New-York tribune., 1922-06-18
Investment Information
limited oil Producers os

ouss,lon- lnaulfy relates 10 fffe's
bonds on which there -fe $500 -,
which I am not quite cieHr .''h f"ia,
snre 10 United Oll Producers y W ~.
i.n.vesr non.csiisble. participating ponls
~hich srs listed on The N~" iniN ,n,"',
The participation plan N lf"ceiuf'. '..."
daily produrfIon ~ nm barrels hppf"
rflaiions 80 'rsfe. according - 'nH ',im,
81 m. ds~d - trust srrufing SAN D"n'
issue 81 oo0 barrels daily f"r bond ~
,sr..t account and 7 inn barrels dall f'f
,inkinr fund provisions lisfel ~ 'h'
amount of these bonds auihnflf"d. l'N''.
un0 ihe shove ngufes SLOWED - saff~'
. ~ oll fof Interest ant i00 barrels for sinh
ine fund for each 81 non bond. ~ iheff
were only 81 aeN ooo - ihe bonds s,,H
rnuid IKE ~ know hos that sn"fi' 'h~
aunfnpriafl0nf a. scheduled We're ihr"
fsufss reduced propnrtl0nafsy 10 tho
amount - bonds -oii. stNl leafihs lhr
ssm~ quantity 81 oii namely, - snl wv
barrels Ter zach iiqon homi. nl zoos ~,
., viii N act 10 reduce fhe price - which
90 must srii ~ return tho MAXIMUM ~
-o'. rer cent yi"id or viii " r. ini' 'inF
ing fund Also. docs fh- appropriation
~ uli depend on 'he production sftf nS
, ~ th- ther seffi-i production - 5000
barrels daily M viii Tho appropriation ~
made nrst REGARDLESS - production in
"th-r words ~ii th- 1000 barrels fnr
Interest chsfEss sni no barrels fnr sinz
ing fund he sef aside even in Tho event nf
production declining io only 'housh ~
. cover these change have NOT been
ahio 20 S~' ss'isf.rfory information r~-
rarding th- working ~ fh- participating
plan u naturally follows nat - only
re-hsf ~ The issue vas sold that only
.ue hair - r~qulr~m-nfs for interest and
-iuking fund would h~ n~~def AMI y The
appropriations were 30 ruf ihen ihe bond
would iu reality have that much NOR.
a. urifY. q. even N the production would
Gwlnd< - hsf if would he s'lil large
enough prcpofiionats'y 90 tho amount -
bonds as ware sold - Vas originally con-
trmp!-',i. in order % fuily s-fti- fh.ss
IT. WMNaffnfIH writing ID uIfN tho
thought thai you No doubt could ascertain
iurt hns 'h- deed % trust cor frnrf.E~ d,
w"tdr.i io clfer This phase Referring q.
sinclair Nil - Per cent convertible bonds
du- 900 1895. are fh-ss cnnFeffihia 80 the
hvif"rs option or 49, fh,y only conferfl0is
when du. 10 la.i'-H H.
Answer The following provisions Tor
interest and sinking fund were set forth
in the deed Of the United OIL Producers
Corporation tcn-ycsr participating s..
1881: From the daily production -
5000 barrels Of oil the corporation
agrees 20 set aside daily amounts
for the various funds as follows: 1000
barrels for interest and participating
fund. LOO barrels for sinking fund
1000 barrels for additions improve
ments. etc. and 5000 barrels reserved.
subject only 10 operating expenses.
For ench 81 900 bond outstanding an
amount equal 10 the market price of
ninety barrels Of oil per annum. pro
rated monthly, payable the 20th ~
each month 10 the trustee and distrih-
uted annually az interest. This
assignment of oil monthly guarantees
interest AZ the rate Of 3 ner cent per
annum II the oil sold as low % sss-9
cents 4 barrel. Advances In the price
Of oil 20 81 a barrel would net the
bondholders per cent per Annum un-
der these provisions. advances 20 81 rs.
liis per cent; 20 $3.50. 1914 per cent.
20 sl.75. l5A. per cent: 10 81. ls per
cent, and 10 81 25. 2oi. per cent. Should
the price Of oil average higher than
1925 during the six months period, the
excess will be transferred 10 the sink
ing fund Tor the payment ~ principal
OF the bonds. For the sinking fund an
amount equal 20 the proceeds of the
sale OF 100 barrels of oil for each
81 900 bond per annum is set aside
Thi. sum is pro rated monthly and
payable the 20th of each month. and
includes. IN addition, any excess re-
sulting from the operation of the in
terest and participating fund as pro-
vided Should oil reach the priee Of
1880 n barrel this sinking fund. plus
the excess resulting from the interest
and participating fund. would provide
for the principal Of this issue in three
years. il is estimated. Bonds are nur-
chased on published notice Of the trus-
tee and are Cancelled. Sinclair Consoli-
dated 7hs, 1925. are convertible at any
time until thirty days prior TO matu-
rity. at the option Of the holder, on the
following basis: Each 81 900 note 20
be exehangeable for ten shares tpar
500 each) Z per cent cumulative sink
ing fund preferred stock new issue
and two and one-half shares Of the
common stock. without par value. with
an adjustment for accrued interest on
the notes and dividends on the pre-
ferred stock AZ the time OF conversion.