The Prescott daily news., 1915-12-13
REFUSES TO GRANT
 PROMOTERS CLEARANCE
Oil and Gas Companies Want to Sell Stock to PrOmOte-Bank Commissioner Davis Refuses to Sanction Movement.


 man who knows that there is a gas and oil boom on in Crawford and Se- bastian counties, for as head of the Blue Sky department, he must pass on all the concerns before they can offer stock for sale in Arkansas. and right there is where his troubles be- gin.
 Up to the present time the com panies which have been formed to ex- ploit these fields, are composed of leading business men of the commu- mites in which the leases are located. These stockholders, or promoters, de- sire to retain absolute control of their companies, and on their plans of do- ing so, Commissioner Davis has taken issue with them, and so far, he has refused to grant them a cleanance to do business.
 One company in particular, organiz- ed by leading citizens of Fort Smith all we'll and personally known to Con- missioner Davis, who has high regard for their business integrity, has 12,000 acres under lease in the vicinity of the Kibler well, is seeking to dispose of half the stock, retaining one half for promotion, and take stock for the expenses of securing the leases. Com missioner Davis so far declined to sanction this method of disposing of the stock.
 Under the state law not more than 20 per cent can be allowed for pro- noting company. The plan of the company in question would permit it over 50 per cent. The promoters state that their reason for, retaining this amount of stock is to prevent control getting into the hands of the powerful oil corporations who are seeking to bottle up the field, instead of seeing it developed. Commissioner Davis has suggested that this can be done by putting only part of the leases into the company, being allowed the mark ct valuation for them, and also the cost of securing them, and capitalizing for an amount which will permit enough stock to be sold for operating and still leave the majority of the stock in the hands of the promoters. 1 Commissioner Davis is anxious to discover a way to assist the Fort Smithians to develop their field, and at the same time enforce the Blue ! Sky law. He is aware of the good intentions of the company which has an application for right to dispose of 1 it's stock pending and has expressed great confidence in these men, but he feels that he cannot show discrimina- tion, and if a charter was approved for this company, he could find no ex- cuse for refusing one for any concern that applied. This would permit any wild cat concern to come in and prey upon the people of that section who are in rather an inhamed state of mind over oil and gas propositions at present.
 According to the Fort Smith citi- zens, who have spent much of the past few days in company with Com missioner Davis, they do not want to go upon the market indiscriminately with their stock, but most of it will be taken by the land owners from whom they have obtained leases. They also offer to place the undisposed of stock in eschow and make weekly re- ports on their financial transactions to the Blue Sky Department.
 According to persons interested in the oil and gas boom in the western part of the state, the business men of Fort Smith and vicinity are endeavor- ing to keep the leases out of the hands of the large oil corporations. They claim that these concerns acquired the rights on great bodies of lands in Franklin and adjoining counties, and have actually brought in oil, but have bottled the well and hold the commu- nifty back by refusals to develop it's resources until fields now producing have been exhausted.
 Nine years ago one of these concerns took leases on thousands of acres in Crawford and Sebastian counties, nearly every alternate section, and in