New-York tribune., 1921-12-08
lranscOntinental
Plans $4,000, 1000
8P. C. Bond Issue
Oil Securities to Run Ten
Years, and Will Be Taken,
it Approved, by Stock
holders and S. q. of Calf.

For the purpose Of funding current
debts and raising additional funds for
the acquisition Of new properties and
betterments and additions to plants the
Transcontinental Oil Company is plan
ming to issue S10,0O0,oo0 first mortgage
and collateral trust sinking fund ten
year per cent gold bonds. Stockhold-
crs will be asked to approve the finan-
cling at meeting to be held December
10 in Pittsburgh.
Approximately $5,00O,0oO of the
issue, according to the announcement
| made to the stockholders, will be pur-
chased at par by the officers and large
stockholders, and $2,o00000 will be
purchased by. the Standard Oil Com
pany of California at par. The pro-
ceeds of tho sale, approximately
$7,000000, will be applied on current
indebtedness and to the expansion of
tho company's business. The remain
ing $S,000,000 of the $100OO,000 author
ization will be held in the treasury 80
be used for future requirements.
The proposed sale of $4,000 of
the bonds to the Standard Oil Com
pany of California follows the con-
summation of an agreement between
that company and the Transcontinental
whereby the Standard takes more than
81 per cent of the joint stock inter
ests of the Transcontinental Oil Com
pany~sand the Arkansas Natural Gas
Company in the Latin-America Petro-
leum Company. The holdings of the
latter company comprise approximately
100000 acres of land in the municipali-
ties of San Jacinto and Ell Carmen in
Colombia, South America, the western
boundary of which property is twelve
miles from the Caribbean Sea- Two
wells are now being drilled on this
property.
Under the same contract the Stand
ard Oil Company of California also
secures 81 per cent interest in the
Simiti tract, comprising some 100000
acres, situated on the Magdalena River
in Colombia. Under the terms of the
contract with the Transcontinental the
Standard of California agrees to pur-
chase the $2,000,000 bonds, to "pay n
substantial cash consideration" to take
over the operation of the Latin-Amer-
lea Petroleum Corporation and to start
drilling on the Simiti tract, and to pay
an additional sum of $1,00O,000 out Of
the production of oil from these prop
critics.
''In view of the extraordinary finan-
cial conditions of our country" the
letter to the stockholders says, "and
the exceedingly high rates new capital
commands, your management feels the
company is exceptionally fortunate in
disposing of approximately $1,000 900
of the proposed bond isue at par.
Looking forward to the return of
normal business conditions the com
pany has been conservativcly acquiring
additional holdings in the states Of
Montana, Wyoming, Oklahoma, Arkan-
sas, Louisiana and Texas and adding
to and improving it's refneries, gasoline
plants, pipe lines and distributing sta
tions. While we have opened no new
pools of substantial size nor completed
any large wells, nevertheless gradual
gain is being shown in our crude oil
production, and we are now drilling a
number of wells throughout the states
sbove mentioned, on carefully selected
acreage, large percentage of these
wells. being located in proven terri
| torv"