San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-04-09
Despite Blue Sky Law They
Get Millions Quickly on
Premises of Great Wealth
for Small Investor.
BY FOREST WHITE.

Copyright. BY The san Antonio Light
Les Angeles, Cal, April 9.-The
big government drive against the oil
game sharks and thieving promoters
is well under way in Texas. Two years
will be needed TO try all of the cases.
There is a full bag there, but It was
not good" hunting. The big fellows"
were not there. Many of them are
right here in Los Angeles.
1t may be possible the action in
Texas is a strategic move commencing
the enyeloping maneuvers to include
the headquarters here, but if the gov
eminent agents come here they will
have TO come prepared for war. Arrest
of some of the more popular promoters
here would meet resistance. As well
venture to rob lioness of her cub.
woman of her cook, or a man Of his
trusted bootlegger as 10 tear these fav-
orite sons from the hollow square of
their true believers.
| Thereby hangs a wonderous tale
dared TO be recited only in the greater
latitude of truth over fiction. Among
the treasured progressive possessions
of this state is blue sky stock law,
alleged at the time it was enacted TO
be certain of driving every crooked
stock merchant out of the community.
Yet in the advertisement of one of Los
Angeles favorite promoters, Just pub
lished today, promises of millions
freely are made IL those who will in
vest will only dig down into the old
family SOCK He asks frankly for Il
million and a half in cold cash for an
oil we'll venture.
Million i'm Ten Days.
And he will get it faster even than
it will be possible for him TO count il,
for only last month he admits getting
a million in ten days by the same
method The state is not trying TO stop
him. The United States government
admittedly would like TO, but it is
doubtful so far that it has the power.
The big operators who get the
money" started for this city over
year ago, most of them FROM the oil
fields of Texas. They all plunged
lin the new way-the unit selling game.
Ii is better than stocks und-it is
legal under the California law. They
obtained leases on land all over this
section, loaded up their prospects so
they could get the promotion fee and
then invited the public TO rlmble up
to the office and invest.
None of them were pikers. They had
reeL in the business on big scale but
their experience here was OF an eye
opening character. They asked for
Zig money aud they got it. But il
costs in the neighborhood of S15O,000
10 drill well in the Southern Cali
fornia field and the one point in the
law that they couldn't well beat was
| I,t anAtt0ft Of shn
promotion money received should be
} set aside to assure the SINKING of the
shaft into the oil sand depth.
The wells were drilled and many
came in. There even were few
gushers. Like Wallingford, in one OF
; his famous ventures. the promoters
found the suckers had been the real
) gamers and that their promotion
money was safe and drawing inter
est.
Profits for the Insiders.
, That experience made the promoters
wise. Now every proposition that
they pass on 10 the public is loaded
} heavier and heavier with possibilities
J of profit to the insider only. Take one
of them whose advertisements employ
the homely style of address Of the race
track tout. intermixed with the fas-
cinating argot of the oil fields. and
) who admittedly gets millions of the
peoples money simply by advertising
for it. He has brought in two big wells
and by every rule his unit holders
should he enriched enormously. His
propositions. however, have been load
cd for his own profits all that he be-
lieved the traffic would bear. He got
his. And even under their handicap
most Of the units he sold a few
months ago at 500 each have doubled
in value while all of his ventures are
] quoted above par. even those where
the wells are not yet drilled.
II simply is great game under the
existing law. because the question nat.
urally is asked by this individual and
n score of his friends how fraud can
be proven when the investment shows
a profit?
The promoters are able to get their
at the start through the provision in
: the law which allows them a 20 per
cent fund for promotion expenses. This
is quick and very good money in a
place where million dollar deals can
be put across in ten days. Then, OF
course, there is the rebate on land pur-
chases, drilling and in several other
ways and not single head of a con-
Germ overloohs the royalty basis.
ii Promoter Gets His First.
Most of the land gets into the deal
on fifty per cent royalty. The land
owner gets half of this and the pro-
, moters the other half. No oil company
in the world would drill on any such
basis. but the public furnishes the
cash and the promoter is in clover. He
may have looked like a boob at the
| start when he enriched a lot Of in
, vestors but "them days are gone for
! ever"
For that matter no business concern
that needed million dollar would
think Of advertising for it, but the oil
promoter. But he gets the money
which is more than the business
!, houses always do. And how is the law
going TO step in and protect. people
who simply do not want to be pro-
: tectcd?