Deals & Developments

Cities Service, unique Henry Latham Doherty's combination electric, gas and petroleum company, last week announced an issue of $118,000,000 in 5% convertible debentures due 1950. A syndicate headed by Harris, Forbes & Co. in the East and Halsey, Stuart & Co. in the West is handling the issue, has also withdrawn from public offering between $25,000,000 and $30,000,000 of its amount. As 140,000 Cities Service stockholders have already bought an additional $45,000,000, there remains some $60,000,000 in which the public may participate. Object of the issue was the raising of cash for improvements in the company's properties, though no specific mention was made of the large recent and current investments in natural gas pipe lines. With the completion of the $118,000,000 financing, Cities Service will have a funded debt of $263,701,793, while funded debt, preferred stock and outstanding minority stock of subsidiaries amounts to $357,082,551. Consolidated assets, however, are approximately $1,000,000,000 and net earnings, for year ended March 31, 1930, were $76,000,000.

Harry Ford Sinclair, petroleum tycoon was last week reported as about to acquire Richfield Oil Co. of California. The rumor was not denied or affirmed at Sinclair offices, but it was conceded that Bancamerica-Blair, Sinclair bankers, held a large block of Richfield stock. Richfield is fourth largest oil distributor in California (leaders are Standard of California, Union Oil and Shell Oil), would supply Sinclair with desirable California distribution.

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