The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-04-09


actions occurred with reference to the
disposal of this issue of preferred stock
or that any consideration that might
smack OF a monetary value existed.
The preferred stock had a voting
power of eight times-that is, each
share had a voting power of eight,
while the common stock had voting
power of one-half-each share voted
and represented one-half a share. Ac-
cording to this representation the pre-
ferred had a stock vote power of
100000 votes while the common had
but 100000.
The holders of the preferred stock
on this basis held the key to the stu
atton-they were enabled to outvote
the holders of the common stock and
authorize by a vote anything that they
might deem adviSa BILE. Expenditures
of money, business policies, in short
all of the business of the company
could be dictated by reason of their
voting power over the protests of the
common stockholders. For promoting
the sale of the treasury stock, Tucker
entered into an agreement under which
he was to receive 10 per cent of all the
stock sold. In consideration of antici-
pated sales he Immediately took pos
session of 1000 shares. which he paid
for by charging on the books of the
company $1,000.
But without a charter from the
charter board of Kansas Tucker would
not be able to do business within the
state, so he organized another COM
pany. The charter fee for the Arizona
corporation would have meant a con-
siderable sum of money, but another
company with a less capitalization
could be chartered at a reasonable
sum. A new Kansas company sprang
up. The Kansas company was called
the Uncle Sam Oil company with
capital of $4,000. The stock had a
par value of 81. H. H. Tucker, him
self, owned 500 shares, while the re-
naming shares were held by his wife
and his father-in-law. a Mr.. Mckinley,
and one or two employees, enough to
poses of the Kansas company, 1T is
stated, were to be the same as that of
the Arizona company Pretending TO
act for each concern, Arizona and
Kansas. it is stated. Tucker entered in
the records of each company trans
fer by lease of all of the assets, credits
and moneys of the Arizona company to
the Kansas company.
The Kansas company, 1t can be seen
at glance, was a close corporation;
it was almost a family affair.
1t was slated that the Kansas cor
poration should control the Arizona,
and per cent Of the capital stock of
the latter was entered to the account of
the former.
Spent Big Sums in Advertising.
Tucker was now ready to do business.
He had an Arizona company and,
thanks to 1t, had a big stock issue.
He was prepared to do business in Kan
sas and maintain headquarters through
his other deft arrangement of hold
ing company. 1t had not cost much to
charter the latter. He was we'll salts
flied People were talking about Kan
sas oil fields and Tucker was ready to
start his campaign.
He did it through the newspapers. A
whole year elapsed, however, before he
branched out on the elaborate scale
which characterized his promotion. In
the early part of 1906 he had contracts
with a great many newspapers all over
theUnited States and from that time
on until March of this year his adver
tisements- page, half page and
full page-appeared in almost every
state of the union. Many of the metro
politan newspapers carried large ads,
and the Uncle Sam Oil company was
one of the best advertised corporations
in the United States.
His total expense for advertising is
said to have reached close to $270, 900.
In the spring Of 1906 Tucker offered
for sale stock in his oil company for
20 cents. Previous to this it is stated
he sold stock for 10 cents.
He told in great detail of his plan to
build refineries,- construct pipelines,
and barges for the shipping of oil down
the rivers to big shipping points. the
opening up of depots in prominent
towns of Kansas, Missouri, Illinois and |
The oil trust was attacked, and con-
siderable space was used in telling the |
manner in which the cooperation of all |
the stockholders living in all parts of |
the United States would result in the |
downfall of the oil trust and the DOM |
nance of the independent oil company. |
In April, 1906, Tucker announced that |
the company would commence paying |
dividends and that on June 20 the first |
dividend would be declared. At the |
al Of fIa
pany was given as follows: James Ing
ersoll, president; J. H. Richie, vice |
president, and H. H. Tucker, secretary. |
In the advertisement of the same date |
1t was stated that in all proba bility the |
daily output of the company by August |
of that year would be 1000 barrels |
and that it would later reach $4,000.
He also announced the putting in COM
Missouri river on July at Atchison for
carrying oil. The opening up of agen-
eies at Topeka, Wichita, Leavenworth,
Ottawa, Hutchinson, Pitts
ourg, Kansas City, Salina, st. Joseph |
and six other towns was announced.
Later with reference to the first divi-
lends Tucker stated that the clerks
we're busy writing out the checks.
In July the statement was made that
n six months more the probable in
come of the company would be $4,000 |
day. He also announced at this time
he removal of the company's headQuar-
erS to Kansas CITY, ran, from Cherry
yale, Kan. His business was getting
beyond Cherryvale.
December 20 he announced a second
dividend and on January 3, 1907. he an
bounced a third dividend. Dividend
No 8 and completion of great work we'll |
lnder headways means at least so cents
Uncle Sam oil stock" is the way it is
to the public. Stock was
still selling at 20 cents.
The advertisement gave this further
Investors from every
BART of the United States show con-
inued confidence in the Uncle Sam re-
inery stock as can be proven from the
books of the many substantial remit
.ances received during the past three
weeks While there are hundreds of
leals pending which the company is