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Standard Oil Begins Dissolution Under the Court’s Degree

New York

Announcement that the Standard Oil Company of New Jersey will be split up into its original 33 companies was made by the company this afternoon in a letter sent to the stockholders which said that the stock of the various companies would be distributed to them according to then holdings of record on Sept. 1.

All of the new companies, it appears however, still will be controlled by John D. Rockefeller and his associates who are the holders of the majority of the stock of the Standard Oil Company of New Jersey.

According to the official notification, the transfer books of the company will be closed on Aug. 31 and will remain closed until all of the arrangements to turn the new stock over to its owners can be made. This, it is thought, will require until Dec. 1.

The letter to the stockholders specifically states that “obedience in the final decree of the supreme court of the United States” makes this action necessary.

That difficulty will be experienced under the proposed plan in adjusting dividends is apparent. In some cases dividends received by holders of odd lots of Standard Oil Company of New Jersey stock will amount to a few cents only, that is, if quarterly dividends are maintained by the offspring of the parent company.

The Standard Oil Company simply goes back into its original form and constituents will conduct their business along independent lines, with separate sets of officers and boards of directors.

Interests closely identified with the Standard Oil Company as well as independent oil companies are now trying to figure out how dissolution of the Standard is going to benefit the community in general.

In the distribution of the stock of the Standard Oil Company of New Jersey, the holders of stock will receive fractional shares of 32 subsidiary companies and one full share or more in each of three constituent properties. A holder of any from one, two, three, or four shares will not receive a full share in any one company of 35 subsidiaries that must separate themselves from the parent concern.

Distribution of shared of 35 subsidiaries will range from one hundredth part of a share to a full share in exchange for five Standard Oil Company of New Jersey Shares.

Large shareholders, naturally will receive full shares of subsidiary companies and will not suffer inconvenience or loss that will fall to the smaller shareholders. There are over 6000 shareholders. The majority of the shareholders own odd lots, that is, from one share to 100 shares.

Reorganization will involve distribution of approximately 220,000 certificates representing the 35 companies, compared with a little over 6000 certificates of the parent company outstanding at present.

A great deal of work will be involved before the standard Oil Company will be able to begin distribution of subsidiary stocks for share of the parent company. It is expected exchange will begin some time in September and continue well into the latter part of the year.