The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-29
To The Stockholders OF The
Providence Oil & Gas Company


instead of the company giving this
stock l would give 1t from my personal
holdings. The reason was to avoid TIE
Ming of an injunction on the part of
these stockholders who were raising
the objection to the company giving
the stock away. The majority of these
DIRECTORS, l will state to the best of
my knowledge, were not those VINO
bought and paid for their stock, but
were those who held their stock by
virtue of having been the original pro-
motors of the company.
NOW. Just before Mr.. Allen filed his suit
against the Providence OIL and Gas COM
pany complaint came to me through
Mr.. j. z. Lee, who was then a direc-
tor OF the company, that Mr.. Allen felt
that he had not been paid anything for
acting as secretary of the company, and
made the proposition to Mr.. j. p Lee
that l would give Mr.. ]. v, Allen 1000
shares of my stock, provided that Mr..
Lee, Mr.. Marion Allen and Mr. VIII AL
len would give of their stock enough
to make up 5000 shares to Mr.. j. V. AL
len This proposition was agreed upon
by Mr. Lee and he talked the matter over
with Mr. j. V. Allen and was informed
by Mr.. Lee that he refused to accept
same, no doubt from reasons of his own.
and the 1000 shares which / had trans
ferred to Mr.. ]. V. Allen was returned
to me several weeks later by Mr.. Lee at
or about the time of the filing of Mr..
j. " Aliens lawsuit
NOW / have believed for some time that
there was certain crowd here who want
to gain control of the Providence Oil
and Gas company, and I have believed
that Mr. j. V. Allen was acting In con-
Junction with them in filing this suit
against the company for the purpose of
intimidating the timid investor who held
this stock and for the purpose of caus-
Ing him to sell at minimum figure.
Now, when Mr.. Allen turned this stock
just referred to back to the company in
December, I have been told that when
he left the meeting of the directors that
he presented his brother Will Allen, with
1900 shares of his other stock, and /
have been told that he said the stock
was worthless. How true this is l cannot
vouch for, but after his going out as my
guest and seeing the wells in operation
and listening to the talk at No. well,
on the day when Senator Bankhead made
his beautiful speech, then he decided,
I think, If it was possible to get back
as a stakeholder In the company.
Now as a matter of history, at the
same time that Mr.. Miller was attempt
ing to make a deal with me, which would
mean the construction of a pipe line Into
Birmingham. I was also negotiating with
L idhh ANclScI anu dSoOGidtcS Oil q
proposition, which 1 will submit to you
below.
Basis of proposition from Frank Mel
son, Jr, and associates, to G.. B. Grove
and the Providence Oil company:
l. We agree to purchase at % cents
per share a minimum of 100000 shares of
Providence Oil stock, 100000 of which is
to be out of the treasury of the Proyi-
dence Oil company and 1000 of which
is to be turned back into the treasury
by the present stockholders of recordsof
the Providence Oil company, and all of
said funds are to be paid into the treas
ury of the company. The plan is to ask
the present stockholders to turn into the
treasury 20 per cent of their holdings.
2. 1t is agreed that the amount of treas
ury stock at this time be not less than
100000 shares.
| 3. Tt is agreed that the Indebtedness
of the Providence Oil company shall not
exceed $1,000
| 4. 1t is agreed that the parties buying
| the 100000 shares of Providence Oil stock
shall be permitted to name the board
| of directors of said company. 1t will
| be our purpose to have DR.. Grove as a
member of said board.
| 8. 1t is agreed between DR.. Grove and
the parties purchasing the 100000 shares
of Providence Oil stock that the op-
lions which he now holds on the 100, 900
acres of land, more or less, not including
the 5000 acres to be leased to the Provi-
dence Oil company, shall be treated as
follows: Nelson and associates are to
have the privilege of buying one-half
interest in said leases at and for the
price paid by DR.. Grove to Hobson A
separate company is to be organized and
take over these lands, DIR. Grove owning
one-haf of said company and Nelson
and associates the other half
G. 1t Is agreed that the 5000 acres
originally contracted by DIR. Grove 40 be
leased to the Providence Oil company
shall be executed and carried into effect.
l. 1t is agreed between DR.. Grove
and Nelson and associates that
the present contract between DR.. Grove
and the Providence Oil company shall
be changed to read. "one-eighth of
cents per 1000 feet for all gas taken from
said lands mode or measurement of said
gas to be agreed on
This proposition was given to our sec
rotary, Mr.. James l.. Davidson, by Mr..
Nelson himself. My reason for rejecting
this proposition was when l discussed 1t
in full with Mr.. Nelson that he was not
sure in his own mind that he could put
1t into execution, and / was then In posi-
ton that l had to do something and do
1t quickly or allow your company to go
into bankruptcy
Now, 1t has been a matter of wonder to
me and matter on which have thought
deeply, as to why the committee appoint
ed by the Chamber of Commerce several
months ago TO see about securing natural
gas for Birmingham, that they have
never so far as / have heard made a re-
port to the Chamber of Commerce on the
subject, and they have never a body
offered TO help me to finance and to carry
on operations of the Providence Oil and
Gas company. / think 1t Is high time
to speak out plain, and | would like to
ask the Chamber of Commerce to either
ask this committee to report or discharge
this committee and appoint another com
mittee to cooperate with the Consumers
Natural Gas company and to do all which
they should do as a public body to Sc
cure natural gas for Birmingham.
THE CONSUMERS NATURAL GAS
COMPANY Is organized They have an
office on the fourth floor of the Brown
Marx building. and they are getting ready
to construct this pipe line, and while at
present I own not single share of stock
in the Consumers Natural Gas company,
l want to say to the stockholders of this
company that on and after the meeting
of the stockholders on the Both Of this
month 1t is my intention to make an eff
fort to acquire some of this stock, and
to do all that / can publicly openly and
above board to aid the Consumers Nat
ural Gas company In getting their pipe
line built as rapidly as possible so as to
begin the delivery of gas at once into
Birmingham and adjacent points, and l
feel that 1t is the duty of every stockhold-
err of the Providence Oil and Gas COM
pany and of every other public-spirited
citizen to get behind this movement and
help in every way possible to encourage
the Consumers Natural Gas company.
There is absolutely no question in my
-. 49,