The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1923-01-26
HEAD OF STANDARD
OIL IN STATEMENT.
Prepared To Face Senate Prob
ing Committee With Story
of Concern
Especial 10 The Free PTcSS.
ID c Iannaf.u


Washington. d. c., January %
Colonel Robert w. Stewart. Chicago
chairman of the board of directors
and executive head OF the Standard
Oil Company undiana), was ex-
pected to testify today before the
senate committee on manufacturers
which is Investigating the alleged
high price of gasoline. Colonel Ste
wart was prepared 10 make the fol
lowing statement to the committee:
1t is wrong 10 charge that the
standard Oil company OF Indiana
has monopoly OF the oil business IN
the middle west, or that it can arbi-
trarily dictate the price OF gasoline
either up or down. While the Stan
dard Oil company of Indiana is the
largest single marketer OF gasoline
in the world, il the so called indie
pendents, members OF the National
Marketers, Petroleum association,
whose president has testified in this
hearing, were TO cut the price OF
gasoline five cents gallon or any
sum tomorrow. the Standard Oil
do likewise, and do it quick, or lose
its business.
Here arc the reasons:
AS regards crude oil. our Compe-
titors own practically all OF the pro
duction in the mid continent held,
from which source we derive our
principal supply.
As regards refining facilities, our
competitors have approximately five
times more refining capacity than
has the Standard Oil Company OF
Indiana.
AS regards sales OF gasoline, lu.
bricating oils and other petroleum
products in the territory where we
have distributing facilities, our com
petitors have twice as many service
stations as we maintain, while the
number OF bulk sales stations oper
ated by them about equals oGr own.
With the great bulk of produc
ton in the hands OF competitors and
with refining capacity far in excess
of our own. il is manifest that the
Standard Oil Company OF Indiana
can not so dominate the market as
arbitrarily to put the price of petro
leum products up or down. We must
of necessity ride along with our
competitors so long as they main
tain price which follows approx
mately the dictates OF the law of
supply and demand. and is not ex =
orbitant, but is normally based upon
reasonable profit.
From 4 review OF the testimony
giyen before this committee by the
So called Independents to date, it
would seem that while this is an
investigation into the alleged high
price OF gasoline, not the low price,
their principal complaint is against
the insistence of the larger com
panies in trying to hold down the
price to a reasonable figure.
"The Standard Oil Company OF
Indiana is an independent corpora
ton, not a member of any trust or
stockholders, of whom more than
S 900 are employees, ranging from
common laborers to executives.
While originally large amount Of
the stock was held by comparative
ly few people. today there is no
stock holder who owns more than
So percent of the whole.
Contrary to the general impress
sion. John d. Rockefeller owns not
single share of stock in this com
pany. Among our largest stoCkhold-
ers are general education board. the
Rockefeller Foundation. the Uni
versity of Chicago. and other edu-
cational and charitable Organiza-
| tions.
'As regards capitalization, our
authorized capital stock has re
Gently been Increased from $40
O00, 900 to $3.50, 100000. Prior to this.
the company was heavily under
capitalized, and while it's earnings
have apparently been large when
figured on a basis OF capitalization,
when figured on the actual money
invested, they have not been exces-
| sive.
1T is interesting TO note that
while during the ten years ending
January 1. 1922. this company has
paid TO its stockholders in cash diyi-
dends the sum of S74.561 ,005 so.
during the same period ii has paid
in federal and local taxes the sum
of $79.545, 1895.
IN it's treatment of employ ees,
the company challenges Compari-
son. We have an industrial rela
tions plan whereby employees them
selves pass on wages, hours, and all
other matters relating to their gen,
eral welfare We have an annuity
plan whereby veteran employees are
retired on pensions and their de-
pendents taken care OF. Under
this plan more than 100000 has
already been distributed. We have
a plan whereby employees can pur-
chase stock in the company on the
| installmeat plan, the company Civ
ing them $4,000 worth Of stock for
every $4,000 worth they buy. These
are merely the high spots.