California, Southern -- Fiction; Motion picture industry -- Fiction; Petroleum industry and trade -- Fiction; Political fiction
On the desk in Dad’s den was piled a stack of papers a foot high,
relating to the new enterprise. He went over them one by one and
explained the details. Ross Consolidated was going to be a seventy
million dollar corporation, and Dad was to have ten millions in bonds
and preferred stock, and another ten millions of common stock. Mr.
Roscoe was to get the same for his Prospect Hill properties and those at
Lobos River, and the various bankers were to get five millions for their
financing of the project. The balance was to be a special class stock,
twenty-five millions to be offered to the public, to finance the new
development—one of the biggest refineries in the state, and storage
tanks, and new pipe-lines, and a whole chain of service stations
throughout Southern California. This stock was to be “non-voting,” a
wonderful new scheme which Dad explained to Bunny; the public was to put
up its money and get a share of the profits, but have nothing to say as
to how the company was run. “We’ll have no bunch of boobs butting in on
our affairs,” said Dad; “and nobody can raid us on the market and take
away control.”
A little farther on in the explanations, Bunny began to see the meaning
of that perpetual and unbreakable hold which Dad and Mr. Roscoe were
giving to themselves. In the prospectuses and advertisements of Ross
Consolidated, the public would be told all about the vast oil resources
in the Ross Junior tract at Paradise; but here it was being fixed up
that Ross Consolidated was not to operate this tract, but to lease it to
a special concern, the Ross Junior Operating Company, and nobody but Dad
and Mr. Roscoe and the bankers were to have any stock in that! There was
a whole series of such intricate devices, holding companies and leasing
companies and separate issues of stock, and some of these things were to
go into effect at once, and some later on, after the public had put up
its money!
Public-domain text, read in full here on John Shaqi.
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