Salt Lake Tribune | 1919-03-16 | Page 31 | Says Texas Laws Protect Investors

SAYS TEXAS LAWS PITECJJISTOilS Burkburnett Field Operator Tells of Legislation Affording Af-fording Safeguards. Companies Undertaking Development De-velopment Must Keep Promises Made. A new angle was given to the laws of Texas, under which the Glaaer-Burkbur-nett Oil company is operating, by A. Glazer, who Is now in Salt Lake consulting consult-ing with Guy R. LaCosto, L'l Stock Exchange Ex-change building, the financial agent for the company in Utah. Mr. Glaaer said: "The Cardon bill, which, I understand, has just passed the Utah senate, is in j no way so strict aa the laws which gov-j gov-j era the "BurkburDetfTieM. According to j our trusleeship, no salaries can be paid j any officers of any company until there is I actual production. We are obliged, moreover, more-over, to guarantee the sinking of the first well to the oil sands, which in our case is 1710 feet. "We are so restricted that even should a man be injured, under the compensation compensa-tion Law the trustee and his associates must pay whatever damages might be assessed. Under litis law there is absolutely abso-lutely no liability to stockholders. Salesmen Under Bonds. "In fact, without discussing the law, when I left Texas they were going so far I in the legislature as to not allow stock salesmen to sell stock without being under un-der heavy bonds, and misrepresentation of stock would forfeit the damages under un-der this bond. "Burkburnett Is essentially a 'small fellow's" fel-low's" field. When the great Fowler well was brought in the trust companies immediately im-mediately sen their experts to the town and they decided that the Fowler well was a freak well. The result was that the small-town bankers, real estate men, business men and clerks all grabbed a little lease and very quickly the land of the big pool was covered by hundreds of small lessees. "The result has been that great fortunes for-tunes have been made for hundreds of the residents of the vicinity. Six months ago the Fowler Oil company stock wan selling at $100 per share. The stock of this company is now worth $12,000 per share. "The Fowler company drilled its first deep well in the Burkburnett field and it is reported to be flowing as strong today to-day as when first drilled into. In Favorable Location. "1 have a great deal of faith in my own property, because it is close to the center of the field. We know just how far we have to go. Our guarantee to the county under our organization provides pro-vides that we musht go to these sands, and there have been only a few dry holes so far drilled. "I do not think that the Utah people appreciate htw big the town of Burkburnett Burk-burnett is today. Just think, on August 9 last it was a prairie water-tank stationjust sta-tionjust a sort of a center of a big cattle cat-tle ranch. There were fewer than 200 people stayed there and the most of these were there because they did not have the ir.oney to get away. Today there are nearlv "O.OOO people, and one man, seven months ago without money, is now breaking break-ing ground for a , ten-story ofHce build- exnect to be in Salt Lake until Tues-dav Tues-dav or Wednesday, then 1 must go buck to 'the field. I have enjoyed being !n this town, and don't know when I ever visited vis-ited a more substantial, beautiful and progressive place."