Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-08-29

the lap of the writer who had regarded 1t
merely as q @side issue" With curtaiIed ex-
penseS, the organization began functioning
with far less flourish, sans fancy printing
and fancy offices. Only an occasional pur-
chase was made-especiaI bargains In which
the writer was interested. Each proposed
purchase was submitted in writing 10 all
eligible members and each one was entitled
to participate in the purchase. We seldom
failed to take up an option but this was
because the membership had grown to a
place where there were many of varied
tastes. Some investors would buy only on
lands leased to certain major operators;
some would buy only along the Kelvin fault
or along the Emmons fault; some would buy
only on properties approved by Gordon
Campbell or some other geOlOgist We found
that those who worked out a definite plan
of investment were far more successful than
those who bought with no plan whatever.
Early in our experience we found that
it was false economy to get along without
abstracts and legal advice. We once bought
a royalty from a prominent" Great Falls
business man on a farm near Kelvin He
represented it to be landowners royalty and
it appeared to be good property as wen
was about to be drilled by the Montana
Kevin). We had Just divided the royalty up
among those who had voted to participate
when we were served with papers showing
that the royalty was not landowners roy
atty but OVERRIDING royalty which was
terminated when the old lease had been
terminated. So we had the painful duty Of
paying back the money to all the buyers
of that royalty. 1t was an expensive lesson.
Did we sue the prominent" business
man?
We did not. We took preliminary steps:
got him TO repeat his statement that it was
landowners royalty. We took the matter to
Ex-GOv. Edwin l.. Norris Of the firm of
Norris Hurd g. RhOades. Governor Norris
set up policies for our guidance which we
have reIigiOuSly followed. We did not file
suit, although we tried vainIy TO get back
the money we paid for the worthless roy
atty by peaceful means. But we merely con-
firmed Governor Norris theory that we were
dealing with a sanctified crook, so we took
our medicine.
In our 20 years In business we have never
had a lawsuit. We have never been sued.
We have never sued anyone else. Groups Of
our members have banded together in three
instances to bring suit to collect royalties
due but this organization has never had a
lawsuit although we have had business with
hundreds of landowners and upward of 1000
royalty investors. We have always adjusted
every item that was due to our mistakes.
We have had one or two more titles ego
bad" on us and have always made them
rood We have always worked the prin-
ciple that friendships are our greatest asset
N this life and we have tried to deal with
ZACH man, buyer or seller, on basis that
20 years hence we could look him In the
we and greet him as friend.
Thus we today find that after 20 years,
Iespite the many ups and downs we have
wealth of friends. Some of those who par
icipated in our earliest purchases are stin
'uying royalties through us. They are among
ur best friends. CHANGING back we find
hat great many of our early group have
assed away; the man who first bIOssOmed
ut with a fIashy new car, thus giving this
rganizatiOn its first publicity, is gone; like
7ise many others who at their passing were
ated among those for whom we had warm
Election.
Our method Of handling royalties, worked
ut for us by Governor Norris, was to buy
he royalty in the name of trustee, after
tearing title. The trustee would thereafter
istribute the royalty, giving deeds to each
There was possible danger,
course; of the trustee abusing the trust.
OvernOr Norris IaughingIy suggested the
IRE for this: Employ an unmarried woman
Ore than 21 years old-preferabIy an
rphan," he said, explaining how to avoid
implications in title We surprised him by
nplOying a trustee who answered all the