New-York tribune., 1922-10-18
Vacuum Oil Co.
Proposes 5000
Stock Dividend
Calls Meeting to Vote ON In
crease i'm Capital From
$I5, 900, 900 to $40, ,OOO,-
600; Would Split Shares
Mex Pete Melon Reports
Doheny Says Proposition
Has Been Discussed In
formally by the Directors


Another Standard Oil melon was
proposed yesterday in the announce.
ment that directors Of the Vacuum OIL
Company have called special meeting
OF stockholders for December to vote
on an increase in the capital stock
from s1b,oo0,000 to $4,000, 900 and to
reduce the par value of the shares
from $500 to S25. With the increase
approved the company's plan is to de.
clare 800 per cent stock dividend
which with the reduction in the pa,
OF the stock will give to each share
holders sixteen new shares for one OF
old. -
On the Stock Exchange a sensationa,
Jump in, the price of Mexican Petro-
iana ieam shares, with corresponding ad,
common stocks, was accompanied by
reports that directors of the latter
company also are considering plan
involving an increase in the cash divi-
dend, declaration of substantial
stock dividend and, finally. an offer
for exchange Of "Mex Pete" shares
for "Pan Pete"
E. L.. Doheny, the dominating in.
terest in both companies. said that
such q plan had been discussed in
formally for some time, but assorted
that it had not yet reached the stage
OF formal consideration by tho direc-
tors, who are scheduled to meet early
next month. He said there might be
considerable difference of opinion as
to the advisabiiity Of carrying out any
part OF the reported plan.
AS OF June 30 last the Pan American
P1trnIRnY1 and
owned ss1,4sl,ooo Of the s,1sb, roo
Mexican Petroleum issued common
stock, which did not include an addi-
tional $2,452,600 held by subsidiary
The high price reached by Mexican
Petroleum on the Stock Exchange yes
terday was 228, the highest quotation
since 1919, when the stock reached
264, At 226, the closing price, there
was net gain of 20M points.
The Mexican Petroleum Company
according to Mr.. Doheny, now has cash
on hand amounting to s27,52o,000.
The official statement issued by the
Vacuum Oil Company. said:
"The assets Of the company are
greatly in excess Of the par value OF
the present capital, therefore directors
consider the proposed increase in capi-
tai advisable, and, furthermore, recon
q ACOuStloH VI tllC pax dluS VI
shares to facilitate wider distribu-
tion and ownership of the stock"
Payment of the 800 per cent divi.
dend will require the distribution OF
$45, 100000 in stock. and with the
present $15000,000 outstanding will
make the total issued stock $60,000,00O
The remainder is to be held in the
company's treasury, from which the
eventual issue to employees will be
made to the extent required in full
fillment of plan to be approved later
The proposed action of the Vacuum
Oil Company makes the fifth melon
cutting by members of the Standard
Oil group this year. The others i'm
clude 400 per cent stock dividend by
the Standard Oil Company Of New
Jersey, 200 per cent by Standard Oil
of New York, 100 per cent by Standard
Oil Of California and 1913 per cent
by Standard Oil of Kentucky, in addi-
tion to an offer of 33 1-3 per cent new
stock at par.
The Gulf Oil Company. owned by the
Mellon interests of Pittsburgh, has
already put into effect capital re-
adjustment plan equivalent to 200
per cent stock dividend.