The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-10-12

~ 0nIy q YsDsE, 1syIs saysS
Pries y GassIlss Hslthsr
Raissa Nsr Lowered.
HY ]. 9. ROYLE.

Copyright, 1924, By The Arsus.)
New York, Oct 1.-THE Rookie
Teller fortune probably has been
tripled in the last three weeks.
on paper.
Ia the last ten day., the capital
ixation Of three Of the principal
companies Of the Standard OIL
group has been increased $780,
90 200. This has been accom-
panied by melon cutting" involv-
ing the distribution Of stock divl-
dends ranging from 100 to 400 per.
cent. However, not one dime OF
actual cash has been added to the
coins which Mr.. Rockefeller may
distribute to his kid friends on Lis
next birthday.
The price Of gasoline, kerosene,
lubricants, fuel oil or other petrol
cum products will be neither low
cred nor raised as result.
Where the actual gain In cash
has resulted is in the speculation
which preceded the announcement
OF the stock dividends and in
crease in capitalization and the dis
tribution of additional shares. But
the prospective earnings, specula-
tive and hypothecating value, will
be increased tremendously. How
ever. the laws of supply and de-
mand must continue to govern the
prices of the Standard Oil products
within certain limits, no matter
what the capitalization Of the COM
panies involved. In fact. in vaii-
Gus sections of the country, the
price of gasoline has been cut With
in the last 4S hours. The price OF
crude oil has not risen and prob
ably will not rise until the surplus
stocks are reduced and production
again brought nearer to consump-
ton.
The insiders undoubtedly knew
OF the consummation of the plan
we'll in advance of the announce
ment. In each case. the original
stocks have shot up in price to fig
ures seldom il ever approached be
fore. That gain to those who held
or bought can be measured in cash
The prospective gains from in
creased dividends on the new stock
n the future from a wider scope oil
rperations through increased ca
,acity available from increased
borrowing power and other sources
can only be estimated on paper
Whether the advances in the price
OF the old stocks have actual!
measured the benefits accruins
from splitting the assets OF th'
companies into larger number O
shares can only be told in the fiji
ture price movements of the new
shares when they make their ap
pearance on the markets of TIL
world.
Increase Capital Stock.
The movement for increased cap
italization among the Standard Oi
and other large corporations rep
resents the excess earnings powe
Of the past, the increase in the &C
tual value Of the holdings ant
properties of the corporations ant
the prospective possibilities o
earnings in the future. A surplu
vas piled up in some instances, tn
properties increased through de
velopment or acquisition to poin
higher than the old authorize
capitalization and the director
have announced that prospectiv
earnings will enable them to sus
tain the increase in capital stock.
The movement began som
weeks ago in Standard Oil of Ken
lucky, which declared stock div
dend of 80 1-3 per cent. The Stand
ard Oil of California then raise
its capitalization from $115,000,0 90
to $250,000,000 and declared
stock dividend Of 100 per cent. TIL
Standard Oil of New York followe
last Friday with an increase fror