, 1923-12-06
P. & R. SALE and
What IT MEANS
A. A. HOUSEMAN & COMPANY ISSUES
INTERESTING STATEMENT Re-.
GARDlNG SALE Of P. & Z.

The following report issued re-
Gently by A. A. Housman & Co., will
be very interesting to the people OF
this vicinity:
The shareholders of Producers &
Rehners company during the past
week ratified the proposed exchange
OF stock by which the Prairie Oil
and Gas Company enters the refin-
ing and marketing Of oil. An an
alysis Of the exchange and its future
prospects is given herewith:
The offer Of Prairie Oil and Gas
to exchange Its stock on the basis
of one share for ten Producers and
Refners common marks the en-
trance OF Prairie into the refining
and marketing end OF the oil bust
ness. The immediate object of this
new departure seems to be to es-
tablish an outlet for part Of the
crude taken by Eastern %refiners
prior to the beginning OF heavy re-
ceoipts of California oil and to Sc
cure a ~good-sized interest in the
Wyoming fields.
Prairie Oil and Gas Is the biggest
purchaser OF crude oil operating In
the mid-continent field and Is gen.
orally supposed to handle so to 70
per cent o fthe total oil production
Of Oklahoma and Kansas and a SUBJ
.stantiai amount in Texas. Prairie
Oil has shout 5000 acres OF storage
tanks, with q storage capacity OF
60,000,0 900 barrels. and utilities the
Prairie Pipe Line. which 1t formerly
owned. Is its principal Transports
ton system. On December 81, 1922
Prairie was reported to be purchas-
ing about 10000 barrels Of crude
oil daily from $4,000 midcontinent
producers and vas producing for its
own account approximately $4,000
barrels 4 day from $500 producing
wells, largely IN Northern Texas and
IN Oklahoma.
O~utstandinS Stock
The company now has outstand-
ing 648.034 shares Of capital stock
Of 800 par value, on which resuiai
dividends at the annual rate Of IS
are paid quarterly. The shares are
preceded by no funded debt or pre-
ance sheets indicate cravings Of ap-
p~roximately $500 = share on the
present capitalization OF 1922.
Larry III I'VE bhoiC vi
OIL and Gas stock could have been
bought for about $500. II such a
purchaser has kept his stock divi-
bends, he now has thre shares OF
Prairie Oil and Gas and -four and
= half shares OF Prairie Pipe Line,
together worth. at current prices.
&1017. Since 1912. dividends have
totaled $21O a share in cash on
Prairie OIL and Gas stock and 1929
a share in cash on the Prairie Pipe
Line stock acquired as a stock
dividend IN 1915, or a total OF $439
in cash. In other words. since 1912
the investment has yielded an aver
age annual cash return OF almost 3
o cent and the principal has ap-
preclsted 239 per cent.
Change Of Policy
Like other Standard OIL compa-
niles. Prairie Oil and Gas never had
given out a wealth OF information
concerning Its earnings. finances or
activities. There have been impor-
tant changes In the policy OF the
Standard group recently in these
matters and II is rumored that the
management OF Prairie Is consider
ting the advisability OF splitting up
tho stock on the basis OF o for
II by changing the par value from
800 70 $25 and listing the new
shares on the New York Stock Ex-
change.
Prairie OIL and Gas 10 the type Of
company which should benefit IN the
long run from the depression in
petroleum even though the situation
al the moment may not be satisfac-
tory In all respects. There can be
itttlo question but that stockholders
OF Producers and Re6ners who take
advantage Of the offor and change
their shares into Prairie OIL & Gas
stock on \ one for ten basis event
saily will see Prairie selling at sub
stantlally higher prices. Tho shares
now enjoy an active market on the
New York Curb and are quoted at
around 1872. omparod with n low OF
i52 In September and Il high OF 2I5
IN February. Prior TO the 200 per
cent stock dividend paid lato In
l922 tho stock sold as high as 800.
Mr.. and Mrs. o. J.. watson, who
arc making Rawllns their homo tenn