The Birmingham age-herald., 1919-07-31

ACREAGE-Nearly all of the several com panies, great or small, who are operating or preparing to proceed with development, mere ly own leaSeS-oil and mineral rights. These are obtained for an initial price per acre, usually cover period of five years and are subject to the following or similar condi- tions An initial price per acre down, rem tai of $1.00 per acre per year for each fol lowing year in which no developments have begun. Rental ceases when development is begun and production reached. Then the owner of the land is entitled to one-eighth equity in the profits of all such production and the lessee is entitled to his lease as long as profitable production continues.
 PROTECTION OF LESSEE-These leases Coil and mineral rights) are let on legal form duly acknowledged and recorded, and to every intent and purpose are as desirable as actual ownership so far as profiting by oil, gas or mineral developments are concerned. Hence, when a company or corporation speaks of it's ownership of acreage" it usu- ally refers to it's perpetuity of privileges un- der lease.
 PROMOTION-Having acquired lease title to desirable acreage in oil territory, in or as close up to present developments and pro- duction as possible, the owner unless suffi- ciently financed to proceed individually with operations, usually forms company and through the sale of stock in such company - acquires sufficient funds for development. The amount of stock issued, price per share, cOnQlClOQS, eCC., are IudCCeTS cuClIcly uIoCIC- tionary with the promoter.
 COMPANIES - There are two methods of formation. One is a sort of declaration of trust between several friends who put in initial amount each for preliminares, select a name, form company, and after few minor details, proceed to issue stock. Their business and all transactions are in the hands of the original promoters, who can decide upon it's gross expenditures, also amount of dividends to be paid, etc Many such com panies have reached large proportions and paid dividends, and given it's stockholders square deal. Others have not. Hence the oc- casional cry of flake" promotions, which are usually well founded complaints.
 The more popular way of forming company for oil development is for the owners to dis pose of a portion of their holdings to suffi- cient number of fellows to form corpora tion. Then their holdings, titles, personnel, operations and all information concerning its transactions are matter of public record and subject to report and inspection by every purchaser of stock.
 DEVELOPMENTS acquired suffi- cient capital through the sale of stock a com pany may either proceed to finance the en- tire cost of drilling well, which in the Texas deep production field averages $35,000 to $4O,0OO, and be entitled to all the profits save the one-eighth equity reserved to the actual owner of the land, or it may be able to secure fifty-fifty drilling contract from
  ing or drilling, and who will be entitled to half the profits of production of this first we'll as we'll as half the profits of all future develop ment and production on the entire acreage, agreeing of course to share equally the cost of future drilling operations. It is decidedly better therefore for the company to finance its own drilling operations. No drilling con- pany (and they are we'll posted as to prop erties) will make a fifty-fifty drilling contract unless they are well assured of securing oil in paying quantity. We can make dozen fifty-fifty contracts tomorrow for drilling on our tracts, if we would.
 VALUATIONS-There are several hundred companies already drilling and operating in k: ] Do Don't let prejudice over-pre- &Y caution blind your judgment. We O are open and invite the fullest M W A investigation of entire prop M &
 osition. but thing W H
 your liberal investment in our
 stock.