Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-04
GOVERNOR BAXTER
TAKES OATH TODAY
FOR SECOND TERM
OIL PROBE
UNC0vERS PROFITS
OF BIG COMPANIES

Washington, Jan. 3.-Profits aver
aging from one cent to one and q.
half cents are realized by the Stand
ard Oil Company of New York, upon
each gallon of gasoline produced in
It's refineries. according to testimony
submitted by the corporation today
today in the Senate Oil investiga-
ton.
Testimony was presented to the
senate manufacturers sub commit
tee conducting the inquiry by four
ofhcials of the Standard of New
YORK. who replying to questions put
hV the committee counsel. described
IN detail operations of the company
IN the held of foreign and domestic
trade. transportation and finance.
incidentally the committee got it's
11rst direct information as to salaries
paid high officials of oil companies.
The statement as to profits on
gasoline was made by Howard A..
Wilkinson. a director of the cor
poration in charge of domestic sales.
He estimated the spread in gasoline
between the refineries of the Stand
ara OF New York, and the company's
1llllng stations in the territory it
covers-New York and the New
England States-at seven cents a
gallon.
the information as to salaries was
brought out by Chairman LaFollette.
representing of companies appear
ing previously before the committee
were asked to submit a list of their
higher officials and the salaries paid
each. However, when Howard f.
Cole, third vice president of the
Standard of New York. took the
stand today, Mr.. LaFollette asked
him point blank what his salary was.
Mr.. Cole was plainly disconnected
by the question, but finally replied
in a low voice that his salary for
1922 was $47,500. for 1921. was $42,-
600. and for 1919, was $4,000.
MIR. Wilkinson. who followed Mr..
Cole also was subjected to inquiry
as to his salary, and likewise in a
low voice said he was paid $4,000
last year, S27,500 the year previous,
and $4,000 in 1920. when he was
Boston manager for the Standard
New York.
While the manufacturers commit
tee was pursuing it's inquiry, which
is expected to be concluded the last
VI SiiAo AiioLliis otCPS NCIe ldhcII ny
the Senate public lands committee
to resume it's inquiry into leases of
naval oil reserves. Definite plans
were left for formulation next week,
but members said that investigation
probably would be made into leases
by the interior department to the
Sinclair interests in the Teapot
Dome region of Wyoming concern
ing which Secretary Fall Of the in
terror department desires to tes-
tify before his retirement from Of
fee March a.
Financial operations of the Stand
ard of New York were testified to
before the manufacturers commit
tee by A. E. Hinch, comptroller Of
the corporation, who estimated net
earnings of the company since the
Supreme Court dissolution decree at
$253,S17,550.
Mr.. Wilkinson in replying to
question as to domestic business of
the company said the Standard of
New York controlled about half of
the retail business in the territory
which it covered. He declared en-
phatically that Independent dealers
were given the same rights in the
purchase of gasoline from his COM
pany as dealers having the pumps
and tanks furnished by the company.
Reductions from "a to % cents a
gallon in the price of gasoline in
New York City ordered recently by
the Standard of New York. he said,
were due to competition by the Gulf
& Texas Companies.
Other representatives Of the
Standard of New York will be heard
tomorrow by the committee and then
the inquiry will be turned to the
Magnolia Petroleum Company sub
sidiary of the Standard of New York.