The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-02-05
$443, 100000 Dividends Is
Regarded BombSheII in
Proxy War.
STEWART is CONFIDENT
Decision to Split Earnings
Comes on Last Day for
Stock Transfers.
BY JAMES X. MARTINDALE

United Press STAFF Correspondent
CHICAGO, Feb. 5.-The phycho-
logical effect of 100000 divi-
dend voted by the directorate of the
Standard Oil Company of Indiana
may prove a determining factor in
the proxy fight between Colonel
Robert w. Stewart and the Rookie
Teller interests for control of the bill
lion dollar oil company.
Announcement of the division of
$1l5,000,000 of surplus earnings in
the form of a SO per cent stock
dividend and cash dividend Of so
cents share on the increased cap
italization, as we'll as the regular
quarterly dividend of 62z cents,
was seen as dramatic move by
Stewart to obtain proxies for his re-
election as chairman of the board.
The action came within month
of the annual meeting of stockhold-
erS at Whiting, Ind, March 7.
which promises to climax one of
the greatest and most picturesque
financial struggles in recent years.
|. Clever Coup by Stewart
Observers agreed Stewart had
effected a clever coup in announc-
ing the melon on the last day
allowed for the transfer of stock
of the company for voting in the
annual election.
Despite the fact that the 1875
600 new shares created by the stock
dividend can not be voted, the inn
pressiveness of the directorates re-
port undoubtedly will work in
favor of Stewart.
Stewards associates denied that
the melon" was declared for the
purpose of influencing stockholders
but the reaction, it was admitted,
may see an extensive change in
previously signed proxies and result
in a swing to the present manage
ment.
The $4,000 stockholders Of Iridi-
ana Standard have been divided
between the financial accomplish
mentS of the dominant westerner
and his younger opponent, John D.
Rockefeller Jr., who has demanded
Stewards custer for moral and
ethical reasons, namely involvement
in the Continental Trading Com
pany deals.
Large eastern stockholders whose
ancestors cast their fortunes with
John D. Rockefeller ST., in the for
nation of the Standard companies,
have been understood to be sup
porting the moral battle being
waged against Stewart by the
younger Rockefeller.
The aged wizard, John D. ST.,
himself, has come out of seclusion
to announce that he is supporting
the policies of his son.
On the other hand, employee stock
holders, and the present director
ate, consisting of men who have
prospered under Stewards admins
tration, have supported their lead
er, defending his refusal to testify
before a senate committee which
resulted in his Indictment for per-
jury and later acquittal.
The characteristics of the two
opponents have added greatly to
the f1ght-Stewart, son of black
smith, reared on the western plains,
a Rough Rider with Roosevelt,
challenging the Rockefellers' donni-
nation in the world of oil.
Echoes in Cleveland
Colonel Stewart, confident Of VIC
tory, refused to make any state
ment, apparently willing to let the
dividend announcement speak for
ITSELF
His associates pictured the move
as a "bombshell" thrown into the
rockefeller camp. They did not even
dignity with reply the suggestion
made by Senator Walsh that stock
holders sue Stewart for interest on
the unclipped coupons of the Con-
tinental Trading. Company bonds.
Echoes of the battle for proxies,
which both Stewart and Rockefeller
have sought in letters to stockhold-
ers, were heard in Cleveland where
efforts are being made to break the
will of Mrs. Margaret Huntington
Mccarthy, Greenwich, Conn, which
left an estate including 100000 Of
Standard stock. Attorneys said the
stock would be voted for Stewart.