New-York tribune., 1919-09-05
Mexican "Pete''
Earned Sl4.l3 a
Share Last Year
nespite Heavy Taxes Here
and i'm Mexico, Profits
Showed Substantial In
crease; Gain in Sales

Net prof.s of the Mexican Petroleum
COMPANY for 1918 after all charges,
;ocluding war taxes, were s6,699,444,
.,mparcd with s4,9S6,o2o for the pre-
,.d,nc year and s7,15S,oga for 1915,
.,cording to the annual report issued
yesterday. The 1915 surplus. after pay
ment Of preferred dividends, was equal
10 sl4.ls share on the $4o,612,1 100
common stock, contrasted with S1O.23
share earned in 1917.
, The gross earnings, totalhng $26,-
,sO.545, were the largest in the COM
pany's history, being $S,19S,756 in ex-
fess of those for l917 The following
salient facts in the report We're en-
phasied by President L. l.. Doheny in
lis remarks to stockholders:
Mexican taxes paiG in 1918 were
more than double the amount paid in
1911.
The amount set aside last year for
income and war taxes increased nearly
500 per cent over 1917; taxes paid plus
the amount set aside for completion of
TAX payments amounted - GO per cent
Of the net profits and over IS per cent
Of the gross income.
Profits before deducting war taxes
we're more than double the profits for
1917.
Oil Sales Larger
Oil sales for 1918 were 1890. 600
barrels, compared with l6,736.00O bar
rels sold in 1917, an increase of II per
cent. The 1918 selling price was $26,-
5oO545, compared with $l7 ,O07,209 the
preceding year.
This diference.' said Mr. Doheny.
IS accounted for by the fact that a
large proportion Of oil sold in 1917
was disposed of in crude form. while
neatly all the oil sold in 1918 was
ciIcr refined at the company's plant
at Destrehan, or partially refined at
the company's plant at Tampico, Mex-
co. Still another cause for the in
creased return from the oil sales is
Of the oil sold in 1915 was carried to
distant markets, thus using a larger
amount Of tonnage barrel of oil
moved and adding TO the selling price
the added cost for trans sportation"
Mr. Doheny Informed stockholders
that arrangements which have been
made looking to a large increase in
The marketing OF the company's crude
and refined oils viii probably justify
ne beginning OF campaign Of oil
we'll drilling and pipeline construction
during the current year. He said that
drilling operations have been retarded
owing to the disproportion between
the pipe line facilities and the poten-
tal production OF completed wells.
Owing TO the Development of new
uses for fuel oil in the opinion of Mr..
Dohenv there IS like lihood Of a short
age both OF the supply and the means
OF transporting it from the wells to
the consumer. Referring to the organ
cation OF supply company by
brtsh interests. whose efforts will be
devoted TO marketing the petroleum
pfodaciS of the Mexican Petroleum
tomnaNy he said
1Ais new organization has already
aeFeeH to purchase from YOUR comDanv
substantial minimum quantity Of oil
to VII: 7.1o9,o00 barrels annually for
perIoa OF years. and it is proceeding
ehefse;lcaiiy 10 arrange for the trans
peF'atlon. storage, refining and sale Of
increasing quantities."
Has Big Contracts
During 1918, Mr.. Doheny said, nego.
ta.lels had been carried on in
The Nestern iemis spherc with the re.
'l.' 'i"t con tracts TOT the sale OF
Petroleum in much greater quantities
Tor next year than for any preccdin.
year arc already guaranteed. Conclud.
,r1s his remarks TO shareholders, Mr.
Doheny said:
"lt is hardly necessary to say tha-
once the facilities arc installed 70,
consuming the large amount of fue
OIL which has now been arranged 70,
" your customers, by the Shippin:
Board for the new mercantile marins
ana by your British connections, ane
me additional tank steamers whicf
you have already provided and the
new ones which are being arranged fol
are put into service, the volume OF
your business viii increase more rapid.
'nar during past years.
me transi'ory period of 1919 vii
not be distinguished by an increase
Il deliveries made. bat viii mark the
oslher year for opportunities developed
ana negotiations completed for tho
rapid future increase in volume o.
business to be done"