New-York tribune., 1920-04-15
Standard Oil
Go. to Double
Its Preferred
New Issue of 500, 900, 900
Will Be Offered at Par
TO Finance Expansion
and Buy Tank Steamers
Earnings at $75 a Share
Production Substantially In
creased Last Year, Re-
port by Teagle Shows

W. ~. 1edSle, president or the stand
ard Oil Company of New Jersey, in a
letter to stockholders dated Yesterday
revealed the companys plan for in
creasing the authorized preferred stock
from S1o0,0o0,0OO to $2OO,00o,00O. Sub
Ject to approval of the program at
special meeting called for May 5, the new
stock will be offered at par for an
amount of the new cumulative r per
cent stock equal to their respective
holdings Of the common stock of the
company j. P. Morgan & Co. has ar
ranged to underwrite the new issue
for a compensation equal to per cent
OF the par amount Of the stock offered
tor subscription. AS when the first
issue OF preferred stock was offered
last fall, S98.33S, 300 will be offered to
holders OF common stock. and the re-
malnder to whomsoever the board may
direct.
In explaining the need of the new
capital, Mr. Teagle said: Heretofore.
capital requirements have been met for
the most part from surplus earnings.
The recent considerable expansion in
all departments of the company's bust
ness, however, has necessitated the en-
Ployment of more capital within a
orlef period than its surplus earnings
Soald provide after the payment Of
Federal taxes. In September, 1919. the
company sold to it's stockholders 983.-
oS3 shares of preferred stock at par,
the proceeds of which were used as ad-
dltlonal working capital
The proceeds of the present issue
Will be used to acquire oil lands, to en-
large and improve refining and distrib-
utlng facliltles, to pay for tank steam
ers under construction and to pro
vide additional working capital 1t is
expected that the present issue of pre-
ferred stock will be sufficient, taken
with surplus earnings, to provide the
company with all the new capital re-
CURED for the balance of the year
1920 and throughout the year 1921.
The annexed statement shows that
Tor the last three years the earnings
Quoting Federal taxes and $72,O2O,O92
after deducting such taxes, compared
with $l3,767 1862 which will be required
for dividends on the preferred stock as
increased"
In this connection, Mr.. Teagle made
public the balance sheet for the year
ending December 81, 1919, which showed
earnings OF $75 share on the COM
mon stock
Total assets were placed at $685.
092,51l, compared with $691,316,969 the
previous year. Earnings after deduct
ing estimated Federal taxes in 1919
were 6,725, ,673, compared with $751;
Slo,658 in 1918 and $81.415,945 in 1917,
which was the largest year. Earnings
before taxes amounted to $9O,725. .673
in 1919, compared with $101 1,941 1862 in
1918 and $105,785,858 in 1917.
The consolidated balance sheet of
the company and subsidiaries for the
last calendar year follows:
ASSETS
Real estate. plant and equip
ment ACKNOWLEDGEMENTS, .$312,479, ,1f1.18
Current assets:
Cash, United States govern
ment bonds and other
marketable securities 80. 17.761,8 ,82125
Accounts receivable ....... 236,588,639.49
inventories ............... 1876, ,262, ,889 80
Total assets 1858. .os2. 511 80
LIABILITIES
Current liabilities:
Accounts payable ....... .$156, 1858 94651
Nominal liabilities:
reserves 694,S4O.54
Preferred stock ........... 98,338 800 90
Common stock ............ S,338, 800 90
Surplus. including reserve
for working capital. 500. 1896 .624 n
Total liabilities ........ $853,092 2511 82
Current assets amounted to. .$54O, ,613, $50 ga
Current liabilities amounted to 156, ,263, ,94651