The Washington herald., 1918-05-17
new TEXAS OIL
BRINGS RICHES
Holland Tells How Unex-
pected Fortune Comes to
7. &P.C. Company.

Texas d Pacific Coal Company are 70
have the somewhat rare experience
Of finding that without any effort OF
their own. they are to be enriched
through opportunity to subscribe tor
the new stock Of this company. sor
il any one holds. for instance. ten
shares OF the stock OF this company
he may, on the basis Of these ten
shares. recsiye four for one OF the
new stock. the old stock being turned
in at par. But within a few months
the old stock Of this corporation has
been quoted as high as $50 a share.
Presumably the issue Of enlarged
capital may tend to reduce the mar
ket value OF this stock. although not
much Of Ii Is dealt in, since 1t 1t very
closely held. This announcement Is
the climax of an advertisement which
was referred to q few days ago In
this column because II was unique,
nothing Of the kind having ever ap-
Feared over the signature Of an ex-
ecutive OF an important corporation.
The executive. Mr.. Marston, called
attention Of the stockholders to the
fact that the market quotations
showed considerably increased mar
ket value for the stock. but he earn
estly advised the stockholders not to
he tempted to part with their stock.
The intimation was clear that some
thing would be disclosed in a little
while which would convince the
stockholders that they did well not to
take advantage Of the high quotation
. in the market for their stock.
Now they will be able to receive
for one share of stock at its par
value. the market value being $3.50.
/ four shares OF new stock.
This Is due to an entirely unex-
pected disclosure which was made
some time ago In the northern CEN
tral part of Texas. Almost by
chance. certainly while not pros
pecting for oil. the Texas and Pa
cinc Coal Company came into pos
session of many thousand acres
owned In fee-simple and two hun
dred thousand acres under lease,
which in the opinion of oil experts
is likely to place Texas in the rank
! Of the great oil-producing States.
3 The Texas and Pacific Coal Com
pany was incorporated Just thirty
years ago solely for the purpose
of operating coal mines in northern
Texas. The company did not ex-
!. pect to become one of the great
{ coal operative companies, but IL did
so well that seven years after IL
was organized IL was able to pay
4 4 per cent dividends. Four years
later the dividened rate was in
creased to per cent. The company
became anxious to secure abundant
I water supply for the town OF
ThurbeT. which was the company's
mining town. II therefore began
to drill in the hope of striking
water. which would, by means of
al n \ 4
an ample supply OF water. There
was no thought OF oil or gas and
the company was concerned only to
provide adequate domestic facilities
; for its employees.
4 sudden Discovery.
The first drilling apparatus did not
strike water, but IL did reach some
I thing perhsps more valuable than
water. since there Is no doubt that
an abundant supply of water can be
) otherwise obtained. The drill struck
a gas-pocket.
II there were one gas pocket far
beneath the surface the company rea-
soned that there were likely to be
others. Therefore drilling was con-
tjnued. Gas was obtained and II
vas also discovered that there were
traces Of oil brought up from far
beneath the surface. Acting expedi-
tiously but cautiously. the company
secured lease holdings until at last
It controls 10000 acres.
The capital stock OF this company
has been tI.ooO.OoO The record of the
managers has been above all sus-
p.cion of any speculative undertake
ings. Furthermore, the management,
in
every stockholder to be informed
whenever gas or oil was struck.
Probably IL Is for this reason that
the stock has been very closely held;
ia fact. 1t Is understood that the
original holders of the stock have
almost without exception maintained
their holdings.
A Great OIL Well.
In October OF last year oil was
struck upon the property of this
company at q depth of nearly $500
feet Between the opening up of
this well and the present time IL
has produced $4,000 barrels of
petroleum, is stIll producing oil in
large amounts. and the oil Is of high
quality. Careful Investigation by
experts convinces them that the
upper part Of Texas is soon to be-
come 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 bar
Tels OF oil a month. and II is pre-
surnsd that this supply will be in
creased. The development of oil
in this unexpected way has in
Nak kNNF
the territory presumably oil pro-
ducing. 20 that now between three
hundred and four hundred new
wells have been drilled In what is
called the north central Texas field.
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 twenty years. That view was
not accepted without reserve by some
OF the great authorities in the oil
business For instance, President
Teagle, Of the Standard Oil Com
pany Of New Jersey. said recently
that no one Is able accurately or
surely TO forecast the time when our
oil supply will be exhausted. Tnere
are constant possibilities Of the devel-
Jpment of new oil territory. He
thought II likely that, great oil fields
might be discovered in Alaska. tie
would not be astonished to learn at
any time that new fields with very
large production Of oil were djscov-
cred 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 justify the view taken by
President Teagle. OF course. the nigh
est development OF this new and