New-York tribune., 1922-06-24
Doheny Denies
Plan tOCOrner
MEX. Pete
Oil Company Head Says
Shares Never Have Sold
at Half Their Value on
the n. Y. Stock Exchange
Inquiry Refused, Charge
Asserts Brokers Ignored
Plea for Probe i'm 1921:
7la-Point Decline i'm Day


T1a-Point Decline i'm Day
Mexican Petroleum shares have
rever sold At half their real value on
the Stock Exchange. not excepting in
1919. vhen the price touched 2si. IN
,hs opinion Of L. l.. Doheny. chairman
of the board Of the oil company. who
declared yesterday he was watching
with keen in,eres, the activities of the
Exchange's business conduct commit
tee in trying 10 determine whether the
recent spectacular advance in the
stock was due 10 conditions threaten
ing n possible corner
Mr. Dohcny referred fcelingly to the
period Of declining values last sum
mer and fall. when tho market price
Of MEX Pete" fell as low as siia. and
asserted that the Stock Exchange au-
thorities then took no steps 10 protect
holders of the stock when all sorts Of
unfounded rumors we're ahoat adverse
ly affecting it, price.
II nm anxiously waiting he said,
",o sec uhat action the Exchange will
now take 10 protect the bears. Wae1
reports were current last July that me
Pan. American Petroleum and Trans
port Company was lending its holdings
OF Mexican Petroleum &c sellers Of the
latter wrote the president OF the
stock Exchange asking him n appoint
4 committee Of bankers 20 look IN the
vaults Of the company in Los Angeles
and find out that those holdings we're
intact. No action was taken. how
ever.
ii7.ooi Shares Floating Supply
The Stock Exchange has in its pos
session letters showing that the P1n-
American Company has never disposed
Of any OF It's holdings Of Mexican Pe.
troleum. but on the contrary has added
20 them. as was indicated by our an
nual report issued this week. ne
par-American Company now holds all
except ll7.ooi shares 81 Mexican Pc
trolcum. which constitutes the present
floating supply. 40 additional stock
however, mas been purchased since the
first OF the year"
The letter Of the stock Exchange,
signed by r. V. y. Cox. secretary esk-
.ng the members 20 make pubic their
position in Mexican Petroleum stock
a. the close of business Thursday. vas
made public yesterday. All replies
we're scheduled TO be IN by noon, but
+, was found that the brokers had not
been able 70 send their answers IN by
that time. and they kept coming in all
afternoon. The information sought IN
cluded:
How many shares long?
How many shares short?
How many shares borrowed. and OF
whom
A member OF the governing com
mittee OF the Exchange explained mat
the questionnaire was issued prihci,
pally as a precautionary measure ana
that no Official announcement woula
be made as 10 the information set iortn
in the replies. He did not indicate
what action the authorities would take
II /, was shown that tho rise had peen
caused largely By the squeezing OF a
big short interest which found II ah-
feult 10 borrow the stock and conse.
ouentiy had 20 20 into the market and
buv IL FOR whn, IL would bring.
Paving for Employees Stock
One report heard in brokerage cir.
cles was that the shorts had agreed
20 settle on basis of S225 share
and when this WAS called 20 the al.
tention OF Mr. Doheny he said he had
heard that interests prominent IN the
tobacco trade had been heavy buyers
OF long stock on the recent advance.
Again referring 10 what he felt was
an unwarran.ed attack on Mexican Pc
,roieum and Pan-Ameriean Petroleum
e. Transport shares last year. Mr.
Doheny said that the latter company
had taken up $1,000 900 Of its stock
purchased by employees who were un-
able 10 carry IL further because OF its
depressed value. THIS stock, he said,
is still being held for the account OF
the employees and Is being paid FOR
by the dividends and the partial pay
ments.
"The stock was worth just as much
then as u is to-day and probably more.
because since last summer we have
taken 50 900 900 barrels Of oil from our
properties. Some Of my friends who
held the stock then were forced 20
take heavy losses and ] have heard Of
cases where suicides resulted from the
losses suffered.
Mexican Petroleum is like the giant
steamship Majestic II IS just as big
At either high or low tide. So IL =
with Mexican Petroleum. IL IS worth
Just as much whether IL is selling at
a low price or a high one
Earning SIS per Share
Mr. Doheny revised his previous es-
innate Of earnings. for the current
year. indicating S36 a share on the
common stock. by saying that the sur
plus for the first quarter was equi,G-
lent 10 $40 a share, while IN April Il
eoualled 81 a share. He pointed out
that this was an average Of approx
mately SIS a month. but stressed the
fact that the final results for the year
NAV be modified By expenditures and
write offs made later on.
The advance in Mexican Petroleum
shares, which has been the feature o.
recent stock market sessions, was
checked yesterday. The trend for the
greater part Of the day was down
ward and the low price was reached AZ
the close, with sales at i76, register
ing net decline OF ~ points. The
opinion OF the street was that the
weakness was due 20 the action Of the
Stock Exchange business conduct COM