Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-12-08
OIL TRUSTS RIVAL
SEEKS FUNDS HERE
Royal Dutch Com mpany,
Standards Competitor,
Offers "a 900 Shares
uNDERwRITTEN QUICKLY


NEW YORK. Dec s.--Another American
ananciai milestone was passed yesterday
when Kuhn, Loeb a Co. announced that
1t0eo ordinary shares of the Royal Dutch
lFetroleun) Company purchased VIII be
sold here and the shares listed on the New
York Stock Exchange. The Royal Dutch.
with lts ally. the Shell Transport and Trad
inE Company. Of London. II the Standard
OIL COmpany's only formidable rival IN the
Woflds oil trade.
Foreien governments and corporations
have sold, their, bonds I'm the United states
before. BIT this ~ the FIRST time that such
~ Important European enterprise has
aoutht partners here.
TWICE ovERsUBscR1BED
A syndicate TO underwrite the block or
stock purchased by Kuhn. Loeb a Co. was
organised yesterday morning and IN a few
hnurs was twice overBubscribed.
The 1900 shares OF 100 Eulldern par
value "a gulider In equal to forty cents)
will be deposited IN the Equitable Trust
C0npanw and the latter will issue against
theas Eiilder shares lts trust certificates
for 222000 shares IN dollar denominations
share OF 100 gulderH par value is now
quoted in Amsterdam NJ more than five hum
dred per cent OF par.
rhe dollar shares will. be one-third tho
valre OF tho full shares. and, II iR expected,
below $40 a share to yield about nine and
one4haif per cont on the present annual
dividend basis OF forty-nine per cent In
ono quarter, II waA said tho underwriting
nrcs was around S64 share.
The Royal Dutch ordinary shares out
atandlru number 7Bb 900 while there are
aiso oiftstahding 2sb 900 four and n half per
cent cumulative priority shares and a small
amount OF four per cent preferred shares
BALISEp, STANDARD OIL
Early in It's career the Royal Dutch Com
pany had 20 take special measures to pre-
vent tho Standard oil Company. which had
IN vain tried 90 cripple H., from getting
control of tho capital stock Therefore.
these four per. cent shares were created
They may only be In the hands Of Dutch
people connected with the management.
which controls the company through spe-
ciai privileges concerning the election OF
directors, tetc.
A statement issued says:
The Royal Dutch Company. with lta
nl1iated concerns, 10 tho largest and
most important oil company In Eu-
rope controlling and owning extensive
oil fields, pipe lines, etc. In tho Dutch
indies the United States. Russia,
Egypt Persia, Rumhnia. Panama.
Venezuela and Mexico. The company
also owns or controls through It's sub
sidiaries q feet OF 202,o7O tons II
has no funded debt and no nxed charges
The shares are quoted In Amstar-
dam, and since 1919 In London. whore
they were introduced by ". NJ Roths-
child & Sons The company has paid
large dividends uninterruptedly since
1902, the rate OF tho past four years
having, benn: 1912, ~ per cent;
let3,1 fs per cent; 1914, 20 per cent,
and 1915, 20 per cent
NEEDS MONEY OFTEN
Negotiations to bring the shares to this
country have been conducted Tor some six
monthsg An n'AmAterdRm correspondent de.
Heripes The Royal Dutch Company, ltH oper-
etlons. etc. thuai
pitrt OF tho Shell Transport (the
largest British oil company capital
stock Is IN tho hands Of tho Royal
Dutch Company, and It's operations are
oarried1on Jointly with the Royal Dutch
Company through uhe medium OF sub
salaries (the Bataafscho Petroleum
MIaatschRppy and tho Angio-saxon Pc
tIpleum Company.
;rhe whole huge combine is virtually
controlled by the Royal Dutch, headed
by the Dutch oil king. Mr.. Deterdlng.
While the Standard oil Company for |
yeass has lconflned itself 10 the control OF |
pipe lines, the working OF rennerieB and |
OF 4 carrying fleet. as well as to the dis |
tribntion of It's products, tho Royal Dutch |
has also, from the start. added 10 lts field |
q operations the outright purchase OF oil |
fiedA. THIS rounding out OF it's sphere OF |
operatipngs has made the company indo- |
pendent of all Intermediates for produc. |
zion. rehping. handling and selling.
The Royal Dutch Company gradually |
has acquired enormous interests In the |
United states, especially IN Oklahoma and |
California, which II has developed at a cost
OF more than sso,o00,0oo, and is still ex-
tending rapidly,