New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-31
OIL BOOKS CLOSE TODAY
Standard Stock To Be Ready for
Distribution on December |.
PLAN TO KEEP UP PRICES
Traders Fear Much Confusion as
the Result of Sales Elk
Subsidiaries.

Preparatory to distributing the stock OF
thjrty-three OF its subsidiary companies 70
Its stockholders, in accordance with the de-
cree Of the United States Supreme Court
the transfer books Of the Standard OF Com
pany Of New Jersey will close at 3 o'clock
to-day and will remain closed until the
stocks are ready for distribution. which
is expected 70 be about December l.
This means that after to-day sales OF
standard OIL stock will be ex-subsidiaries
How much the stocks OF these subsidiary
companies are worth the public has no
means OF knowing. II might naturally be
expected, however. that a heavy drop in
the price Of Standard oil stock would fol-
low the closing Of the transfer books IN
less some arrangement could be made
whereby the purchasers Of the stock after
to-day were entitled 10 participate. the
game as the stockholders Of record. in the
distribution that the corporation Is going
70 make OF the stocks Of its subsidiary
companies. as well as in any dividends that
NAV be declared before this distribution
takes place. or in any rights which may ac-
crue in one form or another.
II is learned that such plan il under
wsy and probably will be carried out
Those behind a. are traders who fear that
much confusion would result and an awk-
ward situation would be created by drop
IN Standard Oil stock such as would be
likely 70 result from the stock selling ex-
subsidiaries. For instance. a big decline
IN the price OF The stock would require the
putting - Of additional collateral for loans
for which Standard OF stock had been de-
posted as security.
Under the plan that is being worked out
provision will be made that the buyer Of
Standard oil stock. after the books close.
shall receive some sort Of due bill. partici-
patton certificate or other special contract.
emitting hin 70 receive the pro rata
amount OF shares IN the subsidiary com
panies and 10 participate in whatever divi-
dends may be declared or rights which may
accrue IN one form or another. the same
a. II he were a stakeholder Of record II
this plan is carried out fl will mean that
transactions in Standard oil after the
transfer books close Will continue practi-
cally as they are at present and the stock
should sell az about the present figure.
As an alternative 20 the above plan II
has been suggested that the shares Of the
subsidiary companies be traded in in addi-
ton 70 those OF the Standard OF Company,
bur as the value Of these shares is an IN
known quantity, il is not believed that
there would be any market for them. and
traders we'll informed on such matters
think this alternative plan inpracticable.
Since the Supreme Court decision was
rendered some changes have been made in
the capital stock OF some OF the subsidiaries
in order 10 bring what was more or less
a nominal capitalization UP 70 the actual
value Of the properties. II is understood
that further steps IN this direction will be
taken between now and the time of the
actual segregation. As a case in point.
the Standard oil Company Of Texas recent
j. increased its capital from 100000 to so.
c'a.Oo9 The same thing will he done by the
other subsidiaries whose actual value is
far IN excess Of their capitalization. II is
said
The stockholders Of the Standard Oil
Company Of New Jersey, as a result Of
these proposed changes. will probably re-
ceive considerably larger number Of
shares in the subsidiary companies than
has heretofore been supposed. Up 10 this
time however IL has not been determined
Just how much Of each subsidiary com
panys stock a stockholder Of the Standard
Oil Company will receive.
Standard Oil stock was weak and not very
active on the curb yesterday. opening at
90, u points down from Tuesdays close,
and declining TO 612, al which it closed, a
net loss for the day Of % points.