Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-19
SINCLAIR WORKING
ON BIG OIL MERGER
Proposed New Combine of
Properties Would Rival
Standard Organizations.
BY PRESTON S. KRECKER.
,Acial Difpakch tn The Star

special D1epatcn TO Tne star.
NEW YORK, August 19-New moves
in the plans of Harry r. Sinclair and
associates to form q billion-dollar oil
company, rivaling in size the great
Standard Oil organizations, are indi-
Gated in news from the Pacific Coast
that the Mission Securities Co. has been
chartered under the laws of Nevada to
hold the entire block of more than
1000, 900 shares Of Tidewater Associated
Oil stock recently purchased by Bsnc-
america Blair interests from the Stand
ard OIL Co. of New Jersey.
Merger negotiations have been con-
Quoted between Sinclair Consolidated
and Tidewater Associated Oil executives
for several months, but so far have not
resulted in any definite agreement be-
cause Of inability to come to terms.
Tidewater Associated has been an ele-
plant on the hands Of the Blair bank.
ing group ever since the company was
organized In 1925 to merge the Tide
water Ooil and Associated Oil compa-
MES. Now the properties are desired by
Harry F. Sinclair to give him foothold
on the Pacific Coast and to round oft
an organization which eventually also
is expected to include the Prairie Oil
& Gas Co. and Prairie Pipe Line Co.
Sinclair Trying Comeback.
Some folks thought that after Harry
r. Sinclair was found guilty OF con-
tempt in the United States Senate's
Investigations of the oil scandals a
few years ago he was through with the
oil industry. Mr.. Sinclair, however, re-
turned to business determined to stage
comeback, and he now bids fair to
make good. Recognized as an unusual
ly astute oil man, he has laid his plans
with care. His recent sale of his SO
per cent interest in the Sinclair Crude
Oil Purchasing Co. and the Sinclair
Pipe Line Co., founded by himself and
his friend, Col. Robert w. Stewart, for
$72, SOC, 900 cash, was one of the steps
in carrying out his ambitious program.
His next proposed step is to take over
the Prairie companies.
There Is no doubt whatever that a
deal for acquisition of the Prairie
properties would have been conSum-
mated long ago but for the unusual
laws of Kansas, which stipulate that In
the case of corporations holding Kansas
charters 100 per cent consent of stock
holders is necessary to complete the
sale Of their property to another COM
pany. So far Mr. Sinclair and his
associates have found no practical way
of meeting that requirement, since
they realize that a handful of obstinate
stockholders could block a DEAL De-
spite that formidable obstacle, Mr.. Sim
clair has not by any means given up
his cherished project. Sailing for
Europe the other day. he said that the
acquisition of the Prairie properties was
still under negotiation.
Obstacle Is Removed.
One possible obstacle to consumma-
ton of the purchase of the Prairie
companies was removed about two years
ago when the Rockefeller philanthro-
pies, the General Education Board and
the Rockefeller Foundation, sold their
holdings of Prairie stock to the Blair
banking group of New York, which
since has been consolidated with the
Bancamerica Corporation, a Cincinnati
enterprise. AS a result of that deal
the Blair group which have been Sin
clair bankers for years, now hold large
interests in the three large oil COM
panies which he seeks to combine with
the Sinclair Consolidated Oil Co.
A large block of stock of the Tide
water Associated Oil Co. Is owned by
the First National Bank crowd of New
York. of which George F. Baker, multi
millionaire, is the head. 1t also is
understood that when the Rockefeller
corporations sold their interest In the
Prairie companies John D. Rockefeller
did not part with his personal invest
ments in those companies. AS an OUT
come, Mr.. Sinclair may be compelled
to win over those powerful interests to
his plan. The task might discourage
any other man, perhaps, but Sinclair
himself.
Copyright. le3o)