The sun., 1919-08-07
ATLANTIC REFINING
PLANS NEW ISSUE
Company in Standard Group
to Float S1OO,O0O,OOO Of
Preferred Stock.
OFFER TO SHAREHOLDERS
Proposed Issue Underwritten
by Trust Company-Will
Ask Exchange to List.

Another Of the big companies. which
form the so-called Standard OIL group.
has announced that It plans to do some
financing by the issue OF new preferred
stock. This latest announcement 10
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 II would issue 500. 100000 Of pre-
ferred stock to its present stockholders
fos subscription. The new stock to be
issued will consist OF $40, 100000 Of Z
per cent cumulative preferred stock
without voting privilege Its par value
will be 800 and holders of common
stock viii 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 70 the $40, 100000 OF per
cent. cumulative preferred stock, the
directors of the company have decided
to authorize S46.00o,o00 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
sued In part or In whole, later.
All OF the new preferred stock has
been UNDERWATER 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 10 redeemable at s115.
Tho project. II put through. would
represent the first increase in the cap
ftal stock Of the company since 1899.
Two reasons given for the action are the
fessened 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 or the company's business.
While 1t Is assumed In Wall Street
that the new capital thus made avail
able would be used for expansion Of the
company's business. especially In the
foreign Geld, nothing definite could be
learned from the company on that point
1t 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. 4
j.. w. Van Dyke. president Of the
company. in letter to its Stockholders
oueaathB TcdbOHS LOT tn0 Cap1tal
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.
"As set forth in the balance sheet of
when the Szo.ooo.ooo cash from its issue |
shall have been received; viii have ibe- Y
hind II s7s.ooo.ooo net assets. II is
proper to assume that the earning ca
pacity of, this preferred stock viii be
fairly assured In the light of returns on
capital previously employed as set forth
in several annual reports"
Tho circular 10 the stockholders Gives
an account Of the earnings Of the last
four years, showing net profits after all
charges, taxss. &C, in the years 1915.
1915. 1917 and 1918 Of sl,eae, 600. of
which amount but 100000 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 4S,020, 900,
with taxes aggregating $685. 900.
The stock OF the company was yester-
day very active on the curb, with one
quotation above 100 a share. Even
before the announcement was made Of
the new stock issue trading WAS started
in the shares on the curb and Just be-
the new preferred on a when, II and as
Issued" basis was at Ill, which sug-
sested, In the offering Of close to 500
on q share Of common, q melon. pro-
vided that stakeholder buy four shares
OF preferred for ono share now held.