12

STOCK DIVIDENDS

but was added to the accumulated surplus account. In the second
seven years, however, the equivalent of 52 per cent of the surplus
attributable to the period was distributed in cash and 42 per cent in
stock, leaving only 5.7 per cent undistributed at the end of the seven
years. In other words, while the equivalent of nearly half the total
surplus for the first period remained undistributed at the end of the
seven years, the equivalent of nearly all of the surplus of the second
seven years was distributed to shareholders in one ! hd or another.

TaBLE 8.—Disposition of approximate total surplus attributable to the periods seven
years prior and subsequent to date of closing nearest January 1, 1920, for 2,971
corporations paying stock dividends

FIRST 7-YEAR PERIOD

Sem

Surplus as of date of closing nearest Jan. Lr Li Amn wr rm aia ni
Surplus as of date of closing nearest Jan. 1, 1913... i

Net increase in undistributed surplus... ...eeeeameeecneaneneananntnana
Cash dividends, 1913-1910. ............. numer Ea dn SC
Stock dividends; 1913-1919. Slap elias
Other dividends, 1913-1919. ime amma?

Total available for distribution attributable to period. ....

Per cent
of total
Sara
available
for distribution

which is
attributable
 to
the period

Amount

$2, 875, 724, 634
1.107, 174. 332

1,768, 550, 302 45.14
1,674, 414, Pe 42.74
408, 049, 789 10.41
66, 947, 676 1.71
3,917,962.149 | 100.00

SECOND 7-YEAR PERIOD

{tem

Surplus as of date of closing nearest Jan. 1, 1927. «coco ccemcacoccmccmamanaea-Surplus
 as of date of closing nearest Jan. 1, 1920. - oc cco cnc cmmmmaan

Net increase in undistributed surplus. -
Cash dividends, 1920-1926... o--.-Stock
 dividends, 1920-1926. ......
Other dividends, 1920-1926.

Total available for distribution attributable to period. - cee ccm caeaas

Per cent
of total
Spay
available
for distribution

which is
attributable
 to
the period

Amount

$3,193, 568, 741
9 875. 724. 634

317, 844, 107 5. 69
2, 896, 285, 432 51. 87
2,350, 246, 652 42,09
19, 508, 295 135
5, 583,884,486 | 100.00

The results for these 2,971 corporations are confirmed by those of
a group of 566 corporations composed of all companies paying stock
dividends, according to the financial manuals, which reported surplus
as well as dividends for 14 years. As already explained, the financial
manual group is presumably the least biased by the method of selecting
 the corporations.