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MONEY i Of l . II U t 1 - r 1 ti Oil Has Become a Magic Word in the Realms of Finance and Banks and Bankers Who Refused to Talk or Deal Years Ago Are Now Busy Reading Up on It, Getting Piles of Information to Furnish Their Customers About Its IT is most Improbable that at any That does not mean they all feel time in tho history of the world sure that they are going. to get rich, has so much money been Invest- Not at all. By far the greater number in any speculation as is at present of them know that they are taking a lIng invested in oil, petroleum, by tho long chance, merely making a bet that American people. Since the finish of they will win a pot of money. They tho war the people have their minds know there is a great chance that they off the struggle In Europe, and back may lose, but they are willing to take to their rropor business of making, or the chance. of trying to make, money, there has The great selling point If the oil been an inpourlng of money into oil stock salesman is this: "Mr. , stocks that has been simply amazing, have you $100 to 1500 on which you The people got the habit of investing are willing to take a chance of making during tho war. Then, for all the from $1,000 to $100.000 In a year?" howls about the high cost of living The chances are that you have. In which are true enoughmost of us any event you are interested enough have had some money to invest. "VW to say: had money. Everything was high. We "Maybe I have." did not care so much about buying "Then." proceeds the oil stock sales clothes or going on railroad trips, for man, "take a chance with me. 1 am clothes and railroad transportation not guaranteeing you anything. But cost a lot of money, were at prices so Wc have a good oil prospect. The ad disproportionate, that we hated to joining ten acres have four gushers on stand for them. jt. Here we are between a lot of Farm lands were high, and, besides, proved wells. We have a lease on the city people can not handle farm lands, land. We may lose. Our wells may Farm lands are hard to handle, bo- not come in. Hut we have a chance, cause help is hard to get. r.old was not Are you willing to lay ?10" to 'Son, or new. We had no Klondike or Cripple as much more as you wish, on that Creek, and even if wo did have the chance? You may lose every cent of Klondike, it would be too far away. It it. I am frank with you. But you may would not bo an attractive place, become rich. Are you on?" Whereas oil was rieht at our doors. That is a frank, and. very often, an The great states of Oklahoma and honest appeal. The salesman may Texas, parts of Kentucky and f Loui- back up his talk with statistics, for siana and Illinois, w, ro wild with tin? which the American people have sud oil boom. Wo could got on a train in dmly taken such a fancy. The sales tho evening and bo in the oil regions ,nan and his company may bo by morning. lb Iter still, oil stock Inmost. There is a chance that they sab smen could 1. avc tho pushers in the evt nir.g and s o us in the morning. the smell of oil o:i 1 1; i r certificates of stock in tV ir h.m-.K l'oor t Bich (Jo Mild on (Ml. The result has been tli.it oil stocks have become the f.noritts of investors of all sorts, of regular d ed-in-the-aoo1 speculators, ganibl r most of would call th m. of cor.s rvativ . ex perienced investors, and. in the nd. of people who have from Jl"1 to 5 ".00 to invest in something that may make them rich. This is the most important class of all. Tht re are few Americans who do not hold ;n thtir hearts the Idea that some day tiny ill rt rieh i' ,V t)l.- Mill i..t T-l'.O, v. ...1 Wit l.V.i shoestring into a ty nothing, run a shoestring into a tits of the new financial giant Oil. tannery or a $1 note into a million Banks and bankers did not know dollars. It may be fool'.sh. but it ha.- what the word petroleum meant two been don time and tiuw ai:ain. and no years apo. are now more interested in matter what wise nun may say. Col. it than thty are in the very best first Mulberry Sellers struck the sb'gan lor mortgages on downtown real estate at tho American nation w h n he said. homo. Very rich and very conserva "There's millions in it." The- great tive bankers, men who have done what American working class, from the girls they are pleaded to call a "legitimate in the factories to the judges on the banking business for fifty years, ar bench, have gone wild on oil. regretting that they did not get Into may bo dishonest. It is up to you. Will you take a chance to make a mil lion with the $100 to $50! that may bo drawing 2 por cent a year in the bank? Tho chances are that you will tako the chance. Banker and Brokers Compile Statistics. Oil has become a magic word in the realms of finance. Brokers and fian ciers who did not know anything about oil three ytars ago are busy reading up i n it now, getting information, pil in? up the always attractive statistic; tho Germans imparted that passion to us and in very way preparing In furnish their customers with inform:. - tbm regarding the wonderful possibili a business that makes men rich quick- ly, are getting into oil now. They think of the paltry $100,000 or so they have been laboring to make all these years, and then of the billions that the Standard Oil Company has run up in tho same time. And they go into oil. Rockefeller no longer has it all to himself. It is estimated that since January 1. 1919, 5,000 new oil companies, with a capitalization of $1,500,000,000, have uvt-ji uiamtru. it in hui I'uamviv iu get a true estimate, but this much is known: That the organization of a $100,000.000 company does not cause a ripple of excitement where it would have created a furore three years ago. the gasoline engine and the oil-burn-The great tide of new investment in ing engine. oil, estimated at $1,500,000,000, since January 1, 1919, may be appreciated when it is stated that the total capital ization of all the Standard Oil com panies is only $550,000,000. Thus we find that thrice as much money has been invested in oil since January 1, 1919, than the great Stand ard Oil Company has invested in al most fifty years. All 1 eared Standard Oil Co. In seven months, Americans have financed the equal of three Standard Oil companies, and it was only ten or twelve years ago when some people thought that Standard Oil was too rich and too strong to submit to govern- ment by the United States. The great growth in oil stock specu- lation is an interesting study in invest- ing phychology. Five years ago the investors and the brokers through whom they have been in the habit of investing knew little and cared less about oil. The world knew that the Standard Oil companies had been very successful, and that stockholders and that stockholders received handsome div therein had received handsome div- idend up to the dissolution in 1911. But most financial sharks thought that this success was due to the great abil ity of the Standard Oil crowd. John D. Rockefeller. Henry II. Rogers and John I) Arehbold. and the monoily w hich they are known to have on the oil business in the United States. Anon, the investors and their tu tors, the brokers, felt that Standard Oil had the business "sewed up." thit you could not sell a barrel of oil with out the consent of the Standard, and that that consent could only be bought at a price which left you no profit; in a word, that money put into oil was sure, in the end. to be gobbled up by the "trust." The Standard Oil folk never had to go to Wall street for money. They had lots of their own. So there was little study of oil by banks and brokers in the United States. Those in the oil business did not need money. Those out of the business were glad enough to stay out, for they feared to risk competition with the bogey of the Standard. This condition was changed by five things: Discovery of oil In many fields. Plentiful supply of money in the uiuifu diaus. The dissolution of the Manaara uu Company. The greatly increased consumption of oils and oil products, especially by The war. Did "ot (let Money From Wall Street, All these things combined to open UP . ... uu the oil business and to let the public into it anywhere from the subcellar to the thirty-fifth floor. Of course, the Standard is still in the business. The various companies unscrambled out of the old combine are at work, and doing handsomely. But they have not the same control over the industry that thev once had. In other words, the United States proved too big for the Standard Oil Company to control. This means not so much the courts as the country itself. The country just thought it would spoil the Standard's alleged graft and monopoly. So it turned in and spouted oil through ev- ery well. The courts helped seme with their decisions to break the Standard grip, but it was the great United States themselves, the good Amrican conti- nent that did the work. Now many en- ergetic men have enough money to go ahead and bo independent of the Standard in the oil game. The indept ndents did not have the money that the Standard had. So they were obliged to go to Wall street for it. They had to educate the bankers of that famous thoroughfare in oil. They did so. Out of that education, which began about five years ago, has grown the present tremendoues boom in oil stocks. Harry F. Sinclair, who was largely identified w ith the Federal League baseball venture, and J. S. Cosden wore the oil pioneers in Wall street. Many others have followed them. The great independent com panies, the Texas and the Gulf Refin ing Company, were already in busi ness, but they did not have to go to Wall street for money. More amazing still is the demand or petroleum products for fuel pur- poses. The interior combustion en- gtnes which, move motor cars, boats, airplanes, which pump water and which have taken the place of 3team engines in doing 1,000 things, created an immense demand for gasoline. The demand in this line is so apparent that it is no wonder investors, seeing It, should rush to buy oil stocks. The The gasoline or internal combustion engine has revolutionized locomotion on land and water, and now threatens to revolutionize it again by sending it ... -, D was once thrown aside as a useless iactor in petroleum. These uses, of course, are for the lighter and more refined essence of petroleum. Yet the greatest possiblli- ties of All li in hpavv and fnpl oil for , steamships, railroad locomotives, etc. It is not impossible that stationary en- gines may depend upon fuel oil at no late date. Figure firemen at $25) a month and that nil will sive flromn moiun ana inat 011 wm save nremen, a d whpre fupl oil nav ana juu can see wnere iuei on iaa ln f stationary engines. The oil burning ship is said to be the ship of the hour. The navies of the world are anxiously looking to wards a supply of oil. One of the things that British and American na vies most carefully guarded during the war was access to the Tampico oil fields. Had that access been cut off, the British Navy would have been very seriously handicapped. Earl Curzon said that the allies float ed to victory on a sea of oil. The Unit ed States has set aside million!, of acres of oil-producing land for navy use alone. Oil Burning .Ships to Have I)8y. But the use of fuel oil by merchant ships is far more important than the use of oil by navies. There are thou- sands of merchant ships where there is one warship. The vast advantage oil has over coal is that it reeiuires in- finitely less space ln a ship, makes in- t finitely less labor and is infinitely easier to load. Oil gives more room for cargo or passengers, relieves the hard-worked stoker of all labor, and can be taktn on board through a ptpe üne, instead of being shoveled on as coal has been. Then oil is clean, while coal is filthy. One of the great causes of the boost in the present boom in oil stocks is said to be a letter written ty Chairman F. N. Hurley of the United Statcs Shipping Board, in which he estimated the enormous amount of oil the new merchant marine, of all coun- tries. might need. Mr. Hurley said that if American shipping plans alone are carried out, the United Stites merchant marine would need one-third of the present annual production of the oil supply of the world, and If the world's program is attained, there will not be half enough oil at present rates of production to meet the de- mand. This without considering other uses for the product. To be sure, the shipping of the United States and of the world is far from being on an oil basis. Mr. Hurley was caieful to point this out. His figures, however, give a perspective on the subject. inuiviauais are noi me onij m'fuvis after oil atlons are going into the business. Great Britain is searching every part 0f her dominions for oil. eyen tne r)ritj?h Isles, where petro- leura never has becn found, are be- i .....iu j.t v... ,.n -jii Jng wiiq caueu u) Ami-miiuunmiu- prs rtrmanv-, nian nf ronnuest had a large eye on the oll flclds of Russia and Rumaniat and France is eagerly lt .uu Minnr rhina. i i -1 j -wen great nations go seeking oil. in- . , . . n. dividual Investors are sure to follow. Nations Golm? Into Oil Kusine. It is said that there is plenty of oil in the world for years to come, but the nroduction of 1919 is not up to . ,,. ti,n rrrtf consumption, even though the great Northeast Texas fields have been add- ed to the output. Production always ran some 50.000.000 to 60,000,000 bar rels ahead of consumption until 191 C. when they ran 15.000.000 short. They ran 53.000.000 barrels short in 1917, and 26.000,000 barrels short in 191S. Now, in spite of the incoming of the Texas fields and imports from Mexico of around 45.000.000 barrels a year, the United States is barely keeping up with consumption. It was expected That that demand would relax with the end of the war. but not so. Europtn countries were so far behind in petro- leum that they have kept up tne ae mand to war-time figures At the pres- ent. daily production is running very slightly ahead of daily demand, The tremendous work done by petro- leum products during the war in rur- nlshing power to motor cars, trucks. airplanes, etc., wa3 luridly press agented during the war. People got a good idea of the Importance of petro- leum products in war and in peace, Then for four years, investment and speculation had been held up by the war. The people had money, the spec- ulative Instinct was strong in the ven- turously incline-d, and the investing in- rtinct strong in the conservative. The end of the war saw the petroleum in- dustry in a most favorable position for resumption. It was not In need of any period of rest, reconstruction, o dation. The business was f liqui- staple, in Oil Three Possibilities. Prices had never gone very high in the industry. The people got a good idea from "gasless" Sundays of the inesti- mable value of the product. Stocks were low. The automobilo industry was millions of ears behind. Every- thing was set for a b'o.. " came, Public Hefldy to Take Chance. T. . , xne events. iow'v. . wanted rather to tak with a small sum than to huv stock in the old and substantial oil com panies. The investors seem to want to buy into new companies that were trying to produce rather than to refine. to transport and to sell oil. This bont was helped along by the discovery of the great North Texas oil fi Id. one of the greatest and mo.n sensational ever brought in. This n-v district mad- it easy for a lot of new companies to organize for production. Some of the new companies have valuable proper ties, others hae nothing but good chances. But the investors as well as the gamblers ser m to ft el that the new oil company has more possibilities of profit than the old one. The old-estab- iisnea on company, witn producing wells, refineries and a selling organi zation, may pay from 12 to ZZ per cent on the $I0'. invested, but the new field .ay return $?',)')) to S.Vj.'.'jo on the Jhj'j. Then, again, it may not make any return at all. But the American investor, or speculator, Se-m3 to be willing to take a Jong chance with his ?K'0. The Wall strt people used to hold off the old producing companies, on the ground of risk. They preferred the companies that produced, refined and sold as the Standard did. More chance of profit they taid in such com panies. However, the new Investors are a11 for lh IonS gamble on the pro ducing companie-s. Profits from refin ing and selling are close compared with those from producing; that Is. if you do produce. Oil turns out. sells quicker than gold or silver or lumber or copper or coal. One good well may make a whole county rich, Wealth comes so audden- ly that all sense of proportion is lost. There is no doubt about it, many men have made immense and rapid for- tunes in the oil fields. "No-account" whites and half-breed Indians, tramps, "cracker" farm r3, have been mad rich by oil found on their iands. One company which Lad been miring coal in the Burkburnett region struck oii Its stock went up from ?1"5 to 5- f0 a share. The town bum ln Rani,, came a many-Lime.s inilü' Uuiro.