The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-12-10

serves OF the banks that the coun-
try was able TO Withstand the shock
pt war; and TO carry. through the
tquIdatlon Of 1881, the business Of
he country, without a complete
break down.
The sound banker insists on
small dividends and a large reserve.
Sven though he may antagonize his
stockholders, he will Insist that pro-
its shall be retained rather than dis.
tubuted.
"A great agitation Is now abroad
in the country stirred up bv the Ill
Informed, about the sock dividends
OF the various Standard OIL com
panies. These accumulatious repre-
sent the foresight OF the men who
mead the companies, in preparing for
heir expansion out OF their earnings.
these earnings might have been dis
trihuted In dividends as they were
earned. But they were not. And in
stead OF now being distributed. they
are carried to the capital account,
representing increased assets. In
deed, If every business were to build
upon its reserve for needed expan-
son, there would not be those period
cal strains on the money markets of
the world, sometimes causing dis
Newer companies have asked and
secured capital from the public. The
benefits Of the use OF this capital, II
wisely and honestly used, Will accrue
to the holders of these stocks as
these benefits are now accru.ue to
the holders OF stock in the older
companies.
OIL Financing on Sound Ilasis
And in the past few years, 50 re-
cent as to seem only yesterday scien-
tlfic study of geology, OF refining
methods, OF marketing conditions,
is being applied to the industry and
greatly eliminating rhe element OF
chance for the investor The finanC-
ing of oil today is on as sound 81
basis as that of any other business.
II requires vast sums Of capital be-
cause IL has not yet reached it's fun
development. And with every year,
IL becomes more stable. The day
OF the fly-by night company is gone,
the day Of the gamblers chance is
gone; the day Of the usurious financ-
.er Is gone Information ia avail
able as to management; as TO prop
critics as to indebtedness, which
makes It, unnecessary for the inves-
tor TO treat an Oil investment as a
chance at roulette.
The banker can demand and re-
ceive information on which to base
his judgment; and the investor can
now have enough understanding OF
the business on which to base his
expectation OF profit. For certain
", with the future that lies before
the.oil induatry, the profits must and
VIII be large and continuous. Not on
temporary changes OF stock mar.
k1Fcs n ~ .flffnfrVp tny,g ~ h,o mi.
OF crude oiI; but on the long sw6eu
" y industrial development must
these expectations depend.
"Psrltaps at some future time will
a Substitute for oil be found; but
not probably in our life time or our
.children,s life time will that come.
Deserve Protection of Government
One would have thought that the
necessities of war would have i'm.
pressed on the mind of our govern
ment, IL not the need OF aiding, al
least the need Of not injuring this
industry. only those who have gone
pressure for raising revenue became
acute at Washington, The income
taxes were such as to disc ourage the
most active and vigorous men in the
industry. Osly those who have gone
through those years can know the
ital assets was almost prohibited. be-
cause' OF the enormous proportion
the government demanded: the ac-
cdnIulation' OF Reserve capital was
forbidden; and with the wealth OF
the country going into tax free Sc
curiueS, the wonder is that the pc.
tToNun industry did not break un.
der the strain. While the extraction
OF oil was really an exhaustion OF
capital the tax collectors ruled that
1t was Income, and applied the rule
Of taxing the mining OF hard metals
a deduction of per cent per year;
upon the acknowledged fallacious
theory that the production OF o!
from a deposit, would continue with,
out abatement for twenty yea RS. II
risT and was known to all that the
first years are the productive years
and that the subsequent production
bears no relation TO the flush pro
duCtion. Afterwards relief was CIV
en- TO some extent, but still the bur
den OF taxation is d.sproportionate telS
heavy. No business should object tC
hearing its proportion Of the burden
OF government; but no business
should bear more than it's share.
Prosperity Ahead.
"I believe we are at the beginning
OF another great era of business ex-
pansion, AS after 1920, when stag
gering under the load OF tho Ma
pOleonto dahts tho world rIfrn he'd