Split-tips

One-for-Five. No uncommon occurrence is a stock split-up on a five-for-one basis, involving exchange of five new shares for one old share, but a stock split-up involving one new share for five old is not so unusual or so pleasant. Such, however, was the arrangement last week urged by P. A. S. Franklin, head of International Mercantile Marine Co. (operating the White Star,* the Red Star and other lines), who suggested reduction of capital from 120 million dollars to 30 million. Not only were common stockholders asked to turn in five shares for one, but holders of preferred were requested to surrender their holdings, on a share-for-share basis, for new preferred plus a $20 cash payment. The cash payment would be in settlement of large accrued and unpaid dividends. President Franklin thought that only some such plan could prevent dissolution and reorganization.

Three-for-One. The more usual variety of stock split-up was reported by Hiram Walker-Gooderham & Worts, Ltd., of Canada, shareholders approving a three-for-one split-up, with rights. Hiram Walker is, of course, famed as whiskey-maker. U. S. interest in the split-up was keen in Missouri, whose Congressman Leonidas Dyer recently purchased Hiram Walker stock without knowing the nature of the product and sold, precipitately, at a loss, when the horrid truth became evident to him. Congressman Dyer talked of suing the Manhattan Curb to get back his lost money. Had he not been so hasty in disposing of his "tainted" certificates, he might have had a profit on his transaction.

*The White Star ships (Majestic, Olympic, etc.) were sold in 1927 to British interests, but I. M. M. still operates them.