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 dis- 
tribution 
which is 
attribu- 
table 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 dis- 
tribution 
which is 
attribu- 
table 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 select- 
ing the corporations.