Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-03-06
Two American Oil
Companies Merge
S24O.OOO.OOO Assets

New YORK, MarCn o.-\by mo As-
ISOLATED Press).-One of the largest
consultations in the history Of the
American oil industry today brought
to gether the Associated and Tide
Water Oil Companies, with total as
sets Of more than 100000. The
two organizations will be combined
under new corporation-the Tide
water Associated Oil Company-for-
nation of which was engineered by
Blair and Company. Inc. and the
Chase Securities Corporation Of New
York.
In addition to nationwide opera
lions covering the Pacific coast, mid
continent and Atlantic seaboard ter
ritories, the new company will fall
heir to an export business assuring
it a strong position in the internal
tional field. Additional acquisitions
are foreshadowed by its charter
which grants the company powers TO
purchase the securities Of other cor
porations.
A transfer Of the assets Of the two
participating companies to the new
Germ will be accomplished either
either through the purchase by the
bankers or an exchange of shares
Assurances already eceived from
stockholders of both companies. the
bankers announced, indicate the full
success of the plan.
Common stockholders Of the Tide
water Oil Company will be offered
l 1-3 shares of common stock of the
new company for each share Of their
present holdings. No direct offer will
be made to Tidewater preferred
shareholders, but they will be able to
convert their securities into the ex-
listing common stock Of their compa-
ny and make an exchange on that
basis.
The net cash offer Of $3.50 a share
by which the bankers recently &C.
quired contro of the Associated Oil
Company will be extended to all other
stockholders under the merger plan
An alternative oyer also will permit
them to receive for each present
share on share of the new company's
common and one-third of a share OF
it's per cent cumulative preferred
stock, which is convertible before
July 1, 1926, into two shares Of COM
mon.
The balance sheet Of the company
fefore giving effect to new money that
would arise through the sale of addt-
tional common stock shows current
assets of approximately $73,000,0 900
| These assets are 1-2 times larger
than current liabilities of approx.
mately $16,000,000, leaving net work.
ing capital of roughly $57,000,000. A
| charter has been taken out under
| Delaware laws.
Backed by a long record OF sue
cessful operation, President Byles Of
| the new company asserted, the two
| companies promise to fuse into ont
| of the best balanced units of the pc
| troleum industry, well fortified ir
production, transportation, refining
and marketing.
"The refineries Of the new com
pany on the east and west coasts and
| in the mid-continent field of thu
United States" he added, will be as
sured of supplies of crude oil from
the long lived and large reserves o.
! the Associated Oil Company on thu
| Pacific coast and of the Tide Waite!
| Oil Company in tthe mid-contineI
and eastern fields. The tanker fleets
| of the two companies, operating
| thrugoh the Panama Canal and else
where make it possible under thu
new relationship to transport crude
| oil or refined products most eco
nomically from sources of supply Il
both foreign and domestic markets
| including movements between thu
| two Ameican coasts