Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-22
STANDARD OIL MAY
Join IN BIC MERGER
First Step Taken to Reunite
Units Since 1911
Dissolution.
BY the Associated Press.

/ BY the Associated Press.
NEW YORK, February 22.-The first
attempt to merge units of the parent
Standard Oil Co. since its dissolution
under United States Supreme Court de-
cree in 1911 was before stockholders OF
the Standard Oil Co. of New York and
the Vacuum Oil Co. today.
| In identical letters the stockholders
were informed that they viii not be
asked to take action on the consolida-
ton contract until the legality of the
merger has been passed upon by the
| courts.
The letters said that while counsel
for the companies have given their
opinion that the proposed merger is
within the law, the Government has
been informed of the plan and has in
dicated its intention to institute pro-
ceedlngs in equity to determine the
questions involved.
The plan calls for the creation of
e company to be known as the General
petroleum Corporation, which will
acquire the assets of the Standard of
New York and the Vacuum Oil Co.
Value Set at SLIGO, 600, 900.
The new company would have mar
ket value of 81 ,100, 000, 900 on the basis
of current quotations for the two stocks,
which would make it second only to
Standard Oil Co. of New Jersey. the
market value of which is computed at
81 SOC, 100000 on current quotations.
To preserve the trade name "Socony"
and other goodwill assets of the two
companies, subsidiaries, to be known as
the Standard Oil Co., Inc, and the Vac
uum OIL Co., Inc, would be formed
Each would maintain its present pro-
ducing and distributing organization.
Consolidation would be effected by
giving three shares of stock in the new
company to shareholders of Vacuum
stock for each share surrendered
Standard of New York stockholders
would receive share for share.
In this automobile age" the letter
says, leach large oil company handling
gasoline primarily, although formerly
marketing its products in only portion
OF the country, now seeks to extend its
activities generally throughout the
United States so as to get the most COM
plete use of its overhead organization,
of its standing with its customers and
OF its national advertising.
Distribution Extended.
I'm line with this tendency the New
York company has already in the last
few years extended its distribution into
the West and Southwest. The Vacuum
Co. has for years had a Nation wide
reputation for its highly specialized
lubricants, which will be of advantage
to the New York company in further
extending its marketing of gasoline"
Standard of New York, in addition to
Its distributing and refining facilities,
which include a large feet of tankers,
has producing fields, operated through
Its subsidiary, Magnolia Petroleum, in
the Mid-continent and Southwestern
fields and through a subsidiary, General
Petroleum Corporation of California,
similar properties on the Pacific Coast.
In the foreign field Standard of New
York has been in sharp competition
with the Royal Dutch Shell interests in
the Orient and India in marketing
gasoline and other petroleum products,
while the Vacuum company has eStab-
liShed markets for the distribution Of
lubricants in Australia, Asia, Egypt,
South, East and West Africa and parts
of Europe.
The letter says:
To maintain their position abroad
against powerful foreign competitors,
strongly entrenched as to crude supplies
and refining and distributing facilities,
the union of the Complementary busi-
neSSeS Of the New York and Vacuum
companies and their resources is re-
garded as vitality important and directly
promotive of American interest in the
business OF such countries"