xt70zp3vt865_78 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/mets.xml https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46.dao.xml unknown 14 Cubic Feet 31 boxes archival material 63m46 English University of Kentucky Copyright has not been assigned to the University of Kentucky. Contact the Special Collections Research Center for information regarding rights and use of this collection. Harkins Family papers Mineral rights -- Kentucky -- Floyd County -- History. Law reports, digests, etc. -- Kentucky. Mining leases -- Kentucky -- Floyd County -- History. Practice of law -- Kentucky. Bankers -- Kentucky. Banks and banking -- Kentucky -- Prestonsburg. Coal trade -- Kentucky -- Floyd County -- History. Lawyers -- Kentucky. June-July 1919 text June-July 1919 2016 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46/Box_12/Folder_3/0001.pdf section false xt70zp3vt865_78 xt70zp3vt865 l.
C. W. FREEMAN. PRESIDENT GEORGE T. WOOD, VICE PRESIDENT H. 5. BROWN. SEC. 5: TREAB. .1 ‘ ,
33. w. moan, thﬁtal ggent . .3"
’ FOR \ -"
PENNAGRADE 01L & GAS COMPANY
c. W. FREEMAN. BRAMWELL, W. VA. GEORGE T. WOOD. LOUISVILLE. KY.
HARRY BOWEN. BRAMWELL. W. VA. (INCORPORATED UNDER THE LAW: or DELAWARE) COL. ROBERT G. EVANS. DANVILLE. KY.
H. 5. BROWN. BRAMWELL.W-VA. JOSEPH D. HARKINS, PRESTONSBURG. KY.
JAMES ELLWOOD JONES. SWITCHBACK. W. VA. A. E. BRODE. HUNTINGTON. W. VA.
JwEwagizrg?wg_::-'Ww V2. EXECUTIVE OFFICE C. H. DOEBLER. HUNTINGTON, W. VA.
417 W. MAIN STREET, LOUISVILLE. KY.
June 3nd,]919
Mr. Joseph D. Harkins,
Prestonsburg,
Ky.
Dear Sir:-
Upon my return from Funtington I
find your valued favor of May 29th, and I up reciate
that the substance of your letter means that you are now
holding me personally, is Fiscal Agent, respOnsible
for the sale of your stock. At no time have I evwr
agreed to this by word or in writing. Hhe only statment
that I ever made to you was in the substance that I
believed that if you would take £850,009 for your con-
tract that the Pennagrade Oil & Gas Company would re
willing to seLI one s.are of your stock with eyery five
shares of the Treasury stock, and that was emboiiei ~e
in the first agreement that I made with you. That agree-
ment did not meet with the approval of the men at tram-
. well, nor did it meet with the approval of Tr. Erode and a
a later agreement was made. ,¥
I agree with you regarding t.e bal- -
ance of your letter as to the manner in which I was made
Executive Manager.
I want to again emph tically state
that as Fiscal Agent of the Pennagrade Oil A gas Company
that I never intended to make a separate agreement with
you, but I did say thxt I believed the Pennagraﬁe Oil %
Gas Company would be willing to sell one share of your star
with five shares of the Treasury Stock, and I still be—
lieve this matter can be satisyactorily arranged if you
willcontinue to deal as fairly and as liberally in this
' matter in the future ;8 yau he.- «the past.
Yours, / / /,. V,
x /‘
Rh}; .4: L .7 - //A gent
COpy to Mr, H.S.Erown,Sec.-Troas. ’
We Have A Fifteen Year Contract With the Louisville Gas 8; Electric Company To Supply Them
With Natural Gas From Our Eastern Kentucky Fields.

9?‘ . «jg 1%mw/ Laﬂt/mw' M 7
.ﬂyAw/é, 1y.
' June 2, 1212.
' Geo. T. leop & con,
Louisville, Ky. '
Gentlemen:-
’ Ls stetoo to you by phone yeptcr..y, in talking to Br. 00; at
Louisville, ans Lo "ion ch pvnvi;;e, . unc at the methLg u; Lﬂt Penna-
grsde tireczcrt at Luniingtcn on Leiurcay. If we: an urfcrtanete Lit‘
nation that the oonuitiono aerc .ucn Lh.: 2r. ooo up: qreble is be
present, as l Lejicve a oiiferent result NOJlU hove keen brcurht about
had you keen there. 1 octee 23 chairmaL of‘tho mectiLg, Lt Yr. {ree-
man's request, ano sent into the preposition var; 1horc iFJV 1r stat-
ing the existent COhtlLiCﬁb, u: 1 UhJUthUOL then, Lance L*tL f_¢ 1%-
ports that htw been mama to me an; the inferention riven Me free timo
to yime ky you. L1. Loon took Th io Leek very TUCK for zcigiug a: .
hearsay statements, neuiec practicsily all the statements 1r:f I had
made as being correct, ststeo that nest :1‘the stock that haw been sold
was throuth his oryunization, thbt two of three nrizrs re LCD 0‘*crred
relative to stock sal,s has Lee: 50: L3 fir p:tple, .;; ‘i.1 =h¢ :hird
had not Lean Men as yet by sry one. He itrfher rtztsd that bs hrﬁ in-
foruuticui tiu.t ..,iea; neru; im-irp Wém e tnanugf. yxix’ o;{_arf;u‘tiCq: 1r.; had
not been renurteu; thutbhe hzv heazv that V1. C1“? hi3 “at; pom; LMJUS,
that the some hat not beer 7h“£5b in, en‘ Lh(t UpCK rtgin; inquiry he
had been ccwiseo thtt maybe he bee sold then, wcvlr *0 ‘7: rot; 1hat
sales which ham UBGN buxortao Ky yum unze .uc91¢:ri=h 1y 5¢u11p,2tonal
check ingteau or the checx of;the purchegeps, end that the SansPiption
agreemeznn: in muzgi APdeIduaé Showuo Ilut. thu,.s:ock {:.ul‘ PM“ ng;m made
some time previous; th1 he woul: not ?1low thi; as to Fix nwr ::les-
men, but thetyou gentlcmuh wLOUU 01 a .iizerrct Loris, r rtjcul Ply so
by reason on the lu?t that or. Geo. T. ,ood we: Vicw~¥rbsicort of the
Company, ,helf an oi it. yengtivv ‘hf“AttH& er; but :irnﬂtur: Us
require: to everything toe cowpbny did. He iurthur n-re the 01 im that
when he have hip hunoquarter= at inui'iilla b: ﬁtce .1;“urmrl .:veemonts
with you relative to the partichnetion in the matter of LIlSS: th that
you has “green to nor; Milk him on th;t LLEIS, L10 st.teo :urthu: his
be11ef tth the present situation was ovcasioned by WCwO'PLl, fnpn and
others #tnting to gs? hisher comrissions; tnat i. yuu wertea to got him
out of Kentucky, he woule sell thie iielo to you, but otherwise he was
not going to s.rrenoer it. He ibrthen maoo the statwﬁoni hot“ to me
personally aha at the meeting that as brokers he un‘ersLQOﬁ you haa
some oroers from some clients to buy Large blocks of PQUHHIPL’G "or
them Just before the price NOui; ogxtnuc, Lat that the nro~negzive pur-
chasers tho ﬂhtttuere was no need 01 their putting in their inns? non
yhen they CuULU oo tn at a mac: Later Kine, Lnu :;crng; have tn: use
of their Honey until such lster Joy, «no at the ?u“é time the tuna par-
ticipation.

Mr. brown then read a propoaai written by Cr. ”no: r F.tiV~ to
the sale of lOU,OOO shores of tho JtOtﬁ to some peopjo ai ; ha is of
60¢, payable : 100,000.00 per month beginning July 1; thrt if this
propOSition we: eLcdptcd, he would Only ask ‘ T5,UOQ.CO Cu17iLLiCn

9 “224% 2
. 7t. -/ , . otmw/ ﬂows/747
ﬂzydw/é, 1y '
on the Svmd, end not tho fill percentage, and indiestcd that oneOhalf
of this amount would no payable to you in the same coincctiou. He stated
that the parties did not Nibh their notes known in the matter, but finel-
ly stated Lﬁot tr. Jones L. bro n was OLc of'them, ,not er Jew connected
with the bent of »ithcchr, rhcthsr John itephenson or ;truugher I
' could not learn, :23 ch: other 21oz; rare rs ;id not nention. l 7as 0p-
posed to iii: proposition hi it ;cohcd to no to be rutcer a High price to
be peii for our money, ertioniariy so sitar .11 hi“ egrsenert; relative
to raising the some, but eerh go Lichen present stated it to Le his
opinion that this uhcul; be done, Cupeviully to ir View of the fact tha.
the Lramnel; pooplt have rcfiseo to guarantee the coupistlon o: the
pipeline or in; ciounse' ivoiiﬁcnt '3 try some ( l exterzui.l res in-
formed thut Mr. Loan ietoﬁnenueu to tho: Lot to gauruhliu it). rho en-
tire u2ttnr 2e” :titrrcc I; thu at.ra to the Executive 49“"it1 e to
work out the deteils o; the propGJJIion.
i cane noun more usturo.y eittznoon, LIL n2; lu;y 2ft Yr.
Early for the geziinuar of the citcrnoon in seeing lone or: T “ts
he lulu, .iud lib . s4;22nt\». 1;; to ,tcg'( rel '105255, .i‘,2‘_ ‘ .,'m.‘”‘ LC) do,
and at his request “as anxiLQ; ier plot to he “one today .;so, as I
shoul- inturh .o the cﬁlicc tomorrow. is eye», .Efi J’cL' wrvnise to
come here Louor;ou torn no, i will .Luy over “a LJLJL 1NLLL . gnesday
and maybe iLirscay. L 1m2cro-.ua -ho; 1:3; chn WLp, n o ; tum rela-
tive LO toes ”lice Euro, no LFAJL the the 2hﬁu 2.: b; ionic” out
quickly.
velatlyo Lo the sapéaeiion undo by h . §d01ml .. “not on the
phone y -tcz-s; cult "it? the gouppsy pain; to uuhjatt L; hour's domin-
ion, you might as sell quitthe stocx Jhib», taut in a: “32*;u u question
fonHyOu to Libel y ”ci‘fdiﬂﬁg :Jveu r, in I; Judgmznt this xxulj possibly
be c 2rcct mlst;l; toth for the uOﬂpaDy and yourselves. ,hilc T appre-
ciate 42¢ situhtioL tnet y 1 .s LUL hi i, 92L o: e h: is ttgt is giv-
lug -r. Loon i prcjit .lso, on the ct er gen; 2 {a Lot IﬂOL c. any sit-
uation where one ecu: Lueiree: but vhere the otter ;:1105 i: TLSO mak-
ing a profit Lion our ,orx; tho sun; Lili.lloh .102 ,pglic; to any
stocks, bonus or o is: gecuritiu; :jih yon sell for eih2rs; chi xhile I
am not at all euuisilcu all; tee “itaption nylelf, n Verthuleau l incline
to the Opinion Lhoi LC ha; 211 test put our shoulders to the wheel, and
do everything each of us can to work out the propo;itlor in; make it a
success.
”it; very best “i has, 7 on,
Kory truly fours,
Father:-
uill be here for a day or two yet; and will wtre Xhen 1 can be at
home. nick will be over tomorrow, and I will get this worked out All
very well, and the boys are delighted to see me here. '
,Love to you all.

c. w. FREsMAN. PRESIDENT azaleas T. woon. VICE PRESIDENT H. 5. BROWN. SEC- 8: THE“-
33. m. moon, .‘ll’istal scent
' FOR
mom PENNAGRADE 01L & GAS COMPANY mm
c. w- mm mm- W- w. . mm) ssrssisrsvssévse.::.
HARRY BOWEN, BRAMWELL. W. VA. (INCORPORATED ”N9“ 1"“: LA ° JOSEPH D. H ARKINS. PnstoNsaum. Ky,
H. 5. BROWN. BRAMWELL.W.VA. ODE HUmmm-ou w. VA.
JAMES ELLWOOD JONES. SWITCHIACK. w. VA. 2' :' :gEBLéR. Hum-mars“, w. v‘.
J. E. BIGGS. BRAMWKLL. W. VA. EXECUTIVE OFFICE .
w. W. WHYTE' WELCH. w. VA. 41 7 W. MAIN STREET. LOUISVILLE. KY.
June 3rd,1919
Mr. Joseph D. H rkins,
Prestonsburg,
Ky.
Dear Sir:- ‘
The Fiscal Agent's office needs and
will reatly appreciate the co-Operation of every Director
as well as stockholder Of the Pennagrade 011 d Gas Company
It is of course our intention to diapose of ﬁl,OO0,00U
worth of stock just as fast as we can sell it, and you
as a Director of the Company ofttimes have an Opportunity
to recommend the stock and could if you felt so disposed
sell some of it, I am therefore taking the liberty of
mailing you under separate cover a number of the prospectus—
es and a few subscription blanks for your use, and will
gladly mail you a check :or 15% of the amount of stocx
sold and hcpe that this may be the means of selling some
more Pennagrade Oil & Gas Company stock.
If you haven't the time to close the
business yourself, but will mail the names to the
Fiscal Agent's office, of people whom you know are inter-
ested and who you think would buy stock, we will gladly
take the matter up with them direct and will mail you
a. check for 10% of any business that .'.ve might do with
them - the 5% would be held out of the 15% for the party
or parties closing the business.
This idea was suggested to me by one
or two of the Directors of the company and it does seem
that you Directors would know of persons that were planning
' on buying stock and the only way the Fiscal Agent could
get this information would be through you.
remain,‘ Thankingyou in advance, beg to
Yours ver t l , ,w ”y,
@ /17///
RWM: L . 309* "’ e ,/
We Have A Fifteen Year Contract With the Louisville Gas 8; Electric Company To Supply Them
With Natural Gas From Our Eastern Kentucky Fields.

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ELK HORN QUAT. @KQRRAWMQN
INCORPORATED‘ ' '
Elk [10m Cokillg,By-Pr0(luct.Gas. Steam 8: Domestic Goals
LEGAL DEPARTMENT
PRESTONSBURG, Kn,
E. w‘ PENDLLEALZITGENT June 4 -1919 0

Judge Walter S. Harkins,

Preetonsburg,

Ky.

My Dear Judge Harkinsz-

On May 12th W. F. Hite,of Huntington,
instituted action in the Floyd Circuit Court in which he
asserts claim and title to an undivided one—half inter-
est in a tract of land on Clear Creek in Floyd County,
known as the Hiram Slone tract, containing 664.48 acres.
This tract of mineral land you conveyed by deed of Gen-
eral Warranty, to the Kentucky Coal Lands Company, on the
5th day of May 1903, and Elk Horn Coal Corporation through
several mesne conveyances reaching back to Kentucky Coal
Land Company,has become the owner of whatever interest
you conveyed to it.

The undersigned Elk Born Coal Corporation
resnectively calls upon you to defend its title to the
above tract of land in the suit before mentioned which is
styled, W. F. Hite, Plaintiff Vs Elk Horn Coal Corporation,
Defendant.

Yours very truly,
%
C-AWY
\

/ V
V
I
June 4, 1919.
Mr. Thomas Price,
Pittsburg, Pa.
Dear Mr. Price:-

Referring to the subject of our interview on
yesterday concerning the property owned and meld by your
friend ﬁr. Walsh, I desire to confirm the views expressed
to you with respect to tie progarty Owned and held by him
and others in Lagoffin County. I have a general idea
of the section of the county in which tie property is
situated and of the 0011, oil and gas resources of that
seetiOn, and it is generally believed to be underlaid with

‘ a splendid vein of coal, perhaps more than one vein,of
workable thickness and of very fine quality. At least
tHHt is the general opinion of geologists and persons who
have made exploration of that section and their report in
relation thereto. In addition, tde oil and gas interest
istaking form of active deveIOpment, and well-informed
men of experience in oil and gas production have expressed
"to me the view and belief that it is favorably located for
oil and gas development.

My idea is, from wnat I have heard of the property,
that there are probably within the boundries of this grant
a great many_tracts of land owned and held by ppople living
in that section under junior patents and possessory right,
Wnich it seems to me as a business preposition would require
first an actual knowledge, by survey, of the outer boundary
of this particular grant held by these gentlemen. Then,
further investigation to ascertain the number and extent of
ﬂtﬁiﬁemﬁﬁ' ﬁgﬁ,‘“§“‘§§eb§;£§§%€rcfitting? Fiﬁéﬁfsfrtoum
regommend that negogisgions be entered into with these people
and acquire frOm them coal, oil, gas and mineral interests
in and underlying the respective claims held by each, together
with the right of way to enter upon the land, make exploration
for and to mine the coal and drill for the oil and gas with
ample and extended right of way for the purpose of extracting
the coal, construction of railroad, miners' houses, pipe
lines, and other things necessary and prOpsr to be demo in
the use of the soil and surface in fully developing the coal,
mineral, oil and gas interests. Assuming this to be done, it
would settle all of the disputes in advance and leave a clear

Mr. Price -—--2.
field and free hand for the Operation and develogment of .
this prOperty, which would thereby become a very valuable
property, but in its present condition is so beclouded and
adversely held as to make it impractical to start a development
and would very much interfere with the successful operation
of the plants to do so.
In a general way, my view is that the most of
the property, if indeed not all of it, would yield in royalties
from the conl at ten cents a ton as much as three to five
hundred dollars an acre, and in many instances where there are
recurring seams, tnis would be materially augmented, in addition
to WiiCh is the element of vslue of the oil and gas production
whicn no one can foresee or determine oreven conjecture until
tne property is drilled. 1y notion is that it would add
very greatly to the value and extent of this property to
purchase, acquire and own the coal and mineral rights and
oil and gas rights in lands laying between the eastern boundary
of said land and the mouth of iiddle Creek at Brestonsburg,
Floyd County, hy., and this would be especially of value for '
the reason that the sufficient and proper development of the
“nlsh interest would be by rail from Brestonsburg ftntion on
the iig Sandy Division of the Chesapeake & Ohio Railway up
Kiddie Creek in Floyd County and crOssing into the head of
Licking River in hagoffin County where the Taleu properties
are situated. This property is like the other, underlaid
with coal of a very superior quality and is being mined at
the Middle Creek Coal Company's mine and the blue Beaver lines,
one on the upper side of niddle Creek and the other on the
lower side. The vein that is being mined by eucn of these
Companies is 42 inches thick and a splendid general purpose
coal, low in sulphur, low in ash, high in fixed carbon and
. heat unite, and is a coal that will make a good steam coal and
burn with equal satisfaction in open grates, stoves and furnaces
and will bear shipping and stocking into the northwest where
our best trade is without materially disintegrating and is
" in high favorfor the purposes above mentioned. It is also a
good gas coal. This coal is located near the base of the
mOuntnin and will run about sixty per cent on the area of
the properties. Higher on the hill there is another vein of
coal which is almost or quite as good and running about forty
per cent of the area, so that the recurring veins will
compensate ﬁery largely for the erosion.
It further occurs to my mind, and I make these
suggestions for whaterer they are worth, that a Cempany be .
formed to take over the Welsh interest, and that sufficient
money be acquired by the sale of the stock, or otherwise, with
which to buy the coal, oil and gas interest in the interferences

O
, Mr. Price-------3.
to be denominated a holding Company, then a second Company
to be formed for like purpose with respect to the coal between
the ”alsh interest and the railroad at the mouth of iiddle
'Creek, Floyd County, by. My estimate is that the coal and
mineral rights in these properties recommended to be acquired
could be had at the prive of fifty dollars per acre, plus the
cost of surveying, abstracting, and conveyances. ﬂow, if
' the plant should be approved, and it was desired to further
extend the immediate benefits and rive a source of imnediate
return, I would recommend that this second Company also
sequire the Eiddle Greek Coal Company, and the beaver rend
Coal Company, each of which have a capital of about one thousand
tons per day. This coal can be mined and sold at a profit
of fifty cents per ten, or more under present conditions, so
that there would be an income from that source of practically
five hundred dollars per day. Of course, it is hardly to be
expected that these mines would run at full capacity every
working day in the week, but allowing for shut downs on secount
of breakage of machinery or on account of failure to get cars,
say that they could run on an average oi four days per week,
that would give an income of two thousand dollars per week,
or eight thzusand per month, 9 sum quite sufficient to pay
interest on a large bond issue or dividends on stock issue
accordinq as was the view oint of the owners of stock and
officers as expressed by ins management of the 00mpeny.
Assuming this to be done, my notion would be to divide up
the entire properties so acquired into blocks or two to three
thousand acres each, and then organize a mining company to
when the mining privileges would be leased at the rate of ten
cents per ton royalty, one-half of wnich or each alternate
block to be held and operated by the mining company whose
interest arose and was held by people who are interested in
the land holding companies. Then, I would recommend that the
remainder of the profits be leased to independent operators,
_ c that is, each block of two or three thousand acres to different
persons who would want tb engage in mining in this district.
‘ lhese lenses could be developed by establishing
one or more mines of each of these Operations, and from the
I time when the road would be extended one or two miles, these
different operations could be put in commission and as the
road was further extended others could be established and
served. ,
I have thus subedivided these suggestious so that
I can put before your friends, through you, the different
steps to be pursued and followed in assembling this preperty
and getting it free of adverse claim and dispute, and then
after that is done, the plan of deveIOpment in a satisfactory

Mr. Price-—o-4.
way according to the usual business methods that has been
found to be profitable in this district. Of course, if the
parties in interest do not want to go to the expense of
taking over the prOperties, then it would resolve itselt

» into the matter of acquiring the halsh properties by
corporation and the acquisition of the interferring claims
within its boundary lines, but in order to mine and develop
the coal in this property, a railroad would have to be built
to the present established railroad, but it would be attended
with this economic View thet by building this railroad from
tne present railroad station into the prOperties claimed by
hr. Ualsh and associates, we would be developwng a lot of
property that is owned by other people wno would get the benefit
of it without contributing to that result. Furthermore, if
the road is built into the gulsn properties, the values
of the properties between the nalsh property mud the railroad
would be materially appreciated, so that it UGCJQ to be that
if the requisite capital cen be obtained, that it would be the
wisest t2ing to do to require the entire acreage “9 herein
outlined.

This coal and property on Liddle Greek is in
place at a point within one hundred miles of tie hanging
rock iron region at lshlend, lronton and longing oak, where
there are a number of blast furnaces and tvo semet solvny
plants and other milling and steel plants. In addition to
this is the Ohio River now being improved by the Tnited
States Government, and through the medium of wnter transporta-
tion, coal barges could be loaded at that point and sent
down the river to the mouth of the chic and then on down
the Lississip,i to gulf ports where the product of the coal can
be tsken for export, more particularly to South shericnn
countries where I understand now, and especially in ‘rgentina,
coal is selling at 46.00 per ton. When, by rail we can
recon the lorthwestern points in Lichignn, Wisconsin, Illinois
and Ohio, and this coal is of such superiOr quality that it
is preferred above coal produced in either chic, Indiana, or
Illinois. The Chesapeake & Ohio Railroad has a line into
Chicago and a nearer point at Toledo, Ohio, where the Lake
trade could be provided for, and it is a matter of very
considerable importencs to coals in this section.

I have written this much in detail and have
tried to explain the views that i have with respect to this
property being built into a great organizatiOn and a great
producing property. Many of the views here expressed
will seem optomistic, but doubtless will be understood as a
hape expressed, based upon what is susceptible of being done
here as has been done in West Virginia and in the Pittsburg

Mr. Price------5. ’ '
district. If the views here expree“ed are dermed worthy
of attention and an endeavor to straighten out Fr. walsn’s
properties, we would be in a gosifion to accept employment
for the legal work necessary to be done in connection tnere-
with, and we snail be very much pleased to hear fTOm you
or Lr. unlsh a; seen times me our Dervices may we required.
18‘:0. Very respeotfully,

. I

Jr .
t
.
June 4, 1919.
. I;I'. ZWLOIL‘S Jri(:e,
:ittsburg, .5.
Herr Sir:-

I tnzur: got; for~’brirnzin.r to rny :1tte1vtitr; the
oroduc; oi toe lrbelle fine uoupanz, WuiCb wry prove of
mutunl deLntﬁgo to the pipe comprny gnu ourselves.

You, and ;ne;, are perhaps aware oi toe fjct fu“t :entucky
is looking forWHrJ ta ourtner large gosvibilitic" in oil
and gas QQVolopment, and with it, pipe lines. We Have
produced in :loyo Count] more xnnn ﬁour hundred fnousand
barrels of oil. “e Hove ﬁes above ground, mm‘.ntinx to
filtecn million feeﬂ oacd twenty-four Joure, wnd most every
well drilled in the District is found to produce either 011
. ' or gas in paying quantities.

$15 reunagrnde Oil 1 Gas Jumpﬁny hrs been recently
forned to ocwuire: and has WC11irC&, lease? for oil and gas
ln Llfty LIOLUHUC Horse in "loyu and 'nott tountioo, and they
Have twelve milliou cubic teet or gas aloVo ;r:uri per day.
Quay also nave contract witi tne louisvillo 3's 9 Electric
company of logisville, ﬁentb;5j, to costly five million feet
of .1"':s per all] at a price in round Humour-:3 well ‘Lzlr‘iruring an
iﬂCOmQ to toe gennagrade uomoany of two nundref and,f0rty

, tnousauu dollars per year.

‘ In order to connect witn the cite line of the louisvi
Gas a Llectric ;ompany, wnlon is within twentyesix miles of
the zennagrade production, it will be reguirco to build
twenty-ﬁiX miles of ten inch pipe line. The route has been
surveyed and the right of way is being secured and centract
for construction hos been awarded. I do not know whether
the contract for the pipe has been made permanently, but I kno
that it has been talked about in a general way, and I believe
that I can defléop.the order from tne present source by a
little dip10mucy. . in other words, we expect to get the pipe
line laid by first of October,.and the very minute the
connection is made, we will begin delivering gas and will be
paid for it at stated gariods by the Louisville ﬁns 5 Electric
Company, : I amin position to know that the -ennagrade oil
& Gas Company has no outstanding obligations, and is selling

hr. Prioe——w—-2/
«
its stock through a Tisoal Agent and it hws a force of stock
solosmen in the markets now unu will be able to reutize
from toot source funds sufficiently angle to put in tne pipe
line ﬁnd to pay for it, but 1 think i see the opportunity of
costing LAC nmcnor to tne leeward if 1 can so] that the
Lobclle ;ipe Lino oomotny will take this contract and have
settlements for deliveries, one'tnird cash and balance in the
notes of tun tomyuny, say six and twelve months ’Tter cute in '
equal instalimeuts inoooeot five per cent, lien reservoo upon
the oipo in place. Tut oblizﬁtions to be signed by tne
officers of the Bennaﬁrode Unupnyy, union would HUME 1t
aksolutely safe PMG depeuoable, because before too aoturity of
the OVlithioﬂs tne money origins Irow too oalo 0: too stock
would he av:ilable to pay eac; o: t.e notes, auu tne pool
will probably be tavee hundred thousand guitars. ii I am
C)rroct ih tnis View, it w0u15 moan payment of One Muuoreo
thouomnd ;ollwrs on delivery or at a stated perioa, Say the
fiftesath after tuo de1iverj who Lme settlement by nonoo of tne
above doe six Hui twelve muntns aftey onto. “me quostlon
of teﬂna will be a very great Joly to me in swinging Luis
contract, tnen, In addition to tout, the Congauy witi need about
‘ four miles of eignt inc» pige, {Qty miles or six inou pipe, and
SGVeanx} snilc?3 fOL' euanlex‘ 91 n’ log" ;‘rLIEr‘ingt lilues.
ﬁnrtwucmoyc, it.x Lloyu, (OWﬂSLJ, ,aaof in, orhah, 'still,"owell,
Wolf, Eotn, Clo; and ﬁrenthitt Counties, ease of Lexington,
there is a very oouoioerablo dovuioomeuL gu;ng on Ln ;ne matter
of Vﬂriouo out sundry COFpOTLZiSMS, firuu, assent“ ions and
ugtreyrtions gutting GOUL wojls. rive are going dovm in tnis
immediate neighborhood in Lao next sixty days. Rueﬂ, in "ayne
and Allen and ;ulaski and so,u otoor uUdnLLeS in Lott cistrict,
tnero is another oil devoiopnout, including Lewis Jounty over
on tho oaio River, wnion is neiug developed by two onto GHQ
Congnny. All of tnis gives geomise of n fine iielu Ior
distribution of pipe, and it occurs to me twat a negotiation
mutually profitable to the fiye n moon; and ourSolveo may be
arranged for along these lines, aha if So, I woulu be 91nd to
hear of any proposition hunt they ono you have to make, and to
discuss it Jitn you with a Viow of turning the gennw in the
direction of commissiona on account of the gas and oil
development.

Also, please let me know whether they manufacture
and sell water pipe,for the reason that this tawn and tne town
below here are thinking of putting in water plants as well as gas
lines.
moizo. Very truly yours,

HARKINS £2 IIARKIXS
“cumin: 5 nnnluxs ‘XTTORXEYS AND (7 OIWSELLORS AT LAW"
. IDS KPH 1‘) HARRIS F; 1’1{}<‘,ST()N5111'1{(; , KY.
June 4, 1919.

Dear Sir:-

Further in respect to our interview on yesterday,
I desire to confirm the opinion expressed then and yet
entertained that there is a very rare and attractive business
opportunity presented by the consideration and consummation
of a plan of acquiring certain blast furnaces, steel plants,
and other iron industries in what is locally known as the
hanging rock iron region at Ashland, Kentucky, where there
are three blast furnaces, one of which is a double furnace;
a steel plant, and another steel mill of more extended
capacity and diversified interest, also a sheet mill and rod
mill. Across the river on the Ohio side, at Ircnton, are
three or more furnaces of large capacity; a sheet mill, nail
mill and perhaps other iron manufacturing interest not now
remembered. Below Ironton is the hanging rock iron furnaces
and a few miles further down is an immense plant, the name of
which I do not now recall. In this district there are three
semet solvay coke plants that are being run on the coal -
produced in the Big Sandy District and West Virginia, and all 1
of these furnaces are contributary in the sense that they are
within a hundred miles of abundant coal supplies. There are
furnaces also on the Ohio River, accessible to shipping, '
water transportation and service by the Chesapeake & Ohio
Railroad and the Northern & Western Railroad, and I understand
that the Baltimore & Ohio is not far from Ironton with its
main line. Its Pittsburg line terminates at Kenova, about
ten miles away, and the B & 0 also has two branch lines in the
Sandy Valley, one of which is on Shelby Creek, twenty-three
miles in length, and the other one on the Left Fork of Beaver
Creek, about the same length. In order to reach connection
with the main line, it would practically require them to build
down the east bank of the big Sandy River a distance of one
hundred and twenty-five miles, and to get into Ashland, a
bridge across the Ohio River. Now, with the bridge across the
Ohio River, it would be possible to unify all of the B&O
interest in this section so that coal on its branch lines in
the Big Sandy District would continue on its rails to any point .
desired, East, West or North.

In thinking out the situation, it appears to us f

that situated at the point it is on the Ohio River, and its ‘

'X
if \
A
/(
June 4, 1919.
Dear Sir? ,
Further in respect to our interview on yesterday,
1 desire to confirm the opinion expressed then and yet
entertained that there is a very rare and attractive business
opportunity presented by the consideration and consummation
of a plan of acquiring certain blast furnaces, steel plants,
and other irOn industries in that is Iceelly Known as the
hanging rook iron region at ;snlend, Kentucky, where there
are three blast furnaces, one of which is a double furnace;
a steel plrnt, and another steel will of more extended
Capacity and diversified interest, also n sneet mii' and rod
mill. Across the river on the Ohio side, ﬁt Ironton, are
three or more furnaces of large capacity; a sheet mill, nail
mill and perhaps other iron manufacturing interest not now
remembered. Below Ironton is the nnnging rock iron furnaces
and a few miles further down is an immense plent, the name of
’ wiioa i do not now recall. In this district tiers are three
semét solvay coke plants that are being run 0n the coal
produced in the Big Sandy District and est Virginia, and all
‘ of these furnaces are contributory in the sense tint they are
within a hundred miles of abundant coal supplies. There are
furnaces also on the taio River, accessible to snipoinﬂ. ‘
water transportation and service by the Uhesepeake & Ohio
Railroad and the Northern & western Railroad, and I understand
that the Baltimore & thio is not far from Ironton witd its
main line. Its Sittsburg line terminates at senova, about
ten miles away, and the 1 & L also has two branoa lines in the
Sandy Valley, one of which is on Jnolby Creek, twenty‘tnree
miles in length, and the other one on the Left fork of beaver
Creek, about the same length. In order to reach connection
with the main line, it would practically reqtiro them to build
down the east bank of the pig Sandy hiver a distance of one
hundred and twenty-five miles, and to get into Aenlund, a
bridge across the Ohio River. Now, with tne bridge across the
Ohio River, it would be possible to unify all of the 3&0
i