Ashland weekly tidings. [volume] (Ashland, Or.) 1919-1924, 1921-01-05
PRESIDENT SPROULE
RETURNS FROM VISIT
TO EASTERN STATES
Southern Pacific Company VIII Form
Separate Company for Its Oil Hold.
ings, and VIII BE Only Interested
in the Handling and Using OF Oil
rs a Common Carrier.

to San Francisco last Thursday after
an absence In the east of 80 days or
more. CO-incident with his return
announcement was made from the
New York offices OF the company
that the directors have decided upon
Il plan for separating the oil prop
critics controlled by the company
from the Southern Pacific railroad
properties, pursuant to a declaration
by the board of directors about
month ago that they had approved
the principle of separating these
properties and had called upon the
executive committee OF the company
to submit plan.
Commenting on this plan, President
Sproule said;
ut is in the nature Of distribu-
tion to Southern Pacific stock hold
ers of the oil properties that are now
controlled by the Southern Pacific
interests. After the plan takes effect
the Southern Pacific company will
cease to be interested in the oil
business except as purchaser of
oil for fuel on the one hand and as
n common carrier of oil on the other
hand. In taking this action the
company is simply responsive to the
spirit of the times. The plan puts
the properties in the possession OF
the stockholders as individuals, eacn
stockholder being given the right to
acquire a share in the oil properties
to the same extent that he has Il
share in the railroad property.
"It will be observed that the new
oil company will be known as the
Pacific Oil company. 1t will include
the oil lands of the Southern Pacific
Land company, as stated in the an
nouncement, and so much of the
shares of the Associated Oil company
as the Southern Pacific now holds.
The Associated Oil company, how
ever, and its subsidiary companies.
are separate entities regardless OF
whether the Southern Pacific re-
tains its stock or divests itself of its
stock as now announced.
"The plan is intended to inure to
the benefit OF the Southern Pacific
stockholders and will place the ma
jority stock of the Associated oil
company in very strong hands for
the purposes of the oil producing and
refining business in which that com
pany is now engaged. The head
quarters OF the Pacific Oil company
will be in New York and the board
of directors as announced by Mr.
Kruitschnitt Is composed OF men OF
the highest reputation and responsi-
billty, so that although the prop
critics referred to pass into new and
separate hands. the new organization
starts out under high auspices with
operating machinery ready for work.
The new and permanent head of the
Pacific oil company is not yet des-
ignated
In separated statement to. stock
holders and holders of the five per
cent convertible bonds OF the South
ern Pacific company comptroller A.
d. Mcdonald said: THE capital
stock of the new company is fixed at
3 100000 shares to correspond as
nearly as may be to the total num-
Der of shares of Southern Pacific
stock outstanding. together
with shares reserved for conversion
of the company's per cent convert
ible bonds, and the holders of these
bonds, in order to avail themselves
Of the right to purchase stock of the
new company must exchange their
bonds for Southern Pacific company
stock on or before January IA, 1921.
Warrants will be issued to each
stOckhOlder soon as possible after
closing the books on January II.
1921, specifying the amount OF stock
Of the new company which the stock
holder is entitled to purchase. On
he backs of these warrants will be-
wO forms. In case II is desired to
purchase stock the first form is to
,e filled out and signed by the stock
iolder. or by his assigns, and re-
urned ON or before March |. 1921, to
he treasurer OF the Southern Pacific
A. X. NanDeyenter, 165
New York City. accom-
,anied by a cashiers draft or certi-
led check payable to the order OF
he Southern Pacific company in New
fork funds for the full amount. pay
BILE In case il is desired to dispose
Il the privilege OF purchasing stock.
he second form on the back OF the
variant. which is an assignment. Is
o be filled ont and signed by the
tockholder. Where warrant au-
horizes the purchase OF two or more
hares of stock Of the new company.
stockholder who may wish to pur.
hase a portion OF the stock covered
y the warrant to one person and
he remainder to another must on or
efore February "a. 1921. return
he warrant to the treasurer to be
xchanged for other warrants speci-
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