New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-23
WALL STREET PUZZLED
e,,st Lays Heavy Selling to the
NV standard Oil Company.
olRECToRS MAKE A DENIAL
concern Has Never Invested
'9 y cnrrent stocks-Plans for
" Small Stockholders.

$50. thought yesterday II had
VA ,~,e explanation Of the recent
rono ,,,,,q IN TIE stock market. IL was
ssU Standard oil Company. as a step
iAsi wv s,ssolution under the Supreme
r'S decree, had been unloading bales
Ce us purchased in the last few
u.ab ifs surplus funds But It was
f'N .,.te The Standard oil Company
81 - .oo,sihle for the explanation
eos' Cor wears past followed the policy
90. .s.irs a substantial part of the
Nv. surplus earned over and above
f'o''ns IN good dividend paying stocks
w. w. hoydings OF stock. it was added
r,ry heavy when the Supreme Court
VIZ ,be dissolution Of the company,
90 accordance with that decree were
~. marketed rs quickly as the market
"a takr them. or little quicker, and
80, the break in prices.
-. ~. s,orv sounded very plausible and
many believers. until It came to the
80, Of the directors Of the Standard
~ rcmrary. who promptly sent for As
-, secretary Charles T. White and au-
a.~,,d him TO give out the following
fnfii%eN
ssiement'
-. Inference 10 the story that the
wiz Oil Company has been A heavy
~. in the stock market. an officer of
~" .op,nonv stated that there was no
N whatever in the assertion. and added
-. ,be Standard has never made any in
l....r,e,ts in stocks currently dealt in on
y stock Exchange.
guh Glass Bonds Main Investments.
"a. statement. It was announced. con-
.,.s all the Standard oil management
"a ~ saw on the subject. and no informa-
!, was vouchsafed as to the class of
..-r-,ties in which the Standard has in
.,.,ss rs surplus funds. In banking quar-
- having knowledge OF the corporations
.s,rs il was said. however. that the in
,,.,urnts had been mostly in high class
,,ss and these holdings. IL is thought,
| m not necessarily be disturbed by the
| ,-,ren1e Courts decree. which does not in
IN oyder the dissolution of the corpora
~ bot requires that it divest itself OF
!. svrership of thirty-three of it's sub
,s,ry companies and distribute the stock
tn.se concerns among its stockholders.
While the Standard Oil Company itself
M believed I'm we'll informed quarters to
ave thrown any of its security holdings
"a The market it is thought possible that
,rs Of the Standard Oil interests may
have been liouidating some of their personal
ISodngs Of stock in other corporations.
,IAouch so far as can be learned there is
n reason for their turning their holdings
no cash. unless IL he that they are dis
rged with the attitude of the government
ward corporations in general and have
added that money deposited in the bank
the safest form of investment.
Thai any Standard Oil man would be so
agr sighted as to follow such a policy is
F. NJ regarded seriously in we'll informed
,srers. and if there has been any liqui-
alon on the part Of interests identified
Nth the corporation. of which there is no
. goot. it is believed 10 have been for some
,h1r reason than disgust over the govern
-snfs antitrust crusade.
Plans for Small Stockholders.
In connection with the coming distribu-
ID, o. the stocks Of thirty-three of the sub
s.isry companies of the Standard oil Com
| any Il was said Yesterday that arrange
4 rsris would he made TO take care of the
I hsctional stockholders of the shares of
4 .sse companies. While no definite plans
4 ave been formulated, il is understood that
b dividends will be so arranged that the
\ mall stockholders will not be inconveni-
4 need in the least.
As 10 the dividends that will be paid by
.sse subsidiary companies after they are
1 .yorced from the parent company. it is
aid by interests in close touch with their
/ fairs that they will equal in the aggre-
Ea,s those the Standard is now paying, or
'aolt $4oO0O.o00 a year. The surplus
aned above dividend requirements. how
| ever. j. expected 10 show a considerable
aslng or from what IT has been while
csc different companies have been oper-
id As subsidiaries Of the Standard Oil
1 1npany.
0ficals Of the Standard estimate that
,s profits will he cut by one-fourth 10
Ns-ihird. owing 10 the increased expense
1 conducting the thirty-three companies as
Ninct units. As the total profits under
Ne holding company's management, how
&'e' were approximately $50. 600, 900 a
ar there seems 10 be no good reason why
~ present dividend rate should not be
Nintained after the separation of these
N'saiary companies from the Standard
II zkss Mace