<PAGE>
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
Cross Timbers Royalty Trust
----------------------------------------
(Name of Issuer)
Units of Beneficial Interest
--------------------------------------------
(Title of Class of Securities)
22757R 10 9
-----------------------------
(CUSIP Number)
Michael S. Paquette
Vice President and Controller
Fund American Enterprises Holdings, Inc.
The 1820 House,
Main Street,
Norwich, Vermont 05055-0850
(802) 649-3633
------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
May 1, 1995
-----------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box _____.
Check the following box if a fee is being paid with this statement _____.
(A fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto re-porting beneficial ownership of five percent or less of
such class. See Rule 13d-7.)
NOTE: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
<PAGE>
CUSIP NO. 22757R 10 9
- --------------------------------------------------------------------------------
(1) Name of Reporting Person. S.S. or I.R.S. Identification No. of Above
Person
Fund American Enterprises Holdings, Inc.
94-2708455
- --------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) _______________________
of a Group (See Instructions)
(b) _______________________
(3) (SEC Use Only)
- --------------------------------------------------------------------------------
(4) Source of Funds (See Instructions)
- --------------------------------------------------------------------------------
(5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
or 2(e)
- --------------------------------------------------------------------------------
(6) Citizenship or Place of Organization Delaware
----------------------
Number of Units (7) Sole Voting Power
Beneficially Owned ----------------------
by Each Reporting
Person With (8) Shared Voting Power
----------------------
643,096
(9) Sole Dispositive Power
----------------------
(10) Shared Dispositive Power
------------------------
643,096
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
643,096
- --------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Units (See
Instructions)
- --------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
Approximately 10.7%
- --------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions) HC, CO
- --------------------------------------------------------------------------------
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<PAGE>
CUSIP NO. 22757R 10 9
- --------------------------------------------------------------------------------
(1) Name of Reporting Person. S.S. or I.R.S. Identification No. of Above
Person
Fund American Enterprises, Inc.
51-0328932
- --------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) _______________________
of a Group (See Instructions)
(b) _______________________
(3) (SEC Use Only)
- --------------------------------------------------------------------------------
(4) Source of Funds (See Instructions)
- --------------------------------------------------------------------------------
(5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
or 2(e)
- --------------------------------------------------------------------------------
(6) Citizenship or Place of Organization Delaware
----------------------
Number of Units (7) Sole Voting Power
Beneficially Owned ----------------------
by Each Reporting
Person With (8) Shared Voting Power
----------------------
643,096
(9) Sole Dispositive Power
----------------------
(10) Shared Dispositive Power
------------------------
643,096
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
643,096
- --------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Units (See
Instructions)
- --------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
Approximately 10.7%
- --------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions) HC, CO
- --------------------------------------------------------------------------------
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<PAGE>
CUSIP NO. 22757R 10 9
- --------------------------------------------------------------------------------
(1) Name of Reporting Person. S.S. or I.R.S. Identification No. of Above
Person
Source One Mortgage Services Corporation
38-2011419
- --------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) _______________________
of a Group (See Instructions)
(b) _______________________
(3) (SEC Use Only)
- --------------------------------------------------------------------------------
(4) Source of Funds (See Instructions)
- --------------------------------------------------------------------------------
(5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
or 2(e)
- --------------------------------------------------------------------------------
(6) Citizenship or Place of Organization Delaware
----------------------
Number of Units (7) Sole Voting Power
Beneficially Owned ----------------------
by Each Reporting
Person With (8) Shared Voting Power
----------------------
0
(9) Sole Dispositive Power
----------------------
(10) Shared Dispositive Power
------------------------
0
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
0
- --------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Units (See
Instructions)
- --------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
0.0%
- --------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions) CO
- --------------------------------------------------------------------------------
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<PAGE>
ONLY ITEMS REPORTED IN THIS AMENDMENT NO. 2 TO SCHEDULE 13D ARE AMENDED FROM THE
FILING ON SCHEDULE 13D FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
NOVEMBER 9, 1992, AS AMENDED BY AMENDMENT NO. 1 DATED AUGUST 24, 1993. ALL
OTHER ITEMS REMAIN UNCHANGED. UNLESS OTHERWISE SPECIFIED, ALL DEFINED TERMS
USED HEREIN HAVE THE MEANING PREVIOUSLY ASCRIBED TO THEM IN THE SCHEDULE 13D.
Item 1. Security and Issuer.
--------------------
Item 2. Identity and Background.
------------------------
The address of the principle business and principle office of FAE (a wholly
owned subsidiary of FAEH) is The 1820 House, Main Street, Norwich, Vermont
05055-0850. Schedule I, attached hereto, which is incorporated herein by
reference, replaces Schedule I to the Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
--------------------------------------------------
On April 14, 1995, SOMSC transferred 683,088 Units to FAE at 11.375 each.
Item 4. Purpose of Transaction.
-----------------------
Sales by FAE outlined in Schedule II, attached hereto, which is
incorporated herein by reference, were made in the ordinary course of business
and not for the purpose or effect of changing or influencing the control of the
Issuer or in connection with, or as a participant in, any transaction having
such purpose or effect.
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Item 5. Interest in Securities of the Issuer.
-------------------------------------
(a) FAEH owns all 643,096 Units indirectly through FAE. The aggregate
number of Units and the corresponding percentage of the outstanding Units such
number represents is as follows:
<TABLE>
<CAPTION>
Percentage of
Units Units
Beneficially Beneficially
Person Owned Owned
------ ------------ --------------
<S> <C> <C>
FAEH 643,096 10.7%
FAE 643,096 10.7%
SOMSC 0 0.0%
</TABLE>
Other than as set forth in the above table, only the following person named on
Schedule I, attaced hereto, which is incorporated herein by reference,
beneficially owned any Units:
<TABLE>
<CAPTION>
Percentage of
Units Units
Beneficially Beneficially
Person Owned Owned
------ ------------ ------------
<S> <C> <C>
John J. Byrne 1,972 less than .1%
</TABLE>
(b) FAEH shares voting power and dispositive power with respect to its
643,096 Units with FAE. Mr. Byrne has sole voting power and dispositive power
with respect to his 1,972 Units.
(c) Schedule II, attached hereto, which is incorporated herein by
reference, describes all transactions by FAEH , FAE and SOMSC or to the
knowledge of FAEH, FAE and SOMSC any of the persons listed on Schedule I,
attached hereto, which is incorporated herein by reference, in Units effected
during the past 60 days.
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<PAGE>
SIGNATURE
After reasonable inquiry and to the best of the knowledge and belief of the
undersigned, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: May 8, 1995
FUND AMERICAN ENTERPRISES HOLDINGS, INC.
BY: /S/
---------------------------------------------
Name: Michael S. Paquette
Title: Vice President and
Controller
FUND AMERICAN ENTERPRISES, INC.
BY: /S/
---------------------------------------------
Name: Terry L. Baxter
Title: President and Secretary
SOURCE ONE MORTGAGE SERVICES CORPORATION
BY: /S/
---------------------------------------------
Name: Michael S. Paquette
Title: Authorized Representative *
* Power of Attorney on file
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<PAGE>
SCHEDULE I TO SCHEDULE 13D
--------------------------
Following is a list of the directors and executive officers of Fund
American Enterprises Holdings, Inc. ("FAEH"), and Fund American Enterprises,
Inc. ("FAE") setting forth the business address and present principal occupation
or employment (and the name, principal business and address of any corporation
or organization in which such employment is conducted) of each such person.
Each such person is a citizen of the United States of America.
<TABLE>
<CAPTION>
Present
Name and Principal Occupation
Business Address Office or Employment
- ---------------- ------ -------------------------
<S> <C> <C>
FAEH
Dennis P. Beaulieu Corporate Secretary Corporate Secretary
Fund American Enterprises of FAEH of FAEH
Holdings, Inc.
The 1820 House, Main Street
Norwich VT 05055-0850
John J. Byrne Chairman of the Board, Chairman of the Board,
Fund American Enterprises President & Chief President & Chief
Holdings, Inc. Executive Officer of Executive Officer of
The 1820 House, Main Street FAEH, Chairman of the FAEH
Norwich VT 05055-0850 Board of FAE
Howard L. Clark Director Retired
200 Park Avenue, Suite 4501 of FAEH
New York NY 10166
Howard L. Clark, Jr. Director Vice Chairman of Lehman
Lehman Brothers Holdings, of FAEH Brothers Holdings, Inc.
Inc.
American Express Tower
New York NY 10128
Robert P. Cochran Director President & Chief
Financial Security of FAEH Executive Officer of
Assurance Financial Security
Holdings, Ltd. Assurance
350 Park Avenue Holdings, Ltd.
New York NY 10022
George J. Gillespie, III Director Partner in Cravath,
Cravath, Swaine & Moore of FAEH Swaine & Moore
825 Eighth Avenue
New York NY 10019
K. Thomas Kemp Executive Vice President Executive Vice President
Fund American Enterprises of FAEH, Director of of FAEH
Holdings, Inc. FAEH and FAE
The 1820 House, Main Street
Norwich VT 05055-0850
Gordon S. Macklin Director Chairman of White River
8212 Burning Tree Road of FAEH Corporation
Bethesda MD 20817
</TABLE>
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<PAGE>
SCHEDULE I TO SCHEDULE 13D (cont.)
----------------------------------
<TABLE>
<CAPTION>
Present
Name and Principal Occupation
Business Address Office or Employment
- ---------------- ------ -----------------------
<S> <C> <C>
FAEH
Michael S. Paquette Vice President & Vice President &
Fund American Enterprises Controller of FAEH, Controller of FAEH
Holdings, Inc. Director of FAE
The 1820 House, Main Street
Norwich VT 05055-0850
Allan L. Waters Senior Vice President & Senior Vice President &
Fund American Enterprises Chief Financial Officer Chief Financial Officer
Holdings, Inc. of FAEH, Director of of FAEH
The 1820 House, Main Street FAE
Norwich VT 05055-0850
Arthur Zankel Director Co-Managing Partner
First Manhattan Co. of FAEH First Manhattan Co.
437 Madison Ave.
New York NY 10022
FAE
Terry L. Baxter President & Secretary of FAE, President & Secretary of
Fund American Director of FAE FAE
Enterprises, Inc.
The 1820 House, Main
Street
Norwich VT 05055-0850
</TABLE>
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<PAGE>
SCHEDULE II TO SCHEDULE 13D
---------------------------
Sales of Units of Beneficial Interest of Cross Timbers Royalty Trust by the
Reporting Persons and by persons listed in Schedule I, attached hereto, which is
incorporated herein by reference, within the last 60 days.
<TABLE>
<CAPTION>
Sold by Date Number Sold Unit Price
------- -------- ----------- ----------
<S> <C> <C> <C>
SOMSC 04-14-95 683,088 11.375
(Intercompany to FAE)
FAE 04-18-95 7,592 11.000
FAE 04-19-95 5,600 11.125
FAE 04-21-95 11,500 11.000
FAE 04-27-95 2,300 10.750
FAE 05-01-95 13,000 11.000
</TABLE>
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