New-York tribune., 1922-10-24
Mex p etc Melon
Places Shares.
On Is p Basis
Plan for Exchange for Pam
American 1Br Forecasts
Passing of Delaware
Co. From Trading List
A 25 r. C. Stock Dividend
Doheny Declares Earnings
Should Maintain Aver
age of the Present Year

=
Should Maintain Aver
age of the Present Year
Early passing of the shares OF the
Mexsean Petroleum Company OF Della
ware from trading on the Stock kx-
charge was indicated in the announce
men. of q plan yesterday by T.. L. De-
heny. chairman OF the board. for ex-
changing both the preferred and COM
mon for Pan American Petroleum and
Transport "B" common stock. The
plan also provides for the declaration
Of stock dividend of 25 per cent. pay
able In Pan American AB" common,
and the placing of the shares on
basis equivalent to SIS share an
nually on the Mexican Petroleum stock
exchanged for Pan American "B.'
Resolutions providing for carrying
out the details Of the plan were
adopted at meeting Of the Pan Amer
lean Petroleum directors. The stock
dividend was declared on the class "B"
common stock outstanding at the close
Of bukiness on November n. including
the %B" shares issuable in exchange
fer common and preferred stock of
Mexican Petroleum, which may be de-
posted on or before November s.
Directors also declared q cash divi-
dcnd of So a share on the "B" stock
for the quarter ending December 81,
payable January 90, 1923, to stock
holders of record December 81. Mexi-
can Petroleum stockholders who ex-
change their holdings for Pan Ameri-
can "B" stock will be entitled TO this
dividend.
Increases Cash Dividend
The action of the Pan American d.
rectors in declaring stock dividend
Of 2S per cent, according to Mr.. Do
heny. has the effect Of increasing the
cash dividend by SO 1-3 per cent and
creates Immediately substantial dis
parity in the earning values of the re-
spectiye stocks in favor of the Pan
American sB" stock offered in exchange
for Mexican Petroleum shares.
In the exchange Of Mex Pete" for
"Pan Pete" holders Of "Mex Pete" COM
mon are offered 2h shares of Pan
American "B" for each share, while
each holder of MEX Pete" preferred is
offered lilo shares of Pan American
"Bs for each share. The exchange may
be made at any time between October
26 and November 8.
Mr.. Doheny presented figures to
show how the Mexican Petroleum
shares exchanged for Pan American
"B" will receive the equivalent of an
annual return Of $25 share, as
follows:
Per
ennum
cp., Ltd. Of Delaware ::.., .$ta.oo
Present authorized dividend Pan
Eneican Petroleum and Transport
adsshares at ss per annum equals. $500
stoek dividend at 2s% on 2is shares
which !. the snas rate q IS per snum nh
would bo an additional .......... 800
Making total off,. $500
OIL the amount of Pan-American Petro-
leum and Transport Company, Glass
B, common stock. which is offered
In exchange for stock Of the Mexican
Petroleum Company. Ltd, preferred
dividend earning Of $t3 per share per
anrum.
"The offer OF one and one-tcnth
shares Of Pan-American Petroleum and
Transport Company, Class B. common
stock. for each SlO0 share of Mexican
Petroleum Company, Ltd, preferred
stock, non-cumulative and npartic-
ipating, which has a restricted earn
Ing of So per share" said Mr.. Doheny,
admits Of the following analysis:
$1l on Preferred
ssThe stock offered in exchange there
fore is entitled to earnings Of $3.50.
Such stock is entitled to stock divi-
dend of 26 per cent, the cash dividend
on which will be $500 per annun, max
ing q gross dividend earning on the
stock which Ia offered for the preferred
stock, Of $ll per annum. In other
words, you are invited to exchange
your Mexican Petroleum Company,
Ltd, preferred stock for quantity of
stock which will have SO per share per
annlm greater earning power.
NThe Pan-American Petroleum and
Transport Company has a broader
has the Mexican Petroleum. Company
Limited. This is due to the fact that
ct the present time 1t owns 70 pc,
cent Of the stock of the Mexican Pc.
troicum Company, Limited, and will
after this offer has been consum
mated, own all, or nearly all, of tn,
stock OF that company. 1t owns be
sides the largest and best feet O
ships. With one, exception. operating
very substantial oil land holdings an
petroleum production in the Unite
States, especially In California. whic
add greatly to its earnings and pros
pects.'
Mr.. Doheny told stockholders this
tns present outlook for their com
! panies, with their actual productio
OK approximately $4,000 barrels dali,
lostihes the prediction that the "earr
ings should not become less in til
near future, but may be relied uuo
70 maintain the respectable average Q
the present year"
aonthiy earnings thus far in ls2
average S6,e0o,oo0 The MEXICAN ~
trolean's surplus as Of Seutemhar Q
last was s42,5os,sss and the combine
current assets amounted to S47aSe
$50; Cssh on hand totaled S2s. .eeT .fIs;
Mr. Doheny said that earnings
sns Pan-Amefican Petroleum an
II nsport Company will be more ina
double the dividend requirements =
the B stock outstanding after the enn
tai exchange has been effected, Eari
sings for the nins months ended Ser
tember SO are expected to be mad
public to-day.