The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-17
TRYING TO SETTLE
FINANCIAL DETAILS
Mexican Petroleum Is Out With
Statement of the Company
Plans.

Norman Bridge. treasurer of the Mexi~
can Petroleum company has issued
statement relative 10 the financing OF
the organization. copies Of which were
received on Friday by the several Salt
Lake shareholders This statement In
part follows:
II is now probable tina, a comprehen
sINe scheme of financing all OF our NeNi-
can petroleum properties will be carried
into effect at an early date. This in
wolves the execution OF series OF per
cent en-year. first lien and refunding
bonds. secured by mortgage OF the
Mexican Petroleum company. Ltd, OF
Delaware. upon securities held by 1t.
take the place as soon as may be pos
sible. Of the pipe line bond issue of the
Huasteca Petroleum company, OF the
first mortgage bonds OF the Mexican Pc
troleum company, and OF the joint dehen-
lures Of the Huasteca Petroleum COM
pany and the Mexican Petroleum com
pany. Ltd, OF Delaware.
II this plan is carried out, il will be
necessary 10 arrange that. instead OF is
suing more pipe line bonds and more
joint debenture bonds. these securities
new first lien and refunding bonds Issued
against them. And as 10 the pipe line
bonds and joint debenture bonds already
outstanding. provision will be made for
the exchange OF these for others Of the
contemplated first lien and refunding
bonds.
Of the financial situation of the compa
nies. and Will mean The creation OF
new series of securities having behind
II all of the strength not only Of the
Limited company but OF the Huasteca
and Mexican Petroleum companies
well-the enormous advantage of which
is manifest without argument.
One OF the. elements Of the negotla-
tions with the bankers Is that they
shall have an option upon certain
amount OF these first lien and refunding
\ a
TO be Issued against the deposit OF the
pipe line and Joint debenture bonds; and
from this fact 1t follows that II may be
desirable. instead of Issuing directly to
stockholders upon present subscriptions
either the pipe line bonds. or the Joint
debenture bonds, or even the new first
lien and refunding bonds, that bonds OF
the later series should be issued In place
Of the pipe line and joint debenture
bonds. but should be sold directly 10 the
bankers under their option. and part Of
the proceeds used to reimburse stock
holders for part OF their subscriptions.
In other words II the bankers should take
these first lien and refunding bonds.
which may be issued against the deposit
Of the other bonds. then the stockhold-
ers, of course. could not have them. but
mupst be entitled. II they have already
paid their subscription price to a refund
OF the proper proportion thereof as well
as TO the delivery TO them of the bonus
stock and pipe line .certil1cat es-whlch
are the proht- bearing feature OF their in
vestment.
After fun consideration OF the situ-
stion: II is, fore. clear TO your off,
GERS that since these negotiations have
not yet terminated, and since Consid-
erahie period VIII eapse before it is
known exactly what course i, is best for
the company to take. all subscriptions
now taken must he conditioned so that
the company may have the right
(a) Either to Issue pipe line bonds
and joint debenture bonds with the bo.
muses. as stated On case the new mort
gage Is not made); or
OBJ TO issue first lien and refunding
bonds OF the same par value and with
the same bonuses or the mortgage is
made bU, the bankers option fals): or
(c) To return to subscribers 10 per
cent OF the cash subscriptions paid In
full by them. this to be IN place OF any
bonds whatsoever. the subscribers To re-
participation certificates exactly as sub
scrlbed for (ths In case the bankers
exercise their option over The new bonds),
These rights have been reserved in the
subscription form here with presented To
YOU. which absolutely and fairly pro-
tects the rights OF every subscriber.
The wisdom of this course is manifest
when II is remembered that the enor-
nous developments which are now taking
place In the business of the company
make u imperative that we should stll
in the first circular. without awaiting
the results Of the bankers negotiations
thus assuring 10 the company the nee
essary funds for its immediate purposes
but also reservinE the right 10 substl-
tute the other and more harmonious plan
Of financing n the present negotiations
should prove successful.