The Washington herald., 1919-04-23
MARSTON firm
MODEL CONCERN
Has Increased Capital Three
Million Dollars In Three
Years, Says Holland.


poration OF which Edgar Lewis Mar
ston is president and of which he was
the organizer as long ago as 1883. has
increased its capital stock by 81. .0O0, 600.
The latest increase in now announced.
and when completed will make the
8capital stock OF this corporation S.
10000.
Ordinarily this would be a matter
Of little concern excepting to those
who have personal interest in the cor
poration- But behind 1t stands a
story Of phenomenal and unexpected
prosperity whicr is probably un-
matched in the history of any Ameri-
can corporation. The story can be
told because there is no possibility of
speculative movement behind the un-
dertaking- II anyone wanted to buy
the stock of this corporation he would
he compelled to pay s2.I5O for each
share Only now and then is a share
sold. and while the opportunity for
making large profits is a tempting one
10 a man Of speculative disposition.
nevertheless there is not now and
cannot be any speculative activity
IN it.
The experts who have been looking
over the properties which are owned
by the corporation named the Texas
and Pacific Coal and Oil Company rt~
port that there is reliable promise
that they will yield a very large pro-
duction OF oil. 1t has already been
reported in this column that the dis
covery upon these properties was ac-
cfdental and was due TO the fact that
President Marston was anxious to
secure a sufficient supply of pure wa
, ter for the mining town in which were
the homes OF the workers in the Goa.
mines. To do this he caused an ar
tesian well to be drilled. and insteaa
of water there at last spouted forth
first natural gas and then oil in amaz-
ing quantities.
Latest Proposition.
1t Is one of the most romantic
OF all the records which tell of un-
expected development of wealth
upon mining properties. 1t resem-
bled the discovery in unsuspected
places Of rich deposits of precious
metals. The coal company. which
President Marston organized. looked
for no more than a fairly profitable
exploitation of coal mines in North
ern Texas. There was never a
thought of oil.
A day or two ago the directors of
this corporation decided to increase
the capital stock by million dol
lars. The stockholders were en-
titled 20 subscribe to the new issue
at par. that is to say 800 a share.
Yet the quotations which told of the
market value OF the stock were sp-
pTOXimately $4,000 a share. There
fore these stockholders will receive
stock at par although the market
price is now in excess of $4,000 a
share. OF course. il the stockholders
should sell shares and receive this
enormous increase in cash. then the
government would step in and take
" considerable part of it on account
Of excess profit taxes. There seems
10 have been a very ingenious ar
rangemsnt perfected whereby the
stockholders can enjoy these rare
privileges without boinE compelled
~ make report to the government
or to visit the Office of the tax COL
lectOr
\ stOckho1der will get two shares
for $500: he could sell these two
shares for 81 0ON. and that is 20 per
cent profit on the market value OF
the stock. He will receive certain
cash dividends based upon par OF
the stock so that upon two shares
nc will receive $3.50. Therefore.
these dividends will not only pay
for the two shares of stock. but also
yield to the stockholders $50 in
cash
The experts have reported that
these properties undoubtedly con-
tain wealth in oil which will GER
tainIy amount TO as much as $780,
900. 900 before the oil is exhausted.
. 4.
be OF the value of $500. 900. 900. Here
then is a corporation started not
lonE ago for the exploitation of coal
whose capital will by September be
no more than $50. 900. 900, which Is
in possession OF property. the care
fully estimated wealth contained in
tit being not less than 500, 900, 900
and maybe 500. 200. 900.
Close Corporation.
Men who have had long experience
in the financial district and who are
familiar with the history Of successful
smerican corporation activities say
that there is nothing in the entire rec
ord which compares with the story of
the modest beginning of this corpora<
ton and then the discovery that it
was in the possession of wealth aggre-
eating many millions. Furthermore,
there is no record which tells of
par value of stock of 500 with mar
ket value in excess OF 81 000 Naturally
enough it is to be a close corporation.
But the management OF it and the re-
lation OF President Marston to his
stockholders have been such as to
command respect. even admiration.
For in other times the executive head
OF corporations who have had private