New-York tribune., 1919-07-26
War and Excess Profit
Taxes Cause Company
to Seek 100 Millions to
Expand Foreign Trade
J.P. Morgan & Co.
Will Underwrite 1t
First Balance Sheet in
13 Years Shows Assets
of $562,543,O25 Now

VI sCttO@e @ecTeJeV%O lNOW
For the first time in its history the
Standard Oil Company of New Jersey,
the foundation stone Of the numerous
Rockefeller properties, is to raise new
capital for the extension of it's great
overseas business by the sale of stock.
Announcement was made yesterday
BY A. C. Bedford, chairman Of the
board, of the company's plans to offer
at par, 500, for subscription by the
present stockholders, share for share,
sss,93S,3o0 of new cumulative per
cent non-voting preferred stock. The
stockholders will be asked to approve
the creation of an issue of $780, 900 900
Of the new stock at a special meeting
called for August Is.
The issue will be underwritten by J.
P, Morgan e. Co. The bankers will or
ganize syndicate, consisting of sew
eral OF the leading Wall Street bank
ing and investment houses, to handle
the offering. The complete member
ship of the syndicate will be an
nounced some time next week. Applica-
tion will be made to admit the new
stock to trading on the New York
Stock Exchange.
Balance Sheet Issued
In making public the decision of the
company to sell stock. the Standard
departed from its long established poi
icy OF secrecy as regards its corporate
affairs, and issued the first balance
sheet since 1905. 1t shows total net
assets of S562, ,O25. Plant, stable
and floating equipment, less deprecia-
ton, are carried at S249,e27, ,931. Stocks
in other corporations are valued at
s23,o0e, ,449, government bonds and
other investment securities at S93,452.-
SS9, inventories of merchandise at
$50, ,505,2so, accounts receivable at
sl5l,320,0S5 and cash at S13,2O1,851.
The nominal liabilities of the company
consist of s9s,338,Soo, the present capi-
tai, and s492.315 reserve for annui-
ties, leaving surplus, including reserve
for working capital, of $463 3,712,4oe.
The balance sheet issued by the COM
pany in 1905, at the time Of the gov
eminent suit for dissolution of the So
called Standard Oil Trust, showed net
assets as of December 81. that year,
including the thirty-three companies
afterward segregated under the disso-
luton decree, of S359, 400, 1893.
Profits Disclosed
The first insight in many years into
the actual profits of the Standard Oil
Company of New Jersey discloses earn
ings in 1913, before deduction of Fed
eral taxes, amounting to S10l ,614,143.
The company paid s44,33o,35 in taxes
2SS,784, out Of which S19 1857 $50 was
paid to stockholders in dividends.
In the past it has always been the
policy of this and the other Standard
Oil companies to finance expansion
through drawing on earnings from year
to year.
"The policy Of the company" says
Mr.. Bedford in an open letter to the
stockholders, "has been to finance the
growth from current earnings, but IN
view OF conditions now existing, and
having regard to the present necessity
Of the diversion Of considerable pro
portion OF these earnings to excess
profit and other war taxes, your
directors feel that it is advisable to
increase the capital employed in it's
business by the amount of the pro-
posed issue OF preferred stock. I. is
tne intention to utilize the new capital
IN the financing of the further de-
velopment Of the company's equipment
and resources, which plans are already
under way. These include measures
lor lnsurlng the continuity of a sub
s'antiai proportion of this company's
lu'ufs supply of crude OIL. as we'll as
MAINTAINING q cash reserve against con-
..,hgencles, the active prosecution of
ne company's programme Of cnlarging
US renning facilities, the expansion Of
80 transportation systems and the ex-
'eAs'on of It's distributing plants"
For Foreign Business
IN discussing the company's pro-
sramme officials made it clear yes
Ef1Gy that II did not involve the pur-
tsnasc Of any new producing properties
sn particular, but rather that the new
Anancing was planned with view to
ssaDiing the corporation to take care
.: me great foreign business that is
- 20 SrN ! ne oI&HCaIC OF y esV
setsey through its own organization
saa through number Of domestic
ss,o foreign subsidiary corporations
ae' z'nce It's inception, established
tremendous business in the production,
.sI.h'ng, transpor ration, distribution
an9 sac OF petroleum, both ut home
s sna a6foad, and has developed con-
s.ofFao!e lntereEt in enterprises en-
saseH In producing and distributing
sa-ofai gas. In addition TO steadily
Expanding domestic trade the .com-
Keny' through its foreign subsidiaries,
sas established direct relations with
s.ahy thousands of customers for
rio1sun products throughout Eu-
''gs and Central and South America.
ne call for the special meeting Of
ss.ocxnolders to approve the proposcd
see of nov preferred stock states
., 80. 'ne holders Of the preferred stock
st s.1.i nave no voting powers. "nor
sHs3i they be entitled 10 notice of any
sset'hg ~ the stockholders of the
.riporanon.' This will leave tho con
~ oi the company With the nrexer.
.~sshagsment. /. 10 also provided that
w w preferred stock AZ an ent,retv
shaii be subjec. 70 redemptinn srd
~sy De redeemed at the option Of the
slporst'on at sny time after tbre.
sssfs from the date of Issue on INV
gsfzerly dividend data by psvmsn+
each share Of stocks 20 70 Be- ~.