Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1911-08-05
BREAKING Up
the OIL TRUST
Standard Announces Plan For
Obeying Courts Decree.
WON'T GO OUT OF BUSINESS
Securities Of Thlrty-three Subsidiaries
to BE Pareelled Among Stockholders
Of Record on Sept. 1.


Of Record on Sept. I.
Stockholders In the Standard Oil
Company of New Jersey received from
the secretary of the corporation let.
ter which indicates the plan by which
the company will conform itself to the
decree OF the supreme court.
They are informed that by Dec. l
next they will have certificates OF
stock in thirty-three corporations that
at the time of the decision were owned
by the Standard Oil company.
This does not mean. so NJ. +. Elliott.
chief counsel for the Standard Oil
company. pointed out. that the Stand
ard Oil Company Of New Jersey will
persist as a manufacturer OF petroleum
products and II will continue to run
the biggest oil refneries in the world.
Beside the stock which the Standard
of New Jersey owns In the thirty
three corporations of which II is or
dcred to rid itself. II held shares In
many other corporations. What will be.
come OF this stock Mr.. Elliott did not
wish to say. There appears to be moth
ing In the supreme court decree or In
that of the lower court, however. which
prevents the Standard OF New Jersey
from maintaining ownership. so said
Mr.. Elliott.
The scheme by which the Standard
will dissolve connection with the
thirty.three companies which have
been regarded as subsidiaries has been
under consideration by the directors
for many months. II was said that to
apportion the stock among the stock
holders In the major corporation was
the only way of meeting the letter OF
the supreme courts decree. Mr.. Elliott
added that the company proposes not
only to meet the letter OF the order,
but the spirit also.
The distribution will be made to
stockholders of record Sept. l.
Under the terms In which exchange
Is made OF stock of the present com.
pany for stock in the thirty-three sub.
salaries. some of the odd lot holders
will have only fractional parts of a
share, and their dividend payments
will amount TO but few cents a share
quarterly.
The unit Of distribution will be Ave
shares of Standard Oil Company of
New Jersey. On this basis a holder
of that amount will receive full
share in each of the three constituent
properties. but a holder OF less than
five shares will not receive full
share in any one of the thirty-five sub.
salaries. The distribution. in some in.
stances. will be as low as 1.i00 part OF
q share.
Obviously this will cause grea,
deal of confusion and dissatisfaction
among shareholders, who are TO re
ceivc such small portions Of stock and
such infinitesimal dividends. There are
over 5000 holders of present Standard
Oil stock. The majority OF them aver
age from / to 100 shares.
4 man owning single share Of
stock. which could be bought on
the curb for 1853 will have after Dec.
l next share in Standard Oil of New
jersey, worth at par 500: he will
have a tenth of share in the Southern
Pipe Line company. $40; tribe more
than quarter of a share in the Ma.
tional Transit company. $25.i5: three.
twentlcths of share in the Standard
Oil Company of New York. SIS; in
the Chcsebrough Manufacturing com
pany. which makes vaseline. IS cents
worth at par: in the Colonial Oil
company about % cents worth at par:
in the South Penn Oil company for
tieth Of share, $3.50 Among the
twenty-six other corporations In which
he will have stock will be the Swan e.
Finch company. In which he will have
10 cents; the Washington Oil com.
pany. in which. to be precise. he will
have Z 1926 cents worth.