The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-10-23
ROBINSON AND
KIDDER CO. HAS
GONE OIL MAD
Land Prices Jumping BY
Leaps and Bounds-No Sales
Have Been Reported
INVESTORS ARE WARNED
Townley Is Only Borrowing
Money and State Has No
Power to Stop Him

The village of Robinson and most
of kidder county is oil mad. Pros
poets of fabulous riches are being en-
visioned by residents of the territory
and each citizen who owns piece
of land is hoping that the end of the
rainbow will be found in his back
yard, a survey by the state sctlrl-
ties commission showed.
For three months the only really
interesting topic of conversation in
the village and vicinity has been oil
and the prospect Of finding it-all
because the town we'll is giving off a
volatile oil which in form and sub
stance is almost like gasoline.
To date Tom Merry, on whose prop
crty the seepage we'll was discovered,
is the only citizen Of Robinson to
realize a profit on the discovery. He
has sold the we'll to a local develop
ment company which is planning to
drill for oil, reserving the right to
the customary one-eighth royalty in
case real production is obtained.
Hesitate to Invest
Despite visions of great wealth
most Of the townsfolk themselves are
reluctant to invest money in any de-
for the outside world to supply the
cash which they hope will make their
dreams come true. Meanwhile they
are holding their land for sale at
fabulous prices.
The local hotel keeper is demanding
$4,000 for a l2-acre plot near the
we'll which started the disturbance
and declares that "land prices are
jumping every day." although no
sales at any figure are reported.
Investors Warned
A note of warning to investors is
being sounded by +. O. Bailey, exec
utive officer of the state securities
commission. -Four other communi-
ties in North Dakota are having the
same Dreams" said Bailey. "A com
pany has been formed to drill for oil
IN Barnes county, another near Velva
third in the southwestern part of
the state and fourth near Minot
All of them are hopeful that they
may strike oil. 1t is true that they
may, but all of it is purely wildcat
ting and enterprises of that kind are
no place for anyone to put money
which he needs. All Of these compan-
les are purely speculative and there
is more than a possibility that people
investing in them will lose the money
SO invested"
All of the companies now drilling
for oil or planning to do so are un-
der the direct supervision of the
state securities commission. Mem
bers of the commission have made
the requirements, which development
companies are required to meet, as
strict as possible but hesitate to take
definite action against them because
of the possibility that some Of the
enterprises may turn out to be justi-
fled.
Townley's Scheme Outside the Law
The only oil promotion enterprise
not coming under the jurisdiction of
the commission-and the biggest-is
that being financed by A. c. Townley,
former Nonpartisan league chieftain.
who is declared to be borrowing mon
ey from his friends, on notes signed
by himself, with which to finance his
operations. Because Townley has not
formed corporation and is not sell
ing stock he has not been called be-
fore the securities commission and
his operations are not open to ques-
ton.
In an unofficial opinion Attorney
General George Shafer, who makes
no pretense of being politically
friendly to the former Nonpartisan
leader, says there is nothing the state
can do to bring Townlcy under its
supervision as long as he pursues his
present plan of operation.