Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-07-06
HOW OIL MAN CAN.

NAR "a AAC NAANCA Vi AME AEtAGA
below. You would recognize 1t as
that OF a lifelong Democrat and
one-time high official Of the FEEDER
al Government
His letter was dated May sixth.
and it read:
Il was interested in your editorial.
| Information. Please, in your April
twenty seventh issue
1t may. In turn. interest yoH 10 know
that am 4he hardy Spectator who
answered Mr.. Everts' advertisements IN
the Wall Street Journal by sending Il
20 friend in Texas 90 investigate and
report As result. I offered TO join
Everts but the SIG interfered and EvertE
had 10 Withdraw his offer. Subsequently
the Phlllis Company, feeling a moral
responsibility to Everts renewed the
lease to him, but on harder terms. and
Mr.. Everfs. feeling a like respon9fhiiity
TO me- allowed my participation. hut on
less favorable terms Mr. Everts came
10 New York and looking in his h0usef
eve / let him have the money ahead
OF the time Of my obligation
This morning I received the follow
ing telegram: Our Number One Gist
ranch we'll came In late last night 4 far
bigger well than the offset which is a
O0-barrel well. Drilled almost 100 feet
Of the most thoroughly saturated honey
comb lime we have ever seen Sending
pictures to you as IL went over the top
Best regards and congratulations.
Please do not publish nv name, as
have enough people besieging ue for
contributions and never To be-Daid loans
Mr.. Everts turned up in the
mail several days later His Is q
long letter and we quote only the
point which interested us most:
fright here the average man might
say Why not file an official offering
sheet with the SIC. giving them all che
Information as required. then advertise
for the partner with the money ?"
The answer is that II cant be done.
According To rules that now have heen
explained after filing the information
that any petroleum engineer or geOlogist
hired by any prospective partner would
require, Il still Is AGAINST the law to
advertise how and where you propose
TO spend that money how much cash !
money you propose to furnish toward /
The well. describe what kind Of well Won /
hope to get. give the size Of the well |
Just 80 feet from your property line |
or give any other Information whv you /
believe It would he profitable business
I'm other words, unlike merchant.
! must not under any circumstances
give the slightest public inklIng as 10
WHY WHY need that partner. even after
Hing my offering sheet with the SEC
and having Il passed by them.
! ran advertise only: Wanted: mart
1er with $l5 000. This is not public
''rer1n% Public offering is made only
n official offering sheets as reauiref
1y law. Said official Offering sheet |
nav he secured by writing the Fverfs |
Drilling Co. or the following brokers
. prohahly the SEC cannot he blamed.
" Is their iOh to enforce the law. They i
nav even believe that CONGRESS- showId1
hence the law. But CONGRESS- hasn't
which Is nv idea OF a hell Of n note.
mo me end Of the indenandena oil
,ssodnc,ng business. Unless that law Is
hanged. Let's h0pe!
I'VE sent Mr.. Everts letter to
Mr. Jerome Frank, chairman of the |,
SEC, for HIS comment. In his II
'eply below, Mr. Frank admits that |,
Mr.. Everts, even after filing an l,
'ffeFing sheet, is sharply limited
n what he may say in an adver-
isement, citing the legal definition .
II a Security in explanation.
rhe SEC chairman writes: n
! THE important point which his. letter L
bScgres Is this. Mr.. Everts II not i
'erelv an ordinary man looking for Ia
artner in an ordinary business ven !
hitch Congress explicitly defined as
security, and. as such subjected 10 | 4
he restrictions in the Securities Act :
onseguentlv. any advertising he does
Isl ne 6afferent from that Of an or.
mary man hooking for n businpws nart- 4
er, II is only because he WIS seeking 4 :
, cell a security that we had anv in y
rest whatever in Bfr. Fverts' adj c'
Exeept IN the case Of seasoned com q
ames. the only newspaper notice ~
snrtty OfferinV which n IA poSsibie
nse under the Securities Act IS the e
mnte announcements contained in An o
~, sIIcarion ad That type Of ad as Ia
IN know. is widely used on financial :.
fgeN and consists NJ little more than ~
e name of the Issue. the amount being Ia
I'red. the nrice the bankers name and he
'cfus NAV he obtained &C
In selling the secIYrftv tssues % 81
asoned COMPANIES. II ia possible 70 use liza
w. OF al known as a "newspaper IL,
's shs which summarizes the terms -
the offering as contained in the nros. In
rtns itself Bur the tyne Of security to
r Ererts wanted to aeIl does MOI ~,
m me within that category. e.
HnYone Advertising oil ROYALTY 90
rites Tor sale can properly jncIude IN m
al the following: The name ~ tbe ian
operty the detailed location. the rvns -,
interest being offered the stza n 10 ~
actlon or unit Of division. the price
Y unit. and the names Of persons gron lsil
lom offering sheets NAV he obtaineg
q 1c,, with whom orders can be placed
Ihat means that Mr. Eyerts migbt M
W rnn az ad. not quite as limited as m
Indicated. hut something lilo mis-. idu
FOR sale: A half interest In noton. '
u OIL property located in the Rlank PIT
ED. Blank County. Texas prfca s15 oon an
n piLciai 0HerinQ sheet NAV no oh lOf
n neg rom Blank & Co. (Signei, Fverts -.
fmlng Co. Dallas Texas, %
VI. hverts complains that amoDy the ma
hgs ne would not he allowed ~ dce.
I. o IN IN nd is THE size OF the we'll ca
= ;cm feet from your praDertv line . -
rs is nrecisely the type of thing thar a
are irving to keen onf OF on se. til,
rlty advertising. I think Won viii lar
rec fhat as general rule II wonld n.
ne sonnd to elbow promoters ~
it6cai oil securities 70 sell them on me
pasls OF the size OF the wen IN the Icai
One thing more ron ought n know TN
"a respect to Mr.. Everts. We Mace ION
lctically no limitation ON fine tvbe ~ Co
icitahon which a promoter Of oil Isol
writes can make to persons actively -
sag@f In the oil business. provided We
offering sheet is on file with MS an
at is. we don't attempt to limit what Ev
oil man tells another oil man about a..
property so long as the basic facts =, -
on file. II Mr.. Everts were really Ex