Evening star., 1922-10-12
BY j. c. ROYLE.

Special Dispatch to The star,
NEW YORK, October 12-The Rookie
feller fortune probably has been tripled
In the last three weeks on paper.
In the last ten days the capitaiiza-
tion of three of the principal companies
of the Standard Oil group has been in
creased $500. 100000. This has been ac-
companied by "melon cutting" fnvoiV-
Ing the distribution of stock dividends
ranging frem 100 to 400 per cent. How
ever not one dime of actual cash has
been added to the coins which MT.
Rockefeller may distribute to his Kid
friends on his next birthday anniversary
The price of gasoline. kerosene, lubri-
cants, fuel oil or other petroleum prod
ucts will be neither lower nor higher as
a result.
Where the actual gain in cash has
resulted is In the speculation. which pre-
ceded the announcement of the STOCK
dividends and increases In capitalization
The assets of the companies ana OF
the stockholders will remain exactly the
same as they were before the increase
In capitalization and the distribution
of additional shares. But the prespec-
tive earning, speculative and hypothe-
eating value will be increased tremend-
ously. However, the laws of supply ana
demand must continue to govern the
prices of the Standard OIL preduets
within certain limits, no matter what
the capitalization of the companies IN
yoIyed In fact, In various sections OF
the country the price of gasoline mas
been cut within the last torty-elgnt
hours. The price of crude OIL mas nor
risen and probably will not rise UNI,
the surplus stocks are reduced anu
production again brought nearer to con-
sumption.
Insiders Informed.
The insiders undoubtedly knew OF OF
the consummatioR of the plan wen IN
advance of the announcement. IN
each case, the original stocks have
shot up in price to figures seidon IL
ever approached before. fhat gam
to these who held or bought can De
measured in cash. The prospectise
gains from increased dividends on the
new stock in the future, from a WIDER
scope of operations through Increased
capital available, from increased Dor
rowing power and other sources can
only be estimated on paper Wnethess =
the advances in the prices OF the GU
stocks have actually measured the
benefits accruing from splitting tne
assets of the companies into a larger
number of shares can only be told IN
the future price movements OF the
new shares when they make their ap-
pearance on the markets OF the Worlo.
The movement for increased capital =
ization among the Standard OIL and
other large corporations represents
the excess earning power OF the past.
the increase in the actual cash value
of the holdings and properties OF the
corporations, and the prospective
possibilities of earnings in the future.
A surplus was piled up in some In,
stances, the properties Increased
through development or acquisition
TO a point higher than the old author
lied capitalization and the directors
have announced that prospective earn
ings will enable them to sustain the
increase In capital stock.
stock Market Factor.
The movement began some weeks
ago in Standard Oil OF kentueHy,
which declared a stock dividend OF
80 l-s per cent The ieoS Stanoasn an al n,,s1l S
isation from S1f5, 100000 to $3.50. 900.
600 and declared a stock dividend OF
100 per cent The Standard Oil Of
New York followed last Friday with
an increase from s!5.oo9'eoe 70 so s2zS,- o.
cent After trading had closed in
preparation for today's holiday. the
Standard Oil of New Jersey raised
it's authorized issue from $l10.ooO.ooo
to ss25. o00, 900 with a stock dividend
Of 400 per cent.
Standard Oil of New Jersey had a
rise Of about 50 points In anttcipa-
tion Of some such move. Whether that
ADVANCE has accurately measured In
the estimation Of speeulators the ia.
creased benefits when each share OF
oniy the future can tell. Similar cap
itaiizatien and dividend action has
been taken by other companies;
among them National Biscuit ana
American Radiator, and many corpo-
rations are expected to follow suit.
hut the assets Of the companies have
not been changed and the prices OF
their commodities will be unaffected
sxcept by the normal influences of
production and consumption. COM
merce and trade.