New-York tribune., 1919-07-11
Sinclair Oil
Acquires Four
Big Properties
Consummation of $4,000,
600 Transaction Puts
Company in Control of
Louisiana Field

Harry F. Sinclair, head of the Sim
Owen, of Oklahoma, have just consum
mated a s15,00o,Oo0 transaction, it was
learned yesterday, which gives Mr.. Sim
:lar and his associates control of the
Louisiana field.
The deal involves the acquisition
by the Sinclair Consolidated of all
wells, leases and other properties in
Louisiana of the Globe Oil Company,
the Dixie Oil Company, the Texlahoma.
on Company and the Palmer interests.
The Globe Oil Company is to receive
$2,000,000 net; the Texlahoma, $4,470,-
900, ard the Dixie and Palmers are to
divide the balance.
According to the agreement, Sinclair
was obligated to pay down $3,000,0O0,
although it was stated that the initial
payment probably would be in the
rcrhborhoood of s10000,0O0.
The transaction was practically COM
i'lcted June l6, after a series of con-
fCrcnces at the Biltmorc Hotel, at
tcHded by Mr.. Sinclair, Senator Owen,
Okla; r. r. Smith, of Kansas City, and
others.
Senator Owen was given thirty-day
options on the properties involved, with
the understanding that they were to
he transferred to the Sinclair Company
OF the net prices named. The thirty
days were allowed to carry out in
spcctions Of the properties on behalf
ot the Sinclair interests The inspec-
tions have been completed and the re-
PORTS of the Investigators have been
approved.
The Louisiana. transaction and pos
y I 4
Ing, probably will be formally an
meetings of the Sinclair Oil e. Refining
Company and the Sinclair Gulf Cor
poration next Friday. These meetings
have been called specifically to decide
en- increasing the capital of the former
o $12 100000 and Of the latter to $1O,-
000.O0C
Earns ss,5o1,e5A
Tie Sinclair Oil & Refining Company
reported net earnings from operations
Of ,S8,501 1854 for the six months ended
December 81 last. Miscellaneous in
come brought this total up to $685. ,946,
OF which interest, discount and Fed
eral taxes absorbed $1,32S Of the bal
ance there was reserved $2,117,771 for
deprcci iation, $1,171,627 for depletion
and amortization, and $3,9O9,2O9 was
Total assets of the company on De-
cemhcr 81 were $11,514,625, against
which were bond note and purchase
money obligations of s92 ,OS9,2 1856. Aside
rom $752,629 of deferred credits, the
.nly other outstanding liabilities con-
sisted of 100000 shares of stock, which
we're carried on the company's books
u $57 ,609,5O Reserves set aside out
Of earnings to cover depreciation. de-
.)letion and amortization of oil and gas
leases totalled S16,232, 1856, and the bal
ance Of earned surplus was s4,SSo,2 PIG.
The Sinclair Gulf Corporation, which
is. included III the projected merger
ii Sinclair properties, reported net
earnings Of S5,600,S61 for the last half
Of 1918. Miscellaneous income brought
this up to S6,O69,274, of which interest,
discount and Federal taxes absorbed
S1,256,513. Of the balance there was
reserved s1,413,233 for depletion and
amortization Of oil and gas leases. and
$2,245,2S2 was carried to surplus. This
company, like the parent organization,
has since the first Of the year, called in
all of its outstanding bonds.