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NEW ISSUE. jy A Prospectus is being issued which states (inter alia) that The LI?T will CLOSE on or before FRIDAY, the 31st JULY, 19H. ? copy of this Prospectus has been met! with the Registrar of Joint Stock Companies. THE BRITISH UNION OIL COMPANY, LIMITED. (Incorporated under the Companies Acts, T)08 and 1913.) CAPITAL £ 6,000,000 f in Shares of 21 each, Divided into 5,000,000 6 Cumulative Participating Preference Shares and 1,000,000 Deferred Shares. The Preference Shares are preferential both as regards the fixed 6% Cumulative ,I)ivi(teri(I and repayment of capital and entitle the holders over and above the 'fixed Dividend to have distributed rateably among them 50% of the balance of the profits of the Company (remaining after payment of such dividend) which it may from time to time be determined to distribute, but not to any further participation iu assets. ISSUE OF 1,500,000 6% CUMULATIVE PARTICIPATING PREFERENCE SHARES. The whole of the proceeds of the Shares a!lotted on the above issue will be applied towards the carrying out of the primary objects (a) and (b) of this Company, as below mentioned. DIRECTORS. « ift. Hon EARL GREY, G.C.B.. ^lowick, Northumberland (Chairman). Rt. Hon. LORD PliiRlE, K.P., P.C., 1, Cockspur-street, S. W., Chairman of Messrs. Harland and Wolff. Limited. H. N. ANDERSON, G.C.D., V.M., Copenhagen. Managing Director, East Asiatic Company. Limited,. THOMAS ROYDEN. ::0, Brown's Buildings. Liverpool, Deputy-Chairman Cunard Steam Ship Company, Limited. ANDREW AVKIR. 21, Bury-street, E.G., of Andrew Weir and Co., Shipowners (Managing Director). LYMAN STEWART, Union Oil-buildings, Los Angeles, California, Director of the Union Oil Company of California. BANKERS. THE NATIONAL BANK OF SCOTLAND, LIMITED, 37, Nicholas-lane, London, E.C.: Head Office, Edinburgh, and Brunches. LLOYDS BANK LIMITED, 72, Lombard-street, h.C.; and Branches. SOLICITORS. A- 'I'hTogmorton-avenue, E. C Messrs. AS HURST, MORRIS, CRISP AND CO., 17, Throgmorton-avenue, E.C. Messrs. LINKLATER, ADDISON AND BROW N, ■>, Bond-court, Walbrook, E.C. AUDITORS. Messrs. PRICE, WATERHOUSE AND CO., Greshara College, Basinghall-street, London, E.G. SECRETARY AND OFFICES. F. J. ASBURY, 'I-C.I.S., 21, Bury-strect, E.C. r, J. AS-BIURY, 11.S.A.A., r. The National Bank of Scotland, Limited, and Lloyds Bank Limited are authorised as the Bankers of the Company to receive applications for the above 15 per dfent. Cumulative Participating Preference Shares of 4:1 each, payable as follows:— 2s. 6d. on Application. 7s. 6d. on Allotment. 5s. Od. on the 30th September, 1914. 5s. Od. on the 2nd January, 1915. PROSPECTUS. This Company has been incorporated with the primary objects:— (a) Of acquiring by direct subscription at par and exchange of shares at par a large interest and the controlling vote in the Union Oil Company of Cali- fornia, and of supplying the Union Oil Company during a period ending on the 31st December, 1916, with upwards of £ 2,500,000 of new cash capital. (b Of forming subsidiary companies to provide for the transportation and sale of Californian Oil. including the Union Oil Company's products, and for the establishment of distributing depots throughout the world, taking advan- tage of the opportunities afforded by the opening of the Panama Canal of reach- ing markets which have hitherto been closed to Californiar. Oil. Enclosed with the Prospectus is a copy of a letter wfittett by Mr. Lyman Stew- art, as President of the Union Oil Company, who has agreed to exchange the holding of himself and his family as hereinafter mentioned. Mr. Stewart in such letter states:— r That the Union Oil Company owns or controls, either directly or through its subsidiary companies, the oil rights of upwards acres of land, and in addi- tion has built up during the last LM, years an almoHtnnique organisation for the production, transportation, refining, and sale of petroleuni and its allied products, also that its owns or controls approximately 650 miles of pipe lines and that its sales for last year were over$20,230,1(00 ( t4,150,000)- That the oil properties have been appraised independently as being alone on wllÏh basis the total valuation of the Union Oil Company's assets is practically as against liabilities of about £ 3,400,000. That the, Union Oil Company has large contracts with the United States Govern- ment. the Canadian Pacific, the Northern Pacific, and other Railway and large industrial enterprises throughout, the Western Coast of British America, ^lie United tates and South America. That the profit-earning, capacity of this Company will be considerably increased by the additions to its refineries ami the extension of its operations which the new working capital will enable it to make. From the Certificate of Messrs. Price. Waterhouse and Co. it will he seen that the average net profits of the Union Oil Company and it- subsidiaries for the six years ending :nst December, 1913, have been £ 523.025, which is at the rate of over 8 per cent, on its present issued capital. During the above six years no less than £ 1,365,472 has been provided for Depre- ciation, and nü account has been taken in the Certificate of the enhancement in the value of the oil propci-tiae referred to above. London, E.C., 27th July, 1914. To the Directors of THE BRITISH UNION OIL dOMPANY, LIMITED. We have examined the books of the Union Oil Company of California and of it*subsidiary Companies for the six years to the 31st December, 1913, and have pleasure in certifying as follows:- 1908. 1909, 1910. 1911. 1912. 1913. The profits on trading have been 2742,799 £756,77G £ 883,340 £ 761,726 £ 947,930 £ 945,507 .Net profits available for distribution £ 531,838 1529,438 E602,098 £ 431,012 1541,408 1502,357 The profits shown above give a total for the six years of which was paid away in dividends, or an average ]-at, of fi per cent, per annum, leaving undistributed a balance of £ 1,053,093, which on the average capital for the period works out at an addition 3 per cent. per annum. t The book value of the Assets of the Company, and of the Subsidiary Companies wholly owned by it. was shown by the Consolidated Balance Sheet of 31st Deerm- Ser, as follows J t 2 Less—Bonded Debt and Notes and Current Liabilities 5 11 Yours faithfully, £ 8,757,446 8 3 Yonrs faithfully, £8,757,446 8 3 'Signed) PRICE. WAT ERHOUSE & Co. It will be seen, therefore, that the average yearly profit as certified is more than sufficient to provide the fixed 6 per cent. Dividend on the Preference Shares, including the present issue, and Mr. Lyman Stewart states in his letter, above referred to, that the employment of the additional working capital will afford such an increased profit as should ena bl e a substantial distribution to bs made to this Company's Preference Shareholder:; in excess of the fixed Dividend. In addition to and quite apart from the above the earnings of the subsidiary English Marketing Companies above referred to should provide the British Com- pany with a large additional separate revenue also available for distribution. The British Company has agreed to acquire, in each case at par, (a)$15,000,000 Stock of the Union Oil Company for cash payable over the period ending 31st Stock of the Union oil December, 191G; and (b) $4,i4<,650 Stock of the United Petroleum Company (carrying the voting control of an additional 815,788,400 Stock of the Union Oil Company) for Preference Shares fully paid up. The British Company will there- fore own or control over$30,700,000 out of $4G,292,800, which will be the issued Stock of the Union Oil Company when the above $15,000,000 Treasury Stock is allotted. The British Company has also agreed to acquire at par such further Stock of the Union Oil Company, the Union Provident Company and the United Petroleum Company as may be exchanged by the holders thereof for fully paid Preference Shares of this Company. The balance of the Preference Shares will be issued for this purpose or for cash. The Alliance Debenture Corporation, Limited, of 21, Bury-street, E.C., who are the promoters of this Company, have incurred large obligations, including liability for procuring subscriptions for$15,000,000 of Stock of the Union Oil Company and for the payment of (a) £ 200,000 for cancellation of outstanding options on the$4,444,650 Stock of the United Petroleum Company being acquired by this Company (b) commission to underwriters of £ 1.000,000 of the present issue, which has been underwritten to the promoting Company at. a commission of five p&r, cent. and two per cent. over-riding commission, and (e) the preliminary ex- penses of this Company to allotment, and as consideration therefor will receive -fió1Q the Union Oil Company fifteen per cent. en the$15,000,000 of its Stock as and Subscribed. They will also receive from this Company in consideration for their procuring for it the above-mentioned exchanges of stocks of the Union Oil Company and its holding Companies fully-paid. Deferred Shares of this Company equal to fifteen per cent. of the amount of Preference Shares issued in exchange. Full Prospectuses and Forms of Application for Shares can be obtained from the Company's Bankers, or at the Offices of the Company, or by telegram to Selegnasol, London." This form may be c*ut out and filled up and forwarded to the Bankers of the Company, THE NATIONAL BANK OF SCOTLAND, LIMITED, ili. ichollts- lane, E.C., Head Office, Edinburgh, and Branches, or LLOYDS BANK LIMITED, ;$2, Lombard-street, E.C., and Branches, together with a remittance of 2s. 6d. per -Share. ques should be made payable to Bearer, and crossed Not Negotiable," « LIMITED. A/c BRITISH UNION OIL CO., LTD. m To the Directors of The British Union Oil Company, Limrted. Gentlemen,—Having paid to the Company's Bankers the sum of x being a deposit of 2s. tid. per Share payable on application for Preference Shares or .£1 each in the above Company, I we hereby apply for, and request you to allot me!tis that number of Shares, and I we hereby request you to send me/us aby poet tor any amount that you may have to return to me/us on this application. NAME (in full) Mr., Mrs.. or Misfi. USUAL SIGNATURE Plea" "i:Write ADDRSSS "Writ* ?. KESCKIPTION '■: £ AT £ D 19?.

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