10
him for that purpose is largely explain
rJ hy the fact that the original incor-
unrutors of the Florida company INSIST
an holding large part of the issue Tor
tbcir own benefit. No one denies that
flpy nave something coming for Their
enterprise In initiating the exploration
work. hut they must realize that the
small investor has learned by bitter
.xurricncc that the large issue To in
enrulrutorS for which nothing II re-
turned to the company makes the NIUE
investment practically worthless; That
stock X not now nor never can I've
worth anything near par value even
should oil he found In large quantities
This is of some concern 10 the sihall
investor in this section, because he is
being approached on patriotic
grounds 10 helm finance the well. lie
ought 10 have Il square deal.
The Florida company is capitalized
ot $3.50 900 with 100000 shares worth
81 each par value The 1000 paid up
rarital required 10y law was largely
covered by lease assets Each OF TWEEN
tv-two incorporators agreed to take nj
lenst 80 shares, paying cash for the
same to finance the initial operations
They Immediately took up l2oWm
shares to pay for the leases ON ooVo
acres which was being held for them
by a trustee. This large amount oi
stock may be legally theirs. but II Is the
stock that feathers their nest puts
u "crimn" In the small stakeholder that
povs for his stock ar par for 'patrlotlc
reasons. This is now held In escrow
to nreyent its being divided by the IN
corporators and nut on the market IN
connection with the sock being Offered
for development purposes ny MI
CLARK He has 100000 shares given To
him hy the company under contract To
finance the well. The balance OF the
stock presumably i'm the treasury.
or course. Mr. Clark can't sell the
stock because il can't he worth but II
fraction of what he must ask Tor It,
An original incorporation win ohlS
$3.50 total to pay doesn't have 10 Wort!
over the par value Of stock; nj 2oc on
the dollar he is i'm the clear.
The public wants To help finance lhe
well st Of the city and the plan To
offer leases at reasonable prices Is
GOOD one The continued progress OF
the well gives these leases IA Vaule
buscd on the probability of the wen
beipg successfully completed and those
who turn in part Of their lahu lor
stock look To the rise in value OF the
rest of their holding rather than 10
the value Of the stock they receive
The unint is that neither leases nor
stock Is worth tinker's ID unless
the well is successfully completed.
Eyeryone in and about Deming VIII
nrnfir should oil De discovered. Hence
everyone should be- glad 10 assist when
given square deal.
The well was nearing the l5.OOO toot
mark with fine showing OF oil III
-hale aud sandstone. The well mas pro
crossed without interruption until II
be,ume necessary last week 10 suspend
a short time until a new cable couid
he rugged. the work being promptly re-
sumed. Everything points to an early
crp,nletion of the oil test and at the
nr,.rut time everything seems fayora-
le for tle discovery Of oil in large
quantities. II is therefore To the besi
interests of all concerned for the com
many 10 get together with the citizens
to raise the necessary funds.
The danger Is that avarice VIII enter
into the matter both within the com
many and among lease owners, and that
srocnlotion win ruin the chances OF
cnmpleting the well IL Is well to re-
member that the present speculative
values are based solel" ON the POSSIBLE
Inv of finding oil and that everyone
concerned may delude himself to the
point where he will awaken with stock
not worth the paper it is printed upon
few cents which are not worth the
Tow cents which the staet asks Tor
thrn. Like the republicans In conven
tion. il may be well 10 get something 10
.s,iit'' befcre splitting"