The Washington herald., 1919-01-07
new TEXAS OIL
: ROMANCE Barred
Recent Discovery of Un-
told Wealth Enriches
Many Heirs to Stock.


. on the day after New Year Day for
a share Of the stock of one of the
New York City banks, and yet no
stockholder was disposed to part
with a share unless the offer was
for as much as Sz,10O. No other
quotation for any share Of stock
was made at that time which
equalled or even approached in
magnitude the figures named in the
bid for this bank stock excepting
for that of an Industrial company
whose career for the past two or
three years has furnished one of the
great romances Of American indus
try. For on the day after New
Year Day nearly 1850 was bid for
the stock Of the Texas and Pacific
Coal and Oil Company, not specu-
latively but because there prevails
a belief that the company is in pos
session of almost untold wealth, al
though this was a recent discovery.
Fourteen months ago the stock was
quoted at 5000 bid. There is moth
ing like this record in the history
OF securities transactions excepting
. possibly one or two which were
made through the discovery of un-
suspected and enormous deposits of
precious metals.
Apparently no. holder of the stock
. Of this corporation is willing to
part with it. There may be two
reasons for this disposition One
is based upon the fact that if stock
We're now sold then the govern
ment would get much the larger
part Of the money received for 1t,
by reason OF the imposition of eN-
cess profits tax. Another is the be-
lief that in the Northern Central
region OF Texas there are very great
oil fields and as the demand for oil
Is to increase. the presumption be-
ing that there will not be enough
fully to meet the worlds demand.
tine stockholders in this corporation
are persuaded that the stock which
they hold represents wealth which
cannot now be fully estimated in
dollars and cents.
Some OF the rOmanCes associated
with the sudden increase in the
market value OF this stock match
any that have been told Of the
wealth which followed the sudden
discovery Of great natural resources.
One OF the most interesting Of these
rUmances is that which refers to
the experience Of a man who was
formerly Comptroller Of the Cur
renCy in Washington. As a public
o ufiCer OF the Treasury Department
he gained high reputation for abil-
ity and his name is always sug-
Eested when the services of the
ComptrolIers OF the currency are re-
ferred to.
After he retired from that import
ant once he came to Now York and
began a new career as a president
OF A national bank. He was sue
cessfuI in that management al
though perhaps his success was not
as brilliant as that of some others
who became executive heads OF
banks in New York. His bank was
ct last absorbed by one OF the larg-
est Of New York City banks.
He Buys some stock.
Having accumulated a little money.
be looked around so that he might
discover how best he could invest It
He was at last persuaded that he
would not err if he bought shares OF
the Texas and Pacific Coal Company.
At that time the market value OF
these shares hoveTed around par, and
the investor sometimes wondered if
he had not made 4 mistake when he
bought this stock.
After his death some ycars ago his
estate was found to contain BLOCK
OF approximately 1000 shares of this
stock. None OF it cost more than 800.
Ills heirs were disposed to put the
stock upon the market. The president
Of the company f. L. Marston, who
before coming to New York had gained
high reputation in st. Louis for finan-
Cial ability, warmly COunseled the
heirs by saying that it would be much
the better part if they retained their
stock. since the chances were that Il
would increase in value.
His advice was accepted. and the
estate now holds 900 shares in the
stock Of this corporation, which would
command il sold in the market ap-
proximately 100000.
President Marston has invariably ao.-
vIsed the holders or the stock not to
part with il. being convinced that it
would steadily appreciate until at last
Il would command the highest figure
ever quoted in security market report
for an industrial organization. Coun-
sci Of this kind from an executive Off
GER is often referred to as being al
most unique. and it certainly has
gained for Mr.. Marston the regard and
respect of all the stockholders of the
company Of which he is president.
what Would Jay Could Have said.
Another romance due to the un-
expected discovery of great wealth
in natural resources in Texas is as
sociated with the Texas and Pacific
Railroad Company. This was a
railroad promotion originally under
taken by the late Col Thomas A
Scott. who was for years promi-
nently identified with the Pennsyl-
vania Railroad Company, and was
one OF the intellectual forces so
many of which have always char
aCterizCd the Pennsylvania manage
ment- Colonel Scott was persuaded
about the time of the resumption of
specie payments that IL would De
worth while from many points Of
view TO construct a railroad across
the State CT Texas. He made the
venture. He invested many mil
lions OF his own capital until at last
he reached substantially the end Of
his resources. He knew that he was
right in his purpose. but he also
knew that ne had failed to complete
his plans.
Jay Gould took the property off
Col Scott's hands, presumably with
intent to make OF it a true transcon-
tinental line. After a while the prop
srty passed from his control into
that Of receivers. 1t never occurred
TO Col Scott or Jay Gould that there
might lie beneath the soil and along
almost the entire right of wav vast
deposits OF oil. In fact, the discov-
ri ~,