Petroleum Bubbles

The sensational behavior of Southern States Oil stock on the New York Curb and elsewhere recently, has created much comment. The sponsor for the stock, C. M. Haskell, was formerly Governor of Oklahoma; retiring from political life in 1922, he became personal attorney for Harry F. Sinclair, and still later, an oil operator and promotor of evident wealth. Southern States Oil is only one of several so-called "Haskell oil companies."

Southern States stock had been very active on the Curb for two months, and gradually rose to 33 from below 20, under evident manipulative tactics. Suddenly the suspension of a Curb house (Richards, Hutchinson & Co.) developed the report that Haskell and others had ordered them to purchase 50,000 shares of the stock, and that after the purchase had been made they were left high and dry by their "clients." The stock was stricken from the list on the Curb and in outside market trading immediately afterwards its price was quoted "5 bid, offered at 11."

Several firms of the New York Stock Exchange are reported to have carried on extensive dealings on the Curb for their clients in the stock, and the Exchange quickly started an investigation of the episode.

Mr. Haskell stated that the book value of Southern States Oil Co. stock was about $40. What it will now sell for remains to be seen.