El Paso herald. (El Paso, Tex.) 1901-1931, 1920-02-23
IN oil
SHOULD LOOK FOR
Production ONLY

The Herald is right
In an editorial published in its week
end edition Of Feb. 21-22, under the
caption: What is the matter with oilz
appeared one sentence which carried
the answer 70 the question. That SEN
tence reads as follows.
Organizations Of shareholders
might 90 a long way toward meeting
the situation"
As the Herald Indicated in the edi-
torial alluded 70 oil promoters and
oil stock spectators owe it 10 them
selves and 10 the public to find out
what IS the matter with the oil
game and apply the remedy"
The day of vivid or flamboyant oil
promotion and inflated selling eI-
peuses is a thing Of the past never &c
return II is still necessary that oil
properties be discovered and their de-
velopment promoted but the develop
ment must be promoted along rational
lines
Business principles based upon com
mon sense must be applied The un-
scrupulous promoter must be rele-
gated to the limbo OF forgotten things.
Wiling to take chances with the pro-
moter who is out to make his money
out OF production must be 50 safe
guarded that their investments VIII
be protected from manipulation by
the promoter whose only Interest is
the feathering Of his own nest
There is a difference between com
mrcial business and the financing
Of 8 company devoted 70 the develop
ment Of an oil property which should
be recognized. however Viewed from
any angle there is an element OF
chance in the oil game which must
be taken into consideration and
which is taken into consideration by
those who 90 into II and willingly ac-
ceDted because Of a well grounded be-
He 81 nraH
no oil may be found by the drin there
Is also a chance that oil viii be found
and II Il is found the profits from
the investment viii be so large as to
warrant the taking OF the chance
But. the pubic should make up its
mind to the fact that there is but one
legitimate way in which 70 make
money in the oil game and that Is by
the bringing in Of wells When that
frame OF mind has been established
the promoters who indulge in the or
gauization OF oil companies merely
FOR the purpose OF selling the shares
FOR gambling purposes VIII find them
selves out Of confidence and there
fore out OF jobs
Within the past ten days or two
weeks a former FL Pasoan- C A. Reid
Clark. who had made a success in the
to the city with 8 new idea He had
Witnessed the havoc caused by the
old fashioned methods Of financing oil
development. when handled by men
whose only. idea was the exchange OF
stock certificates for good money
which went into their own pockets
rather than into the ground in an
honest effort to find oil which could
be turned into dividends.
Under his plan for financing pro-
duction Mr.. Clark puts Up a valuable
lease and asks the public 20 merely
put up enough money to pay the
costs Of drilling a wen and no more.
II the test proves the presence Of oil
under the ground. in other words If
he gets production he wins and those
who join with him win and win big.
II the test proves the ground 70 be
barren he loses his lease and his as
sociates lose the comparatively small
amounts they put into the deTelOD-
ment fund. But the latter have the
satisfaction OF knowing that their
money was spent for drilling opera
lions rather than for sumptuously
furnished offices and expensive adver-
Using campaigns
The Clark Unit" idea is in strict
accord with the idea advanced by The
Herald that one OF the things which
may save or restore the OIL game Is
the organization OF those who have
contributed their good money TO keep
the game going
There VIII be but about $50 men or
zation- It viii be an organization Of
owners and because OF the small num-
Der OF owners there viii be no trouble
in the matter OF keeping tab on what
is being done with the funds.
Each viii have a deed to the num-
Der Of 500ths OF the property which
he pays for and he knows that the
money went to a responsible bank
pledged to pay II out for drilling
costs only. When oil IS found and its
conversion into money with which to
pay dividends becomes necessary the
owners OF the property Will be asked
to get together for the purpose Of
determining what course shall be pur-
sued thus, further. carrying out the
idea Of The Herald man when he
suggested the organization Of owners
Of oil properties If the oil game is to
be saved from Itself.
An organization OF owners whose
sole object in the oil business is the
production Of oil is the easy answer
70 The Herald's question: what is
the matter with OLE" In other words
Clark's o. K. 500 Oil Units IS the
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