Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-12-15

VI LNGN JIl Gty 10 nv Il pellA " W any
combination, agreement or ar
rangement to fix or maintain the
selling prices of its products"
Mr.. Teagle said he wanted to
J protest against the characterize
tion of this company as any of
the Standard oil group as if the
! old association of Standard Oil
companies existed today, or as If
this company constituted part Of
any group Of any companies sub
ject to common control
Discusses Competition
Discussing competitive condi-
tons in the industry today, Mr..
Teagle stated that the strategic
location" in respect to transporta-
} ton facilities which every Stand
E ard Oil plant was given in the
5 economic development of the orig
! inal development of the original
: company was now "the barrier to
! general competition among the
t separate units"
Geographical considerations, he
: said, limited the extent to which
the New Jersey company can COM
= pete with its former subsidiaries
= The competition open to this COM
, pany, with its former subsidiaries
, Mr.. Teagle said, was limited by
the factor of transportation to
three comprehensive Standard Oil
company of New York, the Allan
, tic Refining company and the
/, Standard Oil company of Ken
T lucky. In regard to prices on re-
fined products, Mr.. Teagle said
that the dominant factor in the
domestic marketing situation was
the shipments of refiners in the
mid-contfnent producing field
Oklahoma, Kansas and Texas. This
production, he said, constituted
an enormous flowing supply"
which was not tied to any market
but shipped to territory where To-
cal prices would bring the best re-
turn. 1t was this competition, he
added with which every one engage
ed in marketing gasoline must
reckon.
Domestic Marketing
"Our domestic marketing at all
points is conducted under condi-
tons of the keenest competition
locally" Mr.. Teagle said, "as in
addition to the large number of
iobbers drawing their supplies
from time to time from the cheap
est source, the Gulf, Texas and
other large companies maintain
and operate extensive marketing
distributing facilities in the states
in which we are now operating"
Mr.. Teagle stated that in these
states with a total of ASH market
ing and distributing stations, his
Company maintained only 776, or
49, per cent which supplied, how
ever he said, little more than a
third of the total consumption in
the area.
Turning to profits Of the New
Jersey company, Mr.. Teagle testi-
fled that it's earnings, including
those of subsidiary companies dur
| ing the years 1920 and 1921 and
| the first six months of 1922 were
| at the rate of 96 per cent per
annum on met assets and aggre-
gated $213,720,713. The dividend
return to stockholders, the COM
mittee was told has not changed
! since the dissolution and the bust
ness since then has paid them an
| average of A per cent per annum
on the net assets. In the two and
one-half years ended last June 80,
Mr.. Teagle said common dividends
aggregating $49,274,91250, or an
average of 2.S3 per cent per an
mum on net assets over this period
was paid.
Net Earnings
Net earnings of the company and
affiliated organizations for 1917
and 1921, and the estimated earn
ings for the first six months OF
1922 were grouped by Mr.. Teagle
as follows:
From foreign business $83S19,-
5S5, from collateral business, S72,-
47O,149, and from domestic Oil
$53, 930,479.
1.-THE Standard Oil company or
New jersey" Mr.. Teagle continued,
"has earned during the two and
one-half years ended June 30, 1922,
total of $53,930,479 from its
domestic oil business. During the
same period we have run through
our domestic refineries a total OF
171,467211 barrels of crude oil.
On these figures the earnings were
equivalent to 81 cents per barrel
What do the earnings shown TO
the eventual purchaser OF a gallon
Of our products. and what of each
dollar paid to the Standard Oh
company New Jersey represents
profits to this company, this Is
phase of the matter about Whlcn
there is generally a very erroneous
impression, /. g., that unconsc1on-
able profits are being made out Oh
the oil business.
1.-THE gross sales of the Standard
Oil company of New Jersey and It's
domestic subsidiaries in their do
nestle oil business during the two
and one-half years referred to were
S1,516,392,315 and the profits from
that business were $5S,9S0,479, or
1856 per cent.
"Out of every dollar paid by the
consumer for our petroleum pro-
ducts in that period we retained
1856 per cent. Applying this oasis
of figuration and assuming that
consumers of our gasoline paid an
average retail price of q cents per
gallon, the profit of the company
was less than one cent per gallon"
Stock Dividend
Mr.. Teagle also went into the
STOCK ulNtuGhu LpNNliIiJ PtS@A -
company, declaring it had aroused
much public interest and discus
sion" Practically from its incep-
ton, the committee was told, the
Standard Oil company of New Jer-
sey has been under capitalized ana
the disparity between capital stock
and net assets has steadily In
creased. This fact has made pos
sible the assertion wholly without
real foundation, &c abnormal earn
ings rates, he asserted.
Concluding his statement, Mr..
Teagle said he thought he properly
could claim for the petroleum in
dustry that it has been "the great
est single force in the extension OF
the foreign trade Of the United
States, and that it has made
notable contribution to the pros
perity, the welfare and the pro-
gress not only of the American
naon1e hut OF the people of many