The New York herald., 1922-10-24
MELON Is INVOLVED
In OIL STOCK DEAL.
New Pan-American Dividends
With shares Offered i'm Ex-
change for Mex. Pete.

Directors of the Pan-Amcrican Pc
tFeisum and Transport Company
adopted resolutions yesterday under
which every holder OF one share OF the
common stock OF the Mexican Petroleum
Company. Ltd. % Delaware. win have
Z the opportunity 20 exchange II for ~.
shares 20 tho class common stock OF
Z foe American company. which is
tl~ parent Organization.
The ownsr ~ each share OF the pre-
ferred stock 81 Mcxican Petroleum also
wil b. entiiled 20 exchange II for
: Ire shares Of the Pan-American II
stock.
NJ both cases the exchange must be
uaade between October ss. is92. and Mo-
tcmbsr >. isa1. inclusiee.
AZ TIRE same time stock dividend OF
- per cent. payable In the class Il
romnlou stock of the pan-Amcrican COM
f,an,. WAS declared on the common and
class y common stocks Of that company
oatatnncing a. the close of business on
November ~. Including the class y
stock exchangrahl@ for Mexican Pc
truienm shares on Or before November 8.
fAarthermcrc. a quarterly cash diyi-
dend Of ~ = share was declared on tho
ansAmertcan'v common and class u
common shares payable January 20.
( iHe1 90 Shareholders Of record Dccem-
hsr 81. This raises the dividend rate
ffcm per cent 90 per cent annually.
Calculations set forth IN a letter 20
siockh0ldcrs show that BY making the
exchange the holder of Mexican Petro-
leu1n common gives up a share OF stock
paying fi2 per annum and receives
stocks on which the annual return will
he szs per annun. while the owner of
MeXican Petroleum preferred gives up
an 81 stock for shares which viii re-
turn him tiI yearly.
Tho statement issued % Mexican
Petroleum Stockholders last evening.
carrying the signature of 4. L. Doheny.
chairman of The companies said Ia part
'rhe Pan American Petroleum and
Transport Company has a broader basis
~ values beneath Us stock than has the
Mexican Petroleum Company. Ltd. This
il due % the fact that az the present
time II owns Is per cent OF the stock Of
the Mexican Petroleum Company. Ltd.
and VIII. after this ofIer has been con-
sumated. 0wn all. or nearly all. OF the
stock of that company.
III owns. besides. the largest and best
Z tleet Of ships, with one exception, oDcrat-
I ing under tho American flag. u aiso has
very substantial OF land holdings and
petroleum production in the United
states. especially IN California, which
add greatly 20 its earnings and pros
poets.
From the California fields we have an
I actual available production % $1,000
barrels daily.
"Thc actual available production from
I our Eibano fields In Mexico ~ approxi-
mately 5000 barrels per day.
"The available production Of oil from
the fields az your subsidiaries. the
( Huastaca and Tuxpam petroleum com
Z panies. Is not easily determinabie. be-
4 cause Il Is so greatly In excess 81 the
I takings from their wells.
"The average iakings from these wells
( is about $4,000 barrels daily. which
quantity aggregates weekly and month
I ~ approximately one-half OF the total
| light oil production Of Mexico.
"Our refincries have "a capacity OF
4 10000 barrels per day. our pipe lines
have an equal capacity. and our storage
seldom hos vacant space for more than
two Or three days accumulation OF oil.
| From this held we now have over eight
and O half million barrels Of oil In stor-
age.
The present outlook for your com
( panes. with their actual production of
i approximately $4,000 barrels daily.
potential production very much larger.
and a market continually increasing.
/ iustifies the prediction that the earnings
should not become less IN the near
future. but may be relied upon to main
tain the respectable average OF the
present year.
The monthly earnings thus far IN
1899 average $1,000. 600. The surplus as
of September 80. ts22. was si2.sOa.-
$3.50. and the combined current assets
amounted 10 s3T.Ssa. .9353a. There is
S26. 991. .06o72 cash on hand
After reviewing the companies. drilling
operations. Mr.. Doheny adds that 1--WE
have an assured lifetime of many years
for the full capacity OF our faclitios.-