The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-28
To The Stockholders OF
The Providence Oil & Gas Co.

causes a loss of confidence in the man
agement which would prevent the sale
of treasury stock at anything like the
price 1t should bring.
q I am told that DIR. Grove has been
voted by the board of directors a large
block of stock in consideration Of IL
lease from him on a few thousand acres
of land down in Tuscaloosa county, Ala
bama. l know that DR.. Grove felt that
he was doing exactly right in this mat
ter. and can give a good reason for
1t, If called on properly but In my judg-
ment 1t was a very bad trade for the
Providence company, and / believe that
DR.. Grove will be willing to have said
trade annuled. If he is unwilling, then,
without imputing anything wrong to him
in the matter, but, on the contrary,
knowing that he thinks that he is right,
I will vote at the stockholders meeting
to annul said trade.
g. have been told that the board OF
directors in order to pay q debt due
DR.. Grove from the Providence COM
pany, have voted him a very large block
of stock at a very cheap price. 1eei
sure that If this is true, he acted In per-
feet honor In the matter, and Will nave
a sufficient explanation, If properly called
on for It; at the same time, I shall vote
to rescind said issuance Of stock to him,
and to sell sufficient treasury stock TO
pay him what the Providence company
owes him, with interest on same.
a. think that the officers of the COM
pany made very grave mistake in agree
ing to let the Consumers National Gas
company have the entire output from all
the Providence wells, present and future,
for all time, at cents per 1000 cubic feet,
and in transferring to them the fran
chises of the Providence Oil and Gas
company in Birmingham, Bessemer, etc.
Ny reasons are these:
(a). The price is too cheap-3 cents per
1000 is simply not enough
OBJ. The Consumers National Gas com
pany Is local company just organized
Its official organization is new to the nat
ural gas business and utterly inexperi-
enced In building pipe lines, and l do
not believe that they will be able to
finance such an expensive proposition. 1t
will take million dollars, at least, to
build the proper pipe line to Birming-
ham, to say nothing of other pipe lines.
have had representatives of many big
gas companies down to see me on the
field. and have correspondent with many
more, and, without exception, they all
tell me that at this stage the pipe line
proposition cannot be financed. In other
words, a great many more wells, extend
ing over a much larger territory than at
present developed. will have to be brought
In and when this is done, there VIII De
no trouble in getting pipe lines without
having to make the slightest concession
to anybody; in fact, established gas peo-
pie, from the Standard Oil down. will
then fall over each other to get chance
to handle our gas. Therefore, I shall
vote to rescind the contract made with
the Consumers Natural Gas company.
g. shall vote for an impartial com
mittee of competent men to examine all
the books and papers of the Providence
company. I appreciate fully DR.. Groves
position in the matter: His refusal to let
people, whom he considered hostile to
him and the company. go through these
books, I think was perfectly natural,
and I believe that he will court proper
examination and report on these books
at the hands of a proper copamittee ap-
pointed by the stockholders
This Is frank statement OF my posi-
ton In the matter and If you send me
your proxy and there are any other points
that you wish me to act on. notify me of
same and I will act accordingly, even If
I disagree with you on the points You
specify.
If you cannot get a letter to ne by
Tuesday morning please wire me your
proxy, addressed to me at Birmingham.
Ala, care of Hillman hotel. Respect
fully submitted. S. A. HoBSON.