The Birmingham age-herald., 1922-12-15
PROBES WORKINGS IF O|L COMPAN
 TEAGLE APPE \ RS
Head of Standard Oil Com pany Denies Restraining Trade--Large Dividends
 Are Defended
Ry Associateti Press

WASHINGTON, Dec. 14.-F Facts and figures in endless array con- cerning the Standard Oil company of New Jersey, it's control, its op- eration and to certain degree its policies, were presented by Waiter c. Teagle, it's president, to Senate manufacturers subcommittee today at the resumption of the Senate-di- rected inquiry into prices and con ditions in the oil industry.
 Appearing as the first of the lead CTS in the American oil world, which the subcommittee has summoned, Mir Teagle, over period of four hours was questioned by Gilbert E. Roe of New York, counsel for the subcommittee.
 Cost of Products Sought
 The questions concerned the mi nutest details as to the operations of the company and were directed to- ward bringing out the exact cost Of the major oil products and the object of competition in the oil industry, brought about by the supreme court dissolution decree or lyl"-
 Mr. Teagle, when asked some ques- tions with which he was unfamiliar, called on assistants who had accom- : panied him to Washington, bringing voluminous files
 The Standard of New Jersey presi- dent at the start offered prepared statement, but was cut short by Chairman LaFollette. who announced that the subcommittee had decided he should be questioned. Questions asked by MT. Roe, however, resulted in the placing of most of the state- ments into the committee record. and just before adjournment MI. Teagle obtained from Acting Chair man Jones tentative, permission to file the statement at the conclusion of his testimony.
 Competition Prevails
 The statement, in addition to giN- ing details of the corporation's or ganiaztion and business operations, declared the directors of the Stand- ard of New Jersey had in accord with the supreme court dissolution decree, "conducted the business of the company under the conditions of free and active competition which they recognized to De the public de-
 
 lis not a party to any combination, agreement or arrangement to fix or maintain the selling prices of it's products
 The statement also discussed tho recent declaration by the corporal ton of stock dividend. justifying this action on the ground that the com ,pany. had, from it's inception. been undercapitalizcd with steadily in- creasing disparity between issued capital stock and net assets, that it was desired to effect wider dis tribution of common stocks consid- cred impractical under the existing issue, because of the high market value of the company stock and that an increase in the outstanding stock was financially necessary.
 Rockefeller. Sr.. Not sfockhoider
 Questions put by MT. Roe at to- days hearing related largely to the domestic and foreign business of the company, the operation of it's pipe lines, its refineries and its ships. The committee counsel salso was much interested in the ownership of the corporations stock. and in reply to questions the witness gave a de- tailed statement of the stock owner- ship.
 "Only six stockholders held 1 per cent or more of the company's stock as of June 30, 1922" MT. Teagle tes tified These six stockholders own q total Of 2S.4 per cent of the com panys common stock The largest individual owner Of common stock is John D. Rockefeller. Jr., with II. 4 per cent. Three of the remaining five common stockholders on the list, owning together 10 per cent of the common stock, are philanthropic in- stitutions. such as the Rockefeller Foundation and the general educa- tion fund. It may be of interest to the committee to know that John D. Rockefeller, Sir, has not been . shareholder in the company since 1920. and that the late William Rock efeller owned only TOO shares at the time of his death"
 Other questions brought from the witness the amount of crude oil and gasoline held in storage, pric9s paid for crude oil and costs of tra'nspor- -etion and refining.