14 
GC 
STOCK DIVIDENDS 
a 
I'aBLE 10.— Disposition of approximate tolal surplus attributable to the periods seven 
years prior and subsequent to the date of closing nearest January 1, 1920, for 566 
corporations vaying stock dividends 
FIRST 7-YEAR PERIOD 
[tem 
Burplus as of date of closing nearest Jan. 1, 1920. __..._____. 
Surplus as of date of closing nearest Jan. 1, 1913. 
Net increase in undistributed surplus... 
Cash dividends, 1913-1919... ________. 
8tock dividends, 1913-1919... ____. 
Other dividends, 1913-1919. _ oom. 
Total surplus available for distribution attributable to period. ...._.... 
Amount 
Per cent 
of total 
Sains 
available 
for dis- 
tribution 
$2, 153, 385, 407 
R12 032 K11 
44,37 
42.38 
11.21 
2.04 
3, 020,663,501 | 100.00 
SECOND 7-YEAR PERIOD 
[tem 
THAR REL EE B 
ha ade er 
he airbie ry 
Re 
Surplus as of date of closing nearest Jan. 1, 1927... ....___ 
Surplus as of date of closing nearest Jan. 1, 1920 _. § 
Net increase in undistributed surplus. _ 
Cash dividends, 1920-1926______._.____ 
Stock dividends, 1920-1926__._ 
Other dividends, 1920-1924 
Total surplus available for distribution attributable to period. ..__._____ 
Amount 
$2, 518, 750, 74€ 
92 153. ARE ANT 
365, 365, 339 
2, 195, 864, 505 
1, 555, 336, 194 
8. 802. 055 
4, 125, 368, 003 
Per cent 
of total 
surplus 
available 
for dis- 
tribution 
8. 86 
53.23 
37.70 
121 
100. 00 
After fully considering the foregoing computations, the conclusion 
that there has been an enormous increase in stock dividends since the 
decision in Eisner ». Macomber seems inevitable. 
CONCLUSIONS 
£4, significant changes in corporation dividend policy since 1920 
are that— 
(1) Corporations have apparently distributed in the seven years, 
1920 to 1926, much larger proportions of both total distributable 
surplus and total surplus attributable to the period than in the seven 
years, 1913 to 1919. 
(2) This increase in distribution has been chiefly by way of both 
absolute and relative increases in stock dividends in the later period 
as compared with the earlier. While there were considerable absolute 
increases in cash dividends in the second period, there was practically 
no relative increase. 
In part, these differences are due to the abnormal character of 
business and financial conditions resulting from the World War Tin 
part, they are the results of the tax policies of the Federal Govern- 
ment. 
With the outbreak of the war in 1914 the belligerents began the 
purchase in the United States of enormous quantities of foodstufls