The Texas Gulf Historical and Biographical Record, Volume 5, Number 1, November 1969 Page: 17
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JOHN HENRY KIRBY - MAN AND LEGEND
Calhoun listened. He became fired with an enthusiasm of his own. Hav-
ing been president of the Southern Oil Company,98 which had been active
during the early exploration days at Corsicana, he suggested that the one large
undertaking envisioned by Kirby be reconceived and separated corporately-that
it be handled as a twin enterprise engaged in both lumber and oil-and he
tentatively agreed to undertake the task of financing it. If an oil development
project were created to succeed to title of the 1,100,000-acre domain from
middle-man Kirby, and stock in the oil company were to be issued in lieu of
specie payment to the present land-owners; if the oil company would there-
upon sell the timber to a manufacturing concern under a long term contract,
which specified the rate and quantity of each board foot to be cut and pur-
chased; and, if the new oil company should take possession of sixteen saw mills
named by Kirby, and reconvey them to himself, then Kirby, the enterprising
lumber-enthusiast, would be able to form the lumber manufacturing empire
of his magnitudinous dream.
On April 20, 1901, one week after their initial meeting in Cleveland,
Kirby, once again in New York, and Calhoun, who kept an office at 30 Broad
Street, signed the direful "Promoters' Agreement."99 In essence, the success
of the contract between Kirby and Calhoun, the rationale of the scheme, lay
in the flawless synchronization of each phase of the tycoons' business opera-
tions. Each intricate aspect, like the precise adjustments of a fine watch, must
mesh infallibly.
Calhoun, an absolutist, required of this Texas land baron who dreamed
of a lumber monopoly, that he more concretely plan for the financial re-
sponsibility and solvency of his proposed lumber company.100 Parrying expertly,
Kirby proposed that he could commit 850,000 acres of timbered lands in
Texas, plus an additional 260,000 acres which he was then in process of acquir-
ing, to the oil development plan.101 After his acquiring the lands, the oil
development company should sell the uncut timber on the surface exclusively
to a lumber manufacturing company, under a long-term contract; the original
oil company should specify stumpage rates and the minimum number of feet
of timber to be felled and paid for each year by the lumber company.'02 Kirby
planned that sixteen mill plants would be purchased by the oil company and
immediately conveyed to him, as individual.'03 With these plants in his posses-
sion he could in turn organize a lumber manufacturing company whose total
capacity could comfortably fulfill its obligation to the oil company.
98(Not to be confused with Southwestern Oil Company.) Incorporated under the
laws of Texas, October 23, 1897, by Ralph Beaton, H. G. Damon, and S. W. Johnson,
all of Corsicana. State of Texas, Office of the Secretary of State. Archives of TGHS.
99King, op. cit.
lOOlbid.
101Ibid.
102Ibid.
10SIbid.17
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Texas Gulf Historical Society. The Texas Gulf Historical and Biographical Record, Volume 5, Number 1, November 1969, periodical, November 1969; Beaumont, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1433638/m1/21/: accessed August 15, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Texas Gulf Historical Society.