The New York herald., 1922-10-12
More of Rockefeller Com
panies Expected to Take
Similar Action.
WORTH A BILLION MORE
Stocks Appreciate Largely
Over Lowest Prices Set by
Current Year.

Directors of the Standard Oil Com
pany Of New Jersey voted yesterday
to increase its authorized common
stock from s110,oOo.o0O to $625. 100000
and to distribute approximately $780,
100000 of the new shares to its COM
mon stock holders In the form Of a
400 per cent. stock dividend.
Cash dividends on the increased
stock will be paid for the present at
the rate Of 81 a share yearly, which
will be the equivalent OF maintaining
the existing rate of IS share an
nually on the common stock now out
standing.
This company is the original Stand
ard Oil Company and the largest or
ganization OF the Standard Oil group
since the general dissolution under
Federal court order in 1912. Its de-
cision to capitalize about two-t thirds
of its s592. .o21,632 in accumulated sur
plus follows the declaration last week
of stock dividends of $150,000,000, or
200 per cent, by the Standard Oil
1OitlI)dIy VI 4NOW 1Oi II ViVV,-
971 900, or 100 per cent, by the Stand
ard Oil Company of California, and Of
an extra cash disbursement OF 81
share by the Vacuum Oil Company
another of the Standard companies.
which is expected along with others
to declare substantial stock dividends.
Summon Stockholders.
The foregoing stocks and those Of
others of the Standard group, including
Standard Oil of Kansas, Standard Oil
cf Ohio. Atlantic Refining Company and
Prairie Oil and Gas Company, have
appreciated more than $1,000 100000 in
market value over the lowest prices at
which they have sold in the current
near in anticipation of increases in cap
.tal and substantial stock distributions.
Yesterdays action of the directors Of
Standard Oil of New Jersey is subject to
formal approval by the stockholders at
n meeting which has been called for
November s in Bayonne, N. j. The
rnanagements letter sent to the COM
pany's stockholders yesterday said In
part:
"You will receive herewith notice of
n special stockholders meeting to be
held Wednesday. November 8. 1922. to
Eel upon resolution Oh Nne DOdTO Oh
directors declaring it advisable to in
crease the authorized common stock of
the company from s110,00o000 to
s625.000,o0o.
Terms OF Proposal.
with the exception of an amount Of
s1.056,625 par value of common stock
issued to trustees for the employees OF
the company under the stock acquisition
l,a .is.i
in the issued common stock of the COM
pany since 1899. Iu the years 1919 and
920 there was created to meet new cap
ital requirements $500, 100000 par value
OF preferred stock.
Throughout the twenty-three years
since 1899 it has been the policy of the
company to reinvest in it's business all
earnings remaining after the disburse-
ment of dividends, and since the year
oil there has been no change In the
regular rate of dividend then estab-
lished. During this whole period the
substantial growth of the company's
business, in line with the growth of the
petroleum industry generally. has re-
suited in q very considerable augmenta-
ton OF its assets, largely by reason OF
the profitable employment of such sur
plus earnings The situation which has
ing dsproportion between the companys
Issued capital and its net assets.
The directors therefore propose the
Increase IN capital above outlined, ami
the event of such increase being au-
.horized by the shareholders they pro-
pose 20 declare and pay. during the
.grrent year. to the holders of common
: ock, a stock dividend on the basis Of
-our new common shares OF s25 par
calue for each such common share out
standing. This will have the effect OF
Increasing the issued common stock OF
the company to approximately s5OO.00O,-
600. The balance of the proposed in
crease, about 100000 shares, will hc
held in the treasury to meet such needs
OF the company as may arise in the
future.
"The directors feel that the share
holders should be advised that in view
OF the requirements OF the company for
capital investment the directors have no
purpose TO Increase the aggregate
amount Of dividend disbursements at
fbe t,rpsent tisne"