Oil Merger

The largest consolidation in the history of the petroleum industry occurred when Edward L. Doheny, pioneer Mexican oil producer, sold control of the Pan American Petroleum and Transport Co. to a syndicate composed of the Standard Oil Co. of Indiana, the bankers Blair & Co., the Chase Securities Corporation and certain British interests represented by Lord Iverforth. Just what Mr. Doheny received for his 501,000 shares (out of a total of 1,001,556 voting shares) is not known, but, based on recent market prices, the con- sideration was probably in the neighborhood of $38,000,000.

The California properties of "Pan Pete" were not included in the deal; these had previously been segregated from the parent company and will be sold out to its present stockholders as the Pan American Western Petroleum Corporation.

Control of the remaining "Pan Pete" properties have been taken over by the Pan American Eastern Petroleum Corporation, on whose board are three representatives of the bankers, three of Standard Oil of Indiana and one of the British interests.

Through its interest in Pan American Petroleum thus acquired, the Standard Oil Co. of Indiana's assets are increased to $584,000,000 and the market value of its securities to $787,000,000. The Standard Oil of Indiana thus becomes not only one of the largest oil companies in the domestic field, to which it had previously been confined, but also in foreign markets. It acquires important Mexican producing properties, as well as pipe lines, refineries, and a tanker fleet second only in size to that operated by the Standard Oil Co. of New Jersey.