The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-30


is rusty from long disuse but guess
had better drop a few lines to the stockholders
regarding point in his article in yesterdays
e-Herald.
The sole criticism that he makes of me is one
which will not at all disturb friendly feel
ing towards him, in fact, it would require very
much provocation his part to disturb that feel
ing. He admits that the Board of Directors voted
him 100000 shares of the Treasury stock for
lease down in Tuscaloosa county,
Alabama.
He also admits that they voted him not,
had supposed, 900 shares of Treasury stock. but
$4,000 shares OF said stock in payment a debt
the Company owed him.
He said nothing in said article that could be
construed as opposing my request for a fair ex-
animation and auditing of the books and papers
of the Company by competent parties.
He said nothing to oppose my suggestions of
change in the personnel Of the Board of Direc
tors, who personal friends. The only
point which he criticise is the
question of respective Royalties to the Prov
idence Company. am merely stockholder and
neither an officer or Director of the Providence
OIL & Gas Company. while he is both President
mere individual stakeholder the question of 10y
atty could not arise in my first 10y
atty is due to myself; but believe that my 10y
atty to the Company. based as it necessarily was.
self interest. because I always owned large
block of stock in said Company Will stack
fairly we'll alongside his
He differs with me the question of whether
good trade made with Consum-
ers Natural Gas Company. His statement has
not convinced me that it good trade. In
the first place, L repeat cents per thousand is
enough. Dr. Grove will recall that his
close personal friend, Mr. VIM. Yawkey, to him
in his CDR. Crowe's) and my presence, that al
though he (Nr Yawkey) not in the bust
ness, but in the oil business and only occasion
ally brought in, incidentally to drilling for oil.
sporadic gas we'll. whereby his gas only
ally by-product; yet right In the West Virginia
field where know there Is enormous compe-
ttion in production he getting per
thousand for his gas at the mouth of wells.
DIR. Grove seems to think that deem 1t i'm
possible for local capital to build this pipe line.
In this. he labors under a very great mistake
After the field is sufficiently proved, a local
pany can build it all right; but until it is suffi
GENTLY proved, local Company cannot, and any
other Company will not.
He says that I trying to throw cold water
on the Consumers Natural Gas Company This
is mistake unless it be the principle that in
order to revive fantng subject, cold
should be thrown upon it. I asked Dr. Grove who
the moving spirits in the Consumers
ural Gas Company. He replied very deliberately
giving the name of gentleman the ruling
spirit inquired all over town about him. and
trust an injustice was done him. and shall not
give his unless he requests it; for. without
exception. every whom approached
subject declared in effect that the aforesaid
ing spirit could not build a pipe dream
less pipe line; and that the only experience
that they knew of that he had had with
gas would involve the chemical PROPOSE
ton that the atmosphere is natural gas. that
he abundantly endowed with that in a super
The truth of the matter is that this is not
the time to undertake to float pipe line propo-
stion. unless 1T be done by Company with
ample existing cash who are willing to take the
risk themselves to continue the exploitation of
the field they find sufficient gas. After
they find 1t, then they build pipe line dead
easyz In the meantime the thing for the Prov
idence Company to do. and what 1t should
done long is to sell Its Treasury stock and
get money to prosecute the work of development
up a point where of experience in the
gas and pipe line business will bid against each
other for the opportunity to handle our
1 surprised to learn that the President of
the Consumers Gas Company is Director in the
Providence Company.
Natural Gas Company only paid $500 in
for this tremendous contract with the Providence
Company, involving its entire output of gas and
It's extremely valuable franchises in Birmingham,
Bessemer,
do know whether not in certain spots
DIR. Grove takes swat in the big swipe
that makes the world in general who op-
pose him. but inasmuch have the honor to
occupy considerable space in his interesting con-
tributon of yesterday I presume that he in
cudes when he asks: How much money
have THEY spent in paying the debts of the
Company. and what have they done to acquire
stock which they hold in the Company. I
would like to ask the question point blank. If
they have given anything for this stock which
they hold?' Replying for myself will say that
gave months Of my service and consid-
cradle bunch of gold coin for block of my
stock namely. 10000 shares; for the other block
of my present personal stock namely, 10000
shares, which bought from Dr. Grove indvid-
ually, I gave property that I consider worth
than 100000. I am frank to say. however,
that IL Grove had told at the time
made this trade with him for his personal stock.
that 225,000 shares (more than half of the Treas
ury stock) had been previously issued to him
under the circumstances of its issue would not
have made the trade. with him. 1
thinking owned three times much stock
my supposed second largest stakeholder, towit:
my friend DR.. Grove only to find that thanks
to those vast issues Of Treasury stock to him, he
had four times much l. This remarkable
issuance of stock to him strikes being
positively unique. AS have said, and I
feel sure, there nothing dishonest In it, 1t
was simply weirdly grotesque, PROFESSIONALLY
audacious, and a colossal blunder. far the
Company's interests concerned I don't
know any period at which the Company's
stock since Dr. Grove took charge of it,
worth low ten cents.
He speaks of my selling stock in CO.
lumbus, which 1 did, and like other stock
holder had perfect right to do. This a
comparatively small block of stock and only
we'll had in and got 40 cents for it. A
week later after No. 8 had come In, informed
that this stock sold high 30 cents in
Columbus; and since question asking seems
be alright, will ask DR. Grove how much he
has gotten for what stock II any. he had sold
/ am told that he sold certain party before
ever sold this stock in Columbus, $4,000 shares of
his Providence stock at 33 1-3cents How then
can ne expect the stockholders to ratify
Boards sale to him Of 125.OO0 shares at ten
cents shall not, say, impute anything
wrong to him in the matter.
1 do believe, in fact, I have angrily
ssnted the insinuatons whenever they Of