The Birmingham age-herald., 1910-05-22

development of this industrial district have gone to work with this end in view But little is being said, but men of power linen who recognize and need this stan dard of cheap power-are busy. The pro- motion period is past I am told that the sale of stock by the controlling com pany has been suspended. There is none of the company's stock for sale.
 Pipe to Birmingham
 All energy is now turned to the task of piping the gas into Birmingham for practical use. The bringing in of the fourth well a few days ago at Fayette has satisfied the men behind the move- ment and who are developing the field that gas abounds in paying quantities and feel now fully authorized in making the effort to bring the gas to Birmingham.
 Organization of Company
 "The Providence oil and Gas company was organized as a stock company under the laws of Delaware with capital stock of $1,000,000 and with 100000 shares par value of $1 each. The company paid out for promotion purposes a large amount of the stock to the parties who organ ized same. Perhaps 100000 shares of the stock was paid out for leases and oil and gas rights on lands in Tuscaloosa county, where the parties who started the company announced that they were to drill for oil. Fifty thousand shares of this stock was paid to G. B. Grove for oil and gas rights on lands in this neigh borhood. Subsequent to this time, pr. Grove gave the company a contract for lease on land in Fayette county and by paying in 5000 in cash for stock, per suaded the company to drill on this land The promoters sold many thousand shares of the stock at 10 cents a share or less After spending all the money they could raise and accommodating several thousand dollars of debts the company was obliged to cease operations
 "At this time Dr. Grove, still believing that the field was good one. organized the Eureka oil and Gas company and went to a few friends, IA of whom re- sponded, and asked them to join him to the extent of $500 each, with the under standing that each was to pay in as was called for by him the sum of $500 more. He then organized the company with q capital stock of s3o.000. All of this stock was issued and paid for, and then Dr. Crowe and his expert went west to look over drilling operations and while in Kansas and Oklahoma bought four drills and shipped them to Fayette and at once started drilling.
 After this time he refused to renew his contract for a lease with the Provi- dence company unless the promoters would surrender nearly all of the capital stock which they had in their possession. After this was done the doctor accepted the presidency of the company and as- stunned and paid personally many of the companys obligations and prepared to re- sume work.
 About this time the Eureka company was out of funds and for quite while Dr. Grove personally met all their obli- gations and kept the work going until the time came to buy the stock of the Eureka company for the Providence com pany. This was done by paying 10 shares of Providence treasury stock for each dol lars worth of Eureka stock. After this 300, 900 shares of Providence treasury stock was paid for the Eureka stock to the Eureka stockholders, this left in the field the Providence company alone, with a contract for a lease on 5000 acres of carefully selected lands in Fayette coun- ty and about 5000 acres in Tuscaloose. county The company has in it's treas ury more than 3OOO00 shares of stock, none of which is for sale.
 'Dr. Grove is now preparing plans and estimates for his company to pipe the gas from the wells that are now drilled and being drilled. The company will in all probability issue bonds on a pipe line from Columbus, Miss, to Bir- The cost will be about