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Show 00 STANDARD OIL j DEFENDS MELON I I Says Stockholders Can't Be Paid Reward in Form of Cash ! NEW YORK, Oct. 2S Tc Standard Stand-ard Oil i ompany of New Jersey, which recently proposed the declaration declara-tion ol a 400 per cent stock dhideud, states in its official publication. The Lamp, that the plan ws devised to provide for financing tho expansion of Its business. Company officials bellecd It better to capitalize Its large surplus with a stock dividend Ithan to distribute the surplus and, I then seek funds in the open market ' for expansion purposes. EARNINGS PUT BACK The policy of the company has beon 'to put back Into the business a large Share of it;; earnings every yeatr, the 'article says. These now constitute the com- Pern's surplus and are represented In its balance sheet by refineries, pipe lines, steamships, raw and finished products and other investments in 1 property, both In this country and I abroad." continued the article ' That part of the surplus which Is In cash Is a relatively small portion required for the current needs of tho business. busi-ness. I "In 10 years from 1912 to 1921 Inclusive, In-clusive, the company has shown net I I earnings of f 776V163 360 Of t his con-Islderable con-Islderable sum $115. 617.677 has been paid to the government for taxes, $222,066,226 represents aegregate dividends for the period and $437.-,5So,3."7 $437.-,5So,3."7 has been absorbed by the needs of the business referred to.' Phe company says that tho return during the past 10 years on Its investment in-vestment has averaged only 12 76 per cent, and th.. during the same period holders of common stock hare received re-ceived In dividends 30 per cent of the company's earnings. PINCHED FOR MONEY It also pointed out that the earnings earn-ings of the company havo been subjected sub-jected to all taxes applicable Income, excess profits and others both at home and ubroad. The years of highest excess profits taxes required such heavy payment on this account. It was pointed out, that the- company to finance the natural nat-ural xpansion of its business, founl it necessary' to create and sell to the public two issues of preferred stock. The article closes with the statement state-ment that the company's surplus having hav-ing gone Into permanent capital, It could not be distributed otherwise than In the proposed form of additional addi-tional stock certificates on |