The sun., 1919-07-26
STANDARD OIL
TO DOUBLE ITS
CAPITAL STOCK
New jersey Co.'S Shares to
Be Listed on the Ex-
change.
ISSUE rs 100000 900
First Balance Sheet Since
1906 Shows Assets Are
$5e2,543,025.
SURPLUS rs $463,712,4O9
Additional Capital Will Be
Used for Big Foreign Trade
= Expansion.
SURPLUS is s4es,712,4os

For the first time In it's history the
Standard Oil Company has announced
that it will do some financing.
/; A. c. Bedford, chairman of the
board Of directors Of the New Jersey
, Company, issued statement to the
effect that the board had passed a
resolution declaring IL advisable to
double the company's capital stock by
creating 500, 100000 par amount Of
cumulative per cent. non-voting pre-
,ferred stock, which is to be offered to
stockholders for subscription at par.
y. p. Morgan & Co. have underwritten
the entire issue and will absorb any
part OF 1t not taken by stockholders
of the company under the subscrip-
! ton rights, but It is not considered
likely that any of 1t win be left un-
subscribed.
Another tremendous departure for
the company, in connection with yes
terday's statement. is the issuance Of
a balance sheet. the first since the dis
solution OF the parent organization
in 1906. Still another big change in
policy is the announcement that the
new stock will be listed on the New
, York Stock Exchange, which means
that in the future the company's
balance sheets, which have been so
jealously guarded from public eyes.
will be opened for all the world to
read. The reason that the company
has never before listed its stock on
the big board is the listing requires
ment which compeis the publication
of the balance sheet.
Expansion Plans All Ready.
The purpose of this new financing is
TO provide working capital for purposes of
expansion. especially In the foreign field.
During the war. 1t was declared. the
Standard Oil Company mapped out a vast
plan of development in the foreign field.
and Immediately after the signing OF the
armistice. 1t began to take steps for
putting this plan into operation. Vast
expenditures in this development are
anticipated. although Chairman Bedford
denied emphatically that the company
plans to take into its organization any
other company. Mr.. Bedford said the
company probably will be likely TO be
more len.ent in the way of credits than
1T was before the war. He explained
that he did not mean there would be a
wholesale extension OF credit all through
the foreign field, but that in cases where
the company had held its credits down
TO the thirty day period. they may, under
the new plan, extend them to sixty or
even ninety days. This will be a big fac
tor In aiding the stricken nations of the
other hemisphere in reestablishing them
selves on a Arm basis.
The Standard OIL Company. before the
war, had extensive interests in Germany.
Its German business was tremendous
but with the declaration of war by the
United States this went the way of ALL
other enemy business. To-day the COM
pany does not know where 1t stands in
Germany. Mr.. Bedford said. although a
representative of the organization las
been in Paris for a long time endeavor-
ing to straighten out the tangle. The
extent of the Standard Oils interests in
Germany is not known. In Rumania,
however. the Standard OIL Company is
known to have had tremendous holdings
before the war. and while definite in
formation concerning these properties
has been difficult to obtain. the company
feels that a large percentage of them
has been reduced to practically nothing.
The decision to issue preferred stock
to provide capital for its expansion
was reached at meeting Thursday Of
the directors OF the Standard Oil Com
pany of New Jersey. The resolution
calling for the issuance Of the new stock
also called a special meeting of the
stockholders of the company for August
Is in the registered office at Bayonne,
N. j.. to vote upon the ratification Of
the directors action.
OF the total amount. $9s,33S,300 will
be offered to stockholders for subscfip-
ton at par in the ratio OF one new
share for each share OF the original
capital stock now held. At this rate the
rights to the present owners Of the stock
will be decidedly valuable. The common
stock Is quoted In the market at slightly
less than $3.50 a share. The remaining
81 ,661,700 par amount OF the new pre-
ferred stock will be disposed of at mot
less than par to such person or persons
at such time or times and In such
amount or amounts" as the board of
directors shall deem proper. the official
announcement stated. The subscription
privilege will be given to stockholdes rs
Of record as OF August Is, 1919.
Subscriptions for the preferred stock
will be payable IN cash and the sub
scriber will have the option OF making
payment either In full on or before Sep
tontber 10, 1919, or In four equal install
ments on or before September Is, Octv-
Der IS. November IS and December Is,
respectively. For all stock paid for In
full on or before September Is stock
certificates win be issued as Of that
date, drawing cumulative dividends al
the rate OF 2 per cent a year from the
date of their issue. Fo- stock paid In
instalments. stock certificates will be is
sued as OF December Is. the date of the
fnal instaiment. and the cumulative
Continued ON Fourth Pd0e