The morning news., 1892-03-26
THE STANDARD OIL TRUST.
S26.ooo.ooo over and Above the An.
nual IL Per Cent. Dividend Accumu.
lated IN Two Years.

nual IL Per Cent. Dividend Accumu-
lated IN Two Years.
From the NslU York Herald.
Some interesting and Important details
concerning the future Of the Standard Oil
companies after the dissolution OF the trust
leaked oot yesterday. They illustrate in a
striking way two facts: The fret Is the big
profits Of the combine; the second, that the
trust is dissolved only in name.
The profits Of the Standard Oil COM
panies. enormous as they have always been
understood to be, are far greater than the
public ever supposed. The income aud
profits Of the great monopoly have always
been a carefully guarded secret This trust
has never been compelled to obey the laws
requiring them TO make full reports OF their
business every year TO the state authorities,
as other corporations have 10 do. Conse-
quently the magnates Of the concern were
able 10 conceal from the public how much
money they were making, and they invari-
ably have done So
Ii will be remembered that at the stock
holders nesting Monday no reference was
made to the amount OF cash In the treasury
to be divided among the stockholders IN
winding up the trust. No information was
given out to the stockholders as to what this
amount is, and in reply TO a question as to
how much money was on hand an evasive
answer was given.
1t can be said on good authority that the
Standard Oil Trust has in its treasury over
s26, 900. 600 OF individual profits. And when
it is known that this enormous sum repre-
sents the accumulations Of only about two
years, it will be understood how phenome-
nally large the earnings of the companies
are and why the trust has always taken care
to conceal from the public the tremendous
profits of its business.
USE OF THE SURPLUS.
1t is only about two years ago that the
capital Of the trust companies was increa sed
from $40, 100000 to 500. .O00, 900, by the Is
suing of a stock dividend from the acoumu-
lated earnings OF the company. This was
the second time this method had been
adopted to divide the earnings that kept on
piling up after the payment OF the II per
cent. annual dividends which the Standard
has always declared.
As to the disposal that is 10 be made of
the S26 900, 900 which has accumulated since
the last stock dividend, IL has been deter
mined to distribute some of 1t Ia cash among
the holders Of trust certificates and to ap-
portion the rest among the companies In
the way of increasing their capital. Just
how much Is 60 be paid ous 10 cash to the
holders Of the 900 900 shares of stock is not
determined, but the amount will be at least
$4,000 900. it is said.
AS to the dissolution of the trust, the
plans of the trustees are substantially as
follows:
The thirty or more companies which now
constitute the trust will be- reduced to
twelve big companies. Six Standard Oil
refining companies-one each in the states
of New York, Pennsylvania, Ohio. Now
jersey, Indiana and kentucky, three pipe
lines and three oooperage and Timing
works.
That is the plan. The object Is to sim
plify and concentrate the business Of the
trust as much as possible.
But it is a question Of law involving the
recent statutes in the various states to Know
just how far the trustees can 20 in con-
solidating the various companies. Some of
the smaller concerns will be wiped out
altogether. There are also a few corpora
tions in which the Standard owns only a
few shares of stock and has only nominal
control. These shares will be disposed of
and the Standard people will retire from
them.
The twelve companies to which IL Is pro-
posed to reduce the Standard in winding up
the trust will all be big corporations, and
their capital will he increased in the man
ner described in yesterdays Herald Some
OF the $26.000,0 900 surplus will be used in
these additional capitalizations and some
will be watered.
Inc capital OF the Now 1Ork Standard
for instance. is to be raised from s., 600 900
to 81. 900. 600; the New Jersey company will
be raised from 50, 900, 900 to $40 ,OOO, 900; the
Indiana company from $500 900 to 81 ,O00,-
900, and the Atlantic Refining Company Of
Pennsylvania from 81 900, 900 to g., ,000,00O
NEW STOCK CERTIFICATES.
The trustees. In winding up the trust, will
distribute among the present certificate
holders new certificates representing so
many shares Of stock divided among each
of the twelve or more companies pro rata
according to the capital of each. Each
stockholder will receive a proportionate
interest in every one of the remaining
companies. OF course a stockholder has the
option Of exchanging this trustees
certificate for the actual shares OF
stock in the several refineries. But for con-
venlence of collecting dividends and because
there will always be market for these GER
tificates, while there might not be for all
the widely distributed companies in the dis
tant states. it is likely that most Of the
shareholders will much prefer to receive the
certificates issued by the trustees.
The present trustees will continue to man.
age the associated companies. The title
trustee will be dropped with the winding up
of the trust, but under another name they
will continue to exercise, as joint board OF
control, the same absolute mastery Of the
refining business that they did as trustees Of
the great Standard trust.