Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-12-07

The Man Who Came For Dinner

than wheat or sugar beets and the court
will protect him accordingly
The landowner can sell all or any
part of his rights which are called roy
atty. Thus investors frequently share
with the landowner his risk and in turn
his profits. They step into the landown-
er's shoes in exactly the proportion of
their share of his rights All the laws
for the protection of the landowner apply
to his assigns the royalty investors. Ac-
cordingly, royalty owners stand to suf-
fer no loss in the event Of government
control AS surely as the landowner is
paid the contractural compensation for
the use of his land, just as surely will
the royalty owner be paid his protec-
ton.
Furthermore. the royalty investor has
the added advantage of having his mon
ey invested in something that cannot be
taxed. That is. no matter how much oil
a man may own in underground stor-
age, he pays no taxes on that oil until
1t is brought to the surface of the
ground.
gentleman came to our office this
week imbued with this idea. He said
that he had clients who would invest
large amounts of money in oil in un-
derground storage He seemed to think
that the purchase of royalties meant
only taking something off the shelf. 1t
was difficult for us to explain to him
that royalties must be carefully select
ed: that it is easy to pay too much for
royalties; that there are definite meas
uring sticks which apply to royalty val
ues and that the man who does not
apply these careful rules cannot expect
to make money. We showed him that
it would take years to buy as many roy
alties as he desires, providing they were
properly priced He had in mind a plan
to convert large amount of other Sc
curities into cash for the purchase OF
oil in underground storage.
Royalties are distinctly the advantage
of the small investor, who will careful
ly and painstaking select his properties
over a period of years, ending UP with
an estate that may make him a for
tune or which will surely bring him
some sort of an income in his later years.
far in excess Of the most roseate prom
Uses of social security.
1t is fortunate that there is no short
cut because in view of economic condi-
tions today, wealthy investors would
clean out all the landowners royalties
in the country in one or two purchases.
But that is not possible because it is
necessary, as we stated, to pick up small
royalties, here and there, as opportuni-
ties arise.
That calls for the services of an
agency such as this one, to provide in
vestors with facts and information re-
garding developments in the industry
which point to opportunities in royalty
investments; an agency that understands
something of royalty values and legal
titles and the other details which en-
ter into ultimate profits from royalty in
vestments
There are some 1000 people who to-
day have their money invested in oil
in underground storage, purchased
through this organization. That is not q
large number, but we consider them some
of the most fortunate investors in Mon
tana- no matter whether their returns
have been large or small to date. They
are going to come out of the next post
war depression with the most valuable
asset a man can own in this age of ma
Large investment houses are today
turning their attention toward purchase
of lands because they consider land as
the most stable invest ment obtainable.
We believe that even more stable is an
investment In lands which happen to be
on a geological structure and which may
contain OIL
Any who wishes to join us in our buy
ing program Is invited to write for de-
tailed information regarding our organ
ization.