The Birmingham age-herald., 1918-05-17
TEXAS
 COAL COMPANY
By HOLLAND


 l New York, May 16-(Special. )-Those
 who gre stockholders in the Texas and 1 Pacific Coal company are to have the l somewhat rare experience of finding
 that without any effort of their own they are to be enriched through opportunity 1 to subscribe for the new stock of this 1 company. For if any one holds, for in- 1 stance, 10 shares of the stock of this l company he may on the basis of these | 10 shares receive four for one of the new
 stock, the old stock being turned in at 1 par
 i But within few months the old stock | of this corporation has been quoted as 1 high as S650 a share Presumably the 1 issue of enlarged capital may tend to re- ] duce the market value of this stock, all 1 though not much of it is dealt in, since 1 it is very closely held. This announce
 ment is the climax of an advertisement which was referred to a few days ago 1 in this column because it was unique, nothing of the kind having ever ap- peared over the signature of an execu-
 tive of an important corporation. The 1 executive, MT. Marston, called attention l of the stockholders to the fact that tllc
 market quotations showed considerably l increased market value for the stock, 1 but he earnestly advised the stockhoid- CTS not to be tempted to part with their
 stock The intimation was clear that something would be disclosed in a little while which would convince the stock 1 holders that they did we'll not to take | advantage Of the high quotation in the
 market for their stock.
 1 Now they will be able to receive for 1 one share of stock at it's par value, the l market value being $650, four shares or ! new stock.
 This is due to an entirely unexpected disclosure which was made sometime ago in the northern central part of Tex as. Almost by chance, certainly while not prospecting for oil, the Texas and
 Pacific Coal company came into posses sion of many thousand acres owned in fee smrple and 100000 acres under lease,
 which in tn eopinion of oil experts is likely to place Texas in the rank of the great oil producing states.
 The Texas and Pacific Coal company was incorporated just 90 years ago solely for the purpose of operating coal mines in northern Texas. The company did not expect to become one of the gerat coal operative companies, but it did so well that seven years after it was organized it was able to pay 4 per cent dividends. Four years later the dividend rate was incerascd to 6 per cent. The company became anxious to secure abundant
 water supply for the town of Therber, which was the companys mining town.
 It therefore began to drill in the hope of striking water which would be, by means of the artesian well method provide am- pie supply of water. There was no thought of oil or gas and the company was concerned only to provide adequate domestic facilities for it's employees.
 A SUDDEN DISCOVERY
 The first drilling apparatus did not
 strike water, but it did reach something perhaps more valuable than water, since there is no doubt that abundant sup ply of water can be otherwise obtained. The drill struck gas pocket.
 If there were one gas pocket far be- heath the surface the company reasoned that there were likely to be others There fore drilling was continued. Gas was obtained and it was also discovered that there were traces of oil brought up from far beenath the surface. Acting expedi- tiously, but cautiously the company se- cured lease holdings until at last it con- trols 270,o0o acres.
 The capital stock of this company has been s40O0, 000 The record of the man. agers has been above all suspicion of any speculative undertakings. Further l I. Ia -fx,rr fott tr, pumblicIty caused every stockholder to
 be informed whenever gas or oil was l struck. Probably it is for this reason | that the stock has been very closely held. 1 In fact, it is understood that the origl- l nal holders of the stock have almost 1 without exception maintained their hold- l inas.
 A GREAT OIL WELL | In October of last year oil was struck | upon the property of this company at | a depth of nearly $500 feet Between the {! opening up of this well and the present l time it has produced 12o,000 barrels of pe- | troleum, is still producing oil in large amounts, and the oil is of high quality Careful investigation by experts con- vinces them that the upper part of Texas is soon to become one of the largest sources of supply of petroleum in the United States. In fact. at this time the wells of northern and north central Texas are yielding a million barrels Of oil a month and it is presumed that ths supply will be increased. The develop ment of oil in this unexpected way has inevitably caused a great rush to all the territory, presumably oil producing, so that now between 900 anod 400 new wells have been drilled in what is called the north central Texas field
 OIL IN PLENTY
 An estimate recently made under the
 authority of the government set forth
 that at the rate of production of oil
 year ago the oil fields of the United
 States would be exhausted within :o
 years, That view was not accepted
 without reserve by some of the great al-
 thoritcs in the oil business. For in-
 stance, President Teagle of the Standail /Ol company of New Jersey said re
 gently that no one is able accurately or surely to forecast the time vixen our oil
 supply will be exhaustedI There a.e constant possibilities of the development of new oil territory. He thought it likely that gerat oil fields might be discovered
 in Alaska. He would not be astonished
 to learn at any time that new fields with very large production of oil Were
 discovered in the United States and
 under development within a short time.
 The experience of the Texas and Pacific Coal company in Texas goes far to JUS
 tify the view taken by President Teagia
 Of course, the highest development Of
 this new ana very great oil field in