The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-10-16
MAINLAND FIAAHOIHR ADDRnHHuB
nIu uATMuRINQ or STOCK
ROLDERa.
DHYrOTa PREaANT HITUATION AND
BBNHTTTa TO IN DERIVED
FROM MnRQHR.
VOTE or CONFIDENCE TO MAINLAND
AND KAY OFFICHRS
UNANIMOUS.

AND KAY oFFICHRs
UNANIMOUS.
MIR. w. G. Laokcy. OF Ponca. Oklahoma
vice president OF tho MRrland ReflninI
Company. and director iIr tho Kay COun
~ Gas Company, addreHsod Il largo gath
crlnH OF Stockholders OF both corpora
lions at tho Chamber OF Commerce ny
Sombly room lust evening. Probably ID
leading business men, representing no
only Wheeling but adjacent towns. hear'
Mr.. laCkey'B most interesting tDlk. de
Hcriptlvo OF tho growth OF tho Mariana
, Refining Company and kny County ia
Company. their present situation. hnt
tho advantages to DO derived from tn
proposed consolidation OF thoso corpora
! lions.
Tho consolidation plan. aS outlined h!
! Mr.. LaCkoy. Contcmplatca the FORMATION
OF now company to be known IN tn
, MRrland Refining Company or Delaware
| this company TO have 1000. 900 sharca q
stock OF no par value. 1t liz proposed Il
exchange 10 shares OF Mnrlnnd Refining
, Company stock for ono share or stocl
In the now Delaware company. aud y
shares or Kay County Gas COmpan!
stock for one share OF tho new stock.
/ 1t In anticipated. 1t was stated by MIR
! luckuy, that the now stock VIII pay
/ dividend OF IS per share per year. TIM
being the same amount OF dividend pc
! 400 OF value as IN paid now and hai
been paid for some time on MARYLAND No
filming stock.
Mr.. Lackoy was introduced to the as
= somblaEs Of HtoCkhOlderB by Mi. John T.
| Stevenson, Of tho firm of Mitchell a
Stevenson. aud wont int" detail allowing
, the growth or the two corporations an'
how II has been nercnHaTy To mako nur'
Of buTflUiUut oil IChCtko Tor tho Mar
land refining plant al i'onoh I" accom-
plinh which II waa nCUoshhTy Ia hGG"m
rllRl nuniboT Of nnw productive enloi
pulses.
| The lawp az Oklahoma and tho Iulo Z"
| tho United HIaiun government ioI lh'
! do Vs "pInnnt "f oil aud Hnn h"lhlnE" Il
| thIs fIold Nj i.""hoy osri"ln"l. rh"hlhl
| tho puIChaa" onh h"lhlnHn by "n" '"'
| pniail Ion 81 mUI" than 'oIlaln nri oae q
| ThusA va and Iuloa alao pI"hlhiI Tie
combination ~ "a InTlnlna company "n'
| plpa Ilud company uhiuI "n" pwuoi AMP
| Tho MarIand UofinInu Company Ia l."
| unrp"I a oil unh"I ~" lava "f Dhl"h"Wa
aud 1" dovol"p greater p"aplhllily al
! nlI rusoIvo f"I III" uno 81 III" '"nr"ni
aud - laLo roro ur Its una 1T" lu' ti"r
, the Kay County 'IuH Company w"T f"ih'
lot u dAyolnpod IpI ihIy, 0uh was a""i
! rrndurInH net only Rna. but u good Iu"n
' lily Of oil Ito linon carry large
| nrnuunl Of oil prnduUod by tho Mariana
/ Company rho twu companies Operating
| t"R"thor uonniIiuta complete n'nnul"'
| turing unit aud nslthoT Ia complete
| without thu uthoT Th"iT mutual t"ln
| iIunH ara 80 complete that II In beloved
that tho best lntcrcrtH 81 nil "nn h'
/ norvcd by "a combination. hence tn" pr"
puaal To inuUTpuTnto tho Mnrlnnd ltofln
Ing Company Of Delaware IN untllnoo
| above.
DIR. white riIsn Values
| In order Ia facilitate tho combination
aud To nrrivo NJ tho truo valuation al
| tho proportion involves. tho directors al
! the MARYLAND aud Kay county companies
| employed br l. e. white, Htnt" Eooio
ElHt or Wcnt Virginia. who Ia every
whore regarded NJ tho hIEh"Hi author
| lily On ghB and oil vnlucb In tho woTld
aud whoHy character and reputation are
| such that NJ poTHon would question hlr
complete fhiTnonh aud lnIoHrlly, bI
White Inndn hn exhaustive Htudy OF nj
| tho pTuporlioa al both companies, n'id
reported that ia, value 1t tho III and
| Hah properties OF Ih" MARYLAND company
] wan about l3l 900 900 hnd that "f the
/ Kay County naa company nv"T sia.OO0,
! QUO
Taking III whites Top"r, a" ha"I"
| aud addlnR I" hln nEuIas tho Valuation
~ tho haTland Iian"inH plants ""h Key
| county U,nhraa'Y'n pipe lInoh AMI "'ha'
| piuI,sIiios tho diIo"tuTs found that the
| falI value at Marland h"ldings was az
| pros ImaI"iy ihl'iY ,h'oo a"d hall
million dolIora aud that "r III" Ray
| company n"r"IIy about lwo"'F 'hio'
aud otto hel mllll"n
| Tho Mariana llrnnlnE company had
| "ut al andlna ,l0h. 900 shares Nf nl""h
| nIvInH value T." MaIla"h nhar"a 81
| shout ~ 80 poT Thnra. Tho Kay County
| Gas company had outstanding a.7OO, on'
| uharrr making the book value ~ KAY
| company ahuros phnu, " 40 I, wRa FROM
| ihIu CaIculat ton. therefore. that th"r'
| was arrived pt tho RugE"H,lon or com
| hInInH tho two CoTporpt Ions on tho hnsl'
OF 20 shares Of Kny company for "
shares Of Kay company H'ock, which
ucomcd To tho dlreCtnrH md officers ot
! both companies To bo fair to NIL con
| ccrncd.
4 MIR I.nckey thon detailed tho potontia
! vnIues or tho holdings OF both CompHn
| les stating that In his judgment and "
| tho Judgment OF nil who know tho prop
| critics. tho valuation nx"d by Or White
| hImself, Mr.. LaCkcy naid. had only On
! tinatod tho oil and gas rosorvo on IN
| basis OF ton years life. whcrons tho lif'
OF much Of tho producing oil and En'
| properties will no much longer thhn ''i
years. DR.. White estimated gas values
ON tho basis OF 3 cents per thousan'
| cubic feet mt the we'll and ~ cents pc
| thousand TO customers. The Kay touTl
Nv Gas and other gas companies actual
| ly sold Kas at 4S cents por thousah'
| cubic feet to customers.
MArlAnd Rofining Plant
Discussing tho Marland RenninI
| plant DIR. Lackey said that tho r"nnrr!
| has IA capacity for refining completely
5000 barrels or oil day. carrying tn
| refining procoss down To tho minutes
| dotailu OF production. and that II In tn
| policy OF tho Marlnnd company to pro
| duco oil enough to keep the ronnor!
| working nt maximum capacity. ANA Il
! conserve Its oil supply no nm l." lnrur
an adequate supply To koop tho plan
| working al ina Ximum capacity for miul
| ycnTn TO come. The two Cnmphhlc
| have mn oil rcHcrvo In developed 'eri !
| tory To supply rirndy operation Of tn
| refinery Mt tho maximum capacity ar q.
| 900 bRrroln per day for period I"
| twelve y""r". " not nh"th"r l,%t -
| hut part icuinrly In there n HplrndIh re
| Hrrvo of oil In tho South Foncn hhId
| hclonEInK entirely to tho Mnrlnnd com
! pany. whore no effort Ia being mRd" u
| develop tho territory 10 full chpnCny
! MarlRndH policy In solely 10 marx thl
fcId, provo II and obtain from II onl!
J nuch nm amount Of oil which II ln n"Co-
| rnry to add to the product or "lh"
| fields To keep tho refinery In operation
| The south PonCa neld. MIR. InCk"y mld
la ono OF tho Marlnnd comnnny's mos
| ynlunb Ic naSrtY II lies Mt The voTl
| door OF the refinery. thereby reducing
| mining charges to II minimum.
| Mr. IRCkcy also detailed the Verl
HEAVY Investments 81 MARYLAND cOmpan!
I'm Usage lea eB which arc sold by tn
| United Statss for the bon"ht OF tn
OHl9o Indians every two years SOM
| nf theAr leases lao said. were bought u
v,ry high hguroB. ana possibly one %
two IniSlakaa have been made but al
the whole the Usage ionsen viii prov
highly profitable and nsI" VIII show
| lOhs.
| Stockholders are natisnsd
| Al tho GnnoiuHiuu al his add
which required "V0' a." h"ur, iarh
nuInbsI ~ questions were ana~efsi 10
-. Ia. s.I In as. IA