The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-23
BRIGHT OUTLOOK FOR THE
SOUTH

JOnu II. hIDy, Oh J1OuSlOil, texas,
long known as one of the most sue
cessful business men of the south.
takes a hopeful view Of the future. He
believes that the Texas oil industry
will make a good showing in 1922 for,
in his Judgment, the resources of the
Mexia and other fields have been
scarcely touched. Although at the head
of a lumber company controlling
/, 400, 900 acres Mr.. Kirby, some eight
cen months ago. with a few associates
became interested in some of the
Mexia leases and has since been
conspicuous figure in their develop
ment This is how he sizes up the
possibilities of the Texas oil field:
when you realize that the Mexia
district was wholly unknown a few
months ago and that from a popula
tion of few hundred people, it has
grown to be town of many thou
sands, you will appreciate the extra
ordinary changes that are bound to
take place in a territory where oil
has been found. Mexia is only 10
miles from Houston, and il present
production continues, it is bound to
become one of the great oil producing
areas of the world. believe that with
in six months our Kirby Petroleum
company will be producing $4,000 bar
rels day. We are getting now fully
$4,000 barrels which means excellent
business and good dividends. But we
are content to let we'll enough alone,
for we have a large acreage and many
leases in other fields\ which, in my
judgment, will be quite as productive
as Mexia. We are planning for the
future, however, and putting back into
the property a large proportion of our
earnings, thereby safeguarding our in
terests and insuring a more perma-
nent output of paying oil.
I'VE own two wells outright at
Mexia, have an interest in three more,
all of them being operated on n very
profitable basis. Besides this, we own
the mineral rights on 10000 acres at
Barbour's Hill--in the coastal terri
tory-which is our next best property.
Our part of the hill has not even been
drilled yet, but l look for as great q
production from that quarter as we
have at Mexia. Taking all the fields
together, we have about $4,000 acres
in scattered leases, any one of which,
or perhaps any few of which might
produce heavily, as soon as develop
ment work is completed and proper
equipment has been installed. We are
making haste slowly, however, so as to
avoid costly mistakes. AS TO dividends,
since organization of the company we
have regularly paid a dividend Of 20
cents each quarter, and / think we
could easily pay % cents a share every
two months. If we continue to get
the splendid production of the last few
weeks l do not think that a dividend
of 25 cents every month would be at
all unreasonable.
Dividends are not the all-important
thing with us, however, for we long
ago made it our business to build for
permanence and to safeguard our
earning power by bringing in new
wells as fast as the work could be
pushed. This policy has brought ex-
cellent results so far, and my associ-
ates feel as do that in blowing back
into the property each month gener-
our share OF earnings, we are laying
the basis for an enormously valuable
potential output. / have not attempt
ca 10 ueBEIlDe dtA bL our dSsGIS AOt
should the United States supreme
court next spring hand down favor
able decision touching the litigation
between Texas and oklahoma, be-
lieye that the Kirby Petroleum COM
pany would receive further benefits
OF great value"
Mr.. Kirby is president of the Ma
tional Lumber Manufacturers associ-
alton. He is a recognized leader of
southern politics and as president of
the Southern Tariff association, he
has just given important testimony
before the senate committee concern
ing the tariff requirements of certain
southern industries. Secretary Hoover
made Mr.. Kirby member of the COM
mittee to devise ways and means of
stimulating the construction industry,
SO that the housing shortage may be
relieved and the unemployment prob
lem properly solved.