The Birmingham age-herald., 1920-12-02
.O|L COMPANY WILL BE ORGANIZED WITH
 3,5O0,0OO SHARES
Will Purchase 259,000 Acres of Land in California, h. cIuding 25, 900 Acres of
 Proven Oil Lands
nx Associated Presa

New York, December 1.- Organization of a new com pany to be known as the Pa cific ,Oil company was an- nounced here tonight by the Southern Pacific company as the chief feature of it's plan providing for the separation of it's oil and railroad properties.
 The new company will be organized under the laws of the state of Della ware, with capital stock of S,50o,ooo shares of no par value, for which the Southern Pacific company will sub scribe $15 per share. or s52,50o,o0o.
 From this amount the new company will purchase from the Southern Pacific Land company as of January l. 1921, for about s43, 750,o about 259,00o acres of land now owned by the Southern Pa cific Land company and 20s,690 shares, having par value of $20, ,000, of the outstanding capital stock of the Asso- ciated Oil company.
 The land to be purchased is5 situated in the state of California. About 25, 900 of the 259, ,000 acres ere proven oil lands and the remainder lands heretofore withdrawn from the sale as possible oil lands.
 HOLDERS MAY BUY Holders of Southern Pacific shares will be given the right to purchase, al $15 per share, one share Of the stock of the new company for each share of Southern Pacific stosck
 l The capital stock of the new com pany is fixed at s.5oo,ooo shares to cor respond to the total number of shares of Southern Pacific stock outstanding
 The segregation also involves the stock holdings of the Southern PacHic company in the Associated Oil company. of which it owned slightly more than 50 per cent
 Associated oil is at present receiving dividends at the rate of per cent an- nually. New earnings of the Southern Pacific oil properties for the year 1920 will approximate $12000. .000. according g to tonight's statement of the directors, and earnings for 1921. based on present production and prices. are expected to exceed this years earnings.
 DIRECTORS NAMED
 The following directors of the Pacific Oil company were named James s. Alexander, B. D. Caldwell Henry w.. Forrest, Charles A. Peabody. Samuel Req, Mortimer L. Schiff, E. P. Swinson and Paul Shoup, now president of the Associated Oil company. of California.
 As soon as possible, after the clos ing of the books on January 14, 1921, warrants will be issued to stock holders specifying the amount of stock of the new company they are entitled to pur- chase. Two forms will Abe printed on the back of the warrants to provide for disposal of the stock in the new company.
 The first form is to be filled out and signed in the event the stockholder de- sires to purchase the stock. This must te returned on or before March |. 1921, to the treasurer of the Southern Pacific company with the full amount payable Tn case it is desired to dis pose of the privilege of purchasing stock, the second form, which will be in the nature of an assignment, is to he filled out and signed by the stock holders.
 The amount of the stock of the new company purchased will be delivered on the surrender of the warrants and payment of the full purchase price of or before March 1. 1921.