The sun., 1919-09-05
DOHENY PREDICTS
BANNER OIL YEAR
Had of Mexican Petroleum
Co. Says 1919 viii Show
Great Developments.
FEARS SUPPLY SHORTAGE
Reports His Companies Show
Gains in Profits During
Last Year.

ri. Doheny. president of the Mexican
rretroleum Company. announcing In the
,,rual report issued yesterday big
s,nansion and development programme
scr that company, said that new uses
sor oil are being developed 30 rapidly
nat there is likelihood of n shortage
N its supply and means of transporting
n from wells to consumers, and that
,hs transitionary period of 1919 will
not be distinguished by an increase Of
asliyeries made, but will mark the ban
mar year for opportunities developed and
rerotiations completed for the rapid
future Increase In volume and value OF
business to be done. He expects that
next year the business will increase more
rapidly than 1t has during past years.
Nevertheless the report shows that
on sales In 1918 were 1880, 600 barrels,
having a selling price OF $26,320,545, an
Increase of 1.764,000 barrels, or II per
cent in volume, and a gain of $9,313,336,
or nearly 55 per cent. in selling price.
due to an increase in the amount of re-
fined production. Notwithstanding the
met that the taxes raid to the Mexican
and United States Governments wers
nearly $1,000. 900 greater than the amount
paid in dividends. the former tax more
than doubling, the report showed net
profits after charges and war taxes of
1889 I44. against S4,eS6,02O in the
preceding year. Statisticians figure per-
eentage earnings on the S40,612.10n
common stock after preferred dividends
al sli,13 a share, against Sl0.23 in 1917.
Dividends paid amounted to $4,12S,0Os,
leaving surplus for the year of s2,-
gf1i36.
The Pan American Petroleum and
Transport Company. for which Mr.. Do
heny expects doubling of the volume
OF business as result of the purchase
Of the British-Mexican Petroleum Com
pany. earned in 1918 net profits, after
charges and war taxes, of $4.666,727,
sgainst S4,271.72S in 1917. Share earn
tngs on the common stock of $50 par
value were $3.50 in 1918, against $3.50
IN the preceding year. The profits, how
ever. before deducting taxes and taking
into consideration income and excess
profits taxes on the earnings of the
stock In other companies were $8,066,T 1877
In 1918, against $5,114,62S in the last
preceding year, AN increase of 81 per
cent, nearly all Of which went into
taxes
In the Pan American report Mr.. Do
heny said in part: in anticipation of
present conditions, the management I'M
certook early in this year to establish
business connections which would enable
II to take advantage of the increased
activity which seemed imminent. With
this end In view, negotiations which had
been commenced in March. 1915, and
which were not concluded because of the
war, were renewed in February of this
year. Out Of these negotiations there
mas developed the organization of a
company known as the British Mexican
Petroleum Company, Ltd. One-half of
the stock of this company has been sub
scribed to by the Pan American COM
pany. Its associates are among the
sbest and most prominent business men
OF Great Britain and are largely inter-
Nsted in the shipping business.
The agreement provides for the sale
by the Huasteca Petroleum Company Ia
subsidiary of the Mexican Petroleum
Company, Ltd, of Delaware) and the
purchase by the British-Mexican Pc
troleum Company of the products of
over 100000 tons annually of Mexican
crude oil It is expected that the taxi
ings viii increase rapidly above this
amount. Herbert G.. wylie, general
manager of the Pan American company,
mas been made the managing director of
The new British company and is now ar
ranging cor the establishment of its IA
cilites in all of the principal ports of
te United Kingdom. The belief Is Jus
uhed that the increase of business from
tnis new connection may nearly double
The volume of the Pan American COM
pany's business"
In the Mexican Petroleum report Mr..
Doheny made the following statements
arrangements which have been made
looking to a large increase in the mar
keting OF the company's crude and re-
hned oils will probably justify the be-
ginning of a campaign of oil well drilling
and pipe line construction during the
present year.
on Inventories are valued at cost
instead OF at average contract selling
values as heretofore. Mexican taxes paid
IN 1913 were more than double the
amount paid In 1917. The amount set
aside for income and war taxes increased
nearly 500 per cent. over 1917. Taxes
PAD plus the amount set aside for COM
pletion OF tax payments, amounted to so
per cent. OF net profit and over 26 per
cent Of gross income Profits. before
Geducting war taxes, were more than
double the profits for 1917. Dividends
paid during the year were $4,12s,OOs,
compared with S2.140,263 in 1917. Taxes
PAID to both Governments were nearly