The New York herald., 1922-10-07
N.Y.STANDARD TO CUT
S15O,OOO,OOO MELON
OH Company Recommends
200 Per Cent. Dividend
to Stockholders.
: PAR Is REDUCED TO $50
Shares Jump SO Points in
Days Trading and Go
to S640 Each.
PLAN WILL BE VOTED ON
Other Rockefeller Companies
Show Signs of Similar
Disbursements.
PLAN WILL BE VOTED ON

Directors of the standard Oil Com
pany of New York voted yesterday to
increase its capitalization from S75,-
900 900 to 1926, 900, 900 and to distribute
the $780, 900 of new stock to the
shareholders in the form of a 200 per
cent. stock dividend At the same
time it was decided to reduce the par
value of the shares from 500 to $25
as a means of popularizing the com
pany's stock.
The announcement. flashed on the
news tickers of Wall Street few
minutes before l o'clock yesterday,
brought to a climax several weeks OF
speculative activity in the shares of
The entire group OF Standard OIL COM
panies springing from reports that
many were contemplating melon cut
ting by increases in capitalization
split up of shares and stock dividends
Standard Oil of New York stock
SCARED to a new high price of S64O a
share and receded later to $635. where
it closed with net gain of 80 points
in the days trading. The turnover in
stocks of the Standard Oil group traded
III on the New 1Otk GlOCh EAtldHBV
and the New York Curb Market yester-
day exceeded even the high record vol
ume of dealings Wednesday, when the
Standard OIL Company of California
made known its intention of declaring
100 per cent. stock dividend on its
sl00,971 i'll outstanding stock.
Statement by Company.
The Official statement issued yestsr-
day by the Standard Oil Company OF
New York follows:
AT a meeting of directors of the
Standard Oil Company of New York
held October resolutions were adopte1
calling a special meeting of stockhol1-
ers to be held on December to vote
on a proposition TO increase the capitali-
zation of the company sufficiently to al
lew a stock dividend of 200 per cent. and
TO decrease par value of shares of stock
from 800 to $25 per share. And its Sec
retary was directed to send. in adii-
ton to the regular notice required the
following notice in reference to a meet
| ing of the stockholders:
" There has been no increase in capi-
talization of our company since 1912
when in the readustment of It's affairs
on account of it's low capitalization as
compared with its assets an increase
of capital was made, which increase
ably in excess of capitalization.
Since then by appreciation in value
of its properties and by successful and
conservative conduct OF its business the
assets of the company are now much i'm
excess of par value of it's present au-
thorized capital. and therefore the board
OF directors deem IL advisable to increase
the capital of the company from $75,-
100000 to 1925, 200. 900. so that capitali-
sla1I
actual value of its assets.
THE board of directors also believe
that 1t would be greatly to the advan-
tage of the company to have its capital
stock more widely distributed among
its employees, as well as among its
patrons and the public generally, so that
they may be interested in and share the
success of the company, and that the re-
uuction in par value OF shares from
800 TO S25 per share and issuance OF a
sorrespondingly greater number of
Shares would greatly facilitate such
wider distribution and ownership Of
etock.
IF such increase i'm capitalization and
Seduction in par value OF shares Is au-
Dhorized by stockh olders, the directors
~ the company contemplate at their
bext meeting thereafter the declaration
hf stock dividend for the full amount
ef the authorized increase OF capltal
% stockholders Of record at the close
Of business December 1. 1922. and issu-
ance of new certificates for the entire
capitalization on a basis of par value
of S25 per share. which is the purpose
of such increase.
Wy. Standard Plan Given Up.
Directors of Standard Oil of New
Nork recommended an exactly similar
Aapital readjustment and distribution in
xhe autumn of 1920, but the plan fell
through for want of a quorum at the
special meeting of stockholders called
no authorize the plan. At that time
|, st was said that the company's chief
\etoctholders, Including the late William
tRockefeller. were opposed TO the distri-
button, owing to the possibility that
popular agitation might lead to the
Aaxation OF stock dividends as income
N Is believed that no opposition 10 the
plan viii be encountered now.
r lOther companies OF rne Standard OIL
group mentioned in connection with con-
rennplated stock dividends include Stand
ard Oil OF Kansas. Standard oil OF Ohio
standard Oil Of Indiana. Prairie oil and
Gas, Vacuum Oil and Standard OIL OF
New Jersey, whose stocks have ostab-
hished new high price records i'm recent
arading.