, 1922-12-14

mat n on OF
New Jersey Is not a party to any
combination. agreement OF rangc
ment TO fix or maintain The selling
prices Of Its products"
Mr.. TeagIe sad he wanted to pro
test agains. the Characterization OF
this company rs one OF the STANDARD
Oh group as II the old association OF
Standard OIL companies existed today
as II his comprny constituted n part
Of any group OF companies subject to
common CONTROL"
Discussing competitive conditions
in the industry today. Mr.. reasle
stated that the "stragetic location" m
respect to transportation facilities
which every Standard on plsnt was
given In the economic development Of
the original company was 10Y the
barrier to general competition among
the separated units
Geographical considerations. he
, said. siipsireu the extent to which
the New Jersey, company may com
pete with Ms former subsidiaries. The
competition open 10 this company.
| with its former subsidiaries. Mr..
Teag'e said was limited by the factor
Of transportation to three companies
the Standard Oil company of New
York. the Atlantic Refining company.
and the Standard on Company Of
Kentucky.
In regard TO prices on refined prod
ucts. Mr.. reagie said that the domi-
| rant factor in the domestic market
ing situation was the shipments CT
refiners in the -mid-continent produc-
ing field-Oklnhoma. Kansas and
Texas. This production, he said. con-
! stituted an enormous floating sup
| ply which was not tied to any mar
ket but Skipped to territories where
.ocai prices would yield the bes, re-
turn. It was this competition. he
i added. with which every n engaged
in marketing gasoline must reckon.
Our domestic marketing at all
points is conducted under conditions
OF tho keenest competition locally. "
| Mr.. Teagle said, "as in addition 10
the large number OF iobbers drawing
their supplies from time to time from,
the cheapest source. the Gulf, Texas
and other large companies maintain
and operate extensive marketing and
distributing facilities IN the states in
which we are operuting."
Mr.. 4Teaxle stated that in these
states of n total OF $50 marketing
and distributing stations, his com
pany maintained only rs or 16,t per
cent. which, It supplied. however. he
said. a little more than a third Of the
total consumption in the area.
Turning 10 profits of the New Jer-
sey company. Mr. Teagle testified that
its earnings. including those OF sub
sidlary companies. during the years
1920 and 1921 and the first six
months of the present year were at
| the rate of &c per cent per annum on
met assets" and aggregated s2l3.-
720.213.
The dividend return to stockholders.
the committee was told, has not
changed since the dissolution and t.r
business since then has paid them an
average of - per cent per annum on
the net assets. In the two and one.
half years ended last June 80. Mr..
Teagle said. common dividends aggrc-
eating $40 .374.s12.5o. or an average
OF 2.s3 per cent per annum on net
assets over this period. were paid.
Net earnings of the company. and
affiliated organizations for 1920 and
1921, and the estimated earnings for
the first six months of 1922 were
grouped by Mr.. Teagle as follows:
From foreign business $s7. ais. 5s5;
from collateral BUSINESS $72.47O.1 4s
and from domestic oil q .93o.47s.
THE Standard OIL company Of New
Jersey. Mr. Teagie continued. has
earned during the two and one-half
years ended June 30. 1922. a total of
$50. e3o,47a from its domestic oil bust
Continued from Page Four)