The sun., 1919-08-07
ATLANTIC REFINING
PLANS NEW ISSUE.
Company in Standard Group
to Float $1O0,000,000 of
Preferred Stock.
OFFER TO SHAREHOLDERS
Proposed Issue Underwritten
by Trust Company-Will
Ask Exchange to List.

Another Of She big companies, which
form the so-calied Standard OIL group,
has announced that 1t plans to do some
financing by the Issue OF new preferred
stock. This latest announcement lie
made by the Atlantic Refining Company
and follows closely the action Of the
Standard OIL Company of New Jersey a
couple OF weeks ago. when II announced
that It would issue 800, 100000 of pre-
ferred stock to It's present stockholders
issued will consist of S70,0eo,ooo Of z
per cont cumulative preferred STOCK
without voting privilege. tt par value
will be 500 and holders Of common
stock will be entitled to subscribe to the
new preferred stock at par on the basis
OF four new shares for one share OF COM
mon now held, which will give present
holders Of the common stock valuable
subscription rights.
In addition to the 500, 000, 900 Of per
cent. cumulative preferred stock, the
directors of the company have decided
to authorize $4,000, 900 Of new common
stock. although that stock will not be
put out at this time. 1t will remain in
the treasury Of the company to be Is
Eued In part or In whole, later.
AL VI SHo INV pfoIettou btOCk has
been underwritten by the Equitable
Trust Company of New York and fol-
lowing the ratification Of the issue by
the stockholders Of the company, who
will meet on October 6 for that purpose,
application to list the stock on the New
York Stock Exchange will be made. The
stock Is redtemable at Sis.
The project, IL put through. would
represent the first increase in the cap
q 1ff - ~.
Two reasons given for the action are the
essened purchasing power of the dollar
and the assessment of large Federal
taxes and the apparent certainty of
such assessments for considerable time
prevent the use OF accruing profits for
purposes Of the company's business
While II Ii assumed in Wall Street
that the new capital thus made avail
able would be used for expansion of the
companys business, especially in the
foreign deld. nothing definite could be
learned from the company on that point.
II Is considered likely that the company
plans to increase its foreign business
as soon as possible and handle new
business which 1t might thus acquire.
The expenditure Of vast sums for the
opening of branches, stations, &c, In
foreign countries would be necessary.
j. w. Van Dyke. president of the
company. in u letter to its stockholders
outlining the reasons for the capital
increase. said that the business OF the
company has enjoyed a steady, whole
some growth and your directors feel that
you desire this growth to continue II
is to this end that they recommend the
provision of the necessary capital
through the medium of the preferred
stock, which will be provided by your
Endorsement Of the resolution.
"Ae set forth in the balance sSnaet NJ
December 81. 1918. such preferred stock.
when the 100000 cash from It's issue
shall have been received, will have be-
hind 1t $76.oo0.0o0 net assets It is
proper to assume that the earning ca
pacity Of this preferred stock will be
fairly assured in the light OF returns on
capital previously employed as set forth
in several annual reports"
The circular to tho stockholders gives
an account OF the earnings OF the last
four years. showing net profits after all
charges. taxes. &C., in the years 1915.
1916, 1917 and 1918 OF S31.69GO00. OF
which amount but $4,000 900 has been
paid out in dividends, the remainder
having gone back into the business. The
total earnings for that period, before de
Quoting Federal taxes. were s4S. o2O, 900.
with taxes aggregating s16.3s4,o0O.
The stock of the company was yester-
day very active on the curb, with one
quotation above 400 a share. Even
before the announcement was made OF
the new stock issue trading was started
in the shares on the curb and jus. be-
fore the close one sale Of fifty shares OF
the new preferred on a when, II and as
issued" basis was at Ill. which sug-
Sested, In the Offering OF close to s10O
on share OF common, a melon, pro-
vided that stakeholder buy four shares
Of preferred for one share now held.