The sun., 1919-09-25
PET. TO
DO NEW FINANCING
Estimate That S12,000,000 to
$15,OOO,OOO Will Be Needed
for Expansion Plan.
NEW STOCK TO BE ISSUED
Final Arrangements Have Not
Been Observation-Disclosures
Meet i'm October.

Plans for new financing by the Pam
American Petroleum Company are under
consideration and call for special
meeting of stockholders to vote on the
plan late in October will be issued within
day or two, It was learned yesterday.
While the extent OF the financing to
be done has not been determined finally
II Is estimated In some quarters that
from $12.000,00o to $4,000, 900 will be
ample to meet the needs Of the corpora
ton. The funds will be obtained through
sale of the class b common stock which
Is to be created.
These plans were brought up at a
meeting of the directors of the company
held at the company's office on Tues
day. The chief feature of the arrange
ments is the reclassification of some
SIO,OOO,O0O of common stock, now in the
treasury of the corporation. That stock,
if the stockholders ratify the plan, will
be changed into new issue to be called
class B common stock and a part of it
issued to provide funds needed for ex-
pansion. The total treasury stock held
by this Pan-American Company ID up
ward OF sS0,000.000. but II IL understood
that more than $1,000 900 In to be re-
tanned In Its present form. The new
class B stock will have all privileges
rights and dividends accruing to the
present common stock except voting
privilege. which will be held only by
the old common in order to maintain
the voting control In its present status.
Important expansion and development
la the Pan-American Company, as well
as in its subsidiaries, the Mexican Pc
troleum Company and others, will re-
quire additional working capital to be
carried out successfully, and it is for
that purpose that the new issue is to
be sold. Nothing has been determined
finally as TO the amount necessary. but
estimates In official quarters ranged
from s12,00o,00O to S15,00o,000.
Among the things whioh will require
the additional capital is financing of the
British-Mexican Petroleum Company,
formed recently by a combination Of
Pan-American PEI roleum interests with
British interests. That new company is
to be capitalized at SIC, 600, 900, of which
$5,000,000 is to be provided by the
British syndicate interested and the re-
naming s5,000,000 by the Pan-Amer-
lean company.
The British-Mexican Petroleum Com
pany's stock Is divided into 100000
ordinary class A shares and an equal
number of ordinary class B shares The
Pan-Amerlcan company owns the nrSt
named issue and other stock Ia owned
by the British shipping and industrial
interests cci ,crned. Rumors that the
capital of .be new company Is to be
increased from $40. 000, 900 to s50,000,000
have not been officially confirmed.
The company was organized few
months ago for refining and marketing
oil in 'sreat Britain and the entire
Eastern Hemisphere. The company al
ready has contracted to purchase from
the Mexican Petroleum Company, owned
by Pan-American, 100000 tons, or
100000 barrels yearly. Of Mexican
crude oil Substantial increases in that
amount are expected as the business Of
the new organization expands. A re-
firery Is to be built near London by
the British-Americ company and an
other somewhere on the European CONT
nent.
Other expansion, planned by the Pan
American company will require some
financing. large contract for fuel oil.
recently placed by the Missouri, Kansas
and Texas Railroad with the Mexican
Petroleum Company. and several other
large contracts will nccessitate consider
able development OF the part of the
Pan-American subsidiaries successfully
to be carried out.