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INVESTIGATION OF CONCENTRATION
OF ECONOMIC POWER
HEARINGS
BEFORE THE
TEMPOBARY NATIONAL ECONOMIC COMMITTEE
CON&KESS OF THE UNITED STATES
.^ SEVENTY-SIXTH CONGRESS
W SECOND SESSION
PURSUANT TO
Public Resolution No. 113
(Seventy-fifth Congress)
AUTHORIZING AND DIRECTING A SELECT COMMITTEE TO
MAKE A FULL AND COMPLETE STUDY AND INVESTIGA-
TION WITH RESPECT TO THE CONCENTRATION OF
ECONOMIC POWER IN, AND FINANCIAL CONTROL
OVER, PRODUCTION AND DISTRIBUTION
OF GOODS AND SERVICES
PART 17-A
PETROLEUM INDUSTRY
REPLIES OF OIL COMPANIES TO THE COMMITTEE
QUESTIONNAIRE ON FINANCIAL DATA
AND RELATED TOPICS
OCTOBER 20, 1939
Printed for the use- of the Temporary National Economic Committee
UNITED STATES
GOVERNMENT PRINTING OFFICE
124491 WASHINGTON : 1940
TEMPORARY NATIONAL ECONOMIC COMMITTEE
(Created pursuant to Public Res. 113, 75th Cong.)
JOSEPH C. O'MAHONEY, Senator from Wyoming, Chairman
HATTON W. SUMNERS Representative from Texas, Vice Chairman
WILLIAM H. KING, Senator from Utah
WILLIAM E. BORAH, Senator from Idaho
CLYDE WILLIAMS, Representative from Missouri
B. CARROLL REECE, Representative from Tennessee
THTJRMAN W. ARNOLD, Assistant Attorney General
•WENDELL BERGE, Special Assistant to the Attorney General
Representing the Department of Justice
JEROME N. FRANK, Chairman
•LEON HENDERSON, Commissioner
Representing the Securities and Exchange Commission
GARLAND S. FERGUSON, Commisslonei;
»EWIN L. DAVTS. Commissioner
Representing the Federal Trade Commission
ISADOR LUBIN, Commissioner of Labor Statistics
♦A. FORD HINRICHS. Chief Economist, Bureau of Labor Statistics
Representing the Department of Labor
JOSEPH J. O'CONNELL, Jr., Special Assistant to the General Counsel
Representing the Department of the Treasury
Representing the Department of Commerce
JAMES K. BRACKETT, Executive Secretary
'Alternates
II
CONTENTS
Exhibit No. 1312
Page
Statement (A) prepared tor the Temporary National Economic Committee
by Christopher Del Sesto, Special Assistant to the Attorney General,
Department of Justice, based upon financial reports and data submitted
by oil companies in response to the Committee QuestioTinaire 9961
Restatement of capital stock and revaluations of assets 9963
The changing concept of surplus of corporations 9967
Accounting practices and policies 9970
Representation at stockholders' meetings j__ 9972
Compensation to officers and directors 9972
Employee participation plans 9974
Summary of management's participation plan ot the Texas Corp 9977
Summary of :efficiency contribution fund 9977
Tables A to Q — Comparison of compensation paid to oflScers and
directors, net earnings applicable to common stock,
and dividends paid on common stock for:
Atlantic Refining Co 997&^
Consolidated Oil Corp 9979
Continental Oil Co 9979
Empire Gas & Fuel Co .. 9979
Gulf Oil Corp 9980
The Ohio Oil Co 9980
Phillips Petroleum Co 9981
The Pure Oil Co 9981
Shell Union Oil Corp : 9982
Skelly Oil Co l 9982
Socony- Vacuum Oil Co., Inc 9982
Standard Oil Co. (Indiana) 9983
Standard Oil Co. (New Jersey) 9983
Standard Oil Co. (Ohio). 9984
Sun Oil Co 9984
The Texas Corp 9985
Union Oil Co. of California : 9985
Exhibit No. 1313
Replies to Item 8a of T. N. E. C. Questionnaire — Summary of companies
reporting that surplus was credited for part of the proceeds received from
the original issue of capital stock.
Cities Service Co. (Delaware) 9987
Consolidated Oil Corp 9988
The Pure Oil Co 9988
Socony- Vacuum Oil Co., Inc 9989
Standard Oil Co. (Indiana) 9990
Standard Oil Co. (New Jersey) - 9990
Standard Oil Co. (Ohio) 9991
The Texas Corp 9991
Union Oil Co. of California - 9992
Exhibit No. 1314
Analysis of shares of capital stock voted at stockholders' meetings:
Atlantic Refining Co 9993
Cities Service Co. (Delaware) : 9997
Continental Oil Co 9998
Consolidated Oil Corp .1 ^ 9998
The Gulf Oil Corp 10005
ni
IV fJfjXTLXTS
Analysis of shares of capital stock voted at stockholders' rnr^etings — Con. PaK«
The Ohio Oil Co 10007
Phillips Petroleum Co IQOll
The Pure Oil Co : 10013
Shell Union Oil Corp.. 10014
Skelly Oil Co .- 10015
Soconv-Vacuum Oil Co., Inc 10020
KtanrJard Oil Co. rinriiana) 10021
Standard Oil Co. CXew .Jersey) 1 .- 1002.5
Standard Oil Co. (Ohio; 10026
Sun Oil Co - - .- 10026
The Texas Corp 10028
Tide Water Afisociate^l Oil Co 10030
Union Oil Co. of Culifor- ia 10032
Exhibit No. 1315
Statement (B) prepared for the Temporary National Kcoriomic (Jornrnittee
by Christopher Del Sesto, Special Assistant txj the Attorney C-eneral, De-
partment of .Justice, based upon replies of the companies to the Com-
mittee Questionnaire as to the cost of gasoline at the refinery gate and
the costing policies of tlie oil companies, and the cla.shiiication of income
by branches and departments of the business 10033
Exhibit No. 1316
Replies to Question 32 of T. N. E. C. Questionnaire pertaining to costs of
gasoline and costing policies.
MAJOR COMPAN'lES
Atlantic defining Co 10047
Arkansas Fuel Oil Co . 10049
Cities Service Oil Co. (Pennsylvania) 10050
Consolidated Oil Corp 100.54
Continental Oil Co 10055
Empire Gas and Fuel Co , 10053
Gulf Oil Corp 10056
The Ohio Oil Co 10058
Phillips Petroleum Co 10059
The Pure Oil Co 10060
Shell Union Oil Corp 10061
Skelly Oil Co 10063
Socony-Vacuum Oil Co 10064
Standard Oil Co. (Indiana) and subsidiaries 10065
Standard Oil Co. (Kentucky; 10072
Standard Oil Co. (New Jersey) 10073
Humble Oil and Refining Co 10073
Colonial Beacon Oil Go 10079
Standard Oil Co. of Louisiana 10082
Stanrlard Oil Co. of New Jersev_ ^ 10085
Standard Oil Co. (Ohio) ".. . . 10092
Sun Oil Co 10092
The Texas Corp . ... . 10093
Tide Wa'er Associated Oil Co 10098
Union Oil Co. of California 10099
NON-.MAJOR COMPANIES
.\niefadH Corp 10099
Auieri<-an Republics Co- 10099
Ashland Oil and Refining Co _. _ . 10100
Barnsdall Oil Co . ._. . 10101
Barusdall Refining Co '"[ 10104
Chalmette Petroleum Corp.. 1111 10105
Ch'i.npUn Refining Co " . 10105
^>,:v]fn Petroicurn ' orp 10105
CONTENTS V
ReplicK to Qurst.iun 32 of T. N. E. C. Qiicstiomiai.rc portaiiiiiiK to cost uf
gatiuliiic and costing policies — Continued.
NON-MAJOR COMPANIES — Continued
Hickok Oil Corp 10105
Houston Oil Co. of Texas 10106
Kendall Refining Co 10106
Lion Oil Refining Co 10107
National Refining Go .._ 10107
Plymouth Oil Co . 10108
Quaker State Oil Refining Corp 10109
Republic Oil Refining Co 10109
Richfield Oil Corp 10112
South Penn Oil Co 10112
Exhibit No. 1317
Analysis of consolidated assets and consolidated, income, classified by
branches or departments.
MAJOR COMPANIES
Arkansas Fuel Oil Co. and subsidiary - 10115
Cities Service Oil Co. (Pennsylvania) and subsidiaries 10120
Consolidated Oil Corp 10129
Continental Oil Co . . 10132
Empire Gas and Fuel Co. and subsidiaries 10124
Gulf OUCoTp... 10135
The Ohio Oil Co . 10140
Phillips Petroleum Co -- 10143
Pure Oil Co . 10147
Shell Union Oil Corp . 10151
Skelly OilCo 10154
Socony- Vacuum Oil Co 10156
ftandard Oil Co. (Indiana) 10160
tandard Oil Co. (Ohio) . Facing 10160
Sun Oil Co -• 10161
Texas Co : -.-. 10161
Tide Water Associated Oil Co ." 10162
Union Oil Co. of California 10163
NON-MAJOR COMPANIES
Amerada Corp 10167
American Republics Corp 10170
Ashland Oil and Refining Co 10173
Barnsdall Oil Co . 10176
Barnsdall Refining Corp 10178
Chalmette Petroleum Corp 10180
Champlin Refining Co 10182
Cosden Petroleum Corp 10185
Danciger Oil and Refining Co 10187
Hickok Oil Corp 10189
Lion Oil Refining Co 10192
National Refining Co 10194
Plymouth Oil Co. and Big Lake Oil Corp 10198
Quaker State Oil Refining Corp 10202
•Republic Oil Refining Co 10204
Richfield Oil Corp 10205
South Penn Oil Co 10207
Standard Oil Co. in Kentucky 10210
Standard Oil Co. (Nebraska) 10211
Valvoline Oil Co 10212
INVESTIGATION OF CONCENTRATION OF ECONOMIC POWER
FRIDAY, OCTOBER 20, 1939
United States Senate,
Temporary National Economic Committee,
Washington, D. C.
EXHIBITS NOS. 1312, 1313, 1314, 1315, 1316, AND 1317 ^
Department of Justice,
Washington.
Exhibit No. 1312
Statement Prepared for the Temporary National Economic Committee
(Based upon financial reports and data submitted by oil companies to the Tem-
porary National Economic Committee dn response to the Committee's
questionnaire)
statement a
(By Christopher Del Sesto, Special Assistant to the Attorney General, Depart-
ment of Justice, Washington, D. C.)
The task assigned to me has been to study and review briefly the financial
reports and data submitted by oil companies to the Temporary National Economic
Committee in response to this Committee's questionnaire.
A resume of the financial data submitted by oil companies has already been
presented to this Committee as part of the Outline of Economic Data Relating
to the Petroleum Industry which was submitted to this Committee on the opening
day of these hearings. (See Exhibit 1139, in Vol. V., No. 16, p. 521 et seq. of
Record; and Appendix I of Exhibit 1139, in Vol. VI, No. 6, p. 269 et seq. of Record.)
Some of the more salient financial facts there presented may be reviewed briefly.
The petroleum industry utilizes at present from 11 to 15 billion dollars of capital.
Measured by the gross investment in capital assets, the indnstrv has grown from
6}i billion dollars in 1921 to 14% billion dollars in 1938.
The investment in the industry is spread over the four branches of the industry
in approximately the following proportions: production, 45%; transportation,
15%; refining and manufacturing, 25%; marketing, 15%.
Earnings in the petroleum industry fluctuate to a greater degree than do the
earnings of other industries, and the fluctuations are not always synchronous
with changes in other industries.
Dividends paid by the principal oil companies during the 15-year period
1922-1937 averaged about 4% a year while the average for 135 leading industrial
corporations for the same period averaged better than 5%.
The petroleum industry is characterized by a relatively small number of large
enterprises constituting probably two-thirds of the investment in the entire
industry. The remainder of the industry is made up of thousands of small
proiducers and marketers and several hundred refining companies.
' Entered in the record October 20, 1939. See Hearings, Part 17, p. 9606. Eesponsibility for the accur-
acy of data herein rests with Mr. Del Sesto.
9961
g9g2 CONCENTRATION OF ECONOMIC POWER
These larger units in the petroleum industry are commonly referred to as
"major companies."* The major companies are twenty in number and were
incorporated in the following states:
Delaware '. 9 companies.
Ohio 3 companies.
New Jersey --. 2 companies.
New York , 2 companies.
Pennsylvania 2 companies.
California 1 company.
Indiana i 1 company.
As of December 31, 1938, the total assets at depreciated value of the twenty
major oil companies were in excess of 8 billion dollars. During the 15-year
period, 1924-1938, the total assets of the twenty major oil compianies increased
from 5 to 8 billion dollars, or an increase of approximately 60%. Some of the
increase was accounted for by consolidations and mergers..
Even among the twenty major oil companies, there is considerable concentration
of assets among the five leading companies — Standard Oil Company (New Jersey) ,
Socony-Vacuum Oil Company, Incorporated, Standard Oil Company (Indiana),
The Texas Corporation, and Standard Oil Company of California. Of the ap-
proximately 8 billion dollars of total assets owned by the twenty major oil com-
panies, over 60% was, concentrated in the first five major oil companies.
The average annual earnings of the twenty major oil companies for the 15-year
period from 1924-1938 amounted to approximately 283.2 million dollars. This
was equal to 8.9% of the par or stated value of common stock outstanding, and
was equal to 5.6% of the book value of common stock outstanding (par orjstated
value plus surplus). During this period, approximately 70% of the net earnings
applicable to common stock was paid out in dividends and the remaining 30% was
retained in the business.
The dividends paid by the major oil. companies during 1924-1938 averaged 6.3%
annually of the par or stated value of common stock outstanding, and averaged
4% annually of the book value of common stock outstanding.
* * * * , * * *
Important as these facts may be, I believe, however, that this Committee is
interested in the broad issues presented by the data furnished by the oil companies
and I would like to discuss these broad issues with you in some detail.
This Committee is charged with the responsibility of studying the concentration
of economic wealth and power; and to determine, when concentration does exist
in an industry, whether such wealth or power is being used efficiently and in the
public interest.
1 The twenty major oil companies listed in the order of their total assets as of December 31, 1938, with the
States and dates of incorporation follow. The names of the companies are their present legal names,
as reported to the Temporary National Economic Committee.
Name of Company
State of Incor-
poration
Date of Incorporation
1. Standard Oil Company ^
2. Socony-Vacuum Oil Company, Inc
New Jersey
New York
Indiana
August 5, 1882.
August 10.1882.
3. Standard Oil Company
June 18, 1889.
4. The Texas Corporation _•
Delaware.-
August 26, 1926.
5. Standard Oil Co. of California ...
Delaware
January 27, 1926.
6. Gulf Oil Corporation..
Pennsylvania
Delaware
August 9, 1922.
7. Cities Service Company
September 2, 1910.
Arkansas Fuel Oil Company.
West Virginia
Pennsylvania
Delaware
March 7, 1912.
Cities Service Oil Company
September 15, 1916.
Empire Gas and Fuel Company
June 12, 1919.
8. Shell Union Oil Corporation
Delaware . .
February 8, 1922.
9. Consolidated Oil Corporation..
New York
Delaware
September 23, 1919.
10. Phllllps'Petroleum Company
June 13, 1917.
11. Tide V^^ater Associated Oil Co
March 6, 1928.
12. The Atlantic Refining Company
Pennsylvania
Ohio
AprU 29, 1870.
13. The Pure Oil Company....
April 9, 1914.
14. Union Oil Company of California..
California
October 17, 1890.
15. Sun Oil Company
New Jersey
Ohio. .
May 2, 1901.
16. The Ohio Oil Company.
July 30, 18S7.
17. Continental Oil Company...
Delaware
October 8, 1020.
18. The Standard OU Company
Ohio
January 10, 1870.
19. Mid-Continent Petroleum Corp
Delawan.
July 9, 1917.
20. Skelly Oil Company
August ao, 1910.
CONCENTRATION OF ECONOMIC POWER 9963
It has already been amply demonstralod in tlieso hearings thns fur, tliat within
the petroleum industry there is concentration of economic wealth and power.
Much of the petroleum industry is concentrated in the hands of the twenty large
integrated major companies. One of these companies has total assets in excess of
two billion dollars, and its annual volume of business is in excess of one billion
dollars. The financial operations of this compan}^ and of most of the other major
oil companies, exceed those of many large municipalities and States in this coun-
try. The operations of many of the major oil companies are world-wide in scope.
Having determined that there is concentration of economic power and wealth,
the next inquiry is whether such wealth or power has been used efficiently by those
in control of the major oil companies, and whether such wealth or power has been
used in the public interest. At the threshold of this inquiry, many obstacles are
met.
It is almost impossible to determine the efficiency of the large corporations of
today. Two factors are largely responsible for this situation: (1) liberal state
corporation laws, and (2) flexible accounting policies and practices.
State corporation laws now in force and current accounting practices and policies
make it comparatively simple for the management of a corporation to show
earnings and to pay dividends notwithstanding the fact that, from an economic
point of view, the corporation has been unsuccessful.
Under present state corporation laws dividends may be paid out of the capital
contributed by stockholders rather than from earnings. Only a very few states
require that dividends may be paid only from surplus arising from earnings.
Thus, a steady dividend record of a corporation is not at all conclusive that the
management has been successful.
Under present day accounting practices, management can bury certain current
operating charges and operating expenses in the surplus account instead of charg-
ing the current income account; management can write up and write down assets
at wiU; management can reduce or entirely eliminate certain depreciation and
depletion charges. It follows, therefore, that a current profit of some kind
can be reported even though there is actually a shrinkage in the investment
of stockholders.
In view of the present corporation laws and current accounting practices, there
can be no accurate determination of whether the management of a corporation was
justified in buying or building plants, or in the acquisition of other companies.
The stockholders of a corporation cannot properly appraise the management's
action, nor can the public at large determine whether the expansion of large
corporations by mergers and consolidations is justified and in the public interest.
Liberal corporation laws and flexible accounting policies, of course, do not obtain
only in the oil industry. Similar conditions may be found in every large industry
where corporations raise their funds by the sale of securities to the general public.
But since the oil industry is dominated by giant corporations, which because of
their size and importance to the national welfare may be regarded as somewhat
quasi-public in nature, it seems fitting to discuss this subject in some detail in the
present hearings. .
One of the fruits of this investigation should be a detailed study of the limita-
tions of the state corporation laws now in force, and the weaknesses of current
accounting practices and policies.
Unless these deficiences are corrected, it will be impossible to determine whether
or not the concentration of the wealth of this country in the hands of the few
managers of large corporations has been beneficial or detrimental to the public
interest.
I shall now discuss what I consider to be some of the more important provisions
in state corporation laws, and some of the current accounting practices and
policies, which should merit serious consideration on the part of this Committee.
Restatement of Capital Stock and Revaluations of Assets
In the early days of the distribution of securities of large corporations among the
public, investors placed much emphasis in their analysis of the affairs of corpora-
tions upon their net worth as reflected in balance sheets. At that time it was not
uncommon for management, from time to time, to inflate artificially the net worth
of corporations by arbitrarily writing up the book value of assets. This practice,
known as "stock watering" has now greatly disappeared. It has been supplanted
by a new practice which is more subtle and yet which has more far-reaching
effects — the restatement of capital stock, and the write-down or revaluatioii of
assets.
9964 OONCENTRATION OF ECONOMIC POWER
This change in strategy on the part of managers of large corporations has been
occasioned by the change in the technique in investment analysis. While for-
merly, the emphasis was placed upon the net worth of a corporation, now the
emphasis is placed on the earning record of a corporation. Seldom, if ever, do
financial newspapers now report the book value per share of capital stock as rep-
resented by the balance sheets of a corporation. Emphasis is given now rather
to the earnings per share. Seldom is mention made of the fact that in some cases
the so-called earnings are not in fact earnings, and that actually the contributed
capital of stockholders is being dissipated.
The practice of restating of capital stock is a comparatively simple procedure.
The par of stated value of the capital stock of a corporation is reduced, and the
amount of reduction transferred to surplus, sometimes designated as capital sur-
plus. Against this surplus, assets are written off.
At first blush,'this appears to be an innocent practice, and possibly one to be
commended on the ground of conservatism. Actually, however, restatements of
capital stock accompanied by revaluations of properties have the eflfect of por-
traying more favorable earning results in subsequent years because of the decrease
in fixed charges such as depreciation, depletion, and amortization.
In many cases, the principal reason for the write-downs of assets is to obtain
the favorable effect of reduction of depreciation, depletion, and amortization upon
the earning statement. Thus, if the plant account is eliminated, future depre-
ciation charges are also eliminated; if the plant account is reduced, future depre-
ciation charges are also reduced. If oil wells are written down to one dollar,
depletion charges in the future are eliminated.
The elimination or reduction of these fixed charges increases the reported
earnings of the corporation and gives the appearance of an eflicient and profitable
corporation,. when in fact the reverse may be true. It is at once apparent that
the write-down of assets against so-called surplus created by the restatement of
capital stock might easily be a vehicle for the distortion of operating results and a
means whereby the management might perpetuate itself in office, notwithstanding
the fact that management is misleading stockholders into believing that apparent
earnings are true earnings.
This phenomenon is not clearly understood by the general public. While
it is true that the restatements are preceded by notice to the stockholders and are
accompanied by vote of stockholders, this process is generally a ritualistic pro-
cedure in the control of the management group.
Restatements of capital stock are quasi-reorganizations and the practical
effect is the same as if a corporation had gone through receivership proceedings or
bankruptcy proceedings. So far as I know, however, there is no State law in this
country providing for review of any court of such a proceeding. In England,
however, under the English Companies Act of 1929, it is provided that any
reduction of share capital must be confirmed by a court.
This practice of restating capital stock has been indulged in since 1929 by at
least eight of the twenty leading oil companies. These have included the
following.
State of
Name of Company: incorporation
Consolidated Oil Corporation New York.
Continental Oil Company Delaware.
Mid-Continent Petroleum Corporation Delaware.
The Q{xLo Oil Company Ohio.
The Pure Oil Company Ohio.
Skelly Oil Company Delaware.
Socony- Vacuum Oil Company, Inc New York.
Tide Water Associated Oil Company Delaware.
In addition to the above companies, the Cities Service Company, incorporated
in Delaware (parent company of Empire Gas and Fuel Company) also restated its
capital stock during the past year.
It is not to be implied that this practice is common only in the petroleum
industry. In view of the fact, however, that the petroleum industry is one of
the four largest industries of the country and is dominated by large corporations
which raise their funds from the general public, it 'is no doubt fitting that this
financial practice should receive the scrutiny of this committee at this time.
It will be noted that, of the nine corporations named above which have restated
their capital stock, five were incorporated in the state of Delaware. This Com-
mittee, therefore, may wish' to consider the role played by present state corpora-
CONCENTRATION OF ECONOMIC POWER 9965
tion laws in the concentration of economic wealth and power. While, in fact,
there is now no federal incorporation law, there is for all practical purposes a kind
of national incorporation law since the provisions of corporation laws of such states
as Delaware set the pattern which is followed by other states.
Some of the companies have engaged in both the practice of stock watering
when it was the custom to follow that practice and have now changed to the
current practice of restatement of capital stock.
This Committee's questionnaire asked the oil companies to explain any restate-
ments of capital stock during the period from January 1, 1929 to December 31,
1938. The replies received by the Committee are tabulated below.
Pure Oil Company. — The Pure Oil Company explained the restatement of
capital stock in 1932 as follows:
"On June 4, 1932, the shareholders of the reporting company authorized
a change in its common shares from shares of a par value or $25 each to an
equal number of no par value' shares with an assigned value of $10 each.
The reduction of $15 per share applicable to the outstanding common shares
aggregated $45,575,550 which amount was credited to paid-in surplus. Con-
currently, the board of directors authorized a charge to paid-in surplus in the
amount of $28,083,742.59 in connection with the revaluation of the Company's
properties."
At the meeting of June 4, 1932 at which the above restatement was voted, stock-
holders were represented as follows:
11,173 shares voted by stockholders in person.
3,180,395 shares voted by proxy exercised by officers.
Continental Oil Company. — The Continental Oil Company also restated its
capital stock. In this connection'it reported to the Temporary National Economic
Committee as follows:
"As of October 31, 1932, the officers and others X)f the personnel of the
Company, working in conjunction with members of the staff of the Com-
pany's auditors, Messrs. Arthur Young & Company, New York, made an
appraisal of the properties ^v^.'^ investments of Continental Oil Company
and subsidiary companies. The results thereof were reviewed by the Board
of Directors, who approved, and submitted to the stockholders for their
approval, a revaluation of assets and reserves resulting in a net reduction
of $61,409,120.50.
"The stockholders of the Company, at their annual meeting held May 9,
1933, approved the revaluation, and at the same time approved a plan for
the revision of the capital structure of the Company through a reduction of
capital and a change from shares of no par value to the par value of $5 each,
resulting in a charge to Paid-in Capital and a credit to Capital Surplus in
the amount of $105,153,900.81. Against this Capital Surplus there was
charged the above amount of $61,409,120.50 and the accumulated Earned
Surplus (Deficit) as of December 31, 1932, of $13,693,333.95."
It will be noted that, as a result of the revision of the Capital structure of the
Company, a deficit of $13,693,333.95 was eliminated.
At the meeting of May 9, 1933 at which the above restatement was voted,
stockholders were represented as follows:
543 shares voted by stockholders in person.
2,681,124 shares voted by proxy exercised by officers.
The Consolidated Oil Corporation restated its capital stock as of January 31,
1932. It reported to the Temporary National Economic Committee as follows:
"As at January 31, 1932 the accounts of the reporting company gave effect
tCh-a, restatement of capital which involved the transfer ot Capital Surplus
of the amount by which the stated equity of its outstanding Common Stock
without par value exceeded the nominal value of $5 per share. Such restate-
ment was approved by the stockholders of the reporting company at a special
meeting held on March 1, 1932.
"Common Stock stated equity account per Company's books
at January 31, 1932 (prior to restatement of capital) repre-
sented by 6,107,403 shares of company's common stock $251, 315, 390
Restatement at nominal value of $5, per share 30, 537, 015
Balance credited to Capital Surplus 220, 778, 376
9966
CONCENTRATION OF ECONOMIC POWER
"The purpose of such restatement at January 31, 1932, was that Capital
Surplus might be created to enable the directors of the reporting company
to apply so much thereof as they might deem advisable to writing down the
valuation of certain assets to values more nearly conforming to then esisting
economic conditions."
At the meeting of January 31, 1932, at which the above restatement of capital
stock was authorized, the stockholders were represented as follows:
5,673 shares voted in person.
4,746,695 shares voted by proxy exercised by the management.
1,827 shares voted by other proxies.
The Okio Oil Company. — At the annual stockholders' meeting on May 23, 1935,
the stated capital of The Ohio Oil Company represented by 6,648,052 outstanding
shares of common stock without par value was reduced from $100,000,000 to
$60,000,000 and capital surplus of $40,000,000 was created. The Company re-
ported to the Temporary National Economic Committee that, "the purpose of
this restatement of capital stock was to create a capital surplus for corporate
needs."
At the meeting of May 23, 1935 at which the above restatement was voted
stockholders were represented as follows:
J"lil rtlreTor/reTe^ro^k.'.-Jlllvoted by stockholders in person.
^4'o'k'?2hl';rSf°pre?e™3°sSS':::}^°'«d "^ P-^>- --"--i ".v o»cer..
Shelly Oil Copipany. — The Skelly Oil Company reported to the Temporary
National Economic Committee as follows:
"On January 3, 1936, the stockholders authorized the reduction of the par
value of the common stock of the Reporting company from $25 to $15 per
share, the reduction of the capital of the company by $10 per share on the
outstanding 1,008,548.6 shares of common stock resulting in the transfer
of $10;085,486 from capital stock to capital surplus; the application of
$4,940,351.39 out of capital surplus to eliminate the deficit of like amount
in earned surplus (deficit) as of September 30, 1935.
"The purpose of this restatement of capital stock was to provide capital
surplus out of which could be applied to earned surplus (deficit) as of Sep-
tember 30, 1935, an amount sufficient, to eliminate the latter.^'
It is to be noted that, as a result of the restatement of capital stock, a deficit
of $4,940,351.39 was eliminated.
At the meeting of the stockholders of January 3, 1936 at which the restate-
ment was approved, stockholders were represented as follows:
760,177 shares voted by ofl^cers and directors as proxy.
Socony-Vacuum Oil Company, Incorporated. — On May 31, 1934, the Socony-
Vacuum Oil Co., Inc. reduced the par value of the outstanding capital stock from
$25 to $15 per shares. The effect was a transfer of $317,024,940 from capital
stock to capital surplus. The Company reported to the Temporary National
Economic Committee: "The purpose of the reduction was to create capital sur-
plus against which to charge off goodwill and appreciation of properties." Against
the capital surplus created there was written off the sum of $228,123,580.68 repre-
senting goodwill and appreciation of properties.
At the meeting of the stockholders of May 31, 1934, at which the restatement
was approved, stockholders were represented as follows in the voting at that
meeting:
Shares voted
by stock-
holders in
person
Shares voted
by proxy exer-
cised by other
than company
officers and
directors
Shares voted
by proxy exer-
cised by com-
pany officers
and directors
Election of officers
38, 070
38,632
38,166
37, 374
26,323
26,323
19,258
7,225
22, 990, 178
Proposition No. 1
22, 986, 105
Proposition No. 2..
22 985, 438
Proposition No. 3-
22 981,855
rONOENTRATION OF ECONOMIC POWER 9967
It, in to be tiofod that the restatement in tlie case of 3o(on.v-Varuuni 0\\ Com-
pany, Inc. occurred subsequent to the merger of the Standard Oil Company of
New York and the Vacuum Oil Company. It is a fair inference that apparently
the merger had been consummated on an inflated basis and thus, it was necessary
to write off approximately a quarter of a billion dollars soon after the merger in
order to show favorable operating results in the future.
This has much significance to your Committee. Since mergers and consolida-
tions are generally accomplished by exchange of securities, there is no realistic
deterrent to the amount that is paid for the acquisition of other companies,
particularly when a few years later the properties can be written down at the will
of the management.
Tide Water Associated Oil Company. — On May 5, 1932, Tide Water Associated
Oil Company restated the book value of its common stock to $10 per share which
created a capital surplus of $34,097,880. At the same time, the company revalued
its assets and wrote off unrecoverable and intangible items in the sum of $34,097,-
880. This adjustment fully absorbed the capital surplus created by the restate-
ment.
At the meeting of the stockholders of May 5, 1932, at which the above restate-
ment was approved, stockholders were represented as follows:
34,407' shares voted by stockholders in person.
3,895,716 shares voted by proxy by company officers and directors (Manage-
ment Proxy Committee).
Mid-Continent Petroleum Corporation. — On May 2, 1934, Mid-Continent
Petroleum Corporation reduced its capital represented by its outstanding capital
stock from $55,272,301 to $18,579,120 and changed the par value of its shares
from no par to $10 par. The amount of the reduction ($23,749,452) was trans-
ferred from the capital stock account to the capital surplus account. The directors
were authorized to appraise the assets of the company and to charge any excess of
book values over the values so determined against the capital surplus.
This company did not answer the Committee's questionnaire, and hence it is
not known how stockholders were represented at the meeting of May 2, 1934.
Cities Service Comjtany. — The experience of Cities Service Company (Delaware),
parent company of Empire Gas & Fuel Company is summarized as follows in a
report to the Temporary National Economic Committee:
"On April 26, 1938, as of December 31, 1937, Cities Service Company
restated the value of 37,455,670 Common shares of No Par Value, having
an aggregate stated value of $187,278,350.00, by reducing the same "o
3,745,567 shares each of the par value of $10.00 with an aggregate par value
of $37,455,670.00. The reduction amounting to $149,822,680 was recorded
on the books of the Company by charging Capital Stock $149,822,680 and
crediting Capital Surplus in like amoimt.
By resolution of the stockholders of Company adopted on April 26, 1938,
the Board of Directors was authorized and empowered to make or cause to
be made appropriate charges against the capital surplus of Cities Service
Company to enable the following action to be taken:
(a") the elimination from its corporate balance sheet of Cities "Service
Company's interest in the undistributed surpluses of its subsidiary cornpanies.
now carried as an asset;
(b) reduction to the extent that rflay be deemed appropriate of the carrying
value of investments in and advances to subsidiaries or the setting up of a
reserve therefor;
(c) setting-up of a reserve' against accrued undeclared dividends on the
preferred and preference stocks of Cities Service Company; and
(d) provision for other adjustments and contingencies."
The Changing Concept of Surplus of Corporations
This Committee, in considering the concentration of economic wealth and
|)ower, should give some consideration to the changing concept of the surplus of
corporations, both from a legal and accounting standpoint. Traditionally at least-
the surplus of a corporation was considered to consist of the accumulated earnings
of the corporation which had not been disbursed as dividends. This concept is
gradually disappearing.
Now there are many mongrel types of surplus, and surplus does not necessarily
represent accumulated earnings. Sometimes surplus other than true surplus is
•9968 CONCENTRATION OF ECONOMIC POWER
given a distinctive title, such as paid-in surplus, capital surplus, or appraisal
surplus, but this practice is not always followed. While paid-in surjjius, capital
surplus, and appraisal surplus do not represent earnings, they are nevertheless
all available for dividends under the laws of many states.
Many of the present state corporation laws now provide that upon the issuance
of capital stock, the directors may allocate a part of the proceeds received to paid-in
surplus. But many of the laws place no restrictions whatsoever on the use of
paid-in surplus, and such surplus is immediately available for the payment of
dividends. Thus the moment after a corporation receives the proceeds of the
sale of its capital stock it may start to pay dividends even though it has trans-
acted no business whatsoever, and has not earned a single doUar. Or, a corpora-
tion may acquire the business of another corporation by the issuance of stock; the
directors within their uncontrolled discretion may allocate a portion of the book
amount of the stock so issued to paid-in surplus; and immediately pay dividends
without having to wait for any earnings to accrue.
Here then is a legal provision which is of invaluable assistance to the manage-
ment of a corporation that wishes to keep itself in office. It can maintain a steady
and possibly liberal dividend policy, and the unsuspecting stockholder is lulled
into security by successive dividend checks not realizing that in some cases he is
' merely receiving a part of his original investment.
This loophole in the corporation laws of today is of significance to your Com-
mittee in studying the concentration of economic wealth and power. While the
growth of large corporations may not of itself be detrimental to the public interest,
the possibility that these corporations may be managed by inefficient or self-
seeking groups is of concern to the public. If directors are trustees of funds of
the public, there must be adequate standards established in the corporation laws.
This potentiality of abuse should be eliminated.
In connection with the hearings on the petroleum industry, this Committee
requested the major oil companies to indicate whether during the period 1929-
1938, they had issued any original issue of capital stock and had credited to surplus
any of the proceeds of the issuance of that stock. Nine of the eighteen reporting
major oil companies replied that they had. These companies are listed below:
Cities Service Company.
Consolidated Oil Corporation.
Pure Oil Company.
Socony- Vacuum Oil Company, Inco^orated.
Standard Oil Company (Indiana).
Standard Oil Company (New Jersey).
Standard Oil Company (Ohio).
The Texas Company.
Union Oil Company of California.
The detailed answers of the above companies are included in Appendix I.
Some of the replies received are summarized as follows:
During the period 1929-1938, Cities Service Company (Delaware) credited to
capital surplus over $70,000,000 upon the issuance of capital stock.
Consolidated Oil Corporation, in connection with the acquisition of the assets
and business of the Prairie Oil and Gas Company and the Prairie Pipe Line Com-
pany, recorded the properties acquired on its books at a value of approximately
$136,000,000. While only $40,500,000 was credited to capital stock, over
$96,000,000 was placed in the capital surplus account.
Pure Oil Company credited to surplus the sum of $4,718,000 in connection
with the issuance of common stock during the period 1936-1937.
Standard Oil Company (Indiana) during the period 1929-1938, issued stock
of the par value of approximately $195,000,000. In connection with the issuance
of this stock, there was credited to capital surplus approximately $88,000,000.
The largest portion of this amount arose in connection with the issuance of stock
in exchange for Pan American Petroleum and Transport Company stock in 1929
and 1930. At the time of that transaction there was credited to capital surplus
approximately $72,000,000.
The Standard Oil Company (New Jersey), during the period 1929-1938, issued
phghtly more than 2,000,000 shares of its common stock. Of the proceeds of
these shares, approximately $53,000,000 was credited to the capital stock account
and $47,000,000 to capital surplus.
CONCENTRATION OF ECONOMIC POWER QQgg
In 1931, Standard Oil Company (Ohio) issued 62,639 shares common stock to
acquire the preferred stock of Ajax Corporation. In connection with the issuance
of this stock, there was credited to surplus $3,760,219. In the same year, there
was issued 124,028 shares to acquiie the assets of Refiners Oil Company. At the
time of this transaction there was credited to surplus the sum of $7,445,400.
The Texas Corporation in 1929 issued 1,404,210 shares of common stock. In
connection with the issuance of this stock, there was credited to the cai)ital
surplus account $21,063,150. In 1937, the Texas Corporation issued 1,534,999
shares of common stock. In connection with this transaction there was credited
to the capital surplus account $23,043,735.
The Union Oil Company of California in 1929 and 1930 issued 379,093 shares
of common stock. Surplus was credited with the difference between the sale
price of the stock which was $35 per share and the par value of the commcyi
stock, which was $25 per share. In the aggregate, surplus was credited in the
sum of $3,799,930.
In considering the liberal provisions of state corporation laws with jespect to
surplus, this Committee should also give some attention to the flexible accounting
policies in connection with surplus. Many corporations are able to maintain
an appearance of relative stability in current earnings by using the surplus
account as a convenient "dumping ground" for so-called adjustment and extraor-
dinary charges. Thus, it is a comparatively simple matter to divert current
charges from the current income account and through the back door to the
. surplus account.
It is not to be implied that the major oil companies wo the originators of
such a practice, or that the practice is only prevalent in the petroleum industry.
It exists among many of the larger corporations, but since the practice does exist'
among the major oil companies, it is a fitting subject for review by this Committee
at this time.
Theoretically, at least, the difference between the current earnings, of a com-
pany and the dividends paid during the year should represent the net increase
or decrease in surplus. Actually such is not the case as may be determined by
an examination of Tables 48 (a) to 48 (t) of Appendix I of Exhibit 1138 (volume
VI No. 6 pp. 364-383) which compare the aggregate earnings, dividends and
changes in surplus of each of the twenty major oil companies during the period
1929 to 1938. It will be noted from an examination of these Tables that in many
years there were apparently substantial surplus adjustments which were not
reflected through the current income account.
Some of these surplus adjustments are, no doiibt, due to corrections of wrong
calculations of profits or losses in earlier years. Notwithstanding this fact, some
accounting authorities recommend that earnings and expenses omitted in previous
years should be entered in the current income account of the year in which the
error is discovered. This is recommended so that the sum of the earnings of
successive years will show the total earnings. Under present practice it is very
rare indeed to find a company in which the sum of its annual earnings as repre-
sented by the current earnings statement actualh' represent the total earnings
for a period. Other accounting authorities also suggest that, if adjustments are
necessary because of wrong calculation of profits or losses in earlier yeaie, such
adjustments should not be buried in the surplus account. Rather, the cffmpany
should amend its previous financial reports to its stockholders, and submit com-
parative amended financial reports so that a stockholder may make a proper
analysis of the earning record of the corporation.
The use of the surplus account to absorb so-called extraordinary charges can
easily be used to present a favorable current earning record. Sometimes the net
earnings are small, and the charges to surplus so large, that it would take little
difference in opinion among accountants with respect to the propriety of certain
surplus charges to tip the scales and turn a current profit into a loss.
Consider the case of Standard Oil Company (New Jersey) for example. It has
shown a current net profit in each of the ten years from 1929 to 1938 inclusive.
In 1932, however, it reported to its stockholders a net profit of only $282,865
out of a gross operating income in excess of $1,000,000,000. But, during the same
year there were net surplus adjustments of over 21J^ million dollars. If only a
small portion of the items charged to surplus had been charged against the current
income account, there would have been no net profit in that year, and a record
of steady annual earnings would have been broken.
9970 CONCENTRATION OF ECONOMIC POWER
Accounting Practices and Policies
Accounting is a tool by which the efficiency of an enterprise may be determined.
In the Petroleum Industry, there is no uniform method of accounting in general
use. Although the American Petroleum Institute has published a uniform system
of accoimts, it is apparent that such a system has not been generally adopted by
most of the larger companies in the industry. ,
Not only is there a lack of uniformity of accounting within the industry itself,
but even individual companies have not maintained consistent accounting policies
from year to year. Consequently, comparisons of financial data between com-
panies within the industry and even comparisons of one company's financial re-
ports of one year with those of another year can not be made on the same basis.
Because of the great flexibility in accounting policies, it is difficult at times to
ascertain how much of the reported profits are real and how much are due to
accounting policies or methods; and whether a reported profit is actually a profit
or whether it is in fact a loss. Since each company may determine for itself its
own accoimting policy, and it may vary this policy at will, earnings may be either
over-stated or under-stated, depending upon the whims of a particular manage-
ment or the expediencies of the moment.
It might be pointed out, however, that within the last few years some changes
in accounting policies in the petroleum industry have been occasioned because of
the general adoption of proration laws in many of the oil producing states. It
was formerly the practice on the part of some oil companies to charge against
current income all drilling costs incurred in connection with oil wells. Since pro-
ration, many of the companies capitalize these drilling charges and then amortize
them over the estimated productive life of the oil wells. In some few cases this
change in policy has had a substantial efi'ect upon the operating results of the
company.
Under the provisions of the Securities Act of 1933 and the Securities Exchange
Act of 1934, and under the regulations of the Securities and Exchange Commis-
sion, full disclosure must be made of substantial changes in accounting policies.
This Committee might wish to consider, however, if this safeguard is sufficient
under all circumstances. Possibly, the statutory authority of the Commission
should be enlarged so as to enable that Commission to prescribe accounting
methods and policies of companies under its jurisdiction.
To illustrate ^le^ffect of changing accoiuiting policies upon the operating re-
sults of a company, certain excerpts are quoted from the annual reports of some
of the major oil companies. These excerpts are not intended to be exhaustive
but are merely illustrative of the.effect of changing accounting policies.
EMPIRE GAS AND FUEL COMPANY
Annual Report for 1938. — Effective January 1, 1938, the companies adopted the
policy (1) of including in income only dividends received from affiliated pipe
line companies, instead of their proportion of the net income of siich companies,
(2) in the case of the subsidiary oil companies, of charging against operations
leasehold development expense including lease rentals (formerly capitalized but
reserved for in full through the provision for depletion) and dry hole losses and
contributions, and (3) in the case of Indian Territory Illuminating Oil Company
(a subsidiary) of providing for depletion of oil producing properties on an overall
"per barrel" basis and for lease cancellations on a normal cancellation basis.
These changes in accounting policy brought about a net increase of $318,063.61
in the net income for the year 1938 in comparison with the result on the basis of
the' practice previously in effect.
SOCONY-VACUUM OIL COMPANY, INC.
Annual Report for 7557.— Effective January 1, 1936, the company's crude oil
producing subsidiaries in the United States adopted the policy of capitalizing
intangible development costs incurred after that date and amortizing them on a
unit basis instead of charging them to income as expended. As a result of this
change in accounting practice, the net income for the year 1937 is approximately
$9,280,000 greater than it would have been under the accounting practice followed
prior to January 1, 1936. The charge for amortization of these intangible costs is
$1,536,738.75 greater in 1937 than in 1936 and as intangible development costs
continue to be capitalized, the annual charge to income for amortization thereof
will similarly increase in future years.
CONCENTRATION OF ECONOMIC POWER 9971
Effective January 1, 1937, the basis of depreciating all physical properties
located in the United States (except certain equipment on producing propertiea
which was amortized on a unit basis) was revised based on a detailed study by
the management of the various classes of properties in various locations. The
new provision for depreciation represents the proportion applicable to the year
1937 of the amount required to amortize the net depreciated book value of the
various classes of property over the estimated remaining useful life thereof. As
a result of this change in policy, the net income for the year 1937 is approximately
$2,^00,000 greater than it would have been under the accounting practice here-
tofore followed.
TIDE WATER ASSOCIATED OIL COMPANY
Annual Report for 75S5.— Intangible Drilling Costs: Investors frequently com-
pare statistical and financial reports of petroleum companies. In appraising the
net income reported for the year, it is important to know the policy of the re-
porting company regarding accounting for intangible drilling costs for the year
under review as well as its jxtlicy prior thereto. Prior to the year 1931, a great
majority of petroleum producing companies, Associated Oil Company and Tide
Water Oil Company included, charged intangible drilling costs to expense. This
method of accounting was adopted by the industry generally, inasmuch as current
operations benefited materially from the initital large production secured from
many of the new wells. However, curtailment of production of crude oil through
proration programs and unit plans of operation, adopted about that time by
various units of the petroleum industry, limited the current production of crude
oil and deferred the normal recovery of oil reserves over a longer period of time.
In these circumstances, charging intangible drilling costs to expense so unduly
burdened current operations that a true picture was not presented to the stock-
holders. Your subsidiaries, accordingly, changed' their policy of accounting foi
intangible drilling costs in the^year 1931, as explained in the annual reports for
that year, and since January 1, 1931, the entire cost of developing oil producing
properties has been capitalized subject to an amortization charge on current
production of oil through unit depreciation rates determined for individual
properties by dividing the total computed economic oil reserves into total develop-
ment costs. The immediate decrease in operating charges resulting from adoption
of this policy is partly offset by additional depreciation charges.
No adjustment has been made on your Companies' books for intangible drilling
costs charged to expense prior to January 1, 1931.
STANDARD OIL COMPANY (NEW JERSEY)
Annual Report for 1934. — Income Account: As the result of the revision in
the chart of accounts and accounting procedure, in conformity with accepted
principles of accounting, which became effective on January 1, 1934, the accounts
for the year 1934 are not strictly comparable with those of previous years. The
principal changes in the income account so far as they affect comparison for the
years 1933 and 1934 are a reduction in depreciation rates by certain companies,
the capitalization of leasing and exploration costs by certain companies, and a
change in the basis of valuing inventories by certain companies. If the foregoing
had been dealt with in 1934 as in 1933, the net income for 1934 would have been
approximately $8,000,000 less. Certain subsidiaries, as previously indicated,
have been included for the first time in the consolidated accounts for 1934. The
earnings of such companies amount approximately to $2,000,000.
The increase in the item of non-operating income is largely due to the consolida-
tion for the first time of the accounts of the Anglo-American Oil Company Limited
and the receipt of an initial dividend from Standard- Vacuum Oil Company.
THE TEXAS COMPANY
Auditors' Certificate with Annual Report for 1934- — "In accordance with the
action of the Board of Directors, the following changes in accounting procjHfures
were effected for the year 1934.
"1. All inter-company and inter-departmental profits were eliminated frbm
the book value of inventories, including profits taken on transportation Anr
certain minor auxiliary operations which were not eliminated in the preceding-
year. The elimination of such items resulted in a reduction in the book value
of inventories at December 31, 1933 of $3,947,036.25 by a charge to earned
124491— iO—pt. 17-A-
9972 CONCENTRATION OF ECONOMIC POWER
surplus of that amount, and a credit to profit and loss for the year 1934 of
$487,688.59.
"2. In 1934 the company included in profit and loss the unrealized profits
and losses resulting from the conversion of the net current assets of foreign sub-
sidiaries into United States dollars. In the preceding year the unrealized con-
version profit of $5,716,513.83 was credited to earned surplus. The net un-
realized conversion loss for 1934 amounted to $406,887.32.
"3. The net loss on property retirements (excess of depreciated value over
salvage or realizable value, including dismantling and removal costs) amounting
to $1,870,336.84 for the year 1934 was charged to the reserve for depreciation.
In the preceding year the retirement loss of $1,918,969.09 was charged to profit
and loss.
"4. As of January 1, 1934, the company adopted the policy of capitalizing
labor and service costs of drilling producing wells and amortizing such costs on
the basis of 8% per annum (the rate used in depreciating well casing). The
amortization charge for 1934 amounted to $116,827.48 and represents the amorti-
zation of drilling costs capitalized only for the year 1934, these costs having been
charged to expense in prior years as incurred.
"If drilling costs had been charged to expense in 1934 as in prior years, the net
profits would have been reduced $2,578,094.40."
* * * * * * *
Representation at Stockholder's Meetings
^ The Temporary National Economic Committee, in an effort to determine the
extent to which stockholders participated in stockholders' meetings, requested
major oil companies to submit data in connection with all meetings of stock-
holders during the period from 1929-1938, showing the manner in which the stock
was voted. The Committee requested that the companies report the number of
shares of capital stock voted by stockholders in person; the number of shares of
capital stock voted by proxy exercised by company officers and directors; the
number of shares voted by proxy exercised by other than company officers and
directors; and the total number of shares of stock voted by each officer and director
at each meeting, both as to personal holdings and by proxy.
The detailed replies furnished by the 18 reporting niajor oil companies are
included in Appendix II.
The replies received from the major oil companies indicate conclusively that
the management participates practically alone at stockholders' meetings and that
on the average stock represented at stockholders' meetings by persons other than
the management represents less than one per cent of the total.
The replies also indicate, in the case of many of the major oil companies that
it is the practice even among the officers and directors to give proxies on the stock
owned by them to the Proxy Committ'^e. Thus, it is apparent that for all prac-
tical purposes, large corporations arc in the control of the management group
with no interference or supervision on the part of the great body of stockholders.
This fact, no doubt, has a serious bearing on the study which this Committee
is making, on the concentration of economic wealth and power in the hands of
the few managers of large corporations.
Compensation of Officers and Directors
Related to the problem of the control of large corporations on the part of the
management group, who generally have a relatively small proportion of the total
investment in the corporations, is the question: How does the management
benefit from the operation of the corporations in comparison with the benefits
received by the stockholders themselves?
In an effort to ascertain a comparison of the compensation paid to the man-
agement group of the major oil companies, with the net earnings applicable to
common stock, and dividends paid on common stock, the Temporary National
Economic Commi,ttee submitted questionnaires to the twenty major oil com-
panies asking for the total compensation paid to all officers and directors of the
parent company and its cubsidiaries during the period, 1929-1938.
Seventeen of the major oil companies furnished the data. Of the three com-
panies that did not furnish any data, two of them, Standard Oil Company of
California and Mid-Continent Petroleum Corporation, did not reply to the Com-
mittee's questionnaire. The third Company, Tide Water Associated Oil Com-
pany, .indicated that it was assembling the data and asked for a clarification of
CONCENTRATION OF ECONOMIC POWER 9973
certain items of the questionnaire, but at the time of this report it had not sent
its reply to the Committee.
Comparison of the compensation paiti to oHicers and directors with the net
earnings applicable to common stock and with dividends paid on common stock
are shown in the accompanying Tables A to Q. inclusive.
From an analysis of the comparisons, certain generalizations can be drawn.
(1) Compensation paid to the management group does not flu,^i.iate in
direct proportion to either the net earnings applicable to the stock
holders or the dividends paid to the common stockholders;
(2) Compensation paid to the officers and directors are more stable, and do
not fluctuate as widely as either net earnings, or common stock
dividends.
(3) In 1938 the trend of compensation paid to oflBcers and directors was
generally on a higher level than that of 1929, while the net earnings
were on a lower level than that of the earnings of 1929.
A summary of the comparison of 1938 with 1929 for each of the seventeen
reporting major oil companies follows:
The Atlantic Refining Company. — Net earnings applicable to common stock in
1938 were 22.3% of those for 1929; dividends on common stock in 1938 equaled
53.2% of the dividends paid in 1929; while compensation to officers and directors
in 1938 equaled 92.4% of the compensation paid in 1929.
Consolidated Oil Corporation. — Net earnings applicable to common stock in
1938 were 48.7% of those for 1929; dividends on common stock in 1938 equaled
75.0% of the dividends paid in 1929; while compensation to officers and directors
in 1938 equaled 137.7% of the compensation paid in 1929.
Continental Oil Company. — Net earnings applicable to common stock in 1938
were 56.7% of those for 1929; dividends paid oii common stock in 1938 were
$4,682,387, in 1929 no dividends were paid on common stock; compensation to
officers and directors in 1938 equaled 55.4% of the compensation paid in 1929.
Empire Gas and Fuel Company. — Net earnings applicable to common stock in
1938 were 25.6% of those for 1929; no dividends on common stock were paid in
1938, while dividends paid in 1929 amounted to $4,500,000; however, compen-
sation to officers and directors in 1938 equaled 141.6% of the compensation
paid in 1929.
Gulf Oil Corporation. — Net earnings applicable to common stock in 1938 were
29.2% of those for 1929; dividends on common stock in 1938 equaled 134.0%
of the dividends paid in 1929; whUe compensation to oflBcers and directors in
1938 equaled 180.6% of the compensation paid in 1929.
The Ohio Oil Company. — Net earnings applicable to common stock in 1938
were 13.0% of those for 1929; dividends on common stock for 1938 equaled
20.0% of the dividends paid in 1929; while compensation to oflBcers and directors
in 1938 equaled 158.1% of the compensation paid in 1929.
Phillips Petroleum Company. — Net earnings applicable to common stock in
1938 were 68.2% of those for 1929; cash and stock dividends on common stock
in 1938 equaled 103.9% of the combined dividends paid in 1929; ^ while com-
pensation to officers and directors in 1938 equaled 183.9% of the compensation
paid in 1929.
The Pure Oil Company. — Net earnings applicable to common stock in 1938 were
16.1% of those for 1929; no dividends were paid on common stock in 1938, while
dividends paid in 1929 amounted to $2,278,870. However, compensation to
officers and. directors in 1938 equaled 63.5% of the compensation paid' in 1929.
Shell Union Oil Corporation. — Net earnings applicable to common stock in
1938 were 57.0% of those for 1929; dividends on common stock in 1938 equaled
50.0% of the dividends paid in 1929; while compensation to oflBcers and directors
in 1938 equaled 140.6% of the compensation paid in 1929.
Skelly Oil Company. — Net earnings applicable to common stock in 1938 were
37.9% of those for 1J929; diwdends on common stock in 1938 equaled 46% of
the dividends paid in 1929; while compensation to officers and directors in 1938
equaled 91 % of the compensation paid in 1929.
Socony-Vacuum Oil Company, Incorporated. — Net earnings applicable to com-
mon stock in 1938 were 103.4% of those for 1929; dividends on common stock in
1938 equaled 56.1% of the dividends paid in 1929; while compensation to oflBcers
and directors in 1938 equaled 147.4% of the compensation paid in 1929.
1 In 1929, a stock dividend was also paid inaddition to a cash dlTldend.
9974 CONCRNTRATrOX OF ECONO^rir POWER
Slavilnnl Oil Coinpanu (IndiaTiu). ~ Sci carninji.s applirahle lo cuniinon stoi'k
in 1938 were 35.4% of those for 1929; dividends on common stock in 1938 equaled
9.3% of the combined dividends paid in 1929;^ while compensation to officers and
directors in 1938 equaled 81.0% of the compensation paid in 1929.
Standard Oil Company {New Jersey). — Net earnings applicable to common stock
in 1938 were 62.9% of those for 1929; combined dividends on common stock for
1938 2 equaled 107.7% of the dividends paid in 1929; whUe compensation to
officers and directors in 1938 equaled 68.5% of the compensation paid in 1929.
Standard Oil Company (Ohio). — Net earnings applicable to common stock in
1938 were 37.8% of those for 1929; dividends on common stock for 1938 equaled
53.8% of the dividends paid in 1929; while compensation to officers and directors
in 1938 equaled 119.9% of the compensation paid in 1929.
Sun Oil Company. — Net earnings applicable to common stock in 1938 were
31.6% of those for 1929; dividends on common stock for 1938 equaled 43.9%
of the combined dividends paid in 1929;^ while compensation to officers and
directors in 1938 equaled 194.3% of the compensation paid in 1929.
The Texas Corporation. — Net earnings applicable to common stock in 1938
were 47.8% of those for 1929; dividends on common stock for 1938 equaled 76.3%
of the dividends paid in 1929; while compensation to officers and directors in 1938
equaled .89.8% of the compensation paid in 1929.
Union Oil Company of California. — Net earnings applicable to common stock
in 1938 were 46.0% of those for 1929; dividends on common stock for 1938 equaled
62.0% of the combined dividends paid in 1929; ^ while compensation to officers
and directors in 1938 equaled 94.4% of the compensation paid in 1929.
Employee Participation Plans
Seven of the seventeen reporting major oil companies stated that they had
bonus or profit sharing plans in which the management group during the period
1929-1938. Some of the plans were not e.xclusively for the management group,
but were available to all employees of a certain classification whether or not they
were part of the management group. These seven companies include the fol-
lowing: Continental Oil Company, Gulf Oil Corporation, Pure Oil Company,
Shell Union Oil Corporation, Standard Oil Company (New Jersey), Sun Oil
Company, and The Texas Corporation.
Standard Oil Company (Indiana) maintains an employee stock purchasing
plan which it does not consider a profit sharing plan.
Explanation of the various bonus or profit sharing plans as reported to this
Committee follow:
Continental Oil Company. — This Company had additional compensation plans
during 1936 and 1937. These plans were described by the Company as follows:.
"Plan for 19S6. — On December 15, 1936, additional compensation was
paid to officers and employees as follows:
"(a) Each permanent employee having been employed one year or longer
on December 1, 1936 received an amount equal to one-half month's salary,
if on a salary basis, and an amount equal to fourteen days' pay, if on a daily
wage basis.
"(b) Each permanent employee having been employed less than one year
on December 1, 1936 received an amount equal to one-quarter month's
salary, if on a salary basis, and seven days' pay, if on a daily wage basis."
"Plan for 19S7. — The bonus or additional compensation plan for 1937 pro-
vided that if the consolidated net earnings for the twelve months' period
ending October 31, 1937 should equal or exceed $7,500,000, a fund equal to
the following percentages of the net earnings would be set aside for the pay-
ment of such compensation:
"(a) 4% if the net earnings were $7,500,000 or more but did not exceed
$10,500,000.
"(b) 5% if the net earnings were $10,500,000 or more but did not exceod
$13,500,000.
"(c) 6% if the net earnings were $13,500,000 or more.
"Each eligible officer and employee received, as additional compensation
from the fund so created, that percentage of the salary or wages earned
by him during the twelve months ended October 31. 1937, v.-hich the fund
bore to the total payroll for the same period."
Gulf Oil Corporation. — Gulf Oil Corporation maintains as incentive compensa-
tion plan. This plan "is to afford those engaged in the service of the Gulf Oil
> In 1929, a stock dividend wa.i also paid in addition to a cash dividend.
•In 1938, & stock dividend wa.s paid in addition to a cash dividend.
CONCENTRATION OF ECONOMIC POWER 9975
Corporation and its domestic subsidiaries a participation in profits in excess of
specified earnings on the shares of the Corporation, as additional incentive to
further efforts on their respective parts in the advancement of the business of the
Corporation."
Directors as such do not participate in the Fund but any active officers who are
also Directors may participate in the fund.
The employees who are to participate in the Fund and the amounts of their
respective participation in each year are determined by the Chairman of the
Board of Directors, if he is not a participant, and if he is a participant, then by a
committee of the Board of Directors appointed by the Board, no member of
which committee is entitled to participate in the Fund.
The Company's explanation of the Fund in part is as follows:
"At the end of each fiscal year, (which is the calendar j'ear, hereinafter
referred to as the year), the Consolidated Net income of the Corporation and
its subsidiaries, before the deduction of any amount allocated to the Incentive
Compensation Fund, shall be determined by the public accountants who
audit the Corporation's books. Such Consolidated Net Earnings shall be
determined after deducting all charges, including provisions for depletion,
depreciation, amortization, interest and reserves for all taxes, including
federal income and excess profits taxes.
"In determining the amount of such Consolidated Net Income, the public
accountants shall exclude, to the extend that a committee of Directors,
who are not participants, shall in its discretion deem proper, the whole or
any part of any item of unusual or non-recurring income or loss not arising
in the ordinary course of the Corporation's business, or shall assign such
non-recurring income or loss in part to the current year and the balance to
subsequent years, as the Committee may direct.
"From the Consolidated Net Income so determined there shall be further
deducted an amount equal to $1.50 per share on each share of the common
stock of the Corporation outstanding at the beginning of the year, with
proportionate adjustment, as below provided, in the case of share issued for a
consideration during such year, and the resulting balance so obtained shall be
regarded, for the purposes of this Plan, as the Surplus Net Income for the year.
"Out of such Surplus Net Income there shall be paid into the Incentive
Compensation Fund the following amounts:
"$.15 on the dollar of the first $1.50 per share of such Surplus Net Income;
"$.10 on the dollar of the next $1.00 per share of such Surplus Net In-
come;
"S.05 on the dollar of the ne.xt $1.00 per share and each succeeding $1.00
per share of such Surplus Net Income; or the proportionate amount of
any fraction of a dollar;
"In the event of the issuance for a consideration of additional common
shares during any year, the amount to be deducted from Consolidated Net
Income before computing the amount to be paid into the Incentive Compensa-
tion Fund shall be increased at the rate of $1.50 per share per year on such ad-
ditionaJ shares for such portion of the year as such shares shall be outstanding.
In the event of stock dividends or a split-up of common shares without pay-
ment of consideration to the Corporation, the aggregate amount to be de-
ducted shall not thereby be increased.
"The amount to be paid into the Fund shall be computed and reported to
the Board of Directors, by the public accountants who audit the Corpora-
tion's books and shall be paid into such Fund promptly upon being deter-
mined. The Board of Directors shall be fully protected in relying upon any
report made to them by such accountants.
"To the extent that persons in the employ of subsidiaries shall be desig-
nated as participants in the Incentive Compensation Fund, it is contemplated
that the respective subsidiary will be charged with the total of their participa-
tions, and the Fund credited accordingly."
In addition the Company has stock purchase plans for employees.
Pure Oil Company. — Pure Oil Company had an additional compensation plan
which was authorized on October 30, 1928. The Company reported to the Tem-
porary National Economic Committee that the year ending March 31, 1930 was
the last year for which any additional compensation or bonus was distributed under
9976 CONCENTRATION OF ECONOMIC POWER
the plan. Copy of the resolution authorizing the plan as submitted to the Tem-
porary National Economic Committee is as follows:
"Resolved, That in any fiscal year in which the company has divisible earn-
ings equal to Four percent on the Common Stock, after all prior accruals and
charges have been made, additional compensation is authorized to a total
amount not in excess of Three per cent of the earnings of the Company for
that year, after all taxes and interest charges have been met and before any
charges for depletion and depreciation have been made provided, however,
that said total disbursement shall not under this authority, in any one year,
exceed Five percent of the total pay roll of the Pure Oil Company and such
subsidiaries as are consolidated with it in its annual statement. This author-
ity shall first apply to the fiscal year ending March 31, 1929."
"Be it Further Resolved, That in such years as the Company does not have
divisible earnings equal to Four percent on the Common capital stock, addi-
tional compensation to an amount not to exceed $50,000 may be distributed
for especially meritorious service to executives, none of whose salaries exceed
$20,000 per annum."
Shell Union Oil Corporation. — Shell Union Oil Corporation maintains a Provi-
dent Fund plan which it described to the Temporary National Economic Com-
mittee as follows:
"Salaried officers of the Company do not receive remunerations as directors.
"The Company is a member of an organization known as 'Het Voorzien-
ingsfonds der Berbonden Petroleum Maatschappyen' (Provident Fund of the
Combined Petroleum Companies), domicilied at The Hague, Holland, and
contributes currently for the account of each member of its staff who is also
a member of the Provident Fund an amount equal to the amount paid into
the Provident Fund by such member but not in excess of 10% of the salary
paid to him, up to a maximum of approximately $960. per annum, in ac-
cordance with the Regulations of the Provident Fund. Under such Regula-
tions, the Company may also make, from time to time, further payments into
the Provident Fund for the account of members of its staff who are members
of the Provident Fund. All such contributions and payments are included
in the above figures; however, payments thus made by the company for the
account of any member of its staff who is a member of the Provident Fund
cannot be withdrawn so long as such member is in the employ of the Com-
pany or of any other company whose employees are accredited members of
such Provident Fund, except upon the conditions stated in said Regulations,
and, upon termination of services, payment is made only to the extent and
upon the terms set forth in said Regulations."
On January 1, 1938 the Corporation introduced a non-contributory pension
plan under which the Corporation and its subsidiaries contribute currently
amounts acutarially computed as being necessary to provide for pensions for
employees upon retirement.
Standard Oil Company (New Jersey). — In submitting the total compensation
paid to officers and Directors, Standard Oil (New Jersey) submitted the following
comments:
"There has been included in the above figures by the companies whose
separate figures make the above cornposite total contributions by those
companies to the credit of their employees' accounts in certain Stock Acqui-
sition Plans during the years 1929 to 1935 inclusive.
"There has been included in the above figures by the companies whose
separate figures make the above composite total payments by those com-
panies to the credit of their employees' accounts in certain Employees Thrift
Plans during the years 1936 to 1938 inclusive. The figures include all pay-
ments by the companies to the Thrift Plans even though a portion of said
payments was allotted to an insurance company toward the purchase of
Group Annuity.
"There has been included in the above figures by the companies whose
separate figures make the above composite total payments made under a
Management Profit Sharing Plan approved by the stockholders. These pay-
ments were made during the years 1929 to 1931 inclusive, and in one in-,
stance a few payments were made in 1932. In the case of one of the com-
panies whose payments are thus included, it has been impossible to separate
CONCENTRATION OF ECONOMIC POWER 9977
payments made to employees who are not officers or directors; therefore with
respect to that company the total amount disbursed has I)cen included.
The total amounts disbursed by that company were as follows:
1929 $160,000
1930 190, 000
1931 80,000
1932 45.000
"There has not been included in the above amounts any payments made
by the companies whose payments make up the composite total in a Con-
tributory Annuity Plan during the years 1932 to 1935 inclusive. These
payments have been excluded because they were not credited to employees
accounts but were placed in an annuity reserve on the basis of a certain per-
cent of the payroll.
"Employees receive no vested right in these company contributions."
Sun Oil Company. — The profit-sharing plans of Sun Oil Company were sum-
marized in its reply to the Temporary National Economic Committee as follows:
"In the years 1930 and 1931, and from 1934 to 1938, inclusive, the Sun
Oil Company had in effect a profit sharing plan covering certain executives
and employees in responsible positions. In this respect a sum equal to 5%
of the income in excess of 7% of the invested capital for the year was set
aside as extra compensation to be paid to the executives and employees de-
termined as eligible by the officers of the company."
The Texas Corporation. — Tlie Texas Corporation has maintained a Manage-
ment's Participating Plan and an Efficiency Contribution Fund. These are
explained as follows by the Company to th^ Temporary National Economic
Committee:
Summary of Management's Participating Plan of the Texas Corporation
"The Texas Corporation adopted, eflfective for the years 1928 and 1929, a
Management's Participating Plan as a reward for certain of the directors, officers
and employees of its subsidiary companies who contributed to its success in a
special degree by their industry, loyalty or special service by establishing a
special trust fund in each of these two years consisting of 5% of the net earnings in
excess of the 6% of the average invested capital of the corporation and its sub-
sidiaries for each year. This fund was paid over to a trustee, selected by the
Board of Directors, and was distributed as follows:
\ a. 5% of the fund in cash to those members of the Executive Committee
who were neither salaried officers nor employees of the corporation or
any of its subsidiaries.
b. 40% of the balance to such elected officers of The Texas Company as were
selected. This distribution was made in stock of The Texas Cor-
poration.
c. The remainder of the fund was invested in stock of The Texas Corpora-
tion and this stock awarded to other officers and employees of The
Texas Corporation or its subsidiaries as selected.
"This plan, by order of the Board of Directors was discontinued in December
1933, and was only in effect covering earings for the years 1928 and 1929."
Summary of Efficiency Contribution Fund
"The Board of Directors of The Texas Company authorized the Operating
Committee, consisting of the President, the Vice Presidents located in New York
and the General Counsel, together with others who from time to time were
designated as members, to distribute beginning with the year 1929, not exceeding
$100,000, to such employees as in the discretion of the committee should receive
special consideration because of their contributions to greater efficiency.
"This amount was invested in stock of The Texas Corporation and distributed
to employees in each of the years 1929 and 1930. There was one exception
to the above, namely a payment of cash to one employee amounting to $5,000.00.
This plan was likewise discontinued by the Board of Directors in December 1933,
and distributions were only made in the two years above named."
9978
CONCENTRATION OF ECONOMIC POWER
Standard Oil Compan)/ (Indiana). -This company inaiiitaii>c<l an E]npl<>y<'e's
Stock Purchasing Plans which are described by the Company as follows to the
Temporary National Economic Committee:
"During the period from April 1, 1921 to June 30, 1938, the Standard Oil
Company had in effect five so-called Employees Stock Purchasing Plans,
the First Plan was for five years, and the last four for three years each.
<<* * * Under all Plans the Trustees could from time to time purchase
stock from the Standard Oil Company at a price fixed by the Board of
Directors of the Company as of January 1, and July 1, each year, which
prices were substantially the average market price of the stock during the
previous three months, provided, however, that in no case could the price be
fixed below the par value of the stock. Price so fixed covered all purchases
from the company during the ensuing six months. Effective April 27, 1931,
the Third Plan was amended and the Fourth and Fifth Plans provided that
the Trustees could purchase their requirements from the company at prices
to be fixed as above provided, or at the option of the Trustees they could
purchase their requirements in the open stock market at prices not to exceed
that at which stock was sold in the open market.
"None of the Plans were ever considered to be 'profit-sharing', because
they did not so operate. They were in the nature of an investment, with a
definite speculative factor In fact, the employees who participated through-
out the Third and Fourth Plans found at the conclusion of each, that the
market value of the stock obtained was not equivalent to the contributions
made. This was not contemplated nor intended, but the unprecedented
behavior of the stock market brought this result. The Fifth Plan was
amended as mentioned above, to make this result far less probable, butTione-
the-less not impossible None of the Plans were ever considered as 're-
muneration' to the officers or directors, because the Plan was open to all
employees complying with simple eligibility requirements, none of which
requirements had anything to do with being an officer or director of the
company.
"It will be noted that the Plans were also applicable to the employees of
certain subsidiaries — subject always to the letter's approval by its directors
and stockholders."
Table A. — The Atlantic Refining Company and subsidiaries — Comparison of com-
pensation paid to officers and directors, net earnings applicable to common stock,
and dividends paid on common stock
1929-1938
Year
Payments to Officers
and Directors '
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929 = 100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
1929
$440,000
432, 500
432, 533
357,754
337, 172
419,500
440, 875
429,000
434, 249
406,500
100.0
98.3
98.3
81.3
76.6
95.3
100.2
97.5
98.7
92.4
$16,632,418
2, 742, 688
513,750
3, 918, 021
6, 566, 377
5,512,10.')
3, 970. .598
6, 898, 872
9, 343, 045
3, 718. 659
100.
16.3
3.0
23.5
39.8
33.1
24.1
41.6
56.0
22.3
$5, 007, 673
5, 386, 300
2, 696. 642
2,696,642
2,670,611
2, 666, 428
2, 670, 806
3, 335, 500
2,663,999
2.663,999
100.0
1930
107.6
1931
1932
53.9
63.9
1933 .-
53.3
1934
5.3.2
1935
53.3
1936
66.6
1937
63.2
1938
53.2
,• This includes oflBcers and directors as of December 31st of each year.
CONCENTRATION OF ECONOMIC POWER
9979
Table B. — Consolidated Oil Corporation and subsidiaries — Comparison of com-
pensation paid to officers and directors, net earnings applicable to common stock,
and dividends paid on common stock
Year
Payments to Officers
and Directors ■
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929^100
1929
$1,281,000
1, 342, 000
1, 222, 000
1,511,000
1, 563, 000
1, 558, 000
1,655,000
1,819,000
1,815,000
1,764,000
100.0
104.8
95.4
118.0
122.0
121.6
129.2
142.0
141.7
137.7
$15, 384, 373
10,874,776
I (d)23, 353, 313
899,076
(d) 727. 172
269,070
10, 380, 907
16, 445, 747
20,630,004
7,511,449
100.0
70.8
151.9
5.8
4.S
1.9
67.5
106.5
133.1
48.7
$14. 759, 810
9, 898, 379
' 1,496,749
100.0
1930
67. 1
1931.
10. 1
1932
1933
1934
.5,886,370
3.495,088
13,939,689
12,522,036
11,066,863
39.9
1935
23.7
1936
94.4
1937
84.8
1938
75.0
' Amounts shown are for thirteen month period, ending January 31, 1932.
Table C. — Continental Oil Company and subsidiaries — Comparison of compensa-
tion paid to officers and directors, net earnings applicable to common stock and
dividends paid on common stock
1929-1938
Year
1929.
1930
1931.
1932.
1933
1934.
1936
1930
1937.
1938
Payments to Officers
and Directors •
Amount
$507, 417
350, 525
314, 375
305, 275
284,475
318, 408
253,417
> 267, 368
» 289, 665
281,036
Index Nos.
1929=100
100.0
69.1
62.0
60.2
56.1
62.8
49.9
52.7
57.1
55.4
Net Earnings Applicable
to Common Stock
$9, 028, 661
255, 598
(d) 10, 683, 313
(d) 1, 444, 133
2, 275, 860
4, 865, 358
8. 813. 561
9, 612, 697
13, 948, 460
5, 139, 765
Index Nos.
1929=100
100.0
3.3
-118.9
-15.6
25.6
64.4
97.8
106.7
154.4
56.7
Dividends Paid on Com-
mon Stock
$2, 341, 275
4, 097, 150
5,853,023
7, 023, 690
4, 682, 387
Index Nos.
1929=100
(')
' No index numbers are furnished for dividends, since no dividends were paid in 1929.
' Includes additional compensation paid under bonus and profit-sharing plans.
Table D. — Empire Gas & Fuel Company and subsidiaries — Comparison of com-
pensation paid to officers and directors, net earnings applicable to common stock,
and dividends paid on common stock
1929-1938
Year
1929..
1930-
1931..
1932..
1933..
1934..
1936-.
1939..
1937..
1938..
Payments to Officers
and Directors «
Amount
$199,249
196, 309
194, 965
172, 595
147,780
148,760
160,028
166. 292
258, 746
282, no
Index Nos.
1929=100
100.0
98.6
97.8
86.6
74.2
74.7
80.3
83.5
129.9
141. C
Net Earnings Applicable
to Common Stock
1 $7, 799, 753
I 12, 470, 696
' (d) 3,973,911
1 1. 678. 004
» 592. 670
'2.461.188
' 6. 269. 748
> 2. 306. 116
> 4. 391, 452
* 2, 027, 414
Index Nos.
1929=100
100.0
160.3
-51.3
20.5
7.7
32.1
67.9
29.6
56.4
25.0
Dividends Paid on Com-
mon Stock
Amount
.$4, 600, 000
6, 000, 000
3,000,000
Index Nos.
1929=100
100.0
133.3
66.7
' Represents net earnings applicable to common stock before minority interest.
' No dividends paid on preferred stock. Hence earnings are subject to provision for accnied unpaid
dividends on preferred stock.
9980
CONCENTRATION OF ECONOMIC POWER
Table E. — Gulf Oil Corporation and subsidiaries — Comparison of compensation
paid to officers and directors, net earnings applicable to common stock and dividends
paid on common stock
1929-1938
Year
Payments to Officers
and Directors '
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
1929....
$922, 175
921,500
961, 050
" 970, 867
1,081,050
1, 121, 100
2 1,115,863
< 1, 025, 529
5 1, 057, 574
'.1,665,275
100.0
99.9
103.1
105.3
117.2
121.6
121.0
111. 2
114.7
180.6
$44, 489, 687
10, 625, 252
(d)23,670,052
2, 743, 492
(d)n,386,387
2, 811, 183
10, 551, 720
26, -356, 003
31,854,065
13,017,076
100.0
23.8
-53.3
6.1
-26.6
6.3
23.8
69.3
71.7
29.2
$6, 772, 847
6, 787, 906
6, 787, 904
100.0
1930
100.2
1931 ,.
1932
100.2
1933
1934
1935 . -
1936
f '113,452,526
\ 6, 807, 151
9, 076, 202
9, 076, 202
346.3
1937
134.0
1938_
134.0
' Plus 6,753 Shares of Gulf Stock through operation of the Second Stock Purchase Plan (approximately
2/3 of these shares were paid for by the contributions of persons receiving them) (40 Officers & Directors').
2 Plus 92 Shares of Gulf Stock through operation of the Third Stock Purchase Plan. (These shares were
distributed as the result of withdrawals from the Plan, and approximately 2/3 thereof were paid for by the
contributions of the persons receiving them) (43 officers and directors).
3 Represents stock dividend of 100%.
< Plus 271 Shares of Gulf Stock through operation of the Third Stock Purchase Plan. (These shares were
distributed as the result of withdrawals from the Plan and approximately 2/3 thereof were paid by the con-
tributions of the persons receiving them) (38 Officers & Directors).
« Plus 20,758 Shares of Gulf Stock through operation of the Third Stock Purchase Plan. (Approximately
2/3 of these shares were paid for by the contributions of persons receiving them (38 Officers & Directors).
' Including payments under Incentive Compensation Plan.
Table F. — The Ohio Oil Company and subsidiaries — Comparison of compensation
paid to officers and directors, net earnings applicable to common stock, and dividends
paid on common stock
1929-1938
Year
Payments to Officers
and Directors
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
1929
.f 197, 680
263, 015
290, 1.50
303, 689
2S5, 269
267, 869
267, 815
272, 191
291, 036
312, 510
100.0
133. 4
146. 8
1.53.6
144.3
135. 5
135. 5
137. 7
147.2
158.1
$12, 347, 649
8, 043, 454
(d)8, 638, 3.59
3, 838, 404
(d)3, 510,368
2, 070, 692
2,187,071
4, 593, 109
8, 573, 645
1,645,112
100.0
65.
-69. y
30.9
— '^■-: 5
.$6, 563, 441
10, 420, 664
1, 668, 953
3. 296, 427
100
1930 . .
158 8
1931
25.4
1932
50.2
19.33
1934
17.1
17.9
37.4
69.9
13.0
2, 953, 496
1, 969, 013
3, 937, 916
6, 563, 333
1, 312, 675
45.0
19.35
30.0
1936...
60
1937
100.0
1938
20
CONCENTRATION OF ECONOMIC POWER
9981
Table G. — Phillips Petroleum Company and subsidiaries — Comparison of cnmpen-
mtion paid to oflicers and directors, net earninqs applicable to ccinriion slock, and
dividends paid on common stock
192!>-1938
Year
Payments to Officers
and Directors
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100'
1929
$288,490
342, 673
325, 732
335, 213
336, 255
458, 357
450, 474
490, 236
536, 802
530, 561
100.0
118.8
112.9
116. 2'
116.6
158.9
156. 1
169. 9
186.1
183.9
$1.3, 212, 592
3, 040, 630
(d) 5, 576, 409
755, 766
1, 500, 695
5, 757, 308
13, 421, 703
17, 875, 489
24, 113, 874
9,049,122
100.0
22.7
-42.4
6.1
11.4
43.9
101.5
135.6
182.6
68.2
f 2 $4, 579, 425
\ 3, 983, 390
6, 444, 400
} 100.0
75 3
1930
1931
1932
1933
1934 .
4. 153. 008
5,188,780
10,676,356
12,234,882
8, 898, 096
48 5
1935
60 6
1936
124 7
1937..
142 9
1938
103 9
> Index based on combined cashi and stock dividend.
* Represents stock dividend.
Table H. — The Pure Oil Company and subsidiaries — Comparison of compensation
paid to officers and directors, net earnings applicable to common stock and divi-
dends paid on common stock
1929-1938
Year
Payments to Officers
and Directors
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
1929
$607, 148
537,424'
395,883
375, 174
336, 986
325, 251
312, 624
337, 188
374, 080
385, 320
100.0
88.5
65.2
6L8
55.5
53.6
51.5
55.5
61.6
63.5
1 $9, 228, 450
1 4, 603, 433
1560,879
(d) 1, 415, 198
682, 325
2 (d) 884, 872
2 8. 150, 027
i 5, 132, 048
8, 703, 101
1, 529, 965
100.0
49.5
6.5
-15.1
7.5
-9.7
88.2
54.8
93.5
16.1
1 $2, 278, 870
1 4, 557, 721
1 2, 278, 800
100. ()
1930 ....
220.0
1931 _.
100.0
1932
1933
1934
1935.
1936
1937
995, 104
43.7
1938
' Amounts shown are as of March 31st, as per annual reports to stockholders.
2 During 1934 and 1935, no dividends were declared on preferred stock. Earnings in 1934 and 1935 avail-
able for common stock, are without adjustment for accrued dividends on preferred stock. In 1936, divi-
dends on preferred stock amounted to $2,526,324.
9982
eONCENTR.\TION OF ECONOMIC POWER
Tabi.k \. Shrll Union Oil Cnrporntion ami. arihsidiaries — Comparison of rnm-
peiisation paid to officers and directors, ncl carnifigs applicable to common stock,
and dividends paid on common stock
1929-1938
Year
Payments to Officers
and Directors '
Net Earning.'? Applicable
to Common Stock
Dividends Paid on Com-
- mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
1929
$697, 473
734, 545
745, 535
598, 682
641, 364
736, 930
728, 722
901, 309
969, 061
980, 512
100.0
105.3
106.9
85.8
92.0
105.7
104.5
129.2
138.9
140.6
$16, 528, 249
(d) 7, 295, 574
(d) 27,008.310
(d) 4. 288. 496
(d) 5, 250, 291
(d) 949, 111
6, 812, 835
12, 040, 228
18. 789, 517
9, 442, 360
100.0
-44.2
-163.6
-26.1
-32.1
-5.5
41.2
72.7
113.9
57.0
$18, 285, 985
9, 148, 867
100.0
1930 - ,.
50.-0
1931
1932
1933
1934
1935
1936
3. 267, 656
13, 070, 625
9. 149, 438
17.9
1937
71.5
1938
50.0
' Includes payments made under Provident Fund scheme.
Table J. — Skelly Oil Company and subsidiaries — Comparison of compensation paid
to officers and directors, net earnings applicable to common stock, and dividends
paid on common stock
1929-1938
Year
Payments to Officers
and Directors
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Indflx Nos.
1929=100
Amount
Index Nos.
1929=100
1929....
1930
$143, 930
155, 064
117,219
139, 395
145, 930
174, 276
171, 627
169,823
143. 583
130, 952
100.0
108.2
81.4
96.8
101.4
121.1
119.2
118.0
99.8
91.0
$5, 786, 490
1, 413, 472
(d) 2, 296, 810
(d) 674, 507
(d) 820, 534
713, 577
2,585,849
2, 562, 965
6,189,996
2,160,380
100.0
24.1
-39.7
-12.1
-13.8
12.1
44.8
44.8
106.9
37.9
$2, 165, 305
2, 130, 670
100.0
98.4
1931
1932 . .
1933.
1934.
1935. .
1936
1937
1938 :..
i, 509, 523
995, 349
69.7
46.0
Table K. — Socony-Vacuum Oil Company, Inc., and subsidiaries — Comparison of
compensation paid to officers and directors, net earnings applicable to common
stock, and dividends paid on common stock ^
1929-1938
Year
Payments to Officers
and Directors
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos,
1929 = 100
1929
$1,674,211
2, 000, 023
3,117,489
3, 358, 063
3, 120, 482
2, 919, 346
2. 377. 575
2, 321, 067
2. 335, 955
2, 467, 433
100.0
119.5
186.2
200.6
186.4
174.4
142.0
138.6
139.5
147.4
$38, 750, 849
1 40, 246, 198
(d) 4, 169, 248
5, 320, 282
22. 545, 461
24, 121, 297
22, 525, 892
42, 909, 363
56, 808, 264
40, 106, 917
100.0
103.6
-10.8
13.7
58.0
62.1
58.0
110.6
146.4
103.4
$27, 782, 0.'>3
28, 501, 379
43,312,172
23, 679, 875
10, 829, 272
18, 652, 561
9, 345, 442
21, 805, 123
24,920.857
15, 576, 636
100.0
1930
102.
1931
l.'^S. 9
1932
85.2
1933 ...
39.0
1934....
67.1
1935
1936
1937
33.6
78.5
89.7
1938
56.1
1 Including a net profit of $23,749,471.51 as per income statement on the sale of gas properties.
CONCENTRATION OF ECONOMIC POWER
9983
Table L.— Standard Oil Company (Indiana) and subsidiaries — Comparison of
compensation paid to officers and directors, net earnings applicable to common
stock, and dividends paid on common stock
1929-1938
Year
Payments to Officers
and Directors
Net EarninEts Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amouut
Index Nos.
1929=100
Amount
Indpx Nos.
1029=100
Amount
Index Nos.
1929=100'
1929- - ----
$1, 309, 589
1, 235, 395
1, 235, 614
1,013,387
1,009,504
1,004,663
1,078,779
1,065,076
1,040,331
1,061,325
100.0
94.3
94.4
77.4
77.1
76.7
82.4
81.3
79.4
81.0
$78, 499, 754
46, 371, 438
17, 596, 396
16, 558, 282
17, 674, 351
18. 949, 680
30,179,895
46, 883, 448
55. 950, 785
27, 771, 975
100.0
59.1
22.4
21.1
22.5
24.1
38.5
59.7
71.3
35.4
f '$116,232, 119
I 47. 482. 855
41,607,033
2.5, 481, 075
16, 478, 699
15,688,672
15,371,229
15, i42. 372
36, 418, 793
35, 075, 524
15,271,269
} 100.0
"5 4
1930
1931
15 6
1932 -
iO 1
1933
9 6
1934.
9 4
1935 - •.
9 2
1936
22 2
1937
21 1
1938..,
9 :!
> Index based on combined cash and stock dividend.
« Stock dividend.
Table M. — Standard Oil Company {New Jersey) and subsidiaries — Comparisor{
of compensation paid to officers and directors, net earnings applicable to Comtnon
stock, and dividends paid on common stock
1929-1938
Year
Payments to Officers
and Directors '
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount ^^^^^ ^^"^•
Amount 1929=100
1929
$5,172,610
6,387,945
4,386,170
3,683,262
3. 226, 577
3,092,917
3,069,275
3,390,106
3,607,463
3, 541, 483
100.0
104.2
84.8
71.2
62.4
59.8
59.3
65.5
69.7
68.5
$120, 912, 794
42, 150, 663
8, 704, 758
282, 865
25, 084, 310
45, 618, 960
62,863,192
97,774, 583
147, 993, 147
76,053,170
100.0
34.9
7.2
0.2
20.8
37.7
62.0
80.9
122.4
02.9
$46,519,705
50,929,686
51, 205, 436
50, 628, 442
31,990,916
31,940,882
« 50, 634, 434
52,421,683
65. 549, 615
f '10,815,686
I 39, 329, 769
100.0
1030
109. 5
1931
110. 1
1932...
1U8. 8
1933
68.8
1934
68.7
1935
108.8
1936
112.7
1937
140.9
1938
23.2
84.5
' Includes Payments made under Stock Acquisition Plans, Employees Thrift Plans, and fvlacagenient
Profit Sharing Plans.
» Dividend paid included $18,329,913 paid in stock of Mission Corp. and $32,304,521 paid in casli.
» Represents stock dividend.
9984
CONCENTRATION OF ECONOMIC POWER
Table N. — Standard Oil Company (Ohio) and subsidiaries — Comparison of com-
pensation paid to officers and directors, net earning appticable to common stock,
and dividends paid on common stock
1929-1938
Year
Payments to Officers
and Directors •
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
.\mount
Indox Nos.
1929=100
1929
$187, 000
232,250
267,958
213,668
217,350
222,280
196, 652
201,710
207,377
224,300
100.0
124.2
143.3
114.3
116.2
118.9
105.2
107.9
110.9
119.9
$3, 709, 740
3,116,958
1, 759, 173
(d) 1.814,667
(d) 1.423.357
(d) 2.513,735
2, 090, 647
3, 594. 314
2,762.960
1. 364. 605
100.0
83.8
48.6
-48.6
-37.8
-67.6
66.8
97.3
75.7
37.8
$1,400; 000
1.400,379
1.867,600
1,503,242
100.0
1930
100
1931 - --
133.4
1932
107.4
1933
1934.
1935
1936 . . --
1, 507, 480
1,130,610
753, 740
107 7
1937.......
80.8
1938
63 8
Table O. — Sun Oil Company and subsidiaries — Comparison of compensation paid
to officers and directors, net earnings applicable to common stock, and dividends
paid on common stock
1929-1938
Year
Payments to Officers
and Directors
Net EarninRS Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100 1
1929
1930'
1931«
$330, 964
473, 781
449, 405
488, 783
493,314
578,069
623, .547
675, 236
632, 668
643,079
100.0
143.2
135.8
147.7
149.1
174.7
188.4
204.0
191.2
194.3
$7, 942. 537
7. 19.5, 527
2, 507, 147
3, 598, 947
6. 372. 293
6. 050. 479
6, 510. 243
6. 963. 554
8,944,085
2.485,119
100.0
91.1
31.6
45.6
81.0
77.2
82.3
88.6
112.7
31.6
f 2 $.3. 968, 282
\ 1.298.607
/ 2 4_ 296, 627
t 1.410.216
f 1,535,912
\ 2 1,660,658
f 1, 535, 682
t 2 4, 807, 162
f 1. 576, 506
1 2 5, 301, 784
f 1, 722, 602
1 '4.518.717
/ 1, 884. 706
1 2 4, 164, 117
f 2, 021. 184
\ 2 5, 885, 103
2, 144. 336
2. 315. 786
1 100.0
1 108.4
1 29.2
} 58.8
} 121.2
} 133 4
1932
1933.
19343
19353 _
1 121.6
1936 3
} 117.4
1.^2 5
1937>
1938'
44.0
1 Index based on combined cash and stock dividend.
2 Represents stock dividend.
» Profit sharing plans In effect in years indicated.
CONCENTRATION OF ECONOMIC POWER
9985
Table P. — The Texas Corporation and subsidiaries — Comparison of compensation
paid to ojficcrti and dircc'ors, net earnings applicable t^ "ommon slock, and dividends
paid on cummon slock
1929-1938
Year
Payments to OflScers
and Directors
Net Earnlnfis Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Indes Nos.
1929=- 100
Amount
Index Nos.
1929-100
19291 .—
1930
1931
$1, 087, 229
1, 158, 246
898,494
868,824
916, 518
935, 412
933, 602
1,037,381
1, 093, 893
976, 608
100.0
106.5
82.6
79.9
84.3
86.0
89.9
95.4
100.6
89.8
$48,318,072
16,073,303
(d) 9,954,478
(d) 2,161,841
(d) 491, 004
6, 646, 205
17,065,037
38, 260, 341
54, 574, 319
23, 139, 030
100.0
31.3
-20.7
-4.6
-1.0
11.4
36.4
79.3
113.0
47.8
$28,494,459
29, 553, 211
22, 165, 214
9,861,261
9,336,885
9.348,820
9, 339, 861
14,005,111
26,419,972
21, 760, 321
100.0
103.7
77.- 8
34.6
32.8
32.8
32.8
49.2
92.7
76 3
1932
1933..
1934
1935"
1936
1937
1938
■ During the year 1929, the Management's Participating Plan and the Efficiency Contribution Fund
were in effect.
Table Q. — Union Oil Company of California and subsidiaries — Comparison of
compensation paid officers and directors, net earnings applicable to common stock
and dividends paid on common stock
1929-1938
Year
Payments to Officers
and Directors
Net Earnings Applicable
to Common Stock
Dividends Paid on Com-
mon Stock
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929=100
Amount
Index Nos.
1929 = 100'
1929
$314,475
301, 325
267,203
239,668
208,065
187,864
177,944
196, 400
202,600
296,758
100.0
95.8
85.0
76.2
66.2
59.7
56.6
62.5
64.4
94.4
$15, 019, 636
9, 604, 996
3 3, 054, 913
3,211,084
1,964,279
« 2, 902, 733
5,038,286
6, 133, 398
12,061,332
6,862,758
100.0
64.0
20.7
2L3
13.3
19.3
33.3
40.7
80.0
46.0
/ '$1,044,279
\ 7,986,339
f « 4, 283, 396
1 8, 666, 786
8, 772, 140
5,263,284
4,386,070
4,386,070
4,386,070
4,386,070
6,465,338
5, 599, 624
} 100.0
} 142. 3
97.1
1930
1931
1932 _-_.
68.3
1933
48.6
1934
48.6
1935
48.6
1936
1937..
48.6
7L6
1938
62.0
' Index based on combined cash and stock dividend.
'Stock dividend.
3 Subject to unrealized inventory loss and write-down.
* Includes a non-recurring profit realized on the sale of the Company's one-half interest in the Union
Atlantic Company.
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124491— 40^pt. 17-A-
9988
CONCENTRATION OF ECONOMIC POWER
CoNSOLII)ATBD OiL CORPORATION
Reply lo Hem 8 (o) of T. N. E. C. Quesiionnaire
Answer: (a) During the period January 1, 1929 to December 31, 1938 the
reporting company issued Common Capital Stock and Preferred Stock Without
Par Value in the amounts and for the purposes indicated in the following tabula-
tion:
Amount credited to Common Capi-
tal Stock or Preferred Stock With-
out Par Value
Number of
Shares
Per
Share
Amount
Common Capital Stock: , „ ^ , . „,
Issued to Employees, for cash, under stock Subscription Plans —
Issued in connection with the acquisition of the properties and
32, 404
700,000
8,111,432
56, 757. 8
$30.00
30, 00
'5.00
100.00
$972. 070. 00
21,000,000.00
Issued in connection with the acquisition of the assets and busi-
ness t)f The Prairie Oil and Gas Company and The Prairie
40,557,100.00
Preferred Stock Without Par Value (designated as $5 Cumulative
Dividend Sinking Fund Preferred Stock Without Par Value):
Issued in exchange for Preferred Stock of the Par Value of $100,
8% Cunulative. of the reporting company, on the basis of 1.1 shares
of such $5 Preferred Stock for 1 share of such 8% Preferred Stock. . .
5, 675. 780. 00
1 The amount by which the value ascribed by the Board of Directors of the reporting company to the
assets acquired upon issuance of these 8,111,432 shares exceeded the nominal value of $5 per share, was cred-
ited to Capital Surplus, namely $96,061,328.
The Pure Oil Company
Reply to Item 8 of T. N. E. C. Questionnaire
(a) 1. On January 13, 1936, the Board of Directors of the reporting company
submitted a plan of exchange to its preferred shareholders for the purpose of dis-
posing of the accumulated arrears of dividends on such preferred shares. Under
this plan holders of 8% preferred shares were offered for each such share held the
alternative of one and thirty-four ^hundredths shares of new 6% preferred shares
and $1.50 in cash or one new 8% preferred share, twenty-four hundredths of one
share of new 6% preferred shares, and $1.50 in cash; holders of 6% preferred
shares were offered for each such share held one and eighteen hundredths shares
of new 6% preferred shares and $1.12>^ in cash; and holders of 5%% preferred
shares were offered for each such share held one and sixteen hundredths shares
of new 6% preferred shares and $.87^ in cash.
Under the plan, at various dates between January 13, 1936 and March 26,
1936, 58,349 new 8% preferred shares and 85,532.96 new 6% preferred shares
were issued to holders of 8% preferred shares against cancellation of 11,729
8% preferred shares; and 180,042.04 new 6% preferred shares were issued to
holders of 6% preferred Shares against cancellation of 152,578 6% preferred
shares.
As a result of the plan $5,767,143.75 aggregate amount of accumulated and
unpaid dividends on the said 8% preferred shares and 6% preferred shares were
extinguished. Included in this amount is $339,243.75 paid in cash to the holders
of preferred shares making the exchange.
2. During the period from January 1, 1936, to July 1, 1937, the reporting com-
pany sold 943,620 common shares without nominal or par value (assigned value
$10 per share) as the result of exercise of Warrants attached to the Fifteen Year
4>i% Sinking Fund Notes. The Warrant attached to each $1,000 Note permit-
ted the holder to purchase 30 common shares at $15 per share.
The entire proceeds derived from the sale of said common shares amounted
to $14,154,300 in cash and were deposited with the Trustee in accordance with
the provision of the Indenture of the Fifteen Year 434% Sinking Fund Notes.
All of such proceeds were used for the retirement of the Notes.
CONCENTRATION bi?' ECONOMIC POWER
9989-
The excess of the amount received ($15 per share) over the assigned value ($10
per share) of common shares sold through the exercise of Warrants attached to
the Notes was credited in the aggregate amount of $4,718,100 to paid-in surplus.
3. In September 1937 and October 1937 the reporting company sold 442,434
5% cumulative convertible preferred shares having a par value of $100 per share.
These shares may, at the option of the holders thereof, be converted into common
shares at any time on or before October 1, 1947. The conversion price (subject
to adjustment) is $22.22-2/9 to October 1, 1940, $25 thereafter to October 1, 1942
and $30 thereafter to October 1, 1947 when the conversion privilege expires.
The net proceeds from the sale of the above shares, after deducting the sum
of $1,106,107.50 representing underwriters' discounts or commissions and the
sum of $269,114.10 representing expenses of the Company in connection with
such sale, amounted to $42,868,178.40 and have been used for the following
purposes:
(i) $8,428, 200'*for the redemption or purchase on a prior to January 1, 1938,
of 76,620 8% cumulative preferred shares (par value $100) at $110 per share..
(ii) $3,000,000 to pav the balance of unsecured bank loans maturine from
1938 to 1940 inclusive.
(Hi) $25,000,000 to retire unsecured bank loans of the same principal
amount incurred for the purpose of providing a portion of the funds required
for the redemption of all of the Fifteen Year 4}i% Sinking Fund Notes on
July 1, 1937.
(iv) The remainder of the net proceeds, amounting to $6,439,978.40. tas
been added to the general cash funds of the Company and.no part has been
allocated to specific purpo.'^es.
4. In September 1937 the rejjorting company sold 41 common shares without
nominal or par value (assigned \alue $10 per share) at $22.22% per share. Thfse
shares, together with 8,040 5% cumulative convertible preferred shares included
with those covered in Paragraph 3 of this item, were sold to Common Shareholders
of the Company pursuant to an .■ilternatiVe offer made to such shareholders prior
to the sale to the Underwriters.
The total proceeds frojn the .-ale of the above common shares amounted to
$911.11 and were included in the !j.eneral cash funds of the Company. The excess
of the realized price ($22.22/9 per share) over the assigned value ($10 per share)
amounting in the aggregate to $501.11 was credited to paid-in surplus.
Sacony-Vacuum Oil Company, Incorporated
Reply to Item 8 (a) of f N. E. C. Questionnaire
Year
Shares issued
Amounts
credited to
surplus
Purpose of Issue
1929... .
15, 789
469, 830
13. 911, 433
136, 951
9,003
3.942
1.709
306
384
.50
$205, 257. 00
Acquisition of assets.
1930 . .
1931
<< <i <■
1932...
•■ (1 <<
1933 . —
II 11 II
1934 -
30. 4S.0. 00
17.090.00
3, 060. 00
3. 840. 00
500.00
1935..
■1 11 II
1936
•1 11 II
1937
i< 11 II
1938
" " "
i
14, 549, 397
$260 227. 00
9990
CONCENTRATION OF ECONOMIC POWER
Standard Oil Company (Indiana)
Reply to Item 8 (a) of T. N. E. C. Questionnaire
Details
Sales to Employees Stock Purchasing Plans— Years 1929
and 1937...- .-
•Issued in exchange for—
Midwest Refining Company Stock— Years 1929-
1930-1931 -
Pan American Petroleum and Transport Company
Stock— Years 1929-1930 ..
Pan American Southern Corporation Stock— Years
1937-1938-
Pan American Eastern Petroleum Corporation
Stock— Year 1929. -
Mc-Man Oil and Gas Company Stock— Year 1930,.
Stock Dividend— Year 1929
Capital Stock
Number of
Shares
89, 779. 5
2,070
2, 602, 642. 8444
11, 534.
234, 107. 1428
200, 000
4, 649, 284. 7668
7, 789, 418. 2540
Par Value
$2, 244, 487. 50
51,750.00
65,066,071.11
288, 350. 00
5, 852, 678. 57
5,000,000.00
116,232,119.17
$194, 735, 456. 35
Amount
Credited to
Capital Sur-
plus
$2, 077, 291. 81
15. 870. 00
72, 375, 925. 79
104, 688. 62
7, 257, 321. 43
6, 375, 000. 00
8, 174, 357. 65
Standard Oil Company (New Jersey)
■Details of original issues of capital slock {par oalue $25 per share) question 8
I ear
Is'sucd
1929
1929
1929
1929
1930
1931
1932
1933
1934
19.35
1936
1936
1937
1938
Purpose of Issue
To Trustees>if stock acquisition plans — for cash
For stock of Beacon Oil Company
For stock of Pen-Del Investing Company
For stock of Standard Oil Company of New Jersey
To Trustees of stock acquisition plans — for cash
To Trustees of stock acquisition plans — for cash
To Trustees of stock acquisition plans— for cash
To Trustees of stock acquisition plans — for cash
To Trustees of stock acquisition plans— for cash
(No issues)..
In part payment for stock of Pan American Foreign Cor-
poration
Forstock of Colonial Beacon Oil Company...
(No issues)
For stock dividend:
Full shares.. _ 348,352
Scrip certificates exchanged for full shares. 18, 441
Scrip certiflcates exchanged for full shares . 26, 504. 69
Totals 2,133,846.
Shares
Issued
123, 547
199, 454-
65, 748
546,000
99,600
217, 000
5,497
20,500
94, 616
344, 744
23,942
\ 393,
297.69
Accounts Credited
Capital
Stock
$3, 088, 675
4, 986, 350
1, 643, 700
13, 650, 000
2, 487, 500
5, 425, 000
137, 425
512, 500
2, 365, 400
8, 618, 600
598,550
9, 832, 442
$53, 346, 142
Capital
Surplus
$3, 0.50, 752
5,784,166
1, 380, 756
21, 135, 660
4,128.982
3,060,000
49, 473
184, 500
1, 736, 007
5,974,413
414,915
983, 245
$47, 882, 869
CONCENTRATION OF ECONOMIC TOWER
SrANtJAKI) Oil, CoMI'ANV (.OlIlo)
Reply to Question 8 {a) of TNEC Questionnaire
9001
STATEMENT OF ORIGINAL ISSUES OF CAPITAL STOCK JANUARY 1, 1029 TO
DECEMBER 31, 1938
Date of
Issue
Kind of Stock
No. of
Shares
issued
Total Par
Value
Credit to
Surplus
Purpose of Issue
1930
5% C u m u 1.
Pfd. $100par.
Com. .$25
Com. $25 par.-.
120,000
188, 673
7,592
$12,000,000.00
4, 716, 82,';. 00
189, 800. 00
To redeem 70,000 shares outstanding
7% pfd. stk. $100 par, & to provide
additional funds for corporate
purposes.
62,639 shares i.ssued to acquire pfd.
stock of Ajax Corp.
124,028 shares issued to acquire assets
of Refiners Oil Co.
2,006 shares issued in part payment
for assets of Solar Refining Co.
Issued from time to time to Trustees
under Stk. Purchase Plan for exec-
utives and key men for varying
cash considerations as provided by
said plan.
1931-
$3, 760, 219. 17
' 7,445,400.84
» 72, 6X7. 20
155,071.21
1930 to 1935,
inc.
' This item of $7,445,400.84 represented the difference between the par value of the shares issued for the
assets of the Refiners Oil Co. and the agreed value of such assets, including good will upon acquisition, such
assets were taken into the records of the company at substantially the value thereof appearing upon the
books of the Refiners Oil Co., with minor adjustments, and an item of $4,934,356.84 was set up representing
the good will acquired. This good will item was at the end of the year 1931 charged against Capital Surplus.
Additional charges were subsequently made against the Capital Surplus arising out of the issuance of these
shares by reason of the abandonment of various stations acquired from Refiners Oil Co., so that out of the
$7,445,400.84 credited to Capital Surplus in 1931 in this transaction, only $2,069,252.16 still remained on the
books of the Company at the end of 1933.
' While the amount of $72,617.20 was originally credited to Capital Surplus in 1931, in connection with
this transaction (being the difference between the par value of the Company's shares issued in connection
therewith and the agreed value at which the same were issued), charges against Capital Surplus were sub-
sequently made during the same year on account of obsolete portion of the plant and equipment so acquired
The anjount of these charges was more than sufficient to eliminate this item of Capital Surplus.
The Texas Corporation
Reply to Item fS of T. N. E. C.. Questionnaire
a. Details of any original issue of capital stock indicating the purpose
of each issue (If any part of the proceeds was credited to surplus, state
such amount).
1. On October 16, 1928, the Board of Directors of The Texas Corporation
resolved to offer to the stockholders of record at the close of business on Novem-
ber 23, 1928, the right to subscribe, at $40.00 per share, for additional shares of
The Texas Corporation in the proportion of one additional share for each six shares
then owned, as shown by the books of the Corporation. Rights to subscribe
expired January 15, 1929; terms of payment were $20.00 per share on or before
January 15, 1929, and $20.00 per share on or before April 2, 1929; definitive cer-
tificates to be issued and delivered after April 2, 1929, the stock to participate
in dividends declared and payable after that date.
Number of shares issued was 1,404,210 (par value $25.00 each). Amount
credited to capital surplus account was $21,063,150.00.
Proceeds of this issue were intended to be used for the expansion of the produc-
ing, transporting, refining and distributing facilities of the Corporation's subsidi-
aries, for reimbursing the treasury for expenditures made on some work then
under way, and for general corporate purposes.
2. On January 15, 1937, the Board of Directors of The Texas Corporation
resolved to offer to stockholders of record on February 15, 193", the right to
subscribe, at $40.00 per share, for additional stock of The Texas Corporation in
the proportion of one additional share for each six shares then owed, as shown
by the books of the Corporation.
9992
rONCENTRATION OF ECONOMIC TOWER
The rights to subscribe expire Marcli 19, 1937; terms of payment were $20.00
])er sl)aro at tlic time of subscription ami $20.00 por share on or bof<jrc May 14
1937, Certilicatcs for the shares subscribed to be issued after payment of the
subscription price in full, the sjiarcs to participate in dividends payable to stock-
holders of record on dates after. the issuance of certificatcE covering such shares.
Number of shares issued, 1,534,999 (pat value $25.00 each). Amount crevlited
to capital surplus account, $23,043,735.00.
The proceeds of this issue were in^crdcd to be applied to the payment of
$22,500,000.00 owed by The Texas Company (a subsidiary) to banks; to finance
expansion of plant facilities of subsidiaries, exploration for and aevelopment of
producing properties, and additional investments in an amount estimated at approx-
imately $21,500,000.00; and the remainder to reimburse the Treasury for funds
previously applied to the retirement of funded debt and bank loans, expended
for investments, etc., and to pay off certain miscellaneous purchase obligations.
Union Oil Company of California
Reply to Item 8 of T. N. E. C. Questionnaire
8. (a) Details of original issues of capital stock, 1929 to 1938, inclusive:
Year
Number
of Shares
Charges or Credits to surplus
1929
1930
Issuance under subscription
rights offered to stockholders
on 12/20/29.
do
377, 408
2,585
1,717
3,335
41,771
164, 197
Surplus credited in 1929 with difference between sale
price of $35.00 per chare and par value of $25.00 per
share on total she.res subscribed for. Amount of
credit was $3,799,93).
1929
1930
Issuance to employees under
subscription plan offered in
1925.
do — -
[No adjustment to su-plus in these years.
1929
Stock dividend of 1%
No adjustment to surplus, other than debit for divi-
dend.
Surplus charged wi'.h $100,813 representing premium
paid on fractional shares purchased and cancelled.
1930
Four stock dividends Of 1%
each, less purchase of frac-
tional shares.
Exhibit No. 1314
Part "A" — Appendix II
[T. N. E. C. 4/19/30, Question 33, Exhibit E]
Statement of shares of capital stock voted at stockholders meetings of the Atlantic
Refining Company
1929
Annual Meeting, May 7, 1929: 'SAarw
A. Shares voted by Stockholders in person 33,427
B. Shares of Stock voted by proxy exercised by Company officers
and directors 1, 383, 978
C. Shares voted by proxy exercised by other than officers and
directors None
D. Total shares of stock voted by each officer and director both
as personal holdings and by proxy, shown separately:
J. W. Van Dyke.-
W. M.Irish
J. W. Liberton....
Robert H. Colley-
E. J. Henry-
E. R. Cox
Proxy
1,383.968
10
1930
Annual Meeting, May 6. 1930: Shares
A 37,963
B 1,641,669
C , None
D.
.1. W. Van Dyke.
W. M. Irish
R. D. I onard—
.1. W. Liberton—
O. E. Glines
E. J. Henry
Robert H. Colley
E. R. Cox
Personal
Proxy
1,641,636
1931
Annual Meeting, May 5, 1931: Shares
A .- 1 38,974
B . 1,712,886
C None
D.
Personal
Proxy
J. W. Van Dyke
28, 777
1,903
328
153
200
1,074
64
9, 367
W.M.Irish .
1,089,3.59
R.D.Leonard ... . . . ...
Robert H. Colley... .
14,100
E.J.Henry
E. R. Cox.
J. W. Liberton
9993
9994
CONCENTRATION OF ECONOMIC POWER
Statement of shares of capital stock voted at stockholders meetings of the Atlantic
Refining Company — Continued
1932
Annual Meeting, May 3, 1932: Shares
A 51,651
B 1,653,710
C 15
D.
Personal
Proxy
J. W. Van Dyke ...
42, 100
2,557
1,132
2,500
366
211
1,005
W.M.Irish :
R.D.Leonard . . ...
1, 653, 570
W. D. Anderson
E. J. Henry-
Robert H. CoUey
E. R. Cox
140
1933
Annual Meeting, May 2, 1933: Shares
A 51.923
B . . . 1,510,497
C None
D.
Personal
Proxy
J. W. Van Dyke..
W.M.Irish
W. D. Anderson..
E.J. Henry
Robert H. Colley.
J. D. Oill
E. R. Cor
44,100
3,200
2,500
611
260
814
1, 509, 591
"" 666
240
1934
Annual Meeting, May 1. 1934: Shares
A 53,614
B 1,467,066
C 800
D.
J. W. Van Dyke..
W. M.Irish
R. D. Leonard
E.J. Henry
Robert H. Colley.
J. D. Gill __ .
E. R. Cox
Personal
46,100
3,200
829
1,611
360
754
Proxy
1, 440, 048
500
26,518
rONCENTRATION OF ECONOMIC POWER
9995
SliUonciU of liliarcn of cajtilal utorlc voUd at stockholders mcctintj^ of lliv Allanlic
lleflniuij Colli, party — Continued
1935
Annual Meeting May 7, 1935: Shares
A 55,872
B..__ 1,407,886
C None
D.
Personal
Proxy
J. W. Van Dyke - ..
46, 100
3,200
2,435
W. M.Irish.
1, 406, 8C7
W. D.Anderson ... '- . . ..
R.J.Henry
276
Robert H. Colley
1,611
33
373
360
W. M. O'Connor v.. -- --
W. C. Yeager . . . . .- .-
J.D.Qill . -
R. C.Tuttle -
503
E. R. Cox . . . . .-- -
760
240
1936
March 24, 1936, Special Meeting: Shares
A 50,726
B 1,418,556
C 433
D.
J. W. Van Dyke..
W. M. Irish
Robert H. Colley.
W. M. O'Connor.
J. D. Gill
E. R. Cox
W. C. Yeager
March 30, 1936, Special Meeting: Shares
A - 50,391
B 1,430, 199
C 433
D.
Personal
Proxy
J. W. Van Dyke
46,100
500
1,611
33
373
360
760
W.M.Irish
1, 429, 959
Robert H. Colley
W. M. O'Connor
W. C. Yeager.
J. D. Gill
E. R. Cox
240
9996
CONCENTRATION OF ECONOMIC POWER
Statement of shares of capital stock voted at stockholders meetings of the Atlantic
Refining Company — Continued
May 5, 1936, Annual Meeting: Shares
A 50, 192
B 1,449, 197
C None
D.
Personal
Proxy
J. W. Van Dyke
46,100
500
W.M.Irish _
1, 448, 601
E.J.Henry
266
Robert H. CoUey . .
1,346
383
360
760
W. C. Yeager
J. D. QUI _ -.
E. R. Cox
240
1937
May 4, 1937, Annual Meeting: Sharea
A 50,566
B 1,436, 188
C 568
D.
Personal
Proxy
J. W. Van Dyke..
E. J. Henry
Robert H. Colley.
J. D. QUI
R. C. Tuttle
E. R. Cox
E. H. Blum
46,100
360
10
960
800
1,611
1, 433, 629
205
503
240
1938
May 3, 1938, Annual Meeting: Shares
A 60,980
B 1,483,271
C 1,033
D.
Personal
Proxy
J. W. Van Dyke
53,700
1.611
266
373
360
10
800
960
Robert H. Colley...
1, 482, 298
E. J. Henry ...
W. C. Yeager ..- . . .
J. D. Gill.. _
R. C, Tuttle
733
E TT, Rlnm
E. R. Cox _
240
September 12, 1938, Special Meeting:
A
Common
61,032
B 1,438,358
C.
D.
583
Preferred
180
91,490
Personal
Proxy
Common
Preferred
Common
Preferred
J. W. Van Dyke
54.200
1,611
266
373
360
10
800
960
Robert H. Colley
100
1,437,411
91, 477
E. J. Henry
\V. C. Yeager..
20
J. D. Gill
R. C. Tuttle
707
E. H. Blum
2
43
E. R. Cox
240
U
CONCENTRATION OF ECONOMIC POWER
O
997
Statement of shares of capital stock voted at stockholders meetings of the Atlantic
Refining Company — Continued
September 16, 1938; Adjourned Special Meeting: Common Preferred
A 60,584 165
B 1,445,791 91,584
C 433
D.
Personal
Proxy
Common
Preferred
Common
Preferred
J W. Van Dyke
54,200
1,611
266
373
360
10
800
960
Robert H. CoUey
100
1,444,844
91, 571
E, J. Hemy .__
W. C. Yf;ager
20
J.D.Oiil --
R. C. ''.uttle
707
E. H. Blum -.- -
2
43
E. R. Cox
240
13
May 11, 1939
F.
CiTiKS Service Company (Del.)
(.33) With regard to all meetings of stockholders of the reporting company
held during each of the years 1929 to 1938, both inclusive, submit a statement
showing:
a. Shares of capital stock voted by stockholders in person.
b. Shares of capital stock voted by proxy exercised by company oflBcers
and directors.
c. Shares voted by proxy exercised by other than company officers and
directors.
d. Total shares of stock voted by each officer and director at each meeting,
both as to personal holdings and by proxy, shown separately.
Date of meeting
Total votes
(a)
Votes in
person
(b)
Votes by
proxies by
company
directors and
oflBcers '
(C)
Votes by
proxies
by others
(d^
Votes voted by directors and oflBcers
In per-
son
By proxy •
Total
Apr. 30, 1929....
May 12, 1930....
1.713,905
2, 619, 598. 45
2,811,977.65
2, 626. 054. 90
2, 641, 659. 45
2, 578, 355. 3
2, 691, 406. 8
1, 603, 742. 05
1,631,816.15
1, 651, 358. 65
1,742.922.10
119.8
115.85
454.90
696. 45
4, 470. 50
5, 581. 25
7,404.10
7,929.45
2,852.75
8,094.75
8,401.95
1, 713, 397. 2
2, 619, 446. 60
2,811,522.75
2,625,358.45
2, 637, 188. 95
2, 572, 774. 05
2,683,880.7
1, 595, 812. 6
1, 628, 566. 14
1, 643, 243. 9
1, 734, 475. 15
388
39.4
151.85
325. 65
337.6
4, 260. 20
4, 282. 75
5. 175. 75
5,727
5,088.30
6, 354. 25
6, 135. 25
1, 713, 397. 2
2,619,446.60
2,811,622.75
2,625,358.45
2,637,188.95
2,572,774.05
2,683,880.7
1,595,812.6
1,628,566.14
1, 643, 243. 9
1, 734, 475. 15
1,713,436.6
2, 619, 598 85
Apr. 21, 1931
2, 811, 848. 40
Apr. 26, 1932
2, 625, 696. 05
Apr. 25, 1933
Apr. 24. 1934
2,641,449.15
2, 577, 056. 80
Apr. 30, 1935
Apr. 28, 1936....
Mar. 16, 1937....
Apr. 27. 1937....
Apr. 26, 1938....
100
None
397. 26
20
45
2,689.056.45
1, 601, 539. 6
1, 633, 654. 44
1, 649, 598. 15
1,740,610.40
1 Columns (b) and (d) : All of the stock voted was voted by an oflBcer or a director representing the Proxy
Committee which consisted of persons who were oflBcers and/or directors and persons who were neither.
Included In the shares so voted were shares owned by certain other oflBcers and/or directors.
9998
•CONCENTRATION OF ECONOMIC POWER
Continental Oil Company
Item 33: With regard to all meetings of stockholders of the reporting company
held during each of the years 1929 to 1938, both inclusive, submit a statement
showing:
(a) Shares of capital stock voted by stockholders in person :
1930 653 1935 2,461
1931 303 1936 303
1932 101 1937 303
1933 543 1938 2,703
1934 1,400
(b) Shares of capital siock voted by proxy exercised by company officers
and directors:
1930 1,909,672
1931 2,463,169
1932 2,464,557
1933 2,681, 124
1934 2,199,739
1935 2,528, 684
1936 2,713,944.478
1937 2,421,504
1938.- 2,716,733
(c) Shares voted by proxy exercised by other than company officers and
directors:
1930 None
1931 None
1932 None
1933., None
1934 None
1935 . None
1936 6,750
1937 17,000
1938 6,385
(d) Total shares of stock voted by each officer and director at each meet-
ing, both as to personal holdings and by proxy, shown separately:
Year
Personal
Proxy
W. W. Bruce
W. W. Bruce
W. W. Bruce
W. W. Bruce
W. W. Bruce
W. W. Bruce
Dan Moran
James J. Cosgrove
James J. Cosgrove
W. H. Terguson..
W. H. Ferguson..
1930
1931
1932
1933
1935
1936
1934
1934
1935
1937
1938
200
None
None
None
None
None
None
1,400
2,158
None
None
1, 909, 672
2, 463, 169
2, 464, 557
2, 681, 124
2, 528, 684
2, 713, 944. 47
2, 199, 739
None
None
2, 421, 504
2, 716. 733
Consolidated Oil Corporation
Question 33. With regard to all meetings of stockholders of the reporting com-
pany held during each of the years 1929 to 1938, both inclusive, submit a state-
ment showing:
a. Shares of capital stock voted by stockholders in person
b. Shares of capital stock voted by proxy exercised by company officers
and directors
c. Shares voted by proxy exercised by other than company officers and
directors
d. Total shares of stock voted by each officer and director at each meeting,
both as to personal holdings and by proxy, shown separately —
Answer: The requested information is listed hereinafter with respect to
each meeting of stockholders of the reporting company held during each of
the years 1929 to 1938, both inclusive. The headings A, B, C and D refer
to the similarly designated subdivisions of the question, and the letters
D and O appearing in the column headed "Title" indicate Director and Officer
respectively.
CONCENTRATION OF ECONOMIC OWER 9999
Animal inccLinir, ^ear 1929: •^'"'f''''
A - 409
B . 4,361,447
C -
D
Name
J. W. Games - -
Sheldon Clark
J. F. Farrell.. ,
H. F. Sinclair --
C. E. Crawley
S. L. Fuller _
E.H.Clark....
D. L. Hoober.
E. W. Isom
F. H. Bartlett
A. W.Cutten
H. H. Rogers --.-
E. W. Sinclair
Geo. H. Taber, Jr....
A. E. Watts .-
W. L. Connelly
P. W. Thirtle
H. F. Sinclair, J. F. Farrell and Sheldon Clark as joint
proxies
J. F. Farrell and Sheldon Clark as joint proxies
Arthur Cutten, J. F. Farrell and Sheldon Clark as joint
proxies '-
F. Bartlett, J. F. Farrell and Sheldon Clark as joint
proxies.
Title
D& O.
D & O.
D & O.
D&O.
D & O.
D
D
D&O.
D
D
D
D
D & O.
D_
D&O.
O
D&O.
Number of Shares
Voted
Persopal
Holdings
414
300
314
3.237
100
67
2,300
500
2
5,000
10, 000
500
800
435
1,050
1,500
200
By Proxy
825
2,391
1 4, 353, 443
4, 405
182
200
• Includes respective personal holdings.
19.30
Annual meeting, year 1930: Sharet
A 476
B 3,866,742
C 2
D
Name
Title
Number of Shares
Voted
Personal
Holdings
By Proxy
P. D. C. Ball -
D
10,024
5,000
414
300
10, 000
100
1,014
67
500
332
750
3,337
435
200
1,344
1,104
101
F. H. Bartlett
D. _. _
J. W. Carnes
D&
D&
D
Sheldon Clark
A. W. Cutten ....
C.E.Crawley
D&
D& O
D
J. F. Farrell
&. L. Fuller
D. L. Hoober ,
D&
D .- . .
E. W. Isom -.
H.H.Rogers.. i
D
D&
D
D & O
D &
0. - ..
H. F. Sinclair , . ...
Geo. H. Taber, Jr.-
P. W. Thirtle . . ...
A. E. Watts . . .
W. L. Connelly...
68
A. Steinmetz .
H. F. Sinclair, J. F. Farrell and Sheldon Clark as joint
proxies.
1 3, 8G6, f>7 »
' Includes respective personal holdings.
10000
CONCENTRATION OF ECONOMIC POWER
Special meeting, year 1930: shares
A 2,319
B 4,736, 161
C 301
D
Name
Title
Number of Shares
Voted
Personal
Holdings
By Proxy
P. D. C. Ball -
D ...
10,024
5,000
414
300
10,000
100
1,714
67
SCO
332
250
3,337
435
200
1,344
700
1,104
141
10
F. H. Bartlett ..-
D
J. W. Carnes _
D&O
D& -
D....
Sheldon Clark ._
A.W. Cutten- -
C. E. Crawley. ..- . - . ...........
D&O
D&O
D
J. F. Farrell
S. L. Fuller
D. L. Hoober
D&O
D
E.W. Isom ...1.
H.H.Rogers . .
D .
H.F.Sinclair ... . .
D&O.^....
D
Geo. H. Taber, Jr .
P. W. Thirtlfi
D&O _
D&0-1-...
D ... .
A. E. Watts . . -
Alvin Untermyer . .
W. L. Connelly
O
A. Steinmetz...
J. Von Bevem
O
E. W. Sinclair
D&
35
Q.T.Stanford
200
H. F. Sinclair, J. F. Farrell and Sheldon Clark as joint
1 4, 735, 826
proxies.
' Includes respective personal holdings.
1931
Annual meeting, year 1931:
A.- . (*)
B (*)
C (*)
D
Title
Number of Shares Voted
Name
Personal
Holdings
By Proxy
P. D.C.Bali .. 1
D :
10,024
6,000
414
100
100
10,000
931
34
332
250
3,362
435
100
904
700
1,104
112
10
40
-
F. H. Bartlett....
D
J. W. Carnes
D&O
D&O
D&O
D
Sheldon Clark
C. E. Crawley
A. W. Cutten . .
J. F. Farrell... .-
D&O.
D
S. L. Fuller
E. W. Isom
D
H. H. Rogers
D
H. F. Sinclair . ...
D&O
D
Geo. H. Taber, Jr
P. W. Thirtle
D&O
D&O
D —
.\. E. Watts
Alvin Untermyer . .
W.L.Connelly..
A. Steinmetz
0....
J. Von Bevem .
M. R. Gross :
B. P- Sinclair, J. F. Farrell and Sheldon Clark as joint
1 > 4.400,000
proxies.
'These statistics requested not available.
> Includes respective personal holdings.
°> Approximate.
CONCENTRATION OF ECONOMIC POWER
10001
1932
Special meeting, year 1932:
A . 5,673
B 4,746,695
C 1,827
D
Name
P. D. C. Ball - -- -
J. W. Carnes- -. -
Sheldon Clark -_
O. E. Crawley —
A. W. Cutten
J. F. Farrell .-. .-
S. L. FuUer.-.-
E. W. Isom....
D. T. Pierce -
H. F. Sinclair -.
Geo. H. Taber, Jr.. -. ..-
P. W. Thirtle----
Alvin Uotermyer
A. E. Watts
W. L. Connelly...
M. R. Qross
A. Steinmetz
H. F. Sinclair, J. F. Farrell and Sheldon Clark as joint
proxies.
Title
D
D& O.
D&O.
D&O.
D
D&O.
D
D
D
D*0.
D
D&O.
D
D&O.
O
O
O
Number of Shares
Voted
Personal
Holdings
12,024
414
300
100
2,000
300
57
732
100
3,362
2,435
200
700
994
1,304
104
160
By Proxy
4, 746, 695
■ Includes respective personal holdings.
Annual meeting, year 193^:
A._
B
C
D
(*)
(*)
(*)
Name
Title
Number of Shares
Voted
Personal
Holdings
By Proxy
P. d: C. Ball
D
12, 524
2,164
1,014
100
100
2,331
10
332
100
3,362
2,436
14
700
994
100
3,689
11,113
12,949
10
5,422
1,000
5,000
10
104
160
F. H. Bartlett
D
J. W. Carnes . .
D&O
D&O
DAO
D&O
D .
Sheldon Clark
C. E. Crawley ._.. -.
J. F. Farrell
—
S. L. Fuller ....
E. W. Isom .
D - .
D.T.Pierce
D ..
H. F. Sinclair -....
D&O .
D..
Geo. H. Taber, Jr , .
E. R. Tinker .-
D
Alvin Untermyer .
D
A. E. Watts
D&O
D
Elisha Walker
W. S. Fitzpatrick
D&O
D
D
C. H. Eountz
Nelson K. Moody _ _
TT. G. Frfinm(»n
D
John H. Markham, Jr
D
G.T.Stanford .
D&O
D
Dana H. Kelsey -
H. 8. Marston
D
M. R. Gross _
A. Steinmetz
n. F. Sinclair, Sheldon^Clark and J. F. Farrell as Joint
proxies.
"»9, 660,000
•These statistics requested not available.
' Includes respective i)ersonal holdings.
' Approximate.
10002 CONCENTRATION OF ECONOMIC POWER
1933
Annual meeting, year 1933:
A 4,587
B 9,335,340
C None
D
Name
Title
Number of Shares
Voted
Personal
Holdings
By
Proxy
P. D. C. Ball
D
5,025
1.000
1,014
312
100
3,689
2,031
10
10
32
11,113
5,000
10
12,949
100
3,362
1,000
, 935
14
13,200
100
1,294
226
277
R. E. Cutten
D
D&O
D&O -
D&O
D&O
D&O
D..
J. W. Games i-.
Sheldon Clark .--. ..
C.E.Crawley
W. S. Fitzpatrick ..
J. F. Farrell •-. •
H. Q. Freeman _
8. L. Fuller
D J
-E. W. Isom . .
D . ...
C. H. Kountz -
D '
D.^. Kelsey
D
D
D
H. 8. Marston _
N. K. Moody
D. T. Pierce .. ... ....
D .. ..
H. F. Sinclair
D&O
D&O
D
O.T.Stanford
Geo. H. Taber, Jr
E. R. Tinker—.
D
Alvin Untermyer . . .. .
D ..
Elisha Walker
D ..
A. E. Watts
D&O
W. F. Dau
A . Rf.filnTnfif.7.
H. F. Sinclair, J. F. Farrell and Sheldon Clark as joint
proxies
• 9, 335, 340
1 Includes respective personal holdings.
1934
Annual meeting, year 1934:
A (*)
B (*)
C (*)
D
Name
Title
Number of Shares
Voted
Personal
Holdings
By
Proxy
J. W. Carnes
D&O
D&O
D&O
D
1,014
312
100
1,000
2,000
3,600
10
10
32
5,000
11, 113
10
6,104
100
3,362
1,017
1,435
14
13,200
700
263
600
462
Sheldon Clark
C.E.Crawley .. .
R. E. Catten
J. F. Farrell
D&O
D&O
D
W. S. Fitzpatrick
H, CI. Frfip.rnan ...
S. L. Fuller . '
D
E. W. Isom
D
D. H. Kelsey
D
C. H. Kountz
D
H. 8. Marston . .. ..
D
N.K. Moody
D...
D. T. Pierce . ..
D
H. F. Sinclair ..
D&O
D&O
D --
O. T. Stanford
Oeo. H. Taber, Jr
E.R. Tinker
D
Alvin Untermyer ...
D
A. E. Watts
D&O
W. F. Dau
E.L. Wagon
A. Steinmetz.
H. F. Sinclair, J. F. Farrell and Sheldon Clark as Joint
proxies
>* 10,640,000
• These statistics requested not available.
< Includes respective personal holdings.
' .A-PpVoximate,
CONCENTRATION OF ECONOMIC POWER 10003
1935
Annual meeting, year 1935:
A (*)
B (*)
C (*)
D
Title
Number of shares voted
Name
Personal
holdings
By proxy
J. W. Carnes
D&O
D&O
D&O
D&O
D &0
D
1,014
312
100
2,000
3,600
10
32
5,000
11, 113
10
100
3,362
780
1,435
1,600
14
12,700
700
63
600
2
Sheldon Clark .-
C.E.Crawley •
J. F. FarreU
W. S. Fitzpatrick
S. L. Fuller
E.W.Isom - :
D. —
D. H. Kelsey .. . - - - -
D
C. H. Kountz
D
H. S. Marston
D
D. T. Pierce
D
H. F. Sinclair . . ..
D&O
D.. -
L. V. Stanford . . ..
Qeo. H. Taber, Jr..
D
P. W. Thirtle
D& O
D . . -.
K. R. Tinker
Alvin Untennyer
D
A. E. Watts - . .
D&O
W. F. Dau . .
E. L. Wagon
o .:..
J. Von Bevem ^
H. F. Sinclair, J. F. Farrell, and Sheldon Clark, as joint
n 9,000, 000
proxies.
Special meeting, year 1935:
A (*)
B . (*)
C - (*)
D
Title
Number of shares voted
Name
Personal
holdings
By proxy
J. W. Carnes .
D&O
D&O
D&O
D&O
D&O -
D
D
1,014
312
100
2,000
3,600
10
32
5,000
11,113
10
100
3,362
780
1,435
1,600
14
12,700
700
63
600
2
Sheldon Clark
C.E.Crawley . ..
J. F. Farrell. _
W. S. Fitzpatrick
S.L. Fuller
E.W.Isom
D. H. Kelsey
D
C. H. Kountz .
D
H. S. Marston
D
D.T.Pierce
D
H. F.Sinclair..
D&O
D
L. V. Stanford
Qeo. H. Taber, Jr . . .
D . -
P. W. Thirtle..
D&O
D
E. R. Tinker.
Alvin Untermyer
D .
A. E. Watts .— . .
D&O
W. F. Dau - . .
E. L. Wagon
J. Von Severn
H. F. Sinclair, J. F. Farrell, and Sheldon Clark as joint
» « 9,900, 000
proxies.
•These statistics requested not available.
' Includes respective personal holdings.
» Approximate.
>- i't. 17-A-
10004
C0NCENTRATIOI«f OF ECONOMIC POWER
1936
Annual meeting, year 1936:
A.-. ---_. 4,622
B - 11, 168, 167
C 10, 154
D
Title
Number of Shares Voted
Name
Personal
Holdings
By Proxy
Sheldon Clark
D&O
D&O
D&O
D
D
312
2,000
4,000
10
32
100
3,362
14
12,700
1,500
263
600
2
J. F. FarreU ^. .
W. S. Fitzpatrick..
S.L. Fuller
E. W. Isom '....
D. T. Pierce
D
H. F. Sinclair
D&O
D
E. R. Tinker
Alvin Untermyer
D
P. W. Thirtle
W. F. Dau .- :....
E. L. Wagon
O
J. Von Severn
H. F. Sinclair, J. F. Farrell and Sheldon Clark as joint
proxies
1 11,168,167
1937
Annual meeting, year 19il7:
A 10,780
B 10, 158,543
C . 345,694
D
Title
Number of Shares Voted
Name
Personal
Holdings
By Proxy
Sheld«n Clark.. ..
D&O
D&O
D&O
D. ..
312
2,000
4,000
10
32
100
3,362
12,720
1,500
263
600
1
J. F. Farrell
W. 8. Fitipatrick
S. L. Fuller .
E. W. Isom..
D. ...
D. T. Pierce ... . .
D
H.F.Sinclair
D&O
D
Alvin Untermyer
P. W. Thirtle....
W. F. Dau
E. L. Wagon
O
J. Von Severn
O. M. Gerstung . . ....
25
H. F. Sinclair, J. F. Fawcll and Sheldon Clark as Joint
proxies
1 10, 158, 518
1 Includes respective personal iboldings.
CONCENTRATION OF ECONOMIC POWER 10005
1938
Annual meeting, year 1938:
A - 20, 173
B 10,395,319
C , 355,247
D
Title
Number of Shares Voted
Name
Personal
Holdings
By Proxy
Sheldon Clark _
D&O
D&O -
D&O
D _..
D&O
D.
612
2,000
4,000
10
1,500
100
8,962
650
12,720
1,500
300
600
10
J. F. Farrell
W. S. Fitzpatriek
8. L. Fuller
H. R. Gallagher
D.T.Pierce
H. F. Sinclair
D&O
D
H. F. Sinclair, Jr
Al vin U ntermyer ..-
D
P. W. Thirtle
.. .
W. F. Dau
E. L. Wagon..
J. Von Bevem l.
0...L
H. r. Sinclair, Sheldon Clark and J. F, Farrell as joint
proxies
> 10, 395, 319
i Includes respective personal holdings.
Gulf Oil Corporation
Answer to Questions 33-a; 33-b; 33-c; 33-d.
We tabulate below for each year inquired about the information called
for by these questions.
In Column "A" — The Shares of Capital Stock voted by Stockholders in
person.
In Column "B" — The Shares of Capital Stock voted by proxy exercised
by Company Officers and Directors.
In Column "C" — ^The Shares voted by Proxy exercised by other than Com-
pany Officers and Directors.
In Column "D" — Total Shares of Stock voted by each Officer and Director
at each meeting both as to personal holdings and by proxy, shown separatcjly.
Column
A
No. of
shares
Column
B
No. of
shares
Column
C
No. of
shares
Column D
Personal
Proxy
Name
No. of
shares
Name
No. of
shares
5,308
41,503
4, 171, 889
3, 982, 902
4, 132, 194
3,938,216
None
None
None
5,720
TEAR 1929
H. L. Stone
5,086
3,846
10,330
13,994
3,110
5,086
Geo. S. Davison
W.J.Guthrie
W.J.Guthrie
W.J.Guthrie-
4, 171, 889
YEAR 1930
Charle"* B. Buerger
W.J. Guthrie
3, 982, 902
F. A. Leovy
O. R. Nutty
H.L.Stone -.
None
YEAR 1931
None
4, 132, 104
55, 232
YEAR 1932
Charles B. Buerger
3,845
100
2,553
10,330
14,210
6,327
3,010
5,086
J. F. JDrake
H. A. Gidney .
W.J. Guthrie
3, 938, 216
F. A. Leovy
J. E. Nelson
G. R. Nutty
H.L.Stone ...-
10006
CONCENTRATION OF ECONOMIC TOWER
Column '
A
Column
B
No. of
shares
Coluiiiu
C
No. of
shares
Coluniu 1)
Personal
Proxy
shares
Name
No. of
shares
Name
No. of
shares
51 177
4,015,182
3, 995, 349
3, 908, 494
4, 064, 264
3, 906, 425
7, 810, 354
7, 875, 503
None
None
1,425
None
3,135
40
100
YEAR 1933
Charles B . Buerger
3,718
100
2,220
10, 542
14,204
5,127
5,507
3,718
100
2,220
9,742
13, 385
5, 527
5,507
3,718
100
2,220
9,542
11,982
5, 527
5,507
3,531
3,718
100
2.220
9,542
6,092
11,980
5,527
4.507
3, 718
100
2,053
9, 542
6.092
10, 380
5,527
4,435
2, 862
8,447
2,261
4,106
19, 084
5.001
17,818
10, 654
10, 671
2,811
7,947
2,261
4,906
5,800
16, 769
11,154
857
10, 671
W.J. Guthrie
W.J. Guthrie-
W.J. Guthrie
W.J. Guthrie
J. F. Drake
J. F. Drake
H. A. Qidney .-.
W. J. Guthrie
4, 015, 182
F. A. Leovy.
J. E. Nelson ..
H. L. Stone
45, 405
YEAR 1934
Charles B. Buerger
J. F. Drake -
H. A. Gidney
W. J. Guthrie
3, 995, 349
F. .\. Leovy
J. E. Nelson... -
n. L. Stone
49, 704
YEAR 1935
Charles B. Buerger
J. F. Drake
H. A. Qidney
W.J.Guthrie --.
3, 908, 494
F. A. Leovy . .
J. E. Nelson
H. L. Stone -
53 274
YEAR 103(1, ANNUAL MEETIXf;
E. C.Bothwell..-
Charles B. Buerger
J. F. Drake . .-
H. A. Gidney
W. J Guthrie
4, 064, 264
W. V. Hartmann.
J.E.Nelson
H. L. Stone
48, 572
YEAR 1936, SPECIAL MEETING
Charles B. Buerger
J. F. Drake
100
H. A. Gidney
W.J.Guthrie
F. A. Leovy
H. L. Stone
W.J. Guthrie
J. F. Drake. -
W.J.Guthrie
3,901,930
W. V. Hartmann
F. A. Leovy . .
488
87,064
J. E.Nelson
H. L. Stone..--
YEAR 1937
E C. Bothwell
3,907
Charles B. Buerger
J. F. Drake.
H. \. Gidney
W.J. Guthrie
7, 810, 354
W. V. Hartmann.- -
F. ; .Leovy - -..
J. F. Nelson . .
H.L.Stone
69,621
TEAR 1938
E. C.Bothwell
Charles B. Buerger
J. F. Drake - .
694
H. A. Gidney
F. A. Leovy. -.
David Proctor
H. L. Stone
W. V. Hartmann
i . A . Leovy . . .
976
J. P. Nolson
Dav'irf >'^vvftor.
7, 873, 768
H. L. Stotie -.
65
CONCENTRATION OF ECONOMIC POWER
10007
The Ohio Oil Company
1929
Ans. Annual Stockholders' Meeting, May 23, 1929: Shares
a 29,188
b 1,481,678
c__ . _ . ^ None
d
Personal
Holdings
Proxy
O. D. Donnell, President <fe Director
J. K. Kerr, Vice President & Director
K. J. Berry, Vice President & Director
W. W. Fleming, Vice President & Director
C. L. Fleming, Vice President & Director..
E. B. Redpath, Secretary
F. A. Billstone, Treasurer -
Shares
10, 436
1,380
2,300
450
400
60
104
Shares
1, 481, 678
Special Stockholders' Meeting, December 30, 1929: Shares
a 20,837
b^. 1,666,937
c~__ _ _ __ _ None
d
Personal
Holding?
O. D. Donnell, President & Director
J. K. Kerr, Vice President & Director
R. J. Berry, Vice President & Director...
C. L. Fleming, Vice President & Director
E. B. Redpath, Secretary
F. A. Billstone, Treasurer
Proxy
Shares
1,666,937
1930
Annual Stockholders' Meeting, May 29, 1930: Shares
a ---- 23,352
b 1,552,742
c None
d
Personal
Holdings
O. D. Donnell, President & Director
J. K. Kerr, Vice President & Director
R. J. Berry, Vice President & Director
W. W. Fleming, Vice President & Director.
John McFadyen, Vice President & Director
C. L. Fleming, Vice President & Director..
E. B. Redpath, Secretary
F. A. Billstone, Treasurer
Proxy
Shares
1, 552, 742
10008 CONCENTRATION OF ECONOMIC POWER
Special Stockholders' Meeting, August 14, 1930: Shares
a 31, 355
b - 1,841,522
c None
d
Personal
Holdings
Proxy
O. D. Donnell, President & Director
R. J. Berry, Vice President & Director
C. L. Fleming, Vice President & Director
E. B. Redpath, Secretary
Shares
11,536
3,500
900
100
Shares
1,841,522
1931
'innual Stockholders' Meeting, May 28, 1931: Shares
a - 88, 568
b 4,125,157
c None
d
Personal
holdings
Proxy
O. D. Dounell. President & Director
J. K. Kerr, Vice President & Director
R. J. Berry, Vice President & Director
W. W. Fleming, Vice President & Director.
John Mc Fad yen. Vice President & Director
C. L. Fleming, Vice President & Director..
E. B. Redpath, Secretary
F. A. Billstone, Treasurer.
Shares
26, 428
4,260
•7,000
1,800
2,030
1,800
250
408
Shares
4, 125, 157
1932
Annual Stockholders' Meeting, May 26, 1932: Shares
a 92,317
b 4,578,482
c None
d
O. D. Donnell, President & Director
R. J. Berry. Vice President & Director. ..
C. L. Fleming, Vice President & Director
E. B. Redpath, Secretary
F. A. Billstone, Treasurer
Personal
holdings
Shares
31, 028
7,000
1,800
700
SOS
Proxy
Shares
4, 678, 482
rONCKXTRATIOX OF ECONOA[TC POWER 10009
1933
Annual Stockliulders' Meeting, May 25, 1933: shares
a 93,391
b 4,447,751
c None
d
Personal
holdings
Proxy
O. D. Donnell, President & Director
Shares
33,045
4,260
7,000
1,800
800
408
Shares
4, 447, 751
J. K. Kerr, Vice President & Director _
R. J. Berry, Vice President & Director
C. L. Fleming, Vice President & Director.
E. B. Redpath, Secretary & Director
F. A. Billstone, Treasurer ...
1034
Annual Stockholders' Meeting, May 24, 1934: Shares
a 1,424
b. 4,078,897
c 35,630
d
O. D. Donnell, President & Director-
Personal
holdings
Shares
Proxy
Shares
4, 078, 897
1935
Annual Stockholders' Meeting, May 23, 1935:
a: Shares
Common 106, 148
Preferred 9, 894
b:
Common 4, 661, 602
Preferred 440, 686
c None
d
Personal
holdings
Proxy
0. D. Donnell, President & Director:
Common
Shares
34,000
1,190
1,800
17
Shares
4,661,602
Preferred
440, 686
0. L. Fleming, Vice President & Director:
Common.
Preferred ^
. u
10010
CONCENTRATION OF ECONOIMIC POWER
Annual Stockholders' Meeting, May 28, 193G: ^■'>«f«»
a 121,802
b 4,297, 128
c None
d
Personal
Holdings
Proxy
O. D. Donnell, President & Director
W. W. Fleming, Vice President & Director.
John McFadyen, Vice President & Director
C. L. Fleming, Vice President & Director. .
E. B. Redpath. Secretary & Director
F. A. Billstone, Treasurer & Director
O. E. McCuUough, Vice President
Shares
35,000
2,306
3,030
1,800
800
416
160
Shares
4, 297, 128
1937
Annual Stockholders' Meeting, May 27, 1937: '""'«'■"
a._.: 101,996
b : 4, 175,376
c None
d
Personal
Holdings
Proxy
O. D. Donnell, Presidipnt & Director
John McFadyen, Vice President & Director
C. L. Fleming, Vice F*resident & Director..
J. C. Doimell II, Diiector
E. B. Redpath, Secretary <fe Director
F. A. Billstone, Treasurer & Director
O. E. McCullough, Vice President
Shares
50,750
3,030
1,800
17, 450
800
538
210
Shares
4, 175, 376
1938
Annual Stockholders' Meeting, Mav 26, 1938: Shares
a 102,747
b 4,246,857
c None
d
Personal
Holdings
Proxy
O. D. Donnell, President & Director.-
C. L. Fleming, Vice President & Director. .
J. C. Donnell II, Vice President & Director
E. B. Redpath, Secretary & Director
F. A. Billstone, Treasurer & Director
Q. E. McCullough, Vice President..
Shares
51,760
1,800
17,550
800
538
210
Shares
4, 246, 857
34. A statement giving specifications for each of the brands and grades of
gasoline and/or motor fuel distributed by reporting company and its subsidiaries
and affiliates in domestic marketing operations at the present time.
Ans. Statement attached, marked Exhibit "O."
35. A statement showing the annual budgets for each of the years 1936, 1937
and 1938 allocated by reporting company, its subsidiaries and affiliates for the
purposes of technical research.
Ans. None.
CONCENTRATION OF ECONOMIC POWER
10011
Phillips Petroleum Company
33. With regard to all meetings of stockholders of the reporting company held
during each of the years 1929 to 1938, both inclusive, submit a statement showing:
a. Shares of capital stock voted by stockholders in person.
b. Shares of capital stock voted by proxy exercised by company officers
and directors. •
c. Shares voted by proxy exercised by other than company officers and
directors.
d. Total shares of stock voted by each officer and director at each meeting,
both as to personal holdings and by proxy, shown separately.
Answer. — The required information in respect of stockholders' annual meetings
is submitted in the following schedule: (No special meetings of stockholders were
held during this period.)
(a) Shares of capital stock
voted by stockholders
in person
(b) Shares of capital stock
voted by proxy exer-
cised by company of-
ficers, and directors
(Proxy Committee)
(c) Shares voted by proxy
exercised by other
than company oflQcers
and directors..-
(d) Total shares of stock
voted by each oflBcer
and director at each
meeting, both as to per-
sonal holdings (1) and
by proxy (2) shown
separately:
(1) Voted in person:
Alexander, Clyde...
Kane, J. H
Kooi)man, H. E
Phillips, Frank
Phillips, L. E
Wing, O. K
PhUlips, J. a
Davis, W. N
Mclntyre, P. J
Hudson, R. H
Dewar, J. 8
Sands, J. M...
Adams, K. S
Lemp. Ch. A..
Musgrave, C. R
Rice, F. E
Trower, H. A
Smoot, W. C
Youker, M. P
Lynn, R. H
Feist, F. L
Parr, R. E
Emery, Don
(2) Shares voted by
proxy committee
Members of com-
mittee -.
1, 455, 3225 2
6,937
9,895
9,162
86,600
52, 151
1,100
1, 455, 3221^
F. Phillips
L. E. Phillips
O. K. Wing
187, 109
11,830
10,190
39,400
2,131
721
2,178
2,395
1, 659, 197
F. Phillips
L. E. Phillips
O. K. Wing
1931
280, 603
2, 614, 724
4,230
2,992
16,909
37,100
64,305
771
100
2,794
1,535
1,864
2,632
125
10,500
453
2,122
1,346
2,614.724
F. Phillips
L. E. Phillips
O. K. Wing
277, 531
2, 606, 456M
10,230
2,492
13,905
37,100
65, 355
468
100
2,200
1,486
1,264
900
10,500
1,053
2,522
1,346
2, 606, 456>/;
F. Phillips
L. E. Phillips
O. K. Wing
1933
58, 613
2, 512, 636
9,730
2,192
37,100
'""468
125
"i,353
2,512,636
F. Phillips
L. E. Phillips
O. K. Wing
10012
CONCENTRATION OF ECONOMIC POWER
1934
1935
1936
1937
1938
(a) Shares of capital stock
voted by stockholders
in person
17, 454
2, 601, 830
10,881
2, 658, 212
2,281
2, 511, 382
2,644
2, 952, 658
9,267
(b) Shares of capital stock
voted by proxy exer-
cised by company of-
ficers, and directors
(Proxy Committee)
(c) Shares voted by proxy
exercised by other than
company oflBcers and
directors
2, 554, 293
(d) Total shares of stock
voted by each officer
and director at each
meeting, both as to per-
sonal holdings (1) and
by proxy (2) shown
separately:
(1) Voted in Person:
Alexander, Clyde
Kane, J. H
5,825
500
5,233
Phillips, Frank
500
Phillips, L. E
Wing, O. K
300
Phillips, J. G
Davis, W. N
700
Mclntyre, P. J
Hudson, R. H
1,461
Dewar, J. S
Sands, J. M
Adams, K. S
300
222
Lemp. Ch. A
Musgrave, C. R
10,500
153
822
163
Rice, F. E
Trower, H. A
Smoot, W. C
501
501
305
1,010
Youker, M. P...,
Lynn, R. H
Feist, F. L ..
204
70
204
Parr, R. E
70
Emery, Don
100
(2) Shares voted by
proxy committee
Members of com-
mittee
2, 601, 830
F. Phillips
L. E. Phillips
0. K. Wing
2, 658, 212
F. Phillips
J. H. Kane
0. K. Wing
2, 511, 382
F. Phillips
J. H. Kane
K. 8. Adafns
2, 952, 658
F. Phillips
J. H. Kane
K. S. Adams
2, 554, 293
.
F. Phillips
K. S. Adams
Don Emery
rONCENTRATION OF ECONOMTC POWER
The Pure Oil Company
10013
33. With regard to all meetings of stockholders of the reporting company held
during each of the years 1929 to 1938, both inclusive, submit a statement showing:
1929
1930
1931
1932
1933
(a) Shares of capital stock voted by stockhold-
ers in person:
Ans -
6,735
2, 523, 904
None
191
2, 523, 904
9,039
2, 538, 228
None
1,763
2, 538, 228
13,066
2,076,307
None
1,680
2, 076, 307
11, 173
3, 180, 395
None
2,680
3, 180, 395
47,202
(b) Shares of capital stock voted by proxy
exercised by company officers and
directors:
2, 397, 159
(c) Shares voted by proxy exercised by other
than company officers and directors:
None
(d) Total shares of stock voted by each officer
and director at e^ch meeting, both as to
personal holdings and by proxy, shown
separately:
Ans. None, except as follows:
Henry M. Dawes, Pres. and Dir.:
Personal
2,680
2, 397, 159
Rawleigh Warner, V. P., Treas. and
Dir.:
W F Burdell Dir* Personal
1,640
44
400
200
1,620
1,484
600
1,484
1,620
F.'s. Heath, V. P., Secy, and Dir.:
1,084
400
0. H. Jay, Asst. Secy. -Treas.: Personal .
C. M. Hinman, Asst. Secy.-Treas.:
400
400
W. E. Button, V. P. and Dir.: Per-
200
500
L. 8. Wescoat, V. P., Secy, and Dir.:
800
1
2S0
C." H. Keller, Asst. Secy.-Treas. : Per-
B. Q. Dawes, Chairman of Board: Per-
I
J. H. McCoy, Dir.: Personal
1
(a) Shares of capital stock voted by stockhold-
ers in person:
Ans -
(b) Shares of capital stock voted by proxy
exercised by "company officers and
directors:
Ans.- -
(c) Shares voted by proxy exercised by other
than company officers and directors:
Ans
(d) Total shares of stock voted by each officer
and director at each meeting, both as to
personal holdings and by proxy, shown
separately:
Ans. None, except as follows:
Henry M. Dawes, Pres. and Dir.:
Personal -
Proxy
Rawleigh Warner, V. P., Treas. and
Dir.:
Personal-—
Proxy. - —
W. F. Burdell, Dir.: Personal.
F. S. Heath, V. P., Secy, and Dir.:
Personal -
C. H. Jay. Asst. Secy.-Treas.: Personal
C. M. Hinman, Asst. Secy.-Treas.:
Personal —
W. E. Hutton, V. P. and Dir.: Personal
L. S. Wescoai, V. P., Secy, and Dir.:
Personal ■
D. H. Mulloney, Asst. Secy.: Personal.'
C. H. Keller, Asst. Secy.-Treas.: Per-
sonal
B. O. Dawes, Chairman of Board:
Personal
J. H. McCoy, Dir.: Personal
14, 607
2,315,633
None
1,000
2, 315, 633
44
400
1935
7,845
2, 102, 105
None
1,000
2, 102, 105
44
400
800
344
5,123
1936
4.240
2,073,840
None
1,000
2, 073, 840
8,772
2, 325, 925
None
100
2, 325, 925
1,540
1,000
1938
21, ISO
4, 362, 698
None
1,000
4, 362, 698
400
740
1,536
Note. — Preferred shareholders are entitled to four votes for each share held and common shareholders are
entitled to one vote for each share held.
10014
GONCENTRATTON OF EPOXOIMIC TOWER
SiiKiJi Union C)ii> Cuiu-okation
Item S3. — With regard to all meetings of stockholders of the reporting company
held during each of the years 1929 to 1938, both inclusive, submit a statement
showing:
A. Shares of capital stock voted by stockholders in person,
B. Shares of capital stock voted by proxy exercised by company officers and
directors.
C. Shares voted by proxy exercised by other than company officers and direc-
tors.
D. Total shares of stock voted by each officer and director at each meeting,
both as to personal holdings and by proxy, shown separately.
Date of meeting
April 21, 1038...
April 15, 1937 _.
Mny 21, lOM ._
May Hi, li(3,'; _
May 17, 1934....
Feb. 5, 1934.-
May 18, 1933.
May 19, 1932.
May 21, 1931.
May 15, 1930.
Julys, 1929..
May Ifi, 1929.
Shares of capital stock
Voted by
stockhold-
ers in per-
son-
7,329
3,205
17, 083
1,875
393
620
424
4,779
4,630
Voted by
proxy exer-
cised by
company
oflBeers and
directors
9, 035, 905
9, 101, 770
9, 474, 340
9, 786, 004
9,871,144
9, 436, 449
10, 081, 605
10, 148, 301
10, 449, 387
10, 510, 608
10, 019, 361
10,629.913
Voted by
proxy exer-
cised by
other than
company
officers and
directors
23,428
4,939
2,795
Total shares of stock voted by each officer and
director at each meeting, both as to personal
holdings and by proxy, shown separately
R. O. A. van der Woude..
S. W. Duhig
R. O. A. van der Woude .
S. W. Duhig .
R. G. A. van der Woude..
W. C. Stagg.. -
J. C. van Eck
LewLS L. Clarke
Bayard Dominick
El-nest Sturm
R. Airey
R. Q. A. van der Woude.
J. C. van Eck..
Lewis L. Clarke
Bayard Domiuick..
Ernest Sturm
J. C. van Eck
Charles Hayden
J. C. van Eck
J. C. van Eck .
A. O. Choate
Charles Hayden
J. C. van Eck
J. C. van Eck
R. Airey
J. C. van Eck
Avery D. Andrews .
J. C. van Epk
J. C. van Eck
Avery D. Andrews .,
Personal
holdings
7,000
2,700
25
2,900
4,650
By proxy
8,412, 151
176
623, 575
9,161,770
9,385,371
88, 969
9,619,178
160,880
9, 008, 422
202, 722
9, 436, 449
9, 858, 691
222,914
10. 148, 301
10, 449, 387
2, 298, 454
8, 212. 154
10,019,361
2,4)7,759
8, 212. 154
CUNC'EXTKATION OF ECONOMIC POWEK 10015
Skelly Oil Company
33. With regard to all meetings of stockholders of the reporting company
held during each of the years 1929 to 1938, both inclusive, submit a statement
showing: A. ._ B. ._ C. _. D. __.
Answer:
Note. — The company's equity stock was classed as "capital stock" up to
and including May 14, 1930, since which date it has borne the classification
"common stock."
1929
Annual meeting of October 18, 1929
a. 61,504 shares voted by stockholders in person.
b. 717,415 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 743,473 total shares voted by officers and directors, shown separately:
Personal holdings:
C. C. Herndon 1,000
W. G. Skellv 24, 113
F. T. Hopp : 945
26, 058
As proxy:
C. C. Herndon, and W. G. Skelly, as joint proxy 717, 451
1930
Special meeting of May I4, 1030
a. 5,707 shares voted by stockholders in person.
b. 708,438 shares voted by officers and directors by proxy.
c. 200 shares voted by others as proxy.
d. 711,625 total shares voted by officers and directors, shown separately:
Personal holdings:
C. C. Herndon 200
W. G. Skelly 2, 108
F. T. Hopp 859
Richard T. Lyons 9
H. M. Stalcup 11
3, 187
As proxv:
C. "C. Herndon and W. G. Skelly, as joint proxy 708, 438
Annual meeting of October 18, 1930
a. 1,156 shares voted by stockholders in person.
b. 762,508 shares voted Tjy officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 762,987 total shares voted by officers and directors, shown separately:
P( rsonal holdings:
F. T. Hopp ..... . 459
Richard T. Lyons 9
H. M. Stalcup . --- 11
479
A.S proxv:
C. C. Herndon and W. G. Skelly, as joint proxy ' 762, 508
10016 CONCENTRATION OF ECONOMIC POWER
1931
Annual meeting of October 19, 1931
a. 142,616 shares voted by stockholders in person.
b. 616,618 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 750,151 tcrtal shares voted by officers and directors, shown separately:
Personal holdings:
W. G. Skelly 131, 108
F. T. Hopp ... 1,559
Richard T. Lvons. . . 679
H. M. Stalcup 11
W. t. Atkins 176
133, 533
As proxy:
C. C. Herndon and W. G. Skelly, as joint proxy 616, 618
1932
Annual meeting of October 18, 1932
a. 140,106 shares voted by stockholders in person.
b. 582,050 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 721,655 total shares voted by officers ahd directors, shown separately:
Personal holdings:
C. 0. Herndon 300
W. G. SkeUy 137, 178
F. T. Hopp . 1,538
Richard T. Lyons 579
H. M. Stalcup . 11
139, 606
As proxy:
C. C. Herndon and W. G. Skelly, as joint proxy 581, 950
F. T. Hopp .... 100
582, 050
1933
Annual meeting of October IS, 1933
a. 140,475 shares voted by stockholders in person.
b. 572,657 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 712,832 total shares voted by officers and directors, shown separately:
Personal holdings:
C. C. Herndon . 900
W. G. Skelly . 137, 158
F. T. Hopp : 1,538
Richard T. Lyons 579
140, 175
As proxy:
C. C. Herndon and W. G. Skelly, as joint proxy 572, 657
PONrEXTUATION OF ECONOMIC POWER 10017
Annual nicding of October IS, lfJ34
a. 141,113 shares voted by stockholders in person.
b. 582,593 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 721,168 total shares voted l)y officers and directors, shown separatel3':
^rsonal holdings:
C. C. Herndon 900
W. G. Skelly _, 136,958
F. T. Hopp 138
Richard T. Lyons .^ 579
138, 575
As proxv:
C. C. Herndon and W. G. Skelly, as joint proxy 582, 593
1935
Annual meeting of October 18, 1985
a. 3,489 shar /oted >^' .stockholders in person.
b. 802,947 shares voted by officers and directors as proxy.
c. 300 shares voted bj' others as proxy.
d. 806,226 total shares voted by officers and directi^rs, shown separately:
Personal holdings:
C. C. Herndon 2,500
Richard T. Lyons 579
Henry C. Olcott 200
3, 279
As proxy:
F. T. Hopp 100
C. C. Herndon and W. G. Skelly, as joint proxy 245, 290
Jos. G. Carey and Chas. E. Hane, as joint proxy 557, 557
802, 947
(Note. — Above figures do not inchide 33,268 shares of preferred stock
voted at the meeting.")
1936
Special meeting of January 3, 1936
a. (None) shares voted by stockholders in person.
b. 760,177 shares voted by officers and directors ar proxy.
c. (None) shares voted by others as proxy.
d. 760,177 total shares voted by officers and directors, shown separately:
Personal holdings :
(None.)
As proxy:
Jos. G. Carey, Chas. E. Hane, Henry C. Olcott and Richard T.
Lyons as proxy committee . 760,177
(Note. — Above figures do not include 39,811 shares of preferred stock
voted at the meeting.)
10018 CONCENTKATTON OF ECONOMin POWER
Spccidl iiicclitif/ of Maij t, l'J,}(!
a. (Nouu) aharcs voted by stockholders in person.
b. 750,170 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 750,170 total shares voted by officers and directors, shown separately:
Personal holdings:
(None.)
As proxy:
Jos. G. Carey and Chas. E. Hane, as joint proxy 557, 557
Jos. G. Carey, Chas. E. Hane, W, G. Skelly and C. C. Herndon,
as proxy committee 192, 613
750, 170
(Note. — Above figures do not include 41,857 shares of preferred stock
ropresent(!d at the meeting.)
Adjourned special meeting of June 1, 1936
(Adjourned from May 1, 1930)
a. (None) shares voted by stockholders in person.
b. 775,195 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 775,195 total shares voted by officers and directors, shown separately:
Personal holdings:
(None.)
As proxy:
Jos. G. Carey and Chas. E. Hane, as joint proxy 557, 557
Jos. G. Carey, Chas. E. Hane, W. G. Skelly and C. C. Herndon,
as proxy committee 217, 638
775, 195
(Note. — Above figures do not include 42,087 shares of preferred stock
represented at the meeting.)
Adjourned special meeting of July 1, 1936
(Adjourned from June 1, 1936)
a. (None) shares voted by stockholders in person.
b. 775,195 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 775,195 total shares voted by officers and directors, shown separately:
Personal holdings:
(None.)
As proxy:
Jos. G. Carey and Chas. E. Hane, as joint proxv 557, 557
Jos. G. Carey, Chas. E. Hane, W. G. Skelly and C. C. Herndon,
as Proxy Committee 217, 638
775. 195
(Note. — Above figures do not include 42,087 shares of Preferred Stock
represented at the meeting.)
CONCENTKATION OF ECONOMIC POWER 10019
Adjourned special meeting of September 1, 19S6
(Adjourned from July 1, 1936)
a. (None) shares voted by stockholders in person.
h. 775,195 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 775,195 total shares voted by officers and directors, shown separately:
Personal holdings:
(None.)
As proxy:
Jos. G. Carey and Chas. E. Hane, as joint proxy 557, 557
Jos. G. Carey, Chas. E. Hane, W. G. Skelly and C. C. Herndon,
as Proxy Committee 217, 638
775, 195
(Note. — Above figures do not include 42,087 shares of Preferred Stock
represented at the meeting.)
Annual meeting of October 19, 1936
a. 1,000 shares voted by stockholders in person.
b. 869,722 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 870,722 total shares voted by officers and directors, shown separately:
Personal holdings:
Richard T. Lyons 1, 000
As proxy :
Jos. G. Carey and Chas. E. Hane, as joint proxy 557, 557
Jos. G. Carey, Chas. E. Hane, W. G. Skelly and C. C. Herndon,
as proxy committee 312, 165
869, 722
(Note. — Above figures do not include 28,262 shares of preferred stock
voted at the meeting.)
1937
Annual meeting of October 18, 1937
a. 2,366 shares voted by stockholders in person.
b. 702,765 shares voted by officers and directors as proxy.
c. 705 shares voted by others as proxy.
d. 702,765 total shares voted by officers and directors, shown separately:
Personal holdings:
(None)
As proxy:
C. C. Herndon, W. G. Skelly, Emil Kluth and Arch H. Hyden,
as proxy committee 702, 765
(Note. — The preferred stock was not eligible to vote at the meeting.)
1938
Annual meeting of October 18, 1938
a. (None) shares voted by stockholders in person.
b. 735,945 shares voted by officers and directors as proxy.
c. (None) shares voted by others as proxy.
d. 735,945 total shares voted by officers and directors, shown separately:
Personal holdings:
(None)
As proxv:
C. C. Herndon, W. G. Skelly, EmU Kluth and Arch H. Hyden,
as proxy committee _ 735, 945-
(Note. — The preferred stock was not eligible to vote at the meeting.)
May 24, 1939.
124401— 40— pt. 17-A 5
10020 ('<>i\<lKiVlliATIOi\ OF ECONOMIC POWER
Socony-Vacuum Oil Company, Incorporated, 26 Broadway, New York, N. Y.
Item- 33. — With regard to all meetings of stockholders of the Reporting Com-
pany held during each of the years 1929 to 1938, both inclusive, submit a state-
ment showing:
Date of Meeting
A
Shares
Voted
by
Stock-
holders
in
Person
B
Shares Voted
by Proxy
Exercised by
Company
OflScers
and
Directors
C
Shares Voted
by Proxy
Exercised by
Other than
Company
OflBcers and
Directors
D
Total Shares Voted by each Officer and
Director both as to personal holdings
and by proxy
Name
Personal
Holding
Proxy
May 31, 1929 (Annual):
Proposition #1
■ 136
136
65, 764
55, 241
942
802
230
4,967
3,340
38,070
37, 632
„38, 156
37, 374
2,665
2,975
5,765
00,696
12, 288, 893
12, 289, 418
12, 650, 569
12, 964, 139
13, 472, 926
13, 472, 206
22, 674, 788
21, 472, 529
23, 815, 253
22, 990, 178
22,986,105
22, 985, 438
22, 981, 855
20, 977, 646
20, 186, 777
20, 665, 670
21, 231, 093
None
None
None
None
20
20
None
None
12, 507
26,323
26, 323
19, 258
7,225
43, 961
12, 000
14,000
3,739
H.L.Pratt
H. E. Cole
(See note)
12, 288, 678
200
C. F. Meyer...
15
Proposition #2
H. L. Pratt
12, 289, 203
H. E. Cole
200
C. F. Meyer .
15
May 29, 1930 (Annual)..
H. L. Pratt
12, 650, 325
H. E. Cole .
194
C. F. Meyer .
40
F. Ewing
10
May 28, 1931 (Annual)..
H. L. Pratt
12,964,012
C. F. Meyer
127
July 30, 1931 (Special):
C. F. Meyer...
13, 472, 926
Proposition #2
May 26, 1932 (Annual)..
C. F. Meyer
13, 472, 206
H. L. Pratt .
22, 674, 716
F. S. Fales
72
May 25, 1933 (Annual)
H. L. Pratt
21, 472, 529
December 14, 1933
C. E. Amott...
23,815,253
(Special).
May 31, 1934 (Annual):
F. S. Fales
22, 989, 542
A. F. Corwin .
278
H. F. Sheets..
358
F. S. Fales
22, 985, 469
A. F. Corwin
278
H. F. Sheets .
358
Proposition #2
F. S. Fales
22, 984, 802
A. F. Corwin...
278
H. F. Sheets...
358
Proposition #3
F. S. Fales . ..
22, 981, 219
A. F. Corwin...
278
H. F. Sheets...
358
May 31, 1935 (Annual)..
F. S. Fales . ..
20, 977, 402
A. F. Corwin ..
137
H.F. Sheets
90
J. A. Brown
17
May 28 1936 (Annual)
F. S. Fales . ..
20, 186, 495
A. F. Corwin...
185
H. F. Sheets...
97
May 27, 1937 (Annual).
F. S. Fales
20, 665, 345
A. F. Corwin ..
325
May 26, 1938 (Annual)
F. S. Fales
21, 230, 667
E.R. Brown...
374
H. F. Sheets...
52
Note.— Records now available do not show number of shares actually voted by individual directors at
meetings, it having been the practice at most meetings for each director to give a proxy for his shares to the
director designated by the management to vote all shares represented at the meeting through proxies on
the form sent out by the management.
(.'OMCKNTKATION OF iiCOMOMlC POWER 10021
Standaed Oil Company (Indiana)
Temporary National Economic Committee, Washington, D. C. Questionnaire for Oil
Companies
Answer to question S3
1929
3-7-29 — Annual stockholders' meeting: Shares
A . 671,599
B 2,838,257
C 4,955,420
fR. W. Stewart]
D { E. G. Seubert ^Proxy Committee 2,838,257
If. T. Graham J -
R. W. Stewart 16, 810
E. G. Seubert 6,058
Allan Jackson 2, 220
R. H. McElroy 805
E. J. Bullock 1,920
Amos Ball 631
R. E. Humphries 1, 283
L. L. Stephens... 110
C. J. BarkduU 740
8-27-29 — Special stockholders' meeting:
A _ 24,547
B 8,889,822
C None
fE. G. Seubert]
D ] Allan Jackson[Proxy Committee 8,889,822
If. T. Graham J =
E. G. Seubert 9,007
Allan Jackson 3, 900
F. T. Graham__.. 892
R. H. McElroy 1,718
E. J. Bullock.. 3,916
R. E. Humphries 1,412
Amos Ball 1, 250
C. J. BarkduU 1,295
Gentry Cash 977
Bruce Johnstone 150
M. A. Traylor » 150
1930
3-6-30 — Annual stockholders' meeting:
A 28,795
B 11,344, 119
C None
fE. G. Seubert]
D< Allan Jackson>Proxy Committee 11, 344, 119
If. T. Graham J
E. G. Seubert 9, 007
Allan Jackson 2, 820
F T.Graham 1,025
R. H. McElroy 1, 729
E. J. Bullock 4, 016
Amos Ball 1, 250
R. E. Humphries 2, 353
C. J. BarkduU 1, 095
Gentry Cash 977
Bruce Johnstone 400
M. A. Traylori 150
A. W. Peake> :___.-^ 659
' These shares not voted in person but are Included in the shares voted Iry the Prosy Committee.
10022 CONCENTRATION OF ECONOMIC POWER
Answer to question SS — Continued
1931
5_7_31 — Annual stockholders' meeting: ahares
A 36,636
B 12,945,277
Q __ I 952
'f'K G.'Seubertf '
D| Allan Jackson [Proxy Committee _. 12, 945, 277
[F. T. GrahamJ
E. G. Seubert 10,408
Allan Jackson 1, 308
F. T. Graham 1,023
R. H. McElroy 1,810
E. J. BuUock 4,316
Amos Ball... 950
R. E. Humphries 523
C. J. Barkdull , -" 1, 100
Bruce Johnstone 650
A. W. Peake 659
L. L. Stephens 1 445
R. E. Wilson i . 201
M. G. Paulus » 577
1932
5-5-32 — Annual stockholders' meeting:
A 33,380
B._ 12,012, 140
C 75
^ {i.'T.'GrahfS} ^^^''^ Committee 12,012, 140
E. G.'Seubert 10,408
F. T. Graham 1,023
R. H. McElroy 1,310
E. J. Bullock 4, 316
Amos Ball . 735
R. E. Humphries 523
C. J. Barkdull 1, 550
M. A. Traylor 150
Bruce Johnstone 325
A. W. Peake 659
L. L. Stephens 445
R. E. Wilson - 201
M. G. Paulus 577
1933
5-4-33 — Annual Stockholders' meeting:
A -- 40,338
B 10,737,474
C 1,490
fE. G. Seubert ]
D ^ Allan Jackson V Proxy Committee 10,737,474
I F. T. Graham !
E. G. Seubert - . 12,021
Allan Jackson 2, 169
F. T. Graham 1, 272
r-^ R. H. McElroy .._. 1, 591
E. J. Bullock . 5, 052
Amos Ball 1,335
C. J. Barkdull. _ „ 2, 100
Bruce Johnstone 300
L.L.Stephens 948
R. E. Wilson 534
M. G. Paulus 831
A. W. Peake» - 1,071
• These shares not voted In person but are Included in shares voted by the Proxy Committee.
CONCENTRATION OF ECONOMIC POWER 10023
Answer to question S3 — Continued
1014
4-5-34 — Annual stockholders' meeting: S**""'*
A 41,436
9,515,016
c:::::::::::::::::::::::::: 125
fE. G. Seubertl
D{C. J. Barkdull Proxy Committee --- 9,515,016
[Allan Jackson J
E. G. Seubert 12,021
C. J. Barkdull 2, 100
Allan Jackson 861
R. H. McElroy 2,383
E. J. Bullock_. 5,052
Amos Ball 1,335
A. W. Peake 1.071
L. L. Stephens 948
R. E. Wilson 600
M. G. Paulus 831
F. T. Graham 1,272
H. F. Glair > 216
1935
4-25-35 — Annual stockholders' meeting;
A .- 38,20.5
B".""1 9,823,263
c::::::::: ::::::: - 263
fE. G. Seubert)
DJC. J. BarkdulU Proxy Committee 9,823,263
[Allan Jackson J
E. G. Seubert 12,021
C. J. Barkdull -- 2, 100
Allan Jackson 861
R. H. McElroy - 2,385
E. J. Bullock 5,052
Amos Ball 1,335
L. L. Stephens 948
M. G. Paulus - 831
H. F. Glair 215
F. T. Graham 1, 284
Bruce Johnstone ' 100
A. W. Peake i. - - 1,071
193C
4-30-36 — Annual stockholders' meeting:
A 45,702
B 10,076,691
ci:: ::::::i:::::::::i:"::i:::":i 125
fE. G. Seubert 1
D \C. J. BarkduU[Proxy Committe -- 10, 076, 691
[Allan Jackson J
E. G. Seubert.- 14,313
C. J. Barkdull --- 2,999
Allan Jackson 1, 539
R. H. McElroy 3, 101
E. J. Bullock... - 5,747
Amos Ball 2, 177
Bruce Johnstone • 100
A. W. Peake 1,751
M. G. Paulus 1,423
H. F. Glair 658
p. T. Graham 1, 621
L. L. Stephens ». 1.761
' These shares not voted in person but are included in the shares voted by the Proxy Committee.
10024 CONCENTRATION OF ECONOMIC POWER
Answer to question 33 — Continued
1937
4-29-37 — Annual stockholders' meeting: sharex
A 37,522
B . 10,603,519
C-__ 2,960
IE. G. Seubertl
DJC. J. Barkdull [Proxy Committee 10,603,519
[Allan Jackson J
E. G. Seubert 14, 313
C. J. Barkdull 2, 999
Allan Jackson i _ _ _ 100
R. H. McElroy .. 3,101
Amos Ball . 2,177
A. W. Peake 1, 751
L.L.Stephens __ 1,761
M. G. Paulus 1,423
H. F. Glair . 352
J. F. Stone 700
E. J. Bullock 1 ^ 5, 047
Bruce Johnstone * __ 100
F. T. Graham i 1, 521
1938
4-28-38 — Annual stockholders' meeting:
A 41,561
B 10,513,896
C 225
fE. G. Seubertl
D<C. J. Barkdull [Proxy Committee 10, 513,896
LAllan Jackson]
E. G. Seubert---, 14,313
C. J. Barkdull 2,999
Allan Jackson 100
J. F. Stone* 25, 573
E. J. BuUock 5,047
Amos Ball 2, 177
Bruce Johnstone 125
A. W. Peake . 1, 751
L. L. Stephens 1,761
M. G. Paulus 1, 423
H. F. Glair ^ 352
R. F. McConnell2___ 645
F. T. Graham 2 1,521
' These shares not voted in person but are included in the shares voted by the Proxy Committee.
' 24,873 shares voted by proxy.
CONCENTRATION OF KCONOMIC POWER
10025
Answer to question SS — Continued
12-22-38— Special stockholders' meeting: ■S'*"''"
A 42,436
B 9,229,506
ClIIIIIIII 96
fE. G. Seubert]
D]C. J. BarkdulUProxy Committee 9,229,506
[Allan JacksonJ
E. G. Seubert 15,961
C. J. BarkduU 3,848
Allan Jackson 100
J. F. Stone - 700
A. W. Peake 2,409
Amos Ball 2,924
E. J. Bullock 1 5,914
M. G. Paulus 2,026
H. F. Glair__._ 788
R. F. McConnell 853
L.L.Stephens 2,554
F. T. Graham i 1,788
Bruce Johnstone ' 125
I These shares not voted in person but are included in the sharas voted by the Proxy Coinuiittee.
Standard Oil Company (N. J.)
33. Statement with regard to aU meetings of stockholders held during each of
the years 1929 to 1938, both inclusive, showing:
(a)
(b)
(0
(d)
Year
Shares of Capi-
tal Stock voted
by Stockholders
in Person
Shares of Capital
Stock voted by
Proxy exercised
by Company
Officers and
Directors
Shares voted by
Proxy exercised
by Other than
Company Offi-
cers and
Directors
Total shares of
stock voted by
each officer and
director at each
meeting both as
to personal hold-
ing and by proxy
1929
None
132
859
None
36
10
45
18
'563
734
17, 418, 614
18,880,976
17,021,303
18, 765, 286
18, 199, 954
17, 802, 685
18, 345. 139
18, 882, 776
18, 706, 798
18, 590, 845
None
None
None
None
None
37, 961
45, 548
39, 503
34, 824
5,089
Note.— Personal
1930 -
holdings of each
1931 - -
officer and di-
1932
rector are voted
1933 -
by proxy by the
1934
directors casting
1935
the vote as
1936
proxy, and are
1937
included in col-
193?
umn "b" of this
statement.
10026 CONCENTRATION OF P:C0N0M1(3 POWER
Standard Oil Company (Ohio)
Exhibit # 13. Dates of meetings of stockholders of the Standard Oil Company, an
Ohio corporation, and record of the votes cast at those meetings
April 1,
1929
April 7,
1930
October
13. 1930
January
16, 1931
April 6,
1931
October
2, 1931
April 4,
1932
(a)
1,149
368, 065
930
401,802
471
418,688
200
401, 074
25
(b)..
673. 734
503, 80S
556,864
(c)
Totals
369, 214
402, 732
419, 159
401, 274
573, 734
503, 808
556, 879
AprU 3,
1933
April 2,
1934
April 1,
1935
April 6,
1936
April 5.
1937
April 4.
1938
(a)
100
500, 559
800
710
548, 632
630
565, 750
100
649. 758
200
(b)
522, 618
662,585
(c)
6,538
Totals
561, 459
522, 618
649, 342
666, 380
549, 858
569,323
(d) It is not customary for officers and directors of the company to vote their own shares, and in many
ipstances such shares have not been voted at all. If and when voted, it has usually been accom-
plished through a proxy or proxies. Officers and directors when serving as proxies do not east sepa-
rate ballots, but instead join in sigTiing one ballot for all shares on which the voting rights have been
proxied to them.
Sun Oil Company
33. With regard to all meetings of stockholders of the reporting company held
during each of the years 1929 to 1938, both inclusive, submit a statement showing:
a. Shares of capital stock voted by stockholders in person.
b. Shares of capital stock voted by proxy exercised by company officers and
directors.
c. Shares voted by proxy exercised by other than company officers and
directors.
d. Total shares of stock voted by each officer and director at each meeting,
both as to personal holdings and by proxy, shown separately.
Shares of Capital Stock Voted By-
Date of Stockholders Meeting
Stockholders
In Person
Proxy Exer-
cised by
Officers &
Directors
Proxy Exer-
cised by other
Than Officers
and Directors
March 12, 1929 ....
24,462
60,122
84,025
123, 701
120, 193
107, 462
238,775
592,666
400,278
360,124
1, 128, 365
1, 208, 799
1, 308, 379
1, 293, 221
1, 256, 561
1, 465, 788
1, 489, 181
1, 201, 690
1, 630, 362
1, 723, 178
None
March 11, 1930 ^-
None
March 10, 1931
None
March 8, 1932 '.
None
March 14, 1933
None
March 13, 1934
None
March 12, 1935...
None
March 10, 1936
None
March 9, 1937
None
March 8, 1938
None
CM)NCEN"TltAri()N OF ECONOMIC POWER
10027
Total Slxares of Stock Voted by Each Officer &
Director
J. Howard Pew
Personal
Holdings
By Proxy
J. N. Pew, Jr.
Personal
Holdings
By Proxy
March 12,
March 11
March 10,
March 8,
March 14,
March 13,
March 12,
March 10,
March 9,
March 8,
1929.
, 1930.
, 1931.
1932..
, 1933.
, 1934.
, 1935.
. 1936.
1937..
1938 -.
March 12,
March 11,
March 10,
March 8,
March 14,
March 13,
March 12,
March 10,
March 9,
March 8,
,1929.
, 1930.
, 1931 .
1932..
, 1933.
, 1934 .
, 1935.
, 1936.
1937..
1938..
March 12,
March 11,
March 10.
March 8,
March 14,
March 13
March 12,
March 10,
March 9,
March 8,
, 1929
, 1930.
, 1931 .
1932 _.
, 1933.
, 1934.
, 1935.
, 1936.
1937..
1938..
30, 822
32. 596
32, 861
43, 835
59, 211
190, 632
268, 810
965, 177
026, 757
02.% 756
770, .514
297, 090
232,116
535, 637
14, 213
991,471
16,888
19, 056
33, 323
127, 224
152, 366
354,266
304, 015
1, 341, 172
248,588
260, 314
386, 788
1, 180, 205
Frank Cross
J. Edgar Pew
March 12, 1929
March 11, 1930
March 10, 1931
March 8, 1932.
March 14, 1933
March 13, 1934
March 12, 1935
March 10, 1936
March 9, 1937-
March 8, 1938.
6,472
7,164
7,810
7,949
7,048
7,720
7,763
7,890
8,312
136, 894
243, 622
154,398
115,100
131, 781
158, 698
257, 065
279, 165
350. 157
382, 006
11, 557
7.463
8,283
8,834
Arthur E. Pew, Jr.
Samuel B. Eckert
15, 300
33. 6.53
34,720
40, 756
42, 825
10,086
11,104
11,256
12, 855
13, 922
15, 632
15, 883
Robert E. Lamberton
John O. Pew
1,780
2,050
17, 879
17, 879
15, 895
16, 473
15, 814
17. 709
10028
OONCKNTRATION OK ECONOMIC POWER
o o
<y zc
bO
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<D
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hfl
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eti
^
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cc-Q
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ou
o
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5 00 OO OQ
30000S
5 (NOOO-I
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00 OOO'OO
8»OCOC5C^OOcOt^OO
oo'cTi-T aomm of
a. a
ga^o.s
&(2
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, ■= a " w
2^a a<<
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s s
CONCENTRATION OF ECONOMIC ; POWER
10029
ss
o .
■ o
o
>
10030
CONCENTRATION OF ECONOMIC POWER
5000Q
5 (MOO
r* c^l
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lOOO
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t, til
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cocoS
cooi s^
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rr^>
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p,|^ % z^^-°a s ^«c^ S^-S^-g"
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.A
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CONCENTRATION OF ECONOMIC POWER
10031
oo>a
Olio
-H50
-H op Q '-' iSmtOO
S-2
ft.
-s
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(^
S
H
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a>
1.5
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o aaw
T3 ox)
§..g-9oao "SS
g" o o a a D. -w H
g-agaag" ^S-o
_ §• 5" "- t>l -
I-
iJ-^CB
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rt" >. fe >. ^ f^ • t-"
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as a u. aoa „^
co^Ski^^a>M
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t4 03
0,0
a: k<
B °S2
O'-'
t> OJ J,
"■'■"
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S'iS
ZU
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£^53
231
t-,
Sao
a^lz:
>>«
•^■2^
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£«>3
*S|
111
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"slg
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l-a|
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d^o e^oa
10032 CONCENTRATtON OF ECONOMIC POWER
Union Oil Company of California
[Schedule XIII]
Shares of Capital Stock voted by proxy exercised by company officers and
directors at Annual Meetings of Stockholders held during the years 1929 to 1938
inclusive:
1929 » 3, 070, 503
1930 1 :.-- 3, 515, 602
1931 ' 3, 655, 422
1932 » 3, 667, 920
1933 . .- 3,209,419
I Includes shares owned by Union Oil Associates.
Union Oil Company of California in December, 1932.
1934 2, 839, 313
1935 3, 044, 152
1936 2, 952, 825
1937 3, 010, 944
1938 3,064,680
The Union On Associates was merged with and into
Shares of Capital Stock voted by proxy exercised by other than company officers
and directors ,at Annual Meetings of Stockholders held during the years 1929
to 1938 inclusive:
1929 993
1930 37, 683
1931
1932 606
1933 4, 855
1934 38,403
1935 43,536
1936 43,316
1937 34, 988
1938 39, 266
Shares of Capital Stock voted by stockholders in person at Annual Meetings
of Stockholders held during the years 1929 to 1938 inclusive:
1929 32, 806
1930 . 27, 226
1931 19, 383
1P32 25, 433
1933 245, 405
1934 171,093
1935 158,801,
1936 138,681
1937 119, 158
1938 126, 198
Exhibit No. 1315
Statement Prepared for the Temporary National Economic Commiti'EE
(Based upon replies furnished by oil companies in replv to Question 32 and supple-
mentary question to Items 11 k (1) and 11 k (2) of Questionnaire of the Tempo-
rary National Economic Committee — "Exhibit No. 1137")
Statement B
By Christopher Del Sesto, Special Assistant to the Attorney General, Department
of Justice, Washington, D. C.
The staff of the Temporary National Economic Committee requested that I
review the replies submitted by the oil companies in response to the questionnaire
of this Committee with respect to (a) the cost of gasoline at the refinery gate and
the costing policies of the oil companies, and (b) the classification of income by
branches and departments of the business. This statement is a brief summary
based upon the material furnished by the oil companies to this Committee.
Two questions are being constantly asked in the petroleum industry —
1. What is the cost of gasoline, the principal product of petroleum, at the
refinery gate?
2. Which of the four branches of the petroleum industry are profitable and which
are unprofitable; is any one branch of the industry used to subsidize another
branch or branches of the industry?
Notwithstanding eff'orts on the part of this Committee to obtain answers to
these two questions, they have not yet been answered satisfactorily.
(1.) With respect to the cost of gasoline, some of the major oil companies have
taken the position that it is impossible to compute its cost; others have so quali-
fied the data submitted that it is of no practical value; while others have furnished
satisfactory data.
i The matter of determining unit costs is of great importance in the petroleum
ndustry. This industry is engaged in exploiting a diminishing natural resource
considered next to food in importance in our national economy. Consequently,
both the Federal Government and the state governments have a vital interest in
this industry.
Furthermore, since proration of crude oil production has now become an accepted
policy in the petroleum industry, it is important that exact unit cof^ be deter-
mined, not only for refining, but for all other processes. The evidence before
this Committee has indicated that proration is to some extent guided by price
and that it necessarily affects price. Since proration is so intimately related to
the price structure of petroleum, it would seem, therefore, highly desirable. If
not absolutely necessary, that the cost of production be known by those most
vitally concerned — the regulating authorities and the consuming public. The
episode of recent months, when some of the oil producing states shut_ down oil
wells in order to restore the price of crude oil to the level existing prior to the
recent cuts in prices averaging approximately twenty cents per barrel, cannot be
intelligently judged unless it can be determined from accurate costs what a fair
price for crude oil should be.
The matter of costs of a basic commodity such as gasoline is now of even greater
interest because of the current charges of profiteering in connection with certain
commodities during the present limited emergency. The President in his letter
of September 29, 1939, to the Chairman of this Committee stated:
"AU of us, of course, want to see producers, middlemen and retailers
receive fair prices for what they sell, and all of us recognize that, in certain
fields, such fair prices are probably not as yet being received. But none of
us wants to see the cost of living unjustifiably increased or prices become so
unreasonably high as to interfere with our national defense.
"It seems to me, therefore, that during this periodj the TNEC might well
keep a constant eye on increases in prices of our bwio materials and, in the
10033
10034 CONOENTliATION OF KCOAOMIO POWER
light of past and present circumstances, study the facts to determine whether
there is profiteering, or whether such increases are legitimate."
How can this Committee ascertain if increases in prices are legitimate or not,
if costs cannot be determined? If costs are not known, how can this Committee
determine if profits are reasonable?
While the petroleum industry has been investigated and studied from time to
time, those making the investigations and studies have been handicapped by the
lack of accurate and comparable data as to costs. Consequently, the subject of
costs and profits have been in many cases mere academic economic discussions
with no satisfactory conclusions.
In view of this circumstance, this Committee may wish to consider the desira-
bility of legislation requiring large companies dealing in basic commodities and
who are engaged in interstate commerce to adopt uniform accounting and cost
systems. It appears from the answers in response to this Committee's question-
naire that, in the absence of such uniform accounting or cost systems, no informed
-judgment is possible on any economic question of the utmost importance to the
people of this country.
(2) With respect to the analysis of income by branches of the industry, some
of the major oil companies stated that such a classification was impossible;
others stated that assets could be allocated by branches of the industry, but that
revenue could not; others did furnish the data to the Committee, although in
some case there were substantial qualifications.
If it is true that these large organizations in the petroleum industry are unable
to determine the classification of their assets and income by various branches of
the industry, this raises a broad issue with respect to the study of the concentration
of economic wealth and power in this country. These questions might well be
raised by this Committee:
Can it be that, M'hen a corporation reaches beyond a certain size, it is
impossible for its ofl^cials to make a proper accounting of its affairs?
Can it be that, when a corporation reaches beyond a certain size, that the
management itself is unable to determine which of the various segments of
the enterprise are profitable and which are unprofitable?
Can it be that large enterprises are able to exist, regardless of their efficiency
or inefBciency, by the sheer momentimi of size though the management may
not know how the enterprises are progressing in their various fields?
If the answer to these questions should be in the affirmative, it is a matter of
great concern to this country and should be pursued in greater retail by this
Committee. A large corporation such as the Standard Oil Company (New Jer-
sey), for example, which utilizes over two billion dollars in capital has a tremendous
efl"ect upon our national economy. Within the petroleum industry it must of
necessity affect the prices in all four branches of the industry, and in many of the
fields it is the leader because of its very size and because of the volume of business
transacted by it. Can it be that such a leader in the industry, accounting for
approximately one-fourth of the total assets of the twenty major oil companies,
has no standard or guide by which it can determine the result of its operations
in the various branches of the industry?
A discussion of the data submitted to this Committee on these two questions
by the major oil companies follows:
I. COST OF GASOLINE AT THE REFINERY GATE AND COSTING POLICY OF THE MAJOR
OIL COMPANIES
The Temporary National Economic Committee in its questionnaire to the oil
companies asked for the cost of gasoline during the year 1938 at the refinery gate
(exclusive of any selling expenses). The Committee also asked for a brief ex-
planation of the casting policy followed by the oil companies.
Two major oil companies. Standard Oil Company (California) and Mid-Con-
tinent Petroleum Corporation, failed to reply to the Committee's questionnaire.
Three major oil companies, Shell Union Oil Corporation, Sun Oil Company,
and Union Okl Company of California, maintained that unit cost data were not
available and that unit costs could not be determined.
Shell Union Oil Corporation reported to the Committee as follows:
"It is a recognized principle in the oil industry that it is impossible to
determine separately the costs applicable to a particular product manufac-
turecj. The costs of manufacturing finished products are joint and inseparar
CONCENTRATION OF ECONOMIC POWER 10035
ble and the products themselves are commingled and blended before, during
and after the refining process. The reporting company's subsidiary refining
companies do not even, in all cases, keep the elements of cost segregated by
individual refineries. In an endeavor to give information which may be
useful in connection with this question, the following information is attached,
viz. the total expense up to the refinery gate, the additional selling, ad-
ministered and other expense, and the segregation, by volume, of products
sold during 1938."
The Sun Oil Company also reported that unit costs could not be obtained and
reported to the Committee as follows:
"There is no exact method for the determination of costs in a multiple
product industry. The method our company follows is that of taking entire
costs and applying these equally against the products produced in proportion
to their gallonage. When these products are sold a profit or loss is sustained
depending upon whether or not the costs as heretofore determined are greater
or less than the selling price. On the theory that no profit is realized until
the product is sold, this method results in an accurate determination of
profits earned."
The Union Oil Company of California, in reporting that it was impossible to
determine the cost of gasoline, stated to the Committee:
"The company feels it should not be called upon to furnish the information
requested in this question as the determination of costs involves so many
constantly varying factors, some of them more or less arbitrary, that the
results obtained without detailed explanation would neither be fair to the
company nor serve as an accurate basis for any computations the committee
might desire to be made thereon."
Three major oil companies, 'Atlantic Refining Company, Socony-Vacuum Oil
Company, Incorporated, and Tide Water Associated Oil Company, reported that
accurate unit costs for gasoline could not be obtained. Upon further request of
the Committee, however, these companies did furnish the unit costs used bj' them
for inventory purposes during 1938.
In its original reply to the Committee, Socony-Vacuum Oil Company Incor-
porated, stated:
"The problem of ascertaining the net income of the several branches or
activities of an integrated operation, is if anything, even more insoluble than
the problem of obtaining net investment by reason of an additional factor,
namely, the determination of the cost of product and services, especially the
former. We have no means of knowing, or even approximating, except on a
most arbitrary basis, what a gallon of gasoline "costs" our marketing depart-
ment when it comes from our own refinery and is only one of many multiple
products made from a single barrel of crude. It is true that, for income tax
purposes and the ascertainment of surplus for dividend purposes, we must
estabhsh some "cost" for our products. Here, however, "ve are dealing with
cost to the Company a whole, not to any of its branches, and even in this
case we are compelled to use arbitrary methods. For this inventory purpose,
we use a method which is primarily the sales realization method which is
acceptable to accountants and tax officials generally, although it i? well
understood by all concerned that it is only an arbitrary approximation of
something which can never be scientifically ascertained, namely, the true
cost of individual products.
The best cost accountants have wrestled with this problem within the
various companies, within the American Petroleum Institute and elsewhere.
All agree that the question "What does a product cost?" cannot be accurately
answered. Messrs. Morland and McKee in "Accounting for the Petroleum
Industry" (1925); McKee in "Handbook of Petroleum Accounting" (1938);
The U. S. Tariff Commission's Report to the House of Representatives on
Crude Petroleum and Its Liquid Refined Products, (Report No. 30, Second
Series, 1932) ; and the Report of the Federal Trade Comn?ission on the Pacific
Coast Petroleum Industry, Part No. 1, Production, Ownership and Profit
(1921), to say nothing of other authoritative pronouncements, all unite in
stating that, while the total cost of all products is easily obtainable, the cost
of any one product is obtainable only on son.e arbitrary basis, and the cost
attached to one product affects the cost of all other products. In other
words, there is no way to figure the actual cost of any one product;.
124-^91— 40— pt.l7-A 6
10036 CONCENTRATION OF ECONOMIC POWER
The Tide Water Associated Oil Company also reported, in its original report
that it was impossible to determine the cost of gasoline, stating:
•"'We have no method of accurately computing the cost of each product
manufactured from Crude Oil, chiefly due to two facts: first, because it is
impossible to assign to each product its just proportion of the cost of the
raw material, the largest single item of cost, and secondly, because the
refining processes are continuous and there is such an interrelation between
them as to make the allocation of the processing costs to individual products
impossible without major arbitrary assumptions.
A number of arbitrary costing methods have been attempted to approxi-
mate costs of certain products under a given set of conditions and assumptions.
We have experimented with various methods, but in all cases arbitrary
assumptions must be employed in the division of costs and value of by-
products which defeat any attempt to determine profit or loss on each product
by accurate costing."
One major oil company, Gulf Oil Corporation, furnished the average unit cost
per barrel of crude oil refined at its various refineries, but did not allocate the
cost among the various refined products produced. This company reported to
the Conimittee that it is impractical to determine the actual per unit cost of a
gallon of gasoline at the refinery gate.
Ten major oil companies, Empire Gas and Fuel Company, Consolidated Oil
Corporation, Continental Oil Company, The Ohio Oil Company, Phillips Pe-
troleum Company, The Pure Oil Company, Skelly Oil Company, Standard On
Company (Indiana), Standard Oil Company (Ohio), and The Texas Corporation,
did furnish unit cost of gasoline at the refinery gate for the year 1938.
One major oil company, Standard Oil Company (New Jersey) furnished the
aggregate costs of operating the refineries of its various subsidiaries during 1938.
It was asked to supplement this data by showing the per unit cost of gasoline.
Under date of September 19, 1939, this company reported to the Committee that
this information was being compiled and that it w«uld be submitted as soon
as ready.
A summary of the unit costs of gasoline for 1938 furnished by the ten companies
referred to above, and a summary of the unit prices used for inventory purposes
by the three companies mentioned above, are shown in the attached Table A.
The detailed replies on this subject received from all companies, both majors and
non-majors, are included in Appendix I.
In studying the unit costs furnished, it will be noted that the unit costs vary
considerably not only among companies, but also among difi'erent refineries of
the same company. Some of the factors which cause the variations in cost are
the size of the refineries and the location of the refineries.
It should also be pointed out that some of the companies have qualified the
figures presented. Consequently these qualifications should be taken into con-
sideration in a study of the figures.
II. CLASSIFICATION OF INCOME BY BRANCHES AND DEPARTMENTS OF THE BUSINESS
The petroleum industry is divided into four branches: (1) production, (2)
transportation, (3) refining and manufacturing, and (4) marketing. Many -of
the major oil companies operate both in the domestic field and in the foreign
field. Some of the major oil companies, in addition, have investments which are
not related to the petroleum industry.
The questionnaire of the Temporary National Economic Committee sought to
ascertain the amount of investment by the oil companies in the various branches
and departments of the business, and also the amount of income received in the
various branches and departments of the business.
The replies received in response to the questionnaire varied considerably. One
group of oil companies reported that it was impossible to classify either the assets
or the income by branches of the industry. A second group reported that, while
assets could be classified according to the various branches or departments of the
business, it was impossible to classify income. A third group furnished informa-
tion showing an analysis of the assets and income by various branches of the
industry, although in some cases there were numerous qualifications to the data
furnished.
Three companies, Standard Oil Company of California, Mid-Continent Petro-
leum Corporation and The Atlantic Refining Company have not furnished the
,jial7 iis ri^qucsted by the Committee, at the time of this report.
CONCENTRATION OF ECONOMIC POWER 10037
Among the companies which reported that the data requested could not be
furnished were Standard Oil Company (New Jersey), Sun Oil Company, The
Texas Corporation, and Tide Water Associated Oil Company.
In a letter dated September 1, 1939, J. Howard Pew, President of the Sun Oil
Company stated as follows:
"In a mass-production industry it is impossible to accurately determine
the income that accrues in any particular branch or division. None of the
several arbitrary methods for determining the effectiveness of interdepart-
mental operations is of value excepting only for purposes of comparison,
and no two such methods produce like results. The very breaking down of
the industry into divisions is purely arbitrary, as no two integrated companies
would agree as to the activities that should be allocated to each division.
In the ultimate determination of our profits or losses we take the total
amount of money received from the sale of all our products and from this
deduct all our operating costs, including those of transportation, and the
difference is our profit or loss. .
"As regards the analysis of consolidated assets covered in the form which
you sent us, it is obviously impossible to break down the cash in the banks
so that a part of this cash should appear as a credit to each of these arbitrary
divisions. The same reasoning applies to practically all current assets."
The Texas Corporation, through George W. Ray, Esq., attorney, stated in a
letter of August 28, 1939, as follows:
"Your letter of August 14th to The Texas Corporation has been referred
to me for reply.
"It is impossible to compile the data you request by September 5th, 1939
or by September 18th, 1939.
"Furthermore, the information requested involves the use of so many
arbitrary assumptions that the information when compiled, in our opinion,
would be valueless.
"I assume that in view of this you will withdraw your request for the
additional information."
George J. Murray, Jr., Assistant to the President of Tide Water Associated
Oil Company, in a letter to the Secretarv of the Committee, dated September 8,
1939, stated:
"We have again carefully considered what information might be given to
the Committee indicating divisional profits of our Company. If in my
conversation with you I failed to make it clear, please be advised that our
Company has not adopted and is not using an accounting system designed
to reflect profits by divisions. The development of such an accounting
system has been considered by our executives from time to time but it has
always been recognized that the profits of the divisions of an integrated oil
company can only be estimated by arbitrarily assigning to each division a
profit on products or services -supplied to other divisions of the Company.
Another circumstance making it impracticable in our opinion to determine
divisional profits is the fact, ag you will appreciate, that several classes of
important assets and liabilities, and carrying charges, cannot readily be
apportioned and allocated to the various operating divisions of the Company,
although all divisions share in such assets, liabilities and carrying charges
and would have to consider them in determining divisional profits. Also,
we consider that it is impossible to determine what proportions of the capital
stock and surplus of the Company may be said to be employed by the various
branches of our Company. Therefore, for the foregoing reasons, our execu-
tives have always believed it impracticable to determine a basis for such
interdivisional profits, and for that reason the income of the Company is
determined and considered only on a consolidated basis for the Company
as a whole. It has always been thought that an inter-divisional profit system
would be meaningless and of no value by reason of arbitrary assumptions
necessary for the computation of divisional profits.
"For the foregoing reasons, I regret to advise again that we cannot give
you any information regarding divisional profits. Please be assured that
we wish to cooperate with the Committee in its investigation, but we cannot
furnish the requested information because it is not available and we know
pf no practicftble manner in which to prepare it."
10038 CONCKNTRATION OF KOONOMIC POWER
The second group of companies which stated that, while assets could be classi-
fied by branches and departments of the business, it was impossible to classify
income, were Socony- Vacuum Oil Company, Inc. and Shell Union Oil Corporation.
Socony-Vacuum Oil Companj', through Carl E. Kieser, Esq. Counsel, reported
to the Committee on September 1, 1939 as follows:
"This is in reply to your letter of August 14th in which you ask for an
analysis, supplemental to items 11-k (1) and 11-k (2), of our assets and
income classified by branches or departments for each of the years 1936,
1937 and 1938.
"For the reasons indicated in our original answer to question 11, to which
we refer you, we have not found any satisfactory formula which will give
us a sound and correct analysis of the kind you seek. To make any such
breakdown it will be necessary to use many arbitrary formulae. Arbitrary
departmental allocations will not reflect the true relationship of our depart-
ments and functions. Our business is so completely integrated that it is
not logical to consider it as broken up into separate parts.
"No profits are realized until the product is finally disposed of; and the
'pricei which is then obtained establishes the profit for all activities. An
intermediate department, such as refining, cannot be said to make a profit
by making goods and then transferring the inventory to another department
at an arbitrary figure.
"Throughout the entire study made by your Committee we have cooperated
full despite the burden and expense involved, and it is in this same spirit
that we are now submitting to you a partial analysis showing those assets
which with some degree of soundness may be specifically assigned to the
departments or functions indicated in your letter. The qualification 'some
degree of soundness' has been used because, even in the case of such items
as fixed assets, which at first blush would seem to be easily assignable to a
given function, we find numerous instances where a plant is being used for
two or more functions. To illustrate, a tank at a refinery may be used part
of the time for refining purposes and at other times for marketing storage.
We even have cases where certain substantial items of equipment are used
for as many as three functions."
Shell Union Oil Corporation reported to the Committee on September 1, 1939
as follows:
"We have your letter of August 14th requesting additional information in
connection with items 11-k (1) and 11-k (2) of your original "Questionnaire
for Oil Companies."
"We have again gone quite thoroughly into this matter of segregating
assets as well as income on a departmental basis and we attach information
which we have compiled from our own records and those of our subsidiary
companies.
"In connection with the attached analysis of assets, we should like to point
out that we have had to resort to approximations and estimates in making
some of these allocations of intangible assets, cash and the like. The at-
tached segregation of assets, therefore, is not as carried in our own books of
account and has been especially prepared in an endeavor to meet your par-
ticular request.
"In connection with the request for segregation of gross revenue and net
income, we must again refer you to our previous letter dated May 27, 1939.
Our companies operate on the basis of a single unit and we do not know of any
satisfactory basis of theoretically calculating the net income for various divi-
sions or departments."
The third group of companies which did furnish classification of assets and
income by branches of the industry include:
Empire Gas and Fuel Company
Arkansas Fuel Oil Company
Cities Service Oil Company (Pa.)
Consolidated Oil Corporation
Continental Oil Company
Gulf Oil Corporation
Skelly Oil Company
Standard Oil Compp.ny (Indiana)
Standard Oil Company (Ohio)
(XJNOKNTRATION OF PJCONOMIC POWER 10039
Union Oil Company of California
The Ohio Oil Company
Phillips Petroleum Company
The Pure Oil Company
The results reported by this third group will be discussed in detail. From a
review of the replies furnished to the Committee, it is apparent that the transporta-
tion branch of the industry, in terms of rate of return on assets used, is the most
profitable of the four branches. On the same basis the marketing branch is the
least profitable. The data submitted seems to support, in part at least, the charges
made from time to time that in the most competitive branch of the industry —
marketing — the industry suffers a loss; while in the one branch of the business in
which the major oil companies have a high degree of concentration — transpor-
tation — the profits are high. It seems, therefore, that there is some merit to the
charge made by non-integrated companies that the transportation branch is used
in part by integrated companies to subsidize the other branches of the business,
or, at least, that the rates charged in the transportation branch are too high.
The rate of return as used in this summary is computed upon the net income
before interest and dividends in each branch of the industry and is compared with
the total assets invested in each branch of the industry. The figures reported are
those which were submitted to this Committee by the oil companies themselves.
It should be pointed out that tlie rate of return as thus used is not necessarily the
same rate of return computed by such regulatory authorities as the Interstate
Commerce Commission for rate making purposes. The figures reported by the
companies represent those which the companies have obtained from their own
financial records or from their o'vn statistical records. In computing the rate of
return it was decided to use net income before interest and dividends as a basis
so as to place all companies on a comparable basis regardless of the proportion in
which their fimds were received through the sale of capital stock, or by the
issuance of funded debt.
The reporting major oil companies in which tlie transportation branch showed
the highest rate of return in domestic operations are listed below with the years
in which this branch was the most profitable indicated:
Arkansas Fuel Oil Companv ' 1936
Cities Service Oil Co. (Pa.) i
Empire Gas & Fuel Company i 1936
Consolidated Oil Corporation 1936
Continental Oil Companv
Gulf Oil CorporaLioi, 1936
SI >^lv Oil Ccnipar- : 1936
S' .I'.dard Oil Crmp^.iv (Ind.) 1936
Standard Oil Company (Ohio) 1936
The Ohio Oil Company
Phillips Petroleum <^oni[)any 1936
The Pure Oil Coi: }• ny 1936
' Subsidiaries of Cities Per, i -i; Company (Delaware).
Those fompani. s in v/hich the marketing branch shows the lowest rate of return
in domestic operations are listed below. It will be noted that most of the com-
panies showed losses in this branch of the business and that only three companies
showed profits in any of the years covered: (The years in which profits were shown
are indicated by an asterisk; in all other years there were losses.)
Arkansas Fuel Oil Companv 1936
Cities Serviee Oil Co. (Pa.)" 1936
Empire Gas & I'uel Company 1936_
Consolidated Oil Corporation 1936
Continental Oil Companv 1936
Skelly Oil Companv_ _ . _' ' 1936
Standard Oil Companv (Ind.) 1936
The Ohio Oil Company 1936
Phillips Petroleum Company ' 1936
1 Subsidiaries oT Cities Service Company (Delaware).
All replies received (both from major companies and non-majors) to the question-
naire on this subject are included in detail in Appendix II.* A summary of the
replies from the reporting majui co'-npa'^'es with respeot to the rate of return
from the various branches follows.
• P. 9993 et seq., supra.
1937
1938
1937
1938
1937
1938
1937
1938
1973
1938
1937
1938
1937
1938
1937
1938
1938
1937
1938
1937
1938
1937
1938
1937
1938
1938
1937
1938
1937
1938
• 1937
• 1938
' 1937
1 1938
1937
1938
1 1937__
10040
CONCENTRATION OF ECONOMIC POiWER
Some of the reporting companies qualified the data submitted, and these quali-
fications are included in the summary. However, even giving full consideration
to these qualifications, the data do show the trend of the earnings and are therefore
of value in determining the profitable and unprofitable branches of the industry.
The rate of return in various branches and departments of the business, and the
overall rate of return for all branches and department, by companies for the
years 1936 to 1938, follow (L=Loss) :
ARKANSAS FUEL OIL COMPANY AND SUBSIDLARIE8
1936
1937
1938
Domestic Petroleum Branches: .
Production
Transportation --.
Refining & Manufacturing
Marketing
Other Branches:
Foreign petroleum branches
Investments (in unconsolidated petroleum affiliates).
General investments
Miscellaneous
12.3%
12.6
0.4(L)
a8(L)
12.2%
26.0
2.6
8.0(L)
3.6
Overall rate of return.
10.8
8.0
29.7
10. 5(L)
11.4(L)
5.7
4.3
CITIES SERVICE OIL CO. (PA.) AND SUBSIDIARIES
Domestic Petroleum Branches:
Production
Transportation
Refining and Manufacturing
Marketing
Overall rate of return
13.0%
8.4
1.7
5. 6(L)
0.8
6.3%
18.6
5.6
9.0(L)
2.1
6.8%
12.5
3. 2(L)
14: 9(L)
6. 2(L)
SKELLY OIL COMPANY AND SUBSIDIARIES
Domestic Petroleum Branches:
Production .-
Transportation
Refining and Manufacturing
Marketing
Other Branches:
Investments
Miscellaneous
Overall rate of return
8.0%
30.0
21.0
3.0
31.0
12. 0(L)
10.0
12. 0%
26.0
19.0
3.0
35.0
15. 0(L)
12.0
6.0%
16.0
3.0
1.0
19.0
16.0(L)
6.0
The incoming reports, 1936-37, from general investments reported by the
company include the income received from its investment from Great Lakes
Pipe Line Company. This is not a subsidiary and is not controlled by the
reporting companj' but this company uses the facilities to ship its gasoline to
various points in its marketing territory. Therefore, the income thus reported
can be considered as income from the transportation branch of the business.
The income for 1938 from general investments includes the income from the
Great Lakes Pipe Line Company and also the income from an investment from
the East Texas Refining Company in which the Skelly Oil Company had less
than a majority interest.
STANDARD OIL COMPANY aNDIANA) AND SUBSIDIARIES
1936
1937
1038
Domestic Petroleum Branches:
10. 59%
16.68
16.61
3. 20 (L)
4.04
3.28
12.05%
17.66
1Z03
L79
6.28
2.20
7.34%
Transportation -
14.23
Refining and Manufacturing .
2.00
Marketing „
Other Branches:
General Investments.. . . . .
L65
3.87
3. 11 (L)
OveraU rate of return ' ..- . -
6.70
7.85
3.93
I After consolidating adjustments and eliminations.
(CONCENTRATION OF ECONOMIC POWER
10041
The Standard Oil Company (Indiana) in furnishing the above information
suggested to the Committee that no accurate conclusion could be made from the
data furnished, but that it had furnished the information simply to comply
with the request of the Committee.
In explaining the segregation of income of the company to the various branches
and departments, the company reported that it was its practice to transfer
products from one branch or department to the other at a value based generally on
the market.
The company also stated that direct expenses were allocated to the particular
department involved and that indirect expenses were pro-rated on a basis accept-
able to the company. It further reported that departmental income was income
before the elimination of inter-company and inter-departmental transactions.
THE PURE OIL COMPANY AND SUBSIDIARIES
1936
1937
1938
Domestic Petroleum BranchOvS:
Production
Transportation _
Refining and Manufacturing _ -
Marketing
Other Branches;
Investments (in unconsolidated petroleum affiliates)
General investments
Miscellaneous...
Overall rate of return:
Before elimination of intercompany accounts..
After elimination of intercompany accounts. _ .
25. 74%
34.05
42. 78(L)
4.12
20.02
4.84
6.39
7.59
5.76
23. 83%
27.88
16. 44 (L)
2.68
23.70
5.02
8.06
7.16
17. 25%
21.91
25. 17(L)
0. 71(L)
i.s.es
2.86
2.67
4.25
3.15
The Pure Oil Company reported that the departmental figures reported are
used by the company for internal statistical purposes only and that in no sense
do the figures represent comparable results if the departments are considered as
independent operations. The company stated that the transfer of products by
the departments is made at arbitrary prices and that it is impossible to completely
segregate aU costs and incomes applicable to each department.
The investments in other Consolidated Petroleum Affiliates represents the
income received from an investment in a foreign subsidiar}\
GULF OIL CORPORATION AND SUBSIDIARIES
1936
1937
1938
Domestic Petroleum Branches:
Production
13.0%
18.0
1. (L)
1.0
7.0
5.0
32.0
52. (L)
11.0%
23.0
0.4(L)
3.0
6.0
4.0
33.0
32. (L)
5.0%
Transportation
23.0
Refining and Manufacturing .
13.0(L)
Marketing . . _.
5.0
Other Branches:
Foreign petroleum branches
7.0
Investments (in unconsolidated petroleum affiliates)
1.0
General investments
23.0
Miscellaneous
40. (L)
Overall rate of return _,
4.0
6.0
.3.0
THE OHIO OIL COMPANY AND SUBSIDIARIES
Domestic Petroleum Branches:
Production. '
■Transportation
Heflnmg and Manufacturing—
Marketing...
Other Branches:
Investments (in unconsolidated petroleum affiliates) .
General Investments.. :.
Miscellaneous
Overall rate of return .
5.29%
17.07
28.57
9. 00 (L)
5.99
8.13%
25.17
30.77
9. 17 (L)
2.94
77.78
9.29
3. 29%
22. 82
4. 76 (L)
9. 17 (L)
2.00
4.04
10042 CONCENTRATION OF ECONOMIC POWER
PHILLIPS PETROLEUM COMPANY AND SUBSIDIARIES
Domestic Petroleum Branches:
Production --
Transportation --
Refining and Manufacturing
Marlieting...
Other Branches: , ^ ^ ■ , ^
Investments in other companies— petroleum industries (not
consolidated) _ -
General investments - ---
Overall rate of return.. .-. --- --
1936
9. 18%
16.42
13.14
4.03
31.58
50.00
9.87
1937
11.70"/
23.33
5. .37
3.30
32.00
133. 33
11.62
1938
3.08%
21. 55
6. 76 (L)
4.46
15.38
33.33
4.50
EMPIRE GAS & FUEL COMPANY AND SUBSIDIARIES
Domestic Petroleum Branches:
Production
Transportation
Refining; and Manufacturing .--
Marketmg
Other Branches:
Foreign petroleum branches.- --
Investments (in unconsolidated petroleum affiliates) .
General Investments
Miscellaneous
3.2%
3.5
0.6(L)
4. 4 (L)
Overall rate of return
31.1
''5.' 7'
3.6
4.0%
3.8
3.3(L)
2.9(L)
5.9
4.0
3. 9%
0.01 (L)
2. (L)
3. 9 (L)
38.2
6.0
4.3
CONSOLIDATED OIL CORPORATION AND SUBSIDIARIES
Domestic Petroleum Branches:
Production
Transportation — -
Refining, Manufacturing and Marketing..
Other Branches: . ^ . , wiw ^
Inve.stmonts (in unconsolidated petroleum amliates) .
Oenern 1 In vpstmcnts ." --
Miscellaneous.
Overall rate of return.
10. 0%
30.0
2. (L)
3.0
9.0
6.0
13. 0%
30.0
20. (L)
1.5.0
5. 0%
25.0
4.0(L)
10.0
Consolidated Oil Corporation, in connection with its report, submitted certain
explanations which are set out in full in Appendix TI.
CONTINENTAL OIL COMPANY AND SUBSIDIARIES
Domestic Petroleum Branches:
Production -
'transportation
Refining and Manufacturing —
Marketing -
Other Branches:
Investments (in unconsolidated petroleum affiliates) -
General investments - j
Overall rate of return .
1936
13.3.5%
20.00
24.06
4.11(L)
.5.71
31.11
20. 83%
26.09
20.29
4. to (L)
16.13
35.55
13.42
6. 97%
20.00
2.76
6.43(1.)
9.30
40.00
Some of the qualifications of the data submitted by the company are included
in its reply which is quoted in full in the Appendix.
Standard Oil Company (Ohio) and subsidiaries
Domestic Petroleum Branches:
Production
Transportation
Refining and Manufacturing —
Marketing
Other Branches:
Investments (in unconsolidated
Miscellaneous
Overall rate of return
■U'Aim affiliates).
1936
75. 98%
4.86
6.24
23. 13
1937
7. 60%
3.77
6.41
21.68
5.33
1938
8.18%
2.02(L)
6.14
3.12
(J(>NCENTRATION OF ECONOMIC POWEll 10043
Standard Oil Company (Ohio) subuuitted the following explanation with its
report:
"The reporting company operates in the refining and marketing branches
of the petroleum industry chiefly, to a lesser extent it is engaged in trans-
portation of petroleum products by pipe line, truck and barge, and to an
almnst negligible extent, in production. The accounting methods used by
the reporting company are such that the books of account of the company
do not separately reflect the profits or losses of the various branches of the
industry in which the reporting company is engaged. Any figures submitted,
therefore, by the reporting of its profits or losses in the various branches of
tlie industry would be purely estimates based upon assumed figures as to
the inter-departmental transfer prices and arbitrary allocations of various
overhead expenses, none of which are contained in the present system of
company accounting."
The company's explanation of the method used in the classification of assets,
gross income and net profit by branches of the industry is quoted in full in
Appendix II.
UNION OIL COMPANY OP CA.LIFOKNIA AND SUBSIDIARIES
The Union Oil Company of California segregated gross revenue by departments
and prices of the business but did not segregate the net income. In explaining
tie company furnished the following statement:
"Gross revenue has been segregated according to departments to show the
revenues obtained by such departments, as transportation where services
are performed for other parties. Gross revenues from sales of crude and
refined oil products are shown under the marketing department. Net in-
come (as specified before interest and dividends) has been placed in the
unallocated column. While in the main, it is true that all departrnental
activities enter into the realizating of net income, it is impracticable, if not
impossible, to determine to what extent each department contributed to
that net income; further, no so-called departmental profit can be considered
realized until the products are finally sold by the marketing department.
Table A. — Summary of unit costs of gasoline by companies and refineries (at the
refinery gate), 1938
ATLANTIC REFINING COMPANY Naphtha (per
Refinery: C"""")
Philadelphia Refinery $0. 0569
Atreco Refinery..- . . 0515
(Represent figures used for inventory purposes for the
year 1938.)
CONSOLIDATED OIL CORPORATION Gasoline
(all gradet)
Location of Refinery: P"" «"""<"»
East Chicago, Ind $0. 0599
Kansas City, Kans : . 0564
Coffeyville, Kans .0534
Sand Springs, Okla._ . 0468
Parco, Wyo .0553
Fort Worth, Tex .0518
Houston, Tex. (Light Oil.Plant) . 0519
Marcus Hook, Pa . 0546
Wellsville, N. Y -. .. .0567
10044 CONCENTRATION OF ECONOMIC POWER
Table A. — Summary of unit costs of gasoline by companies and refineries {at the
refinery gate), 19S8 — Continued
CONTINENTAL OIL COMPANY Untt cost of
Refinery: gasoUne
Ponca City Refinery $0. 0497
Baltimore Refinery , 0543
Wichita Falls Refinery . 0463
Glenrock Refinery . 0509
Farmington Refinery. . 0596
Artesia Refinery . 0457
Denver Refinery^ . 0634
Albuquerque Refinery i . 0630
Lewiston Refinery \ . 0719
EMPIRE GAS AND FUEL COMPANY
Refinery:
East Chicago, Ind., Refinery $0. 0609
Ponca City, Okla., Refinery . 0527
Okmulgee, Okla., Refinery .0582
OHIO OIL COMPANY
Refinery:
Lovell, Wyo., Refinery $0. 06729402
Ft. Worth, Tex., Refinery . 05366362
Bristow, Okla., Refinery . 05352129
Robinson, Dl., Refinery . 05931547
PHILLIPS PETROLEUM COMPANY
Location of Refinery:
Borger $0. 04569
Okmulgee . 05639
Kansas City___ . 05986
PURE OIL COMPANY Oasoline cost
Refinery: ?«»■ oaiion
Cabin Creek, W. Va $0. 06683
Heath, Ohio . 06709
Muskogee, Okla . 07300
Smiths BlufiF, Tex . 05634
Toledo, Ohio . 07200
Midland, Mich .04927
SKELLY OIL COMPANY UnU cost of
gasoline
Refinery: El Dorado, Kans., Refinery $0.04904
BOCONY- VACUUM OIL COMPANY, INC. Average (per
Brand of Gasoline: gallon)
Magnolia $0. 0413
General . 0458
Socony- Vacuum .0556
Overall Averages . 0520
(Represent investory valuations.)
STANDARD OIL COMPANY (INDIANA) Unit cost of
Refinery: gasoline
Whiting, Ind., Refinery $0. 0543
Wood River, 111., Refinery . 0532
9ugar Creek, Missouri, Refinery . 0501
Casper, Wyo., Refinery . 0641
Neodesha, Kansas, Refinery 0556
GreybuU, Wyoming . 0500
STANOLIND OIL AND GAS COMPANY
[Subsidiary of Standard Oil Comyany (Indiana)]
Location of Refinery: Superior, Louisiana $0. 0504
CONCENTRATION OF ECONOMIC POWER 10045
Table A. — Summary of unit costs of gasoline by companies and refineries {at the
refinery gate), 19S8 — Continued
UTAH Olli REPINING COMPANY
[Subsidiary of Standard Oil Company (Indiana)] Average (per
Brand of Gasoline: cation)
Ethyl Gasoline $0. 0762
Pep Gasoliije - .0713
Stanolind Gasoline . 0684
STANDARD OIL COMPANY (OHIO) Unit cost of
Refinery: gatollne
Cleveland Refinery... $0. 0685
Toledo Refinery .0666
Lima Refinery • . 0667
LATONIA REPINING CORPORATION
[Subsidiary of Standard Oil Company (Ohio)]
Refinery: Latonia Refinery . $0. 0659
THE TEXAS CORPORATION
The Texas Company (Delaware):
Port Arthur Works $0. 0594
Houston Works .0529
West Dallas Works... _. . 0508
San Antonio Works .0509
El Paso Works .0611
Amarillo Works 0480
West Tulsa Works .- - . 0573
Pryse Works . . 0733
Lockport Worlds . 0630
Casper Works . 0588
Craig Works • 0621
Cody Works . 0724
CALIFORNIA PETROLEUM eORPORATION (UTAH)
[Subsidiary of The Texas Corporation)
Calpet Works $0. 0688
INTERNATIONAi REFINING-COMPANY
[Subsidiary of The Texas Corporation]
Sunburt Works $0. 0525
INDIAN REFINING COMPANY
[Subsidiary of The Texas Corporation]
Lawrenceville Works ' $0. 0559
THE TEXAS COMPANY (CALIFORNIA)
[Subsidiary of The Texas Corporation]
Los Angeles Works $0. 0626
Fillmore Works . 0550
TIDB WATER ASSOCIATED OIL COMPANY
Refinery
Estimated Per Gallon Values of
(Jasoline
First
Grade
Second
Grade
Third
Grade
Avon Refinery (Associated, Calif.)
Watson Refinery (Wilmington, Calif.)
Bayonne Refinery (Bayonne, New Jersey) .
Drumright Refinery (Drumright, OMa.)... .
. : L_
(Valuations used for Inventory purposes.)
.0846
.0646
.0096
.0563
.0471
.0471
.0515
.0483
$0. 0421
.0421
.0465
Exhibit No. 1316
Part "B" — Appendix I
Atlantic Refining Company
keply to question 32 op tnec questionnaire
A summary of refining costs for the two refineries operated by the reporting
company for the year 1938 is shown below. Regarding methods of costing, we
know of no satisfactory method of securing the cost of gasoline and fuel oil.
However, for inventory purposes, costs of the various products are calculated by
the method variously known as "Sales Value Method," "Cost Allocation Method,"
etc. An explanation of the method is shown by the examples following the sum-
mary of refining costs.
The Atlantic Refining Company and Subsidiaries — Summary of Refining Costs —
Year 1938
Year 1938
Direct Operating Costs:
Operating Labor -
Fuel.
Chemicals.-
Repairs & Maintenance
Other Supplies and Expenses
Total Direct Costs
Indirect Operatine Costs:
Refinery Overhead..
.Taxes
Insurance.-
Depreciation on Plant
Other... ,.
Total Indirect Costs ,
Total Operatine Costs
Loading Expense
Oen'l and Admin. Exp
Total
Crude Oil Consumed
Puroh. Mixing Oils Consumed
Total Refinery Costs
Phila. Refy.
Atreco Refy.
$.,984,481
2, 007, 800
1,308,912
1, 293. 702
410, 686
$276, 194
449, 667
44,313
205,040
77, 363
8.005,681
1,052,567
$1,066,322
312, 784
38,709
2, 059, 428
444,226
$147, 219
67. 549
7,259
390, 536
76, 491
3, 921, 469
679.057
$11,927,050
323. 7T()
236, 6S3
$1,731,624
27,754
51,217
12,487,512
■ 1, 810, 595
40, 977, 8S3
1, 375, 356
9, 923. 792
77, 042
54, 840, 751
11,811,429
Per unit figures used for inventory purposes were:
Philadelphia
Refinery
Atreco Re-
finery
Naphtha.
Fuel on..
Cenfs
5.69
2.48
Cents
6. 16
1.87
10047
10048
CONOENTKATION OF ECONOMIC POWER
OUTLINE OP THE A. R. CO. REFINERY PRODUCTION COST METHOD FOR INVENTORY
PRICING
Manufactured Oils. — Crude oil and manufacturing costs are spread over the
various grades (refined, naphtha, lubricating, fuel, etc.) on the basis of their sales
value.
Example:
If cost of crude is 3. 16^5 per gal.
If cost of manu. mixing oils, etc. is 1. 06^ per gal.
Average Cost 4. 22ji per gal.
Sales value of our production, considering yields:
Yields
(1)
%
(2)
Refy.
Realiza-
tion
(3)
Refy.
Sales
Value
(4)
Allocated
Cost
(5)
Refined -- -
5.44
44.70
20.81
14.54
3.39
.72
.88
2.55
6.97
4.56«5
5.54
1.64
3.02
10.92
14.27
3.16
2.45
1.42
.25^
a 48
.34
.44
.37
.10
.03
.06
.10
4.61)t
Naphtha -
5.61
Fuel -
1.66
Gas Oil
3.06
Lubricating -
11.08
Wax ---
14.44
Asphalt - --
3.19
OoKe
2.48
Non-Uqold Gas
1.44
100.00
4.17
Cost of 4.22(S per gallon is 101.20% of sales value of 4.170 as in Col. 4. Items
in Col. 3 at 101.20% give allocated cost price. All brands of gasoline are inven-
toried at same price.
(Col. 2) Yields and Refinery Realization (Col. 3) are based on six months
averages, to obviate wide variations in them during any one month. Manufac-
tvring cost is also based on six months average for the same reason.
Previous December 31st inventory used as base for the ensuing year. All
JCreased gallons are priced at the average cost of the manufactured oils and
^ JTOh&ses. (January 1st to date of inventory).
(CONCENTRATION OF ECONOMIC POWER
Arkansas Fuel Oil Company,
Reply to item §32 of T. N. E. C. questir>rinaire
10049
Products
Premium
Regular
White
Total -
Kerosene -
Tractor Fuel
Solvent 1
QasOil
Fuel Oil
Still Gas Prod. (Qals.)-
SlopOil
Topped Residue
Loss
Total ---
Less Still Gas produced and con-
sumed
Plus Slop Produced and consumed-
Actual Sales Value and Mfg.
Expense
Cost of Crude and Mfg. Expense..
Sales Value of Production
Ratio of Mfg. Cost to Sales Value
percent..
MontH of December 1938
Gallons
produced
from crude
145, 753
10, 376, 990
2, 892, 831
13, 415, 574
3, 786, 349
362, 450
502, 762
1, 168, 032
6, 337, 513
1, 289, 652
R7770
324, 156
R 31, 934
27, 146, 784
Current month's
refinery sales
prices
0. 0550
.0434
.0387
.0425
.0345
.0401
.0418
.0320
.0135
.0123
.0314
.0167
$829, 208. 26
864,855.94
95. 8781944
Sales value
of produc-
tion
$8, 016. 42
450, 361. 37
111,952.56
570, 330. 3-5
130, 629. 04
14, 534. 24
21,015.45
37, 377. 02
85, 556. 43
15, 896. 66
R 243. 98
5,413.41
$880, 508. 62
15, 896. 66
R 243. 98
$864, 855. 94
Apportion-
ment of
crude cost
& mfg. ex-
pense
$7, 686. 00
431, 798. 35
107, 338. 09
546, 822. 44
125, 244. 76
13, 935. 17
20, 149. 23
35, 836. 41
82, 029. 97
15,896.66
R 243. 98
6, 190. 28
$844, 860. 94
15, 896. 66
R 243. 98
$829, 208. 26
(Note 1)
Crude cost
<& mfg. exp.
per gallon
0. 0527
.0416
.0371
.0468
.0331
.0384
.0401
.0307
.0129
.0123
.0314
.0160
.0160
The costing policy used Is that generally known as the "Weighted-Selllng-Ratlo-Method" and Is based
on the principle of spreading the cost of manufacture to each product in direct ratio to its selling value, on
the theory that the same rate of gross profit is earned on each product.
Costs of Natural Gasoline and Tetra Ethyl Lead used in blending are charged directly to the product
involved, and do not affect the costs of other products.
Note I.— The costs per gallon of Gasoline shown in this column do not include Natural Gasoline or Tetra
Ethyl used in blending. This blending cost is added directly to the product affected In the following
manner:
Gallons
blended
Unit cost
per gal.
Cost
amount
PSEMnm OASOUNE
145753
24318
.0527
$7686. 00
1283. 32
Tetra-Ethyl Lead Added . -
1116. 43
Finished Cost Prem Gaso . . ..
170071
.0593
$10085.75
EEQULAE "q" QASOLINK
10376990
97356
.0416
$431798.35
6137. 70
Tetra-Ethyl Lead Added ...
37066. 77
Finished Cost Regular Gaso — ..
10474346
.0453
$474002.82
WHITE GASOLINE (V. 3. MOTOE)
White Gaso. from Crude -
2892831
252714
.0371
$107338. 09
13336. 29
Finished cost White Gasoline . .- -- --
3145545
.0384
$120674. 38
FUEL OIL
Fuel Oil from Crude (Finished)
6337513
.0129
$82029.97
10050
CONCENTRATION OF tlCONOMIC POWER
Cities Service Oil Company (Pa.)
Reply to Item No. 32 of T. N. E. C. Questionaire
Answer:
COST PROCEDURE FOR REFINERY YIELDS
The actual yields derived from the crude run for the month are priced on a
wholesale price basis, that is, on a price which is presumed could have been
realized had I'ue products yielded been sold on the wholesale market. After
the prices have been determined, the estimated sales realization is calculated
by multiplying the yield by the prices. All gasoline produced is priced on the
basis of 60-64 octane unleaded gasoline and the cost of bringing the quality of
this gasoline up to regular and premium grades is applied directly against the cost
of the gasoline ultimately produced.
All the following expenses,
Plant Operation Labor
Sundry Supplies
Chemicals
Royalty
Electricity
Plant Maintenance Labor
Plant Maintenance Material
Operating Office Overhead
Fuel
Taxes
Insurance
Depreciation
plus the cost of the crude less ethelizing expense and fuel consumed is apportioned
on the basis of the percentage determined by dividing the cost of crude and
expenses by the estimated sales realization less cost of fuel consumed.
Ethylizing expense is applied directly against the regular and premium gasoline
in accordance with the actual expense incurred in blending such gasolines during
the month.
Summary cost statements for each of the following refineries foUow herewith.
Petty's Island
Titusville
Warners
East Braintree
Summary cost statement — Petty's Island — 1938
Oallons
Yielded
Average
Sales
Price
Sales
Amount
Crude
Equivalent
Average
Cost
Cost
Amount
Gasolene
80, 966, 128
12, 997, 009
12, 730, 741
690,088
4, 381, 394
6, 309, 001
37,311,504
19,626,666
$0.0637
.0501
.0454
.0482
.0446
.0328
.0244
.0125
$5, 155, 217. 26
651,011.94
986, 704. 59
33, 233. 95
195. 519. 33
206.690.33
912, 061. 55
244, 500. 25
$0. 0591
.0465
.0421
.0447
.0414
.0304
.0226
.0125
$4, 782, 965. 64
Kerosene
604, 003. 19
#2 Fuel Oil
915, 455. 90
#3 Fuel OU
30, 834. 17
U Fuel Oil
181, 401. 13
#5 Fuel Oil
191, 765. 48
#e Fuel Oil
Fuel Used
846, 202. 74
244, 500. 25
Total-..
8, 384, 939. 20
$7, 797, 128. 40
Crude, 4,167,447 bbls $6,688,664.94
Expenses:
Plant Operation Labor 260,401.22
Sundry Supplies & Expenses _ 39,813.77
Chemicals 181,582.83
Royalty 78,79L92
Electricity... 56,486.61
Fuel- 1 244,500.26
Plant Maintenance Labor 54,089.70
Plant Maintenance Material.-. 64,368.40
Operating Office Overhead 9, 167. 73
Taxes 31,063.27
Insurance • 19,764.44
Depreciation.- 226,216.00
Other Direct Overhead 774.00
CONCENTRATION OF ECONOMIC POWER
10051
Summary cost statement — Petty' s Island — 1938 — Continued
Method of Calculating Ratio:
Crude Cost - $6,688,504.94
Expenses - $1,246,020.04
Less Ethylizing Expense 136,456.58
Less Fuel used 244,500.25
Net Expense 846,063.21
Total Crude* Expense - $7,552,628.16
Sales $8,384,939.20
Less Fuel Consumed 244,500.26
Net Sales $8,140,438.96
R^"°-|ltiSS=-»27791264
Summary cost statement — East Braintree — 1938
Gallons
Yielded
Average
Sales
Price
Sales Amount
Crude
Equiva-
lent
Average
Cost
Cost
Amount
Gasolene
97, 837, 218
758, 846
16, 858, 358
2, 569, 541
42, 044, 744
6,157,907
2, 225, 771
14, 138, 774
9, 025, 465
37, 714, 191
2, 488, 325
13, 567, 475
$. 0637
.0350
.0530
.0454
.0450
.0456
.0352
.0274
.0321
.0243
.0849
.0238
$6, 234, 843. 20
26, 559. 62
894, 048. 10
116, 670. 71
1, 890, 044. 05
281,007.16
78, 428. 54
387,070.29
289,688.95
918, 142. 83
211, 222. 51
322, 804. 31
$.0610
.0335
.0508
.0435
.0431
.0437
.0337
.0263
.0308
.0233
.0814
.0228
$5, 974, 749. 82
Propane
25, 451. 66
Kerosene. .
866, 751. 90
Qas Oil..
111,803.66
#2 Fuel Oil
1, 811, 198. 78
#3 Fuel Oil
269, 284. 64
#4 Fuel Oil !...»
75, 156. 81
#5 Fuel Oil
370, 923. 23
Gas Enrichment
277,604.26
#6 Fuel Oil.:.-.
879,841.49
Lube Oils
202,4n. 13
Fuel Used
322,804.31
Total.
$11,650,530.27
$11, 177, 981. 69
Crude, 5,859,370 barrels.
9,615,983.94
Expenses:
Plant Operation Labor
Sundry Supplies & Expense. .
Chemicals
Royalty
Electricity
Fuel
Plant Maintenance Labor
Plant Maintenance Material.
Operating Office Overhead...
Taxes
Insurance
Depreciation
Processing Tax
350,971.36
57,571.72
259,683.98
89,261.36
74,962.83
322,804.31
123,203.81
69,378.06
_ 8,515.03
97,760.68
28,315.18
285,652.00
1,066.00
Total Expanses _ $1,768,746.23
Method of Calculating Ratio
Crude Cost $9,615,983.94
Gross Expenses.. $1,768,746.23
Less Ethylizing Expense _. 207,748.48
Less Fuel Used ._ 322,804.31
11.327.72.'i.9fi
124'f91— 40— pt, 17-A-
10052 CONCENTRATION OF ECONOMIC POWER
Summary cost statement, Titusville, 1938
Gasolene
Kerosene
Fuel— 36/40..
Lub. Stocks.
Fuel Used...
Naphtha
Total.
Galons
Yielded
10,011,589
fi, 293, 766
7,751,431
8, 772, 767
1. 709, 958
749, 587
A verage
Sales
Price
. 0483
.0492
.0400
.1283
.0400
.0517
Sales Amount
$483, 283. 71
309, 791. 27
310, 106. 74
1, 125, 950. 75
68, 323. 90
38, 757. 46
$2, 336, 213. 83
Crude
Equiva-
lent Aver-
age Cost
.0463
.0472
.0384
.1230
.0384
.0496
Cost Arnounr,
$463, 438. 02
297,069.89
297, 372. 43
1, 079, 714. 43
68, 323. 90
37, 165. 91
$2, 243, 084. 58
Crude, 866,429 barrel^ $1,811, 137. 93
Expenses :
Plant Operation Labor
Sundry Supplies & Expenses.
Chemicals
Electricity
Fuel
Plant Maintenance Labor
Plant Maintenance Material.
Operating Office Overhead
Taxes
Insurance
Depreciation
Other Gen. Off. Overhead. __
Total.
109, 579. 68
25, 892. 64
92, 925. 31
17, 080. 08
116,338. S
7, 693. Vci
9, 527. 71
10, 804. 48
5, 305. 37
8, 234. 76
87, 924. 00
1, 430. 10
$492, 736. 34
Method of Calculating Ratio
Crude Cost $1,811, 137. 93
Gross Expenses $492, 736. 34
Less Ethylizing Expense 60, 789. 69
Less Fuel Used 68, 323. 90
Net Expenses.
363, e22. 75
Total Crude & Expenses - $2, 174, 760. 68
Sales $2,336,213.83
Less Fuel Consumed 68, 323. 90
Net Sales . $2, 267, 889. 93
T3 .. $2,174.760.6 8 cxk^coktot
^^*^° = ' 2,267,889.9 3= 958935727
Summary cost statement — Warners 1938
Gallon.<»
Yielded
Average
Sales
Price
Sales
Amount
Crude
Equiva-
lent
Average
Cost
Cost
Amount
Gasolene .-. . . ..
18,719,353
1, 278, 544
22, 767, 899
14, 242, 538
16, 274, 782
6, 562, 714
43, 663, 557
9,619,553
$.0600
.0566
.0427
. 0405
.0295
.0303
.0538
.0205
$1,122,881.61
72,403.06
973,131.81
576,911.83
480, 363. 31
198, 848. 32
2, 347, 151. 17
197, 132. 74
$. 0537
.0506
.0382
.0.362
.0264
.0271
.0481
.0205
$1,004,702.60
Red Heat Fuel... __
64, 782. 91
#2 Fuel .
870, 713. 40
#4 Fuel
516, 194. 06
#5 Fuel
429, 806. 90
#6 Fuel-..
177, 920. 29
Asphalt Prods
2, 100, 122. 48
Fuel Used
197, 132. 74
Total - -.
$6,968,823.85
$5, 361, 375. 38
CONCENTRATION OF ECONOMIC POWER 10053
Summary cost statement — Warners 19S8 — Continued
Crude, 3,232,563 barrels $4,527,296.32
Erpenses:
Plant Operation Labor $274,769.38
Sundry Supplies* Expense 30,557.47
Chemicals - --- 60,056.22
Electricity - --- - 18,959.81
Fuel. - - 197,132.74
Plant Maintenance Labor 70,226.37
Plant Maintenance Material 68,260.68
Operating Ofiace Overhead -. 2,831.47
Taxes. 47,986.04
Insurance _ 32,188.72
Depreciation.... - 138,936.00
Other General Office Overhead 1,376. 13
Total - - - - $943,270.03
Method of Calculating Ratio
Crude Cost 4,527,296.32
Gross Expenses $943,270.03
Less Ethylizing Expense 109,190.97
Less Fuel Used... j 197, 132. 74
Net Expense.-.^. -. 636,946.32
Total Crude & Expense $5,164,242.64
Sales - $5,968,823.85
Less Fuel Consumed 197,132.74
Net Sales $5,771,691.11
„ ^. $5,164,242.64 e«.,coo,r
R^*'°'=|5^77L690I--»^753815
Empire Gas & Fuel Company
reply to item 32 op t. n. e. c. questionnaire
a. None operated by the reporting company.
b. During the year 1938 the Cities Service Oil Company (Delaware)' operated
refineries at
East Chicago, Indiana.
Ponca City, Oklahoma.
Okmulgee, Oklahoma.
Principal elements of cost determining the cost of a gallon of gasoline were as
follows :
GASOLINE COSTS IN CENTS PER GALLON, 1938
Elements of Cost
Cost of Crude Run
Ethylizing Expense
Depreciation, Ins. & Taxes
Plant Operation & Maintenance.
Natural Qascline Purchased
Total Cost-
East
Chicago
$0. 0479
.0029
.0030
.0070
.0001
$0.0609
Ponra City
$0. 0371
.0021
.0043
.0116
RO. 0024
$0. 0527
Okmulgee
$0. 0398
.0025
.0068
. 0138
R0.0037
$0. 0582
FUEL OIL COSTS IN CENTS PER GALLON, 1938
Cost of Crude Run .
$0. 0240
.0015
.0035
$0. 0140
.0016
.0044
$0. 0149
0022
Depreciation, Ins. ^ Taxes.
Plant Operation & Maintenance
0052
Total Cost
$0 0290
$0.0200
$0.0223
The method of apportioning costs used in our accounting is known as the yield
value method. The costs being apportioned to the individual products on the
percentage that the production of each product extended at market value bears
to the total market value of all production each month.
The opening inventory and the current production are averaged in arriving-;
at the cost of products sold.
Costs include all direct plant operation and maintenance expense, plant de-
preciation and direct insurance and taxes.
' No other subsidiary of Empire Gas & Fuel Co refineries.
10054
CONCENTRATION OF ECONOMIC POWER
This expense, together with the cost of crude oil and transportation expense, is
apportioned to individual products as outlined above. Crude oil is transferred
to the refinery at market on the day delivered and transportation expense is based
on published tariffs.
Any purchases of natural gasoline and other refined products are charged
direct to the proper inventory account at the purchase price including freight.
Consolidated Oil Corporation
supplementary reply to item #32 of tnec questionnaire
In its original answer to Question #32 the reporting company did not undertake
to specify the actual cost for the year 1938 at each of its domestic refineries of a
gallon of gasoline and a gallon of fuel oil, for the reason that accurately informative
data are not available. As explained in such original answer, the allocation of
costs to an individual product or grade of an individual product is made on a
purely arbitrary basis. Such arbitrary cost allocation is designed solely to serve
the purpose of accounting convenience and does not result, of necessity, in deter-
mining what might be deemed to represent the true cost of an individual product
or grade.
The arbitrarily allocated costs for the year 1938 of a gallon of gasoline and a
gallon of fuel oil at each refinery are shown in the following tabulation. Indicated
costs of the two products are, of course, affected materially by the varying quan-
tities of tlie various grades of such products.
Location of Refinery
Fuel Oil
(All
Grades)
Cents per
gallon
East Chicago, Ind... .-.
Kansas City, Kans
Coffeyville, Kans
Sand Springs, Okla
Parco, Wyo--
Fort Worth, Tex
Houston, Tex. (Light Oil Plant)
Marcus Hook, Pa
Wellsville, N. Y --..
3.30
3.06
2.39
2.41
2.15
1.60
2.36
3.40
3.31
The foregoing arbitrary costs are based upon the purchase (by the subsidiary
owning and operating the above indicated refineries) of crude oil at posted market
prices, plus (in ifiost instances) a handling charge and plus transportation charges
at tariff rates. Refinery operating expenses comprise the items indicated in the
footnote to the tabulation which appeared in the original answer to question 32.
Answer: Following is a summary cost statement, for the year 1938, for each
domestic refinery operated by the reporting company's wholly-owned subsidiary
engaged in refining operations:
~
Percentage of
Percentage of
Material Costs
Refinery Oper-
to Total
ating Expense
Summary
Cost of Pro-
to Total Cost
Cost
duction of
of Production
All Products
of All Products
Year 1938
Year 1938.
(See Note)
Location of Refinery:
Percent
Percent
East Chicago, Ind
$29. 387, 600
76.23
23.77
Kansas City, Kans
6, 615, 800
7, 662, 500
4, 143, 200
79.48
66. 12
68. 47
20.52
Coffeyville, Kans
.33.88
Sand Springs, Okla
31.53
Parco, Wyo
4, 750, 300
80,83
19.17
Fort Worth, Tex,. _
2, 423, 400
30, 837, 500
74.33
85.56
25.67
Houston, Tex. (Light Oil Plant)
14.45
Marcu.s Hook, Pa
30, 176, 000
8, 399, 700
86.80
71.54
13.20
Wellsville, N. Y .
28.46
rLiel'fPtrn^h''??'^^^'"^'^^'^"^'"^ expenses included hereunder comprise operating labor and supplies, repairs,
anddepre^^r "J'scollaneoiis opwatlng expenses, insurance, taxes (other than Social Security Taxea)
CONCENTKATION OF ECONOMIC POWER
10055
The costs of the various classifications of products manufactured are deter-
mined by the arbitrary allocation (with relatively unimportant exceptions) of
manufacturing and raw material costs to the quantity of the various classifications
of products produced on the basis of their estimated relative selling values. In
view of the method of costing used, the question is answered above by giving the
percentage cost of crude oil and other materials consumed to total cost of produc-
tion of all products and the percentage of manufacturing expense to such total cost
of production. Disparity in percentages between plants is largely caused by
variance in geographical locations of the plants, the kind of crude utilized, the
varying types of manufacturing services performed, and the proportion and
type of products produced.
Continental Oil Company
reply to item 32 of t. n. e. c. questionnaire
For the purpose of departmental accounting only the cost of gasoline is deter-
mined by the single product method; that is, all by-products (including fuel oil
and charging stock) derived from skimming and cracking plant operations are
priced on the basis of the previous month's average market price, less an allow-
ance for selling expense. The value of these by-products is then deducted from
the total cost of raw materials (crude oil and casinghead gasoline at current
posted prices plus transportation at tariff rates to refinery) and refinery operating
expense (before taxes and depreciation) to determine the cost of gasoline. Market
value used in pricing by-products is the average of quotations taken from Piatt's
Oilgram and the Chicago Journal of Commerce.
The cost of lubricating oils, greases and wax is the cost of raw material (charging
stocks priced at market value as outlined above) and operating expenses (before
taxes and depreciation) applicable thereto.
Cost of gasoline at various refineries — 19S8
Ponca City Kefinery...
Baltimore Refinery
Wichita Falls Refinery
Glenrock Refinery
Farmington Refinery..
Artesia Refinery
Denver Refinery
Albuquerque Refinery.
Lewiston Refinery
Unit Cost per Gallon
Raw Ma-
terials and
Operating
Expenses
.0481
.0511
.0443
.0487
.0588
.0425
.0597
.0617
.0708
Taxes and
Deprecia-
tion
$0. 0016
.0032
.0020
.0022
.0008
.0032
.0037
.0013
.0011
Total
$0. 0407
.0543
. 0403
.0509
.0596
.0457
.0634
.0630
.0719
Cost of raw materials and operating expenses — Fuel oil — 1938
Unit Cost
per Oallon
Ponca City Refinery $0. 0166
Baltimore Refinery ^ . 0231
Wichita Falls Refinery . 0170
Glenrock Refinery . 0170
Farmington Refinery . 0083
Artesia Refinery ^ . 0140
Denver Refinery . 0192
Albuquerque Refinery . 0344
Lewiston Refinery .0252
10056 ('ONCENTRATION OF ECONOMIC POWER
GtJLF Oil Corporation
REPLY TO ITEM NO. 32 OF TNEC QUESTIONNAIRE
The costiug system in effect, applicable to muaufactured oil products, provides
for the accumulation of all expenses, including the cost of raw materials and a
proportion of the general administrative expenses.
Quantities of production of each product are calculated and extended at the
average wholesale market values for the period in question; said market values
being obtained from reliable trade publications and the average of the low daily
quotations over a thirty day period to the nearest equivalent of the products
manufactured are utilized. In the absence of price quotations comparable to a
product manufactured, arbitrary prices are used, or differentials are added to or
subtracted from a published price to compensate for the equivalent of the product
manufactured. The percentage relation of the total cost of manufacture to the
combined market values is then determined, and each product is assigned as its
cost the percentage of its market value which the total cost bears to the combined
market value.
Temporary National Economic Committee questionnaire — Question 32 — Summary
cost statement of operating each domestic refinery operated by the reporting company
or its subsidiaries or affiliates — Year 1938
GULF OIL CORPOEATION— SUPPLEMENTAL REPLY
Port Arthur Refinery
Barrels
Amount
Avg. Cost
Per Barrel
Crude & Other Products Charged
41, 741, 537
$60, 542. 361
$1. 450
Labor (Operating and Repairs)
4, 063, 311
4, 595, 764
2, 201, 089
5, 297, 193
.098
Materials (Operating and Repairs)
8,783
.111
Fuel
.053
Overhead ".
.128
Unaccounted for Oil Loss.
1 286. 456
.010
Subtotal — Manufacturing Ejcpenses . .
16, 157, 357
.400
Total Cost
41, 463, 864
76,699,718
1.850
Per Cent of Capacity Operated, 100%.
Fort Worth Refinery
Crude & Other Products Charged
2, 057, 742
$2, 891. 698
$L405
Labor (Operating and Repairs)
132, 592
176, 989
136, 442
182, 719
.064
Materials (Operating and Repairs)
.085
Fuel
.066
Overhead 1..
.088
Unaccounted for Oil Loss
20, 372
1.014
Subtotal— Manufacturing Expenses
628, 742
.289
Total Cost. -
2,078,114
3, 520, 440
1.694
Per Cent of Capacity Operated, 92.9%.
Sweetwater Refinery
Crude & Other Products Charged
2, 237, 614
$2, 539, 958
$1. 135
Labor (Operating and Repairs) - _ _. .
208,682
298, 015
174,724
243, 442
.096
Materials (Operating and Repairs)
.138
Fuel
.081
Overhead
.112
Unaccounted for Oil Loss ..
'68,872
.036
Subtotal— Manufacturing Expenses
924,863
.463
Total Cost
2, 168, 742
3, 464, 821
1.598
Per Cent of Capacity Operated. 118.6%.
• Red figure.
(lONCENTHATION OF ECONOMIC POWER
10057
Temporary National Economic Committee questionnaire — Question 32-^ — Summary
cost statement of operating each domestic refinery operated by the reporting company
or Us svhsidiaries or affiliates — Year 1938 — Continued
GULF OIL CORPORATION— SUPPLEMENTAL REPLY— Continued
New York Refinery
Barrels
Amount
Avg. Cost
Per Barrel
3,167,930
$2, 948, 091
$0,931
70,543
42,720
61,862
125,923
.022
.014
Fuel
.019
Overhead . - -
.040
Unaccounted for Oil Loss . .
111,837
.003
Subtotal — Manufacturing Expenses . .
301, 048
.098
Total Cost.. -
Per Cent of Capacity Operated, 61.99%.
3, 156, 093
3, 249, 139
1.029
Philadelphia Refinery
Crude & Other Products Charged -- --
12,282,857
$16,857,174
$1. 373
830, 468
1, 125, 669
947,211
1,330,820
.068
Materials (Operating and Repairs) .
.092
Fuel
.078
.109
184,162
.010
Subtotal — Manufacturing Expenses
4,234,168
.357
■
Total Cost
12, 198, 695
21, 101, 342
1.730
Per Cent of Capacity Operated, 102.6%.
Pittsburgh Refinery
Crude & Other Products Charged
3,846,836
$7, 739, 374
$2. 012
Labor (Operating and Repairs)
349, 548
574 942
40c>, 448
466,454
.091
Materials (Operating and Repairs) -
401
.150
Fuel .
.105
.121
Unaccounted for Oil Loss» - - . -
1 12, 677
.007
1, 794, 392
.474
TdJ^l Cost
3,834,560
9, 633, 766
2.486
Per Cent of Capacity Operated, 104.5%.
Toledo Refinery
Crude & Other Products Charged
6, 228, 552
$11, 412, 041
$1,832
LbTjor (Operating and Repairs)
445, 156
689, 265
381, 716
779, 273
.071
.110
Fuel ...
.061
Overhead
.125
Unaccounted for Oil Loss ~ -
7,155
1.001
Subtotal — Manufacturing Expenses
2, 295, 410
.366
Total Cost-.
6, 235, 707
13, 707, 451
2.198
Per Cent of Capacity Operated, 94.8%.
Cincinnati Refln
Jry
Cru(Je & Other Products Charged. .
6, 759, 491
$12, 318, 282
$1. 822
Labor (Operating arid Repairs) .. ...
492, 607
740, 440
428, 442
791, 042
.073
Materials (Operating and Repairs)
.luy
Fuel
.063
Overhead-- . ...
.117
Unaccounted for Oil Loss . -
8,267
1.002
Subtotal — Manufacturing Expenses ... . .
2,452,531
.360
Total Cost. . . .
6, 767, 758
14,770,>^"3
2.182
Per Cent of Capacity Operated, 102.9%.
1 Red figure.
NCTE.— It is impractical to deteruiiue the actual per unit cuiit uf a gallon of Qasojino and Fuel Oil, sepa-
rately, at the refinery gate.
10058 (,'()N<;entiiati()n oi' kcono.mic power
The Ohio Oil Company
rkplt to item #32 of t. n. e. c. qt) estionnaihe
Summary cost statement
LOVELL. WVOMING REFINERY, 1938
Gasoline cost
Fuel oil cost
Raw Material:
f'rude Oil
3S, 104. 81
8, 912. 90
124,361.95
Natural Gasoline __ ...
Total Raw Material
47,017.71
124, 361. 95
Operating Expense:
Labor. __
3. 300. 11
1,622.29
327. 19
2, 804. 13
1, 567. 94
3, 892. 34
10, 770. 52
Repairs
6, 294. 66
Chemicals _
1, 067. 84
Fuel (Natural Gas)...
9, 151. 77
Other. . _. _
5, 117. 23
General _. _. .
12, 703. 35
Total Operatina; Expense.
13,514.00
6, 775. 30
44, 105. 37
Depreciation .: __
22, 112. 42
Total Cost.
67, 307. 01
1, OUO, 193
0.06729402
190, 579. 74
Production in Gallons (Gasoline
Cost per Gallon
includes Natural Gasoline blended)
10, 350, 762
0.01S41216
FT. WORTH, TEXAS REFINERY, 1938
Raw Material:
Crude Oil....
Natural Gasoline...
"Q" Liquid (Load).
Total Raw Material.
Operating Expense:
Labor..
Repairs
Chemicals
Fuel— Natl. Gas & Fuel Oil.
Other
General
Total Operating Expense.
Depreciation
Amortization of Royalty on KelloKlJnlt
Total Cost
Production in Gallons (Gasoline includes Natural Gasoline blended).
Cost per Gallon
901, 194. 09
118, 602. 88
28, 813. 75
1, 048, 610. 72
86,432.88
63, 745. 83
59, 903. 70
48, 567. 11
27, 963. 38
45,518.56
332, 131. 46
37, 443. 7V
4, 963. 01
1,423,148.96
26, 519. 808
0. 05366362
BRISTOW, OKLAHOMA REFINERY, 1938
Raw Material:
Crude Oil
Natural (Sasoline...
"Q" Liquid (Lead).
Total Raw Material.
Operating Expense:
Labor
Rppairs.
•^heraicals.. ..
' Fuel (Natl. Gas & Fuel OU).
Other ,
General
Total Operating Expense... _
Depreciatiou
Amortization of Royalty on Kellogg Unit
Total Cost
Production in Gallons (Gasoline includes Natural Gasoline blended),
(/"ost per Gallon
840,711.39
26, 314. 66
33, 626. 56
900, 652. 61
48, 699. 22
38,871.74
12, 712. 36
12, 115. 13
14, 810. 61
37, 933. 22
165, 142. 28
30, 274. 47
7, 134. 15
1, 103, 203. 51
20,612,424
0. 05362129
CONCENTHAT'ION Ot^^ ECONOMIC POWER
Summary cost statement — Continued
ROBINSON, ILLINOIS REFINERY, 1938
10059
Gasoline cost
Fuel oil cost
Raw Material:
Crude Oil . .- - --
3, 740, 877. 07
642, 390. 76
241,417.45
264,841.81
"Q" Liquid (Lead) - -- -- --
4, 624, 685. 28
264, 841. 81
Operating Expense:
202, 207. 87
105, 822. 09
47, 368. 59
204, 350. 54
88, 149. 83
108, 059. 14
14, 315. 65
Repairs - --
7, 491. 86
3, 353. 54
Fuel (Natl Gas, Coal,
& Fuel Oil)
14, 4R7. 35
Other
6, 240. 71
General . -
7, 650. 23
Total Operating Exj
755, 958. 06
47, 278. 09
53, 519. 34
2, 563. 13
Total Cost
5,427,921.43
91, 509, 368
0.05931547
320,924 28
Production in Gallons (Gasoline includes Natural Gasoline blended) -
16, 374, 066
0. 0195995f
b. No refineries operated by subsidiaries or affiliates.
Note. — The costing method used by The Ohio Oil Company to prorate the
elements of costs of the refining operations among the various products produced
is one known in the industry as the "Joint-Product Method." A brief summary
of the method is as follows :
(1) We determine the market value of a barrel of crude petroleum pro-
cessed, by evaluating the ultimate yield from a barrel of crude on our market
experience. This evaluation is converted to a "per gallon" basis, called
realization per gallon.
(2) We determine the cost of one gallon of production by dividing the total
of all co^t elements by the total production in gallons.
(3) The percentage relationship that "Cost per gallon" (Item 2) bears to
"Realization per Gallon" (Item 1) is then determined.
(4) The percentage factor (Item 3) is then applied to the net realized price
per gallon of each manufactured product, thus arriving at a cost for each
product.
Phillips Petroleum Company
reply to item #32 of t, n. e. c. questionnaire
All refineries are operated by the reporting company. The "By-Product"
method is used to allocate manufacturing costs to refined products produced, such
method being briefly described as follows:
Expenses consisting of operating expense, general expense, both direct and
indirect, and capital extinguishments are charged to individual processing and
service units by classifications of expense. Each service unit is then cleared in
total to separate processing units so that the final charge to each such processing
unit consists of direct expenses and pro-rated service expenses. These amounts
together with crude oil and other raw stocks consumed, at posted prices plus
transportation tariffs, are grouped according to major operations such as crude
skimming and cracking, lubricating oil manufacturing, and compounding. The
totgl costs charged to each group of processing units is reduced by the market
value of by-products produced, leaving the residue of such cost to be applied to
the main product.
As to the crude skimming and cracking group, gasoline is considered the main
product and the by-products, such as kerosene, naphtha, gas oil, fuel oil, etc., are
credited to such operations, ordinarily, at market prices. Steam refined stock is
transferred to the lube oil manufacturing department at its gasoline replacement
value.
10060
-CONCENTRATION OF ECONOMIC POWER
The required summary cost statement for gasoline follows (under our costing
policy explained above we do not develop a cost per gallon for fuel oil) .
Borger
Okmulgee
Kansas City
Barrels Amount
Barrels
Amount
Barrels
Amount
Production:
6,382,430 $12,246,984.87
893, 397
753, 072
132, 593
$2, 115, 849. 13
I 881, 845. 44
3, 571, 837
1,489,252
624,780
$8, 980, 438. 14
By-Products
1, 795, 259
2, 448, 504
1, 285, 921. 70
1, 485. 818. 53
10, 626, 193
13, 532, 906. 57
1, 779, 062
2, 997, 694. 57
5,685,869
10, 466, 256. 67
Cost and Expenses:
906,300.39
328,471.15
947,827.97
573, 408. 89
31,505.04 ■
90. 022. 81
431, 246. 78
626, 025. 27
449, 690. 66
144, 495. 14
252, 018. 85
71, 106. 11
755, 584. 77
Utilities
67, 730. 88
398, 734. 71
Repairs and other sup-
267,420.11
20, 000. 04
19,498.46
133, 804. 77
197, 132. 60
15, 876. 33
AdminJstrati'.o and
252, 886. 20
Capital extinguish-
-_ .
315, 399. 23
Total
3,934,808.30
1, 267, 746. 59
649, 741. 85
2, 093, 632. 27
Less: Amounts allo-
cated to lube oil man-
ufacturing and com-
pounding at Okmul-
and compounding at
18,396.06
3, 934, 808. 30
9,598,098.27
a 618, 004. 74
2, 379, 689. 83
'2,075,236.21
8,391,020.46
Total posts
13, 532, 906. 57
1, 285, 921. 70
2, 997, 694. 57
1881,845.44
10,466,256.67
Less: Value of by-prod-
1»485, 818. 53
Cost of gasoline — total.
12,246,984.87
2, 115, 849. 13
8, 980, 438. 14
Cost of gasoline— per
0.04569
0.05639
0.05986
I Okmulgee by-products:
Steam refined stock (at gasoline replacement value) $354,627.14
Other— Skimming and cracking by-products (at market value) 527,218.30
881, 845. 44
' Expenses are recorded by classifications to processing and s^-vioe units, the latter being separately allo-
cated in total to processing units of skimming, cracking, lube manufacturing and compounding. Therefore,
the identity of each classification of expense is lost and it is impracticable to determine the amount of each
classification finally allocated to gasoline manufacturing.
3 Expenses are recorded by cJassifications to processing and service units, the latter being separately
allocated in total to processing units of skimming, cracking and compounding. Therefore, the identity of
each classification of expense is lost and it is impracticable to determine the amount of each classification
finally allocated to gasoline manufacturing.
The Pure Oil Company
REPLY TO ITEM #32 OF TNEC QTJESTIONNAIKE
The cost of gasoline for statistical purposes is arrived at by the by-product
basis, the principle of which is as follows:
The realized sales value of finished products, other than gasohne, is subtracted
from the total of the cost of crude oil, transportation and processing. The re-
maining sum represents the cost of gasoline and that sum is divided by the
gasoline production for the month to arrive at the cost to produce a gallon of
gasoline.
This method of determining cost does not permit segregation of the cost of
fuel oil.
CONIJENTRATION UF ECONOMIC POWER
Summary of cost statement — year 1938
10061
Cabin
Creek
West
Virginia
Refin-
ery
Heath
Ohio
Refin-
ery
Musko-
gee
Okla-
homa
Refin-
ery'
Smiths
Bluff
Texas
Refin-
ery
Toledo
Ohio
Refin-
ery'
Mid-
land
Michi-
gan
Refin-
ery
Per bbl. of crude— Cost:
Field Price . _.- -
$1.44
.35
$1.29
.37
$1.19
.19
$1. 22
.18
$1.21
.33
$1.09
Transportation . .
.15
Delivered --
$1.79
.83
$1.66
.39
$1.38
.61
$1.40
.26
$1.54
.49
$1.24
Processing cost— Including Depreciation..
.25
Total Cost of Production . .
$2.62
1.18
$2.05
.31
$1.99
.33
$1.66
.44
$2.03
.35
$1.49
Less: Value of all products other than gasoline..
.94
Cost of Gasoline
$L44
$1.74
$1.66
$1.22
$1.68
$.55
Per Gallon Cost of Gasoline
$.06683
$. 06709
$. 07300
$. 05634
$.07200
$. 04927
1 Plant operated only part of 1938. Operations suspended January 20, 1939.
' Plant closed down during part of 1938.
Shell Union Oil Corporation
reply to item #32 op t. n. e. c. questionnaire
Item 32. — Summary cost statement for each domestic refinery operated (a) by
the reporting company, or (b) by its subsidiaries or aflSUates, for the year 1938,
showing the principal elements of cost determining the cost of a gallon of gasoline
and fuel oil (separately), at the refinery gate (exclusive of any selling expenses).
Explain briefly the costing policy followed with particular reference to the method
of proration of the elements of costs of the refining operations among the various
products produced.
It is a recognized principle in the oil industry that it is impossible to determine
separately the costs applicable to a particular product manufactured. The costs
of manufacturing finished products are joint and inseparable and the products
themselves are commingled and blended before, during and after the refining
jjrocess. The reporting company's subsidiary refining companies do not even,
in all cases, keep the elements of cost segregated by individual refineries. In an
endeavor to give information which may be useful in connection with this question,
the following information is attached, viz. the total expense up to the refinery
gate, the additional selling, administrative and other expense, and the segregation,
by volume, of products sold during 1938.
Shell Union Oil Corporation and subsidiary companies consolidated statement of
income and expenses for the year 1938
Producing, transportation and refining op-
erating expenses:
Oil- field operations:
Crude oil production costs $12, 837, 095. 91
Exploration expense, etc 6, 381, 026. 05
Depletion, depreciation, etc 23, 474, 385. 53
42, 692, 507. 49
Natural gasoline plants:
Operating costs 1, 101, 405. 06
Depreciation, etc ....... 223, 978. 73
1, 325, 383. 79
10062 CONCENTRATION OF ECONOMIC POWER
Shell Union Oil Corporation and subsidiary companies consolidated staiemenl. of
income and expenses for the year 1938 — Continued
Producing, transportation and refining op-
erating expenses — Continued.
Transportation — Crude Oil:
Operating costs and maintenance. $9, 992, 033. 23
Depreciation, etc 2, 581, 652. 26
12, 573, 685. 49
Purchases 69, 757, 072. 60
Decrease in inventories.. _. 3, 811, 516. 53
Refineries:
Operating costs _.._.. 26, 458, 775. 40
Depreciation, etc 7, 198, 579. 06
33, 657, 354. 46
Own consumption (estimated) [5, 567, 405. 57]
Cost of products at refinery gate $158, 250, 114. 79
Selling, general and administrative expenses:
Marketing and distributing:
Bulk depot, terminal and service
station operations $40, 490, 542. 37
Transportation 22, 306, 550. 16
Depreciation , etc 6, 223, 273. 99
Own consumption (estimated) [800, 000. 00)
68, 220, 366. 52
Increase in inventories [2, 155, 686. 39]
Head Office and management expense. 7, 668, 209. 48
Other general expenses 6, 513, 243. 28
Interest on funded debt and amortiza-
tion of discount and expense 2,661,570.36
Provision for Federal income taxes 3, 513, 014. 07
Selling, general and administrative expenses 86, 420, 717. 32
. Total expenses.- 244,670,832.11
Gross income ' (including other income and credits) 255, 989, 254. 73
Net income for the year $11, 318, 422. 62
1 Sales Proceeds _ $251,517,473.68
Product: Oallons
Gasoline 1,692,906,909
Natural Gasoline 25,972,339
Lubricating oils 52,460.958
Fuel oils _. 1,568,405,812
Crude oil .._. 579,646,798
Other products 179,429,626
4, 098, 822, 342
SUPPLEMENTAL REPLY TO ITEM #32 OP TNEC QUBSTIONVAIRB — PER LETTER OK
AUGUST 24, 1939
You ask us to quote the unit values for gasoline and fuel oil as shown in inven-
tories at end of 1937 and 1938 for Federal income tax purposes.
In our original response we pointed out the impossibility of determining sepa-
rately the costs of the various products derived from a barrel of crude oil, and
some of the reasons therefor were indicated. We are still entirely convinced that
methods of estimation whether used for inventory pricing or other internal pur-
pose can provide no reliable objective standard for use in a price survey.
CONCENTRATION OF ECONOMIC POWER
10063
The choice of a given set of principles is justified for tax as well as accounting
purposes so Ions as they are consistently followed year after year. Where impor-
tant items are disregarded in arriving at cost they are nevertheless deductible
elsewhere and subject to verification by the Revenue Agents. Such items, ex-
cluded by some and not by others, are, for example, lease rentals, land and explor-
ation' expense, abandonment and retirements, and research expense.
Other practices which are waa^anted if consistently followed are the apportion-
ment of cost by a system of weighted averages, or according to sales realization
or by application of a by-product method, or by combinations of the?;c. Their
use in a study of one oil company, if properly restricted, would give useful conclu-
sions in comparing the financial statements for different periods, but such could
and probably would result in fallacious conclusions as applied to a group of com-
panies or in comparing one company with another. The figures are further
rendered inadequate by variations in management practice in avoiding price
inflation and. minimizing fluctuations resulting from the impact of price wars.
The same may be said for the use (or otherwise) of the last-in-first-out theory
and the pricing of inventories at cost or market, whichever lower, which injects
a factor bearing no relation to cost and variable according to market.
You will realize, we are sure, that the character of our response to this question
is not dictated from any unwillingness to cooperate fully but, on the contrary,
we would much prefer not to submit material which would itself be meaningless
for your purpose.
Skellt Oil Company
rkplt to item #32 op t. n. e. c. questionnaire
32. Summary cost statement for each domestic refinery operated (a) by the
reporting company, or (b) by its subsidiaries or aflBliates, for the year 1938, show-
ing the principal elements of cost determining the cost of a gallon of gasoline and
fuel oil (separately), at the refinery gate (exclusive of any selling expenses)
Explain briefly the costing policy followed with particular reference to the method.
Answer :
(a) El Dorado .(Kansas) Refinery of Reporting Company:
Cost items — including depreciation and general overhead
Barrels
Amount
Crude oil (Including Pipage)
Operating and Maintenance:
Superintendence
l,abor— Operating
Supplies
Kuei
Gnemicals (Including tetra-etbyl lead)
Purchased Current...^.
Insurance
Taxes ■...
Automotive
Cleaning:
Labor
Supplies -
Maintenance:
Labor
Materials, etc
Sundries -
Tank Car Rent Demurrage, etc
Blending Stock Used (Natural Qasoline, etc.).
Containers Used
Depreciation on Plant and Equipment
General and Administrative Expense ,...
7,373,991
389, 225
$9,720,411.67
25,062.03
300,650.08
39, 331. 63
445,020.89
534,038.38
80, 598. 26
10, 245. 46
16, 391. 26
13, 225. 52
13,514.89
7, 691. 14
61, 685. 82
130,343.46
60, 147. 30
89,623.06
720,302.86
15,785.63
363, 168. 64
113, 605. 37
Less:
Processing and Storage Loss.
Miscellaneous Earnings
7, 763, 216
25,559
12, 760, 842. 72
11, 428. 30
7,737,657
Production and Cost :
(Gallons) - — - 324,981,694
12,749,414.42
10064
CONCENTRATION OF ECONOMIC POWER
Cost items — including depreciation and general overhead — Continued
Total cost above is apportioned to products in ratio to realizable value of production; therefore no
separate cost of gasoline and fuel oil is given. The cost apportionment is as follows:
Production
(Gallons)
Amount
Gasoline
Kerosene
Tractor and Furnace Oil.
Fuel Oil
Road Oil and Asphalt
Other Products
190, 976, 534
15, 098, 072
31,451,430
47, 565, 855
20,964,273
18, 925, 430
$9, 365, 609. 75
640, 063. 83
1, 235, 377. 33
702, 097. 60
495, 276. 31
310,989.70
324, 981, 594
$12, 749, 414. 42
Gasoline— Cost per Gallon.
Fuel Oil— Cost per Gallon.
$.04904
.01476
(b) The reporting company operates only one refinery itself and operates
none through subsidiaries or affiliates.
Mat 24, 1939.
Socony-Vacuum Oil Co., Incorporated
reply to question 32 of tnec questionnaire
It is not possible for us to answer this question for reasons explained in our
answer to Ilk (1).
Report of Socony-Vacuum Oil Company, Inc., temporary National Economic
Committee, Washington, D. C. — questionnaire for oil companies — answers to
supplemental questions contained in letter dated July 14, 1939
[Question 32]
INVENTOBY OF GASOLINE AND FUEL OIL
Gallons
Inventory
Value
Average
(Per Unit)
Magnolia:
Gasoline
Light Fuel OU..
Heavy Fuel Oil.
General:
Gasoline
Light Fuel Oil..
Heavy Fuel Oil.
Socony-Vacuum :
Gasoline
Light Fuel Oa..
Heavy Fuel Ofl.
Overall Averages:
Gasoline
Light Fuel OU..
Heavy Fuel Oil
50, 069, 922
37, 163, 906
164, 399, 910
67,632,895
71, 813, 368
349,747,017
263, 558, 652
171,246,286
90, 216, 855
381, 261, 469
280, 222, 560
604,363,782
2, 067, 810. 34
902,626.68
2, 462, 079. 33
3,097,437,61
1, 626, 737. 66
5,163,263.67
14,655,267.13
5, 946, 175. 28
1,848,758.99
19,820,504.98
8, 495, 439. 62
9,464,101.99
0.0413
.0243
.0149
.0458
.0227
.0148
.0666
.0348
.0205
.0520
.0303
.0167
C;()NCENTRATION OF ECONOMIC POWER 10005
Standard Oil Company (Indiana)
reply to item #32 op t. n. e. c. questionnaire
INDEX
Pago
standard Oil Company (Indiana) — ..."..
Whiting Refinery
Wood River Refinery
Sugar Creek Refinery...^
Casper Refinery .■-....
Neodesha Refinery 1
Qreybull Refinery
Pan American Petroleum & Transport Company and Subsidiary Companies .■
Pan American Southern Corporation and Subsidiary Companies..
Stanolind Oil and Gas Company
Utah Oil Refining Company
The answer to this question has been premised on the recognized fact that the
actual cost of manufacturing gasoline cannot be determined. The company has
attempted, however, to answer the question in such a way as to inform the
Committee as best it can the method employed for the company's own account
ing purposes. Some of the subsidiaries use other methods and these have also
been included. The answer is submitted with the express understanding that
it be interpreted with the foregoing limitations.
Summary of cost statement — gasoline and naphthas. Whiting Refinery, as of
December SI, 19S8
Coft Per Gallon
of Gasoline
Cost of Crude, F. O. B. Whiting, Indiana $0. 0683
Manufacturing expense:
Direct and Indirect Labor $0. 0016
Repairs . 0019
Fuel . 0021
Steam and Power__ . 0008
Chemicals . 0003
Still Cleaning Expense . 0008
Miscellaneous Expense 0019
. 0094
Overhead Expense - _. . 0028
Depreciation Expense . 0016
Total Cost . $. 0721
Less: Credit for By- Products valued on the basis of value of gasoline
content and/or approximate "net realizable value of residuals .0176
Balance, being cost of a gallon of gasoline and naphthas $. 0543
The costing policy followed for this refinery in estimating the cost of gasoline
is commonly known in the industry as the "By-Product Method." Under this
method the estimated cost of gasoline is determined by first ascertaining the sum
of (1) cost of the crude oil delivered to the Light Oil Department, plus (2) the
cost of processing the crude oil, plus (3) the pro rata share of general refinery
overhead and depreciation expense. From the sum thus obtained is, deducted
the value of all by-products (Products other than gasoline) produced jointly in
the refining operation. The amount remaining represents the estimated cost of
gasoline produced from the crude consumed.
The credit taken for by-products under this method is determined by valuing
the products commonly termfed "Residual Stocks" on the basis of their net realiz-
able value to the refinery, and products commonly termed "Distillate Stocks" on
the basis of their value for gasoline making purposes.
Under this method all expenses incurred within the Light Oil Department proper
of the refinery are allocated directly to gasoline. Expenses of a general refinery
nature are allocated first to the Light Oil Department proper of the refinery on
various pro rata bases such as labor, volume, investment, and time studies and
then charged directly to gasoline.
The cost of fuel oil is determined as follows — when by-prodiicts are utilized as
by-products or when sold as by-products, values assigned thereto as explained in
the foregoing are considered to be the cost of such by-products.
10066 CONCENTRATION OF KCONOMIC POWEll-
Summary of cost statement — gasoline and naphthas, Wood River Refinery, as of
December SI, 19S8
Cost Per Oallcm
of Gasoline
Cost of Crude, F. O. B. Wood River, Illinois ._ $0. 0528
Manufacturing Expense:
Direct and Indirect Labor $0. 0016
Repairs .0022
Fuel . .0020
Steam and Power . . 0019
Chemicals . 0002
Still Cleaning Expense _-. . 0006
Miscellaneous Expense . 0026
.0111
Overhead Expense . 0022
Depreciation Expense , . 0025
Total Cost $. 0686
Less: Credit for By-Products valued on the basis of value of gasoline con-
tent and/or approximate net realizable value of residuals .0154
Balance, being cost of a gallon of gasoline and naphthas $. 0532
The costing policy followed for this refinery in estimating the cost of gasoline
is commonly known in the industry as the "By-Product Method." Under this
method the estimated cost of gasoline is determined by first ascertaining the sum
of (1) cost of the crude oil delivered to the Light Oil Department, plus (2) the
cost of processing the crude oil, plus (3) the pro rata share of general refinery
overhead and depreciation expense. From the sum thus obtained is deducted the
value of all by-products (products other than gasoline) produced jointly in the
refining operation. The amount remaining represents the estimated cost of
gasoline produced from the crude consumed.
The credit taken for by-products under this method is determined by valuing
the products commonly termed "residual stocks" on the basis of their net realiz-
able value to the refinery, and products commonly termed "distillate stocks" on
the basis of their value for gasoline making purposes.
Under this method all expenses incurred within the Light Oil Department proper
of the refinery are allocated directly to gasoline. Expenses of a general refinery
nature are allocated first to the Light Oil Department proper of the refinery on
various pro rata bases such as labor, volume, investment, and time studies and
then charged directly to gasoline.
The cost of fuel oil is determined as follows — when by-products are utilized as
by-products or when sold as by-products, values assigned thereto as explained in
the foregoing are considered to be the cost of such by-products.
Summary of cost statement — gasoline and naphthas. Sugar Creek Refinery, as of
December Si, 19V8
Cost Per Gallon
of Oafoline
Cost of Crude, F. O. B. Sugar Creek, Missouri $0. 0535
Manufacturing Expense:
Direct and Indirect Labor $0. 0018
Repairs. __- . 0022
Fuel . 0017
Steam and Power . 0012
Chemicals . 0003
Still Cleaning Expense . 0006
Miscellaneous Expense . 0025
. 0103
Overhead Expense . 0024
Depreciation Expense . 0034
Total Cost .0696
T..ess: Credit for By-Products valued on the basis of value of gasoline
content and/or approximate net realizable value of residuals . 0195
B&lance, being cost of a gallon of gasoline and naphthas . 0501
'JONCENTKATION 01^ ECONOMIC POWER 10067
The costing policy following for this refinery in estimating the cost of gasoline
is commonly known in the industry as the "By-Product Method." Under this
method the estimated cost of gasoline is determined by first ascertaining the sum
of (1) cost of the crude oil delivered to the I^ight Oil Department, plus (2) the
cost of processing the crude oil, plus (3) the pro rata share of general refinery
overhead and depreciation expense From the sum thus obtained is deducted
the value of all by-products (Products other than gasoline) produced jointly in
the refining operation. The amount remaining represents the estimated cost of
gasoline produced from the crude consumed
The credit taken for by-products under this method is determined by valuing
the products commonly termed "residual stocks" on the basis of their net realizable
value to the refinery, and products commonly termed "distillate stocks" on the
basis of their value' for gasoline making purposes.
. Under this method all expenses incurred within the Light Oil Department proper
of the refinery are allocated directly to gasoline. Expenses of a general refinery
nature are allocated first to the Light Oil Department proper of the refinery on
various pro rata bases such as labor, volume, investment, and time studies and
then charged directly to gasoline.
The cost of fuel oil is determined .as follows — when by-products are utilized as
by-products or when sold as by-products, values assigned thereto as explained in
the foregoing are considered to be the cost of such by-products.
Summary of cost statement — gasoline and naphthas, Casper Refinery, as of December
SI, 19S8
Cost Per Gallon
of Gasoline
Cost of Crude, F. O. B. Casper, Wyoming $0. 0568
Manufacturing Expense:
Direct and Indirect LaboB. ^^^ $0. 0016
Repairs . 0026
Fuel- .0020
Steam and Power . 0022
Chemicals .0001
Still Cleaning Expense. __ . 0005
Miscellaneous Expense _ . 0043
. 0133
Overhead Expense : -_ . 0039
Depreciation Expense . 0131
Total Cost .0871
Less: Credit for By-Products valued on the basis of value of gasoline
content and/or approximate net realizable value of residuals , .0230
Balance, being cost of a gallon of gasoline and naphthas .. . 0641
The costing policy followed for this refinery in estimating the cost of gasoline i
is commonly known in the industry as the "By-Product Method." Under this
method the estimated cost of gasoline is determined by first ascertaining the sum
of (1) cost of the crude oil delivered to the Light Oil Department, plus (2) the
cost of processing the crude oil, plus (3) the pro rata share of general refinery
overhead and depreciation expense. From the sum thus obtained is deducted
the value of all by-products (products other than gasoline) produced jointly in
the refining operation. The amount remaining represents the estimated cost of
gasoline produced from the crude consumed.
The credit taken for by-products under this method is determined by valuing
the products commonly termed "residual stocks" on the basis of their net realizable
value to the refinery, and products commonly termed "distillate stocks" on the
basis of their value for gasoline making purposes.
Under this method all expenses incurred within the Light Oil Department proper
of the refinery are allocated directly to gasoline. Expenses of a general refinery
nature are allocated first to the Light Oil Department proper of the refinery on
various pro rata bases such as labor, volume, investment, and time studies and
then charged directly to gasoline.
The cost of fuel oil is determined as follows — when by-products are utilized
as by-products or when sold as by-products, values assigned thereto as explained
in the foregoing are considered to be the cost of such by-products.
124491— 40— pt. 17- A-
10068 CONCENTRATION OF ECONOMIC POWER
Summary of cost statement — Gasoline and naphthas, Neodesha refinery, as of December
SI, 1938
Cost per Oallon
of Oaioline
Cost of Crude, F, 0. B, Neodesha, Kansas $0. 0525
Manufacturing Expense:
Direct and Indirect Labor $0. 0020
Repairs . 0020
Fuel . 0015
Steam and Power... . 0008
Chemicals .0001
Still Cleaning Expense . 0005
Miscellaneous Expense . 0038
. 0107
Overhead Expense . . 0035
Depreciation Expense, . 0045
Total Cost $0. 0712
Less: Credit for By-Products valued on the basis of value of gasoline
content and/or approximate net realizable value of residuals . 015C
Balance, being cost of a gallon of gasoline and naphtnas . $0. 0556
The costing policy followed for this refinery in estimating the cost of gasoline
is commonly known in the industry as the "By-Product Method". Under this
method the estimated cost of gasoline is determined by first ascertaining the sum
of (1) cost of the crude oil delivered to the Light Oil Department, plus (2) the
cost of processing the crude oil, plus (3) the pro rata share of general refinery
overhead and depreciation expense. From the sum thus obtained is deducted the
value of all by-products (products other than gasoline) produced jointly in the
refining operation. The amount remaining represents the estimated cost of gaso-
line produced from the crude consumed.
The credit taken for by-products under this method is determined by valuing
the products commonly termed "residual stocks" on the basis of their net realiz-
able value to the refinery, and products commonly termed "distillate stocks" on
the basis of their value for gasoline making purposes.
Under this method all expenses incurred within the Light Oil Department proper
of the refinery are allocated directly to gasoline. Expenses of a general refinery
ture are allocated first to the Light Oil Department proper of the refinery on
ious pro rata bases as labor, volume, investment, and time studies and then
•rged directly to gasoline.
'^'he cost of fuel oil is determined as follows — when by-products are utilized as
products or when sold as by-products, values assigned thereto as explained in
foregoing are considered to be the cost of such by-products.
Summary of cost statement— Gasoline and naphthas, Greybull refinery, as of December
31,1938
Cant per Oallon
(,f Gasoline
Cost of Crude, F. O. B. CrfeybuU, Wyoming $0. 0442
Manufacturing Expense:
Direct and Indirect Labor . $0. 0016
Repairs .0007
Fuel .0015
Steam and Power. . . 0022
Chemicals . 0001
Still Cleaning Expense
Miscellaneous Expense - ,0031
. 0092
Overhead Expense . 0023
Depreciation Expense . 0042
Total Cost $0.0599
Less: Credit for By-Products valued on the basis of value of gasoline
content and/or approximate net realizable value of residuals . 0099
Balance, being cost of a gallon of gasoline and naphthas $0. 0500
CONCENTRATION. OF ECONOMIC POWER
10069
The costing policy followed for this refinery in estimating the cost of gasoline
is commonly known in the industry as the "By-Product Method". Under this
method the estimated cost of gasoline is determined by first ascertaining the sum
of (1) cost of the crude oil delivered to the Light Oil Department, plus (2) the
cost of processing the crude oil, plus (3) the pro rata share of general refinery
overhead and depreciation expense. From the sum thus obtained is deducted the
value of all by-products (products other than gasoline) produced jointly in the
refining operation. The amount remaining represents the estimated cost of gaso-
line produced from the crude consumed.
The credit taken for by-products under this method is determined by valuing
the products commonly termed "residual stocks" on the basis of their net realiz-
able value to the refinery, and products commonly termed "distillate stocks" on
the basis of their value for gasoline making purposes.
Under this method all expenses incurred within the Light Oil Department proper
of the refinery are allocated directly to gasoline. Expenses of a general refinery
nature are allocated first to the Light Oil Department proper of the refinery on'
various pro rata bases such as labor, volume, investment, and time studies and
then charged directly to gasoline. ,
The cost of fuel oil is determined as follows — when by-products are utilized as
by-products or when sold as by-products, values assigned thereto as explained in
the foregoing are considered to be the cost of such by-products.
Pan American Petroletim & Transport Company and subsidiary companies
Gallons
Estimated Real-
ization Value
of Current
Month's Pro-
duction
Cost of Current
Month's Pro-
duction
Per
Gallon
Amount
Per
Gallon
Amount
Elements of Costs Determining the Costs of Products Pro-
duced:
X
X
x
X
X
X
Depreciation .
X
Total Combined Cost of All Products Produced from
x(l)
Allocation of Total Combined Cost to Products Produced on
the Basis of Relative Estimated Realization Values Com-
puted at average sales prices for Six Months ending with
Current Month:
Products Produced:
Gasoline .
X
X
X
X
X
X
X
X
X
X
X
X
X
I
X
z
Domestic Fuel Oil -
X
Heavy Fuel Oil
X
Asphalt . . -. .
X
Total Value and Cost of Products -
X
x(2)
x(l)
In order to determine the cost of each product. Total Cost (1) is prorated to the
various products in the same ratio that the estimated realization value of each
product bears to the Total Value (2).
The foregoing method of costing products produced is followed uniformly for
each refinery and is used primarily for the purpose of valuing product inventories.
Inventory values are adjusted to market values whenever cost exceeds market
value.
Expenses included in Total Cost (1) consist of all expense incurred directly in
connection with operation of the refinery such as operating labor, maintenance
and repairs, fuel, treating chemicals, supplies, utilities, local supervision, office,
laboratory, etc., but do not include selling and general ofi\ce administrative
expenses.
10070 CONCENTRATION OF ECONOMIC POWER
Pan American Southern Corporation and subsidiary companies
Gallons
Estimated Real-
ization Value
of Current
Month's Pro-
duction
Cost of Current
Month's Pro-
duction
Per
Gallon
Amount
Per
Gallon
Amount
Elements of Costs Determining the Costs of Products Pro-
duced:
Cost of Grade and Grade Equivalent Consumed
X
X
X
Direct Manufacturing Expense
X
Manufacturing Overhead Expense -
X
Real Estate and Personal Property Taxes
X
Depreciation :
X
Total Combined Cost of All Products Produced from
Grade and Crude Equivalent Consumed
X (1)
Allocation of Total Combined Cost to Products Produced on
the Basis of Relative Estimated Realization Values Com-
puted at average sales prices for Six Months endmg with Cur-
rent Month:
Products Produced:
Gasoline -..
X
X
X
X
X
X
X
"^
X
X
X
X
X
X
X
X
X
X
X
X
X
Kerosene - ---
X
Domestic Fuel Oil
X
Heavy Fuel OD -
X
Asphalt
X
Total Value and Cost of Products .
X
x(2)
X (1)
In order to determine the cost of each product, Total Cost (1) is prorated to the
various products in the same ratio that the estimated realization value of each
product bears to the Total Value (2).
The foregoing method of costing products produced is followed uniformly for
each refinery and is used primarily for the purpose of valuing product inventories.
Inventory values are adjusted to market values whenever cost exceeds market
value:
Expenses included in Total Cost (1) consist of all expense incurred directly in
connection with operation of the refinery such as operating labor, maintenance and
repairs, fuel, treating chemicals, supplies, utilities, local supervision, ofiice, labora-
tory, etc., but do not include selling and general oflSce administrative expenses.
Stanolind Oil and Gas Company
un-y cost statement for Superior Refinery for the year 1938, showing the principal
dements of cost determining the cost of a gallon of gasoline and fuel oil
Cost of
Qallon of
Qasoline
Cost of Crude Oil, F. O. B. Superior, Louisiana $0. 0398
Manufacturing Expense:
Direct and Indirect Labor $0. 0026
Repairs ___ 0018
Fuel ^ 0014
Steam and Power . 0015
Chemicals 0002
Miscellaneous . 0020
Total Manufacturing Expense .0095
Overhead Expense 0038
Depreciation Expense • 0026
Total Cost . : . 0557
I^ss: Credit for By-Products Valued on the Basis of Value of
Gasoline Content and/or Net Realizable Value of Residuals . 0053
Balance, Being Cost of a Gallon of Gasoline . 0504
CONCENTRATION OF ECONOMIC POWER 10071
The costing policy followed for this refinery in estimating the cost of gasoline is
commonly known in the industry as the "By-Product Method". Under this
method the estimated cost of gasoline is determined by first ascertaJTiing the sum
of (1) the delivered cost of crude oil ccisumed, plus (2) the cost of processing the
crude oil, plus (3) overhead and depreciation expense. From the sum thus
obtained is deducted the value of all by-products (products other than gasoline)
produced in the refining operation. The amount remaining represents the
estimated cost of gasoline produced from the crude consumed.
The credit taken for by-products under this method is determined by valuing
the products commonly termed "Residual Stocks" on the basis of their net
realizable value to the refinery, and products termed "Distillate Stocks" on the
basis of their value for gasoline making purposes.
The amount realized at the refinery for fuel oil sold is considered as the cost of
fuel oil produced.
Utah Oil Refining Company
Analysis of costs
Costs Controllable by Unit Supervision: Total amount
102 General Process Labor— Direct 20,274. 73
104 Stillmen 24, 127. 70
105 Stillmen Helpers - 31, 480. 79
106 Firemen 23,382. 19
109 Treaters 593.86
111 Pumpers ..- 330.48
Total Process Labor 100, 189. 75
125 Other than Process Labor 7,755.06
200 Repairs— General Direct — Labor ._ 36,608.33
200 Repairs— General Direct — Material 14,786. 69
201 Repairs— Still— Labor 31, 79-7. 36
201 Repairs— Still— Material 19,487.16
Total Repairs. 102, 679. 54
300 Steam 82, 422. 12
Fuel:
330 Fuel Oil -._ 58,343. 49
334 Still Gas 98, 201. 89
335 Purchased Gas ..- 2,226.27
Total Fuel 158,771. 65
Total Chemicals . 8, 579. 52
468 Still Cleaning Expense 35,763. 16
470 Foremen , 11,229. 05
474 Miscellaneous Material & Supplies 5, 149. 37
502 Handling Coke 5,457.03
600 Electric Light and Power 21, 769. 12
601 Water 13,810. 56
602 Pump House Expense 3,072.54
603 Air Compressor Expense 4,778.20
604 Telephone Expense 118.83
605 Vacation Expense 5, 971. 74
Total Controllable by Unit Supervision 567, 517. 24
Costs Controllable by Dept. Supervision:
622 Research & Technical Service Expense 8, 536. 94
623 Estimating & Drafting Dept. Expense 2, 604. 00
625 Oil Inspection Expense 13, 679. 37
627 Automobile Expense 4, 883. 86
Total Controllable by Dept. Sapervision. __ 29, 704. 17
10072 (X)NCBNTRATION OF ECONOMIC POWER
Analysis of costs — Continued
Costs Controllable by Refy. Supervision, Etc. ^ Total, amoura
640 Refinery Supervision 1 $12, 284. 64
643 Commissary Expense 870.15
644 Safety, Ind. Relations & Emp. Bur. Exp :. 97.10
645 Works Office Expense.-. 7,082.74
647 General Works Repairs 1,541.82
648 General Works Expense 6, 958. 89
657 Utilities Dept. Expense 1,707.82
Total Controllable by Refy. Supervision, Etc 30, 543. 16
Grand Total 627,764.57
Divisor for Above Costs:
Total Crude Run, 103,732,348 Gal.; 0.6052 Cost per 100 gal. crude oil run.
We do not have available for ready use Yields and Costs for the Year 1938 in
order to show detailed elements of cost determining the cost per gallon of gasoline
and fuel oil. However, we are showing below the average cost for the year of
the major brands of gasoline and fuel oil:
fjoooliTip- Average Cost
ijasoune. PerOaU9S8
Ethyl Gasoline $0. 0762
Pep Gasoline ' . 0713
Stanolind Gasoline . 0684
Fuel Oil: Value Per Gallon $0. 0191
Note. — The value of $0.0191 per gallon for Fuel Oil is predetermined, arid is
based on replacement cost of natural gas in the event it becomes necessary to
purchase our fuel.
Method used in arriving at cost of finished products is the ratio of total cost to
total market value — briefly stated as follows:
(1) Total market value.- — For convenience of costing, Yields of Gasoline and
By-Products are shown in units of 100 gallons Crude Oil consumed. Apply the
sales value to each product manufactured and the result is market value of 100
gallons Crude Oil consumed.
(2) Total cost.— Total cost of processing°100 gallons Crude Oil is determined by
adding the following:
Cost of 100 gallons Crude Oil consumed.
Cost of processing 100 gallons Crude in Light Oils Department as shown in
Summary Cost Statement.
Overhead Expenses (Less Selling Expense) /lOO gallons Crude Oil consumed.
Depreciation Expense /lOO Crude Oil consumed.
(3) Ratio. — Divide the total cost, the sum of (2) above b.v total market value
as shown in (1) for the ratio of total cost to total sales, and apply this ratio to
the sales value of each product produced for the cost of each product.
In arriving at the value of an unfinished stock, it is first necessary to ascertain
the amount of theoretically finished products obtainable when same is processed
in the plant. Then apply the value to these theoretically finished products less
the necessary finishing costs and the remainder is the value of the unfinished
stock.
Standard Oil Company (Kentucky)
keply to item 32 of t. n. e. c. questionnaire
Standard Oil Company (Kentucky) refinery was entirely closed in the eaily
part of 1931. Therefore, we have not attempted to give you any figures for the
2-1/4 years in which the refinery was operated only on a small scale. All gasoline
or oils taken from our refinery during that period are included as purchases.
During the period mentioned, all sales from our refinery were included with
regular company sales.
CONCENTRATION OF ECONOMIC TOWER 10078
Standard Oil Company (New Jebsky)
supplemental reply to item #32 of tnec questionnaire, as contained in
information forwarded september 19, 1939
An answer to this question is being compiled and will be submitted as soon as
possible.
Humble Oil & Refining Company, Subsidiary of Standard Oil Company
(New Jersey)
QUESTION no. 32
Attached are Cobt Statements for all the Refineries of the Humble Oil & Re-
fining Company for the year 1938, showing the elements of cost entering into
product costs. Since the cost of practically all domestic crude oil to the refinery
normally exceeds the market price of residual fuel oil, manufacturing operations
are usually carried on for minimum production of residual fuel oil of satisfactory
quality and consequently its cost is not determined but its value is considered
to be the price realized for it in the open market. The refinery is credited for
its residual fuel oil production on this basis. Thus, the "elements" which enter
into the costs of products other than residual fuel oil are (A) cost of crude oil
and other petroleum raw materialr and (B) the refinery processing expense ap-
plicable to the manufacture of these products, less (C) the credit for the residual
fuel oil production accompanying the manufacture of these distillate products.
In the following paragraphs will be explained briefly the method of distributing
refinery processing expense among the various operations, the fundamental basis
underlying the costing policy and the methods of proration used in distributing
each of the above "elements of cost" among the various product^'
refinery processing EXPENSE
Refinery cost records are required in sufficient detail to indicate with reasonable
accuracy the cost of processing on each individual unit. Each refinery operation
has an account to which is charged the direct expense — such as operating labor,
repairs, etcetera — associated with the operation. The cost of service functions —
such as steam, electricity, etcetera — is distributed to the processing operations
on the basis of the amounts of utilities consumed by each. Refinery overhead
expense is distributed among the refinery processing units on the basis of the
direct labor, material and utilities costs — excluding plant fuel and chemicals —
for each unit. Certain miscellaneous charges and credits not included in any of
the above costs are incurred in the refinery. These items — such as general cor-
porate expense, fire losses, etcetera — are of such a nature that their distrilaution
among products must of necessity be largely arbitrary. They are distributed on
the basis of the cost of the products before the inclusion of these miscellaneous
items. These costs of products are obtained after applying the residual fuel oil
debits and credits as explained below.
COSTING POLICY
The primary function of our overall refinery operations is considered to be the
production of motor fuel, which is the most important product marketwise, and
which can be obtained by processing crude oil for maximum yield of gasoline
and minimum yield of residual fuel oil and gas. In some cases gagoline is produced
in this manner. For this type of operation, the cost of gasoline is equal to the
cost of crude oil, plus the manufacturing expense, less the credit for residual fuel
oil and gas. The following table illustrates the method of calculating the cost
of gasoline for the maximum gasoline yield type operation:
Table I. — Cost of gasoline
Cost of one barrel of crude oil F. O. B. refinery $1. 45
Cost of processing one bbl. of crude oil for maximum gasoline 0. 40
Total debits $1. 85
Credit for 0.40 bbl. of residual fuel oil, including gas at fuel oil equivalent,
produced from one bbl. of etude oil, when running for maximum gaso-
line, at market value of $0.90 per barrel $0. 36
10074 CONCl^^NTRArlON OP KrONOMlC POWER
Table I. — Cost of gasoline — Continued
Net cost of 0.60 bbl. of gasoline produced from one bbl. of crude oil, when
running for maximum gasoline, excluding " Miscellaneous Refinery
Charges & Credits",
$ per bbl. of crude oil $1. 49
$ per bbl. of gasoline $2. 48
Miscellaneous Refy. Chg. & Cr. $ per bbl. of gasoline $0. 03
Total Cost of Gasoline— $ per bbl $2. 51
^ per gal 5. 98
If intermediate products, such as refined oil, heating oil, etcetera, are produced
by segregating portions of the crude stream, the potential yield of gasoline avail-
able in these fractions must, if total gasoline production is to be held constant,
be replaced by an equivalent volume of gasoline which can be produced by process-
ing additional crude oil for maximum gasoline yield. Thus the petroleum frac-
tions which compose intermediate products have a base value as potential sources
of gasoline, the value of the potential gasoline being its cost as produced from
crude oil by a maximum yield operation. This is the fundamental principle
underlying our costing policy. To illustrate, suppose the cost of heating oil is
desired. First, the maximum yield of gasoline and the yield of residual oil fuel
and gas attainable by cracking the heating oil are determined from correlations
based on laboratory and plant test data. In the following hypothetical example,
it is assumed that 55 per cent of gasoline and 45 per cent of residual fuel oil and
gas would be obtained by cracking the heating oil and that the cost of the cracking
operation would be 45 cents per barrel. The method used in calculating the cost
of the heating oil is as follows:
Table II. — Cost of heating oil
0.55 bbl. of potential gasoline x $2.48 per bbl. (See Tab. I) $1. 36
Plus 0.45 bbl. of potential residual fuel oil and gas x $0.90 per bbl ._ 0. 41
$1.77
Less manufacturing expense involved in making maximum gasoline from
heating oil . 45
Replacement Cost of Heating Oil base stock $1. 32
Plus cost of finishing base stock to produce marketable heating oil . 12
Cost of heating oil exclusive of miscellaneous charges and credits — per
barrel $1. 44
Plus misc. refinery charges and credits — per bbl .02
Cost of finished heating oil — $ per barrel $1. 46
per gallon 3. 48
After the above outlined methods of distributing {he- elements of cost have
been applied to all products made, all the crude oil costs and processing costs for
the refinery are fully accounted for. This procedure, if carried out in the manner
outlined, involves considerable detailed effort if the refinery is one producing
many different products.
*******
Entirely apart from the method of costing products heretofore described, and
for the sake of simplicity in view of the large number of grades carried, inventories
are evaluated by a special method which represents a combination of the "Crude
Replacement Method" heretofore described, and the method known as the
"Federal Trade Commission Method" or "Sales Value Method." A brief de-
scription of this special method follows:
Fuel Oil and plant produced gas are credited to the total cost of crude oil and
other raw material at their realization or sales value, less the cost of storage,
handling and shipping. The balance of the raw material cost is distributed
Ratably to gasoline and all other products on the basis of the potential gasoline
and fuel oil contents of each separate grade, multiplied respectively by the sales
value of gasoline (less the manufacturing cost applicable to gasoline production)
and the sales value of fuel oil (less cost of storage, handling and shipping). For
CONCJONTUATION <»K KCUNOiMlC POWER 10075
products other than gasoline, the potential gasoline and fuel oil content is based
upon cracking each grade for maximum gasoline loroduction, and the yields are
determined from correlations based upon laboratory and plant test data. Thus
the total cost of crude and other raw material, after crediting the net sales value
of residual fuel oil and gas, is distributed ratably to gasoline based on its sales
value less manufacturmg expense, and to «J1 other products on the equivalent
potential gasoline-fuel oil value of the same.'
Since the total manufacturing expense is 'currently allocated to each operating
unit in the refinery, the major portion of this expense can be distributed on an
equitable basis to the various grades of products based upon the use of such
equipment in their production, leaving only a very small amount of such expense
on which it is necessary to use a more or less arbitrary basis.
After having distributed the raw material and manufacturing expense to each
grade as above described, the cost of any blending stocks, such as casinghead
gasoline, is added to the cost of the manufactured products into which they are
mixed, to arrive at the final cost of each grade. Such product costs are calculated
each month and applied to inventories on a first-in, first-out basis
1007G
(•CONCENTRATION ()F ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OP ECONOMIC POWER 10079
OoLONiAii Beacon Oil Company
EXPLANATION OF SUMMARY COST STATEMENT AND METHOD OF DETERMINING COST
OF PRODUCTS
Attached are cost statements for the Colonial Beacon Oil Company for the
year 1938, showing the elements of cost entering into product costs. Since the
cost of practically all domestic crude oil to the refinery normally exceeds the
market price of residual fuel oil, manufacturing operations are usually carried
on for minimum production of residual fuel oil of satisfactory quality and con-
sequently its cost is not determined but its value is considered to be the price
realized for it in the open market. The refinery is credited for its residual fuel
oil production on this basis. Thus, the "elements" which enter into the costs
of products other than residual fuel oil are (a) cost of crude oil and other petroleum
raw material, and (b) the refinery processing expense applicable to the manu-
facture of these products, less (c) the credit for the residual fuel oil production
accompanying the manufacture of these distillate products. In the following
paragraphs will be explained briefly the method of distributing refinery processing
expense among the various operations, the fundamental basis underlying the
costing policy and the methods of proration used in distributing each of the
above "elements of cost" among the various products:
Refinery Processing Expense. — Refinery cost records are required in sufficient
detail to indicate with reasonable accuracy the cost of processing on each indi-
vidual unit. Each refinery operation has an account to which is charged the
direct expense (such as operating labor, repairs, etc.) associated with the operation.
The cost of service functions (such as steam, electricity, etc.) is distributed to
the processing operations on the basis of the amounts of utilities consumed by
each. Refinery overhead expense is distributed among the refinery processing
units on the basis of the direct labor, material and utilities costs (excluding plant
fuel and chemicals) for each unit. Certain miscellaneous charges and credits
not included in any of the above costs are incurred in the refinery. These items
(such as general corporate expense, fire losses, etc.) are of such a nature that their
distribution among products must of necessity be largely arbitrary. They are
distributed on the basis of the cost of the products before the inclusion of these
miscellaneous items. These costs of products are obtained after applying the
residual fuel oil debits and credits as explained below.
Costing Policy. — The primary function of our overall refinery operations iq
considered to be the production of motor fuel, which is the most important
product marketwise, and which can be obtained by processing crude oil for
maximum yield of gasoline and minimum yield of residual fuel oil and gas. In
some cases gasoline is produced in this manner. For this type of operation, the
cost of gasoline is equal to the cost of crude oil, plus the manufacturing expense,
less the credit for residual fuel oil and gas. The following table illustrates the
method of calculating the cost of gasoline for the maximum gasoline yield type
operation :
Table I. — Cost of gasoline
Cost of one bbl. of crude oil F. O. B. refinery .«^ $1. 45
Cost of processing one bbl. of crude oil for maximum gasoline . 0. 40
Total debits , $1. 85
Credit for 0.40 bbl. of residual fuel oil (including gas at fuel oil equivalent)
produced from one bbl. of crude oil (when running for maximum gasoline)
at market value of $0.90/bbl $0. 36
Net cost of 0.60 bbl. of gasoline produced from one bbl. of crude oil (when
running for maximum gasoline) excl. "Miscellaneous Refinery Charges &
Credits":
— $/Bbl. of Crude Oil $1. 49
— $/Bbl. of -Gasoline $2 48
Misc. Refinery Charges & Credits — $/Bbl. of Gasoline $003
Total cost of gasoline — $/Bbl $2.51
— 0/Gal - . 5.98
10080 CONCENTRATION OF ECONOMIC POWER
If intermediate products, such as refined oil, heating oil, etc., are produced by
segregating portions of the crude stream, the potential yield of gasoline available
in these fractions must, if total gasoline production is to be held constant, be re-
placed by an equivalent volume of gasoline which can be produced by processing
additional crude oil for maximum gasoline yield. Thus the petroleum fractions
which compose intermediate products have a base value as potential sources of
gasoline, the value of the potential gasoline being its cost as produced from crude
oil by a maximum yield operation. This is the fundamental principle underlying
our costing policy. To illustrate, suppose the cost of heating oil is desired. First,
the maximum yield of gasoline and the yield of residual fuel oil and gas attainable
by cracking the heating oil are determined from correlations based on laboratory
and plant test data. In the following hypothetical example, it is assumed that
55% of gasoline and 45% of residual fuel oil and gas would be obtained by cracking
the heating oil and that the cost of the cracking operation would be 45^ per barrel.
The method used in calculating the cost of the heating oil is as follows:
Table II. — Cost of heating oil
0.55 bbl. of potential gasoline x $2.48 per bbl. (See Table I) $1. 36
Plus 0.45 bbl. of potential residual fuel oil and gas x $0.90 per bbl 0. 41
$1. 77
Less Manufacturing expense involved in making maximum gasoline yield
from heating oil . 45
Replacement cost of heating oil base stock $1. 32
Plus Cost of finishing base stock to produce marketable heating oil . 12
Cost of heating oil exclusive of miscellaneous charges and credits —
per bbl $1.44
Plus Miscellaneous refinery charges and credits — per bbl . 02
Cost of finished heating oU— $/Bbl $1. 46
— ^/Gal 3. 48
After the above outlined methods of distributing the elements of cost have been
applied to all products made, all the crude oil costs and processing costs for the
refinery are fully accounted for. This procedure, if carried out in the manner
outlined, involves considerable detailed effort if the refinery is one producing many
diffei'ent products.
Entirely apart from the method of costing products heretofore described, and
for the sake of simplicity in view of the large number of grades carried, inventories
are evaluated by the method known as the "Federal Trade Commission Method"
or "Sales Value Metliod".
CONCKNTKATION OF ECONOMIC POWER
10081
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CONCENTRATION OF ECONOMIC POWER
10083
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10084 CONCENTRATION OF ECONOMIC POWER
EXPLANATION OF SUMMARY COST STATEMENT AND METHOD OF DETERMINING COST
OF PRODUCTS
I
Attached are cost statements for the Standard Oil Company of Louisiana for
the year 1938, showing the elements of cost entering into product costs. Since
the cost of practically aU domestic crude oil to the refinery normally exceeds the
market price of residual fuel oil, manufacturing operations are usually carried
on for minimum production of residual fuel oil of satisfactory quality and con-
sequently its cost is not determined but its value is considered to be the price
realized for it in the open market. The refinery is credited for its residual fuel
oil production on this basis. Thus, the "elements" which enter into the costs
of products other than residual fuel oil are (a) cost of crude oil and other petroleum
raw material, and (b) the refinery processing expense applicable to the manufac-
ture of these products, less (c) the credit for the residual fuel oil production
accompanying the manufacture of these distillate products. In the following
paragraphs will be explained briefly the method of distributing refinery processing
expense among the various operations, the fundamental basis underlying the cost-
ing policy and the methods of proration used in distributing each of the above
"elements of cost" among the various products:
Refinery Processing Expense. — Refinery cost records are required in sufficient
detail to indicate with reasonable accuracy the cost of processing on each indi-
vidual unit. Each refinery operation has an account to which is charged the
direct expense (such as operating labor, repairs, etc.) associated with the opera-
tion. The cost of service functions (such as steam, electricity, etc.) is distributed
to the processing operations on the basis of the amounts of utilities consumed by
each. Refinery overhead expense is distributed among the refinery processing
units on the basis of the direct labor, material and utilities costs (excluding plant
fuel and chemicals) for each unit. Certain miscellaneous charges and credits
not included in any of the above costs are incurred in the refinery. These items
(such as general corporate expense, fire losses, etc.) are of such a nature that their
distribution among products must of necessity be largely .'.rbitrary. They are
distributed on the basis of the cost of the products before the inclusion of these
miscellaneous items. These costs of products are obtained after applying the
residual fuel oil debits and credits as explained below.
Costing Policy. — The primary function of our overall refinery operations is con-
sidered to be the production of motor fuel, which is the most important product
marketwise, and which can be obtained by processing crude oil for maximum
yield of gasoline and minimum yield of residual fuel oil and gas. In some cases
gasoline is produced in this manner. For this type of operation, the cost of ga;SO-
line is equal to the cost of crude oil, plus the nianufacturing expense, less the credit
for residual fuel oil and gas. The following table illustrates the method of calcu-
lating the cost of gasoline for the maximum gasoline yield type operation:
Table I. — Cost of gasoline
Cost of one bbl. of crude oil F. O. B. refinery - $1. 45
Cost of processing one bbl. of crude oil for maximum gasoline 0. 40
Total Debits ^ $1. 85
Credit for 0.40 bbl. of residual fuel oil (including gas at fuel oil equivalent)
produced from one bbl. of crude oil (when running for maximum gasoline)
- at market value of $0.90/bbl $0. 36
Net cost of 0.60 bbl. of gasoline produced from one bbl. of crude oil (when
running for maximum gasoline) excl. "Miscellaneous Refinery Charges
& Credits":
— S/Bbl. of Crude Oil $1. 49
— $/Bbl. of Gasohne i $2. 48
Misc. Refinery Charges & Credits— S/Bbl. of Gasoline $0. 03
Total Cost of Gasoline— $/Bbl . $2. 51
— ^/Gal - 5. 98
If intermediate products, such as refined oil, heating oil, etc., are produced
by segregating portions of the crude stream, the potential yield of gasoline avail-
able in these fractions must, if total gasoline production is to be held constant,
be replaced by an equivalent volume of gasoline which can be produced by proc-
essing additional crude oil for maximum gasoline yield. Thus the petroleum
fractions which compose intermediate products have a base value as potential
CONCENTRATION OF ECONOMIC POWER 10085
sources of gasoline, the value of the potential gasoline being its cost as produced
from crude oil by a maximum yield operation. This is the fundamental principle
underlying our costing policy. To illustrate, suppose the cost of heating oil is
desired. First, the maximum yield of gasoline and the yield of residual fuel oil
and gas attainable by cracking the heating oil are determined from correlations
based on laboratory and plant test data. In the following hypothetical example,
it is assumed that 55% of gasoline and 45% of residual fuel oil and gas would be
obtained by cracking the heating oil and that the cost of the cracking operation
would be 45^ per barrel. The method used in calculating the cost of the heating
oil is as follows:
Table II. — Cost of heating oil
0.55 bbl. of potential gasoline x $2.48 per bbl. (See Table I) $1. 36
Plus 0.45 bbl. of potential residual fuel oil and gas x $0.90 per bbl 0. 41
$1.77
Less Manufacturing expense involved in making maximum gasoline yield
from heating oil . 45
Replacement cost of heating oil base stock $1. 32
Plus Cost of finishing base stock to produce marketable heating oil .12
Cost of heating oil exclusive of miscellaneous charges and credits — per bbl_ _ $1. 44
Plus Miscellaneous refinery charges and credits — per bbl .02
Cost of Finished Heating Oil— $/Bbl $1.46
— ji/Gal 3.48
After the above outlined methods of distributing the elements of cost have been
applied to all products made, all the crude oil costs and processing costs for the
refinery are fully accounted for. This procedure, if carried out in the manner
outlined, involves considerable detailed effort if the refinery is one producing many
different products.
********
Entirely apart from the method of costing products heretofore described, and
for the sake of simplicity in view of the large number of grades carried, inventories
are evaluated by the method known as the "Federal Trade Commission Method"
or "Sales Value Method".
Standard Oil Company of New Jersey
explanation of summary cost statement and method of determining cost
of products
Attached are cost statements for the Standard Oil Company of New Jersey for
the year 1938, showing the elements of cost entering into product costs. Since
the cost of practically all domestic crude oil to the refinery normally exceeds the
market price of residual fuel oil, manufacturing operations are usually carried on
for minimum production of residual fuel oil of satisfactory quality and conse-
quently its cost is not determined but its value is considered to be the price
realized for it in the open market. The refinery is credited for its residual fuel
oil production on this basis. Thus, the "elements" which enter into the costs of
products other than residual fuel oil are (a) cost of crude oil and other petroleum
raw material, and (b) the refinery processing expense applicable to the manu-
facture of these products, less (c) the credit for the residual fuel oil production
accompanying the manufacture of these distillate products. In the following
paragraphs will be explained briefly the method of distributing refinery processing
expense among the various operations, the fundamental basis underlying the
costing policy and the methods of proration used in distributing each of the above
"elements of cost" among the various products:
Refinery Processing Expense. — Refinery cost records are required in sufficient
detail to indicate with reasonable accuracy the cost of processing on each indi-
vidual unit. Each refinery operation has an account to which is charged the
direct expense (such as operating labor, repairs, etc.) associated with the opera-
tion. The cost of service functions (such as steam, electricity, etc.) is distributed
to the processing operations on the basis of the amounts of utilities consumed by
each. Refinery overhead expense is distributed among the refiinery processing
1 0086 CONCENTRATION OF ECONOMIC POWER
units on the basis of the direct labor, material and utilities costs (excluding plant
fuel and chemicals) for each unit. Certain miscellaneous charges and credits
not incladed in any of the above costs are incurred in the refinery. These items
(such as general corporate expense, fire losses, etc.) are of such a nature that their
distribution among products must of necessity be largely arbitrary. They are
distributed on the basis of the cost of the products before the inclusion of these
miscellaneous items. These costs of products are obtained after applying the
residual fuel oil debits and credits as explained below.
Costing Policy. — The primary function of our overall refinery operations is
considered to be the production of motor fuel, which is the most important product
marketwise, and which can be obtained by processing crude oil for maximum
yield of gasoline and minimum yield of residual fuel oil and gas. In some cases
gasoline is produced in this manner. For this type of operation, the cost of
gasoline is equal to the cost of crude oil, plus the manufacturing expense, less the
credit for residual fuel oil and gas. The following table illustrates the method of
calculating the cost of gasoline for the maximum gasoline yield type operation :
Table T. — Cost of gasoline
Cost of one bbl. of crude oil F. O. B. refinery $1. 45
Cost of processing one bbl. of crude oil for maximum gasoline 0. 40
Total debits .. $1. 85
Credit for 0.40 bbl. of residual fuel oil (including gas at fuel oil equivalent)
produced from one bbl. of crude oil (when running for maximum gaso-
line) at market value of $0.90/bbl $0. 36
Net cost of 0.60 bbl. of gasoline produced from one bbl. of crude oil (when
running for maximum gas'^line) excl. "Miscellaneous Refinery Charges
& Credits":
— $/Bbl. of Crude Oil - $1. 49
— $/Bbl. of Gasoline $2. 48
Misc. Refinery Charges & Credits —$/Bbl. of Gasoline $0. 03
Total Cost of Gasoline— $/Bbl $2. 51
— ^/Gal 5.98
If in tei:xnediate products, such as refined oil, heating oil, etc., are produced by
segrega|ting portions of the crude stream, the potential yield of gasoline available
in thes'8 fractions must, if total gasoline production is to be held constant, be
replaced by an equivalent volume cf gasoline which can be produced by processing
additional crude oil for maximum gasoline yield. Thus the petroleum fractions
which viompose intermediate products have a base value as potential sources, of
gasoline, the value of the potential gasoline being its cost as produced from crude
oil by }i maximum yield operation. This is the fundamental principle underlying
our cos-i,iTig policy. To illustrate, suppose the cost of heating oil is desired. First,
the ma \imum yield of gasoline and the yield of residual fuel oil and gas attainable
by crai king the heating oil are determined from correlations based on laboratory
and pl.int test data. In the following hypothetical example, it is assumed that
55% ot gasoline and 45% of residual fuel oil and gas would be obtained by cracking
the he.i ting oil and that the cost of the cracking operation would be 45j5 per barrel.
The fji'ithod used in calculating the cost of the heating oil is as follows:
Table II. — Cost of heating oil
0.55 bbl. of potential gasoline x $2.48 per bbl. (See Table I) $1. 36
Plus 0.45 bbl. of potential residual fuel oil and gas x $0.90 per bbl 0. 41
$1. 77
Less Manufacturing expense involved in making maximum gasoline yield
from heating oil . 45
Replacement cost of heating oil base stock $1. 32
Pj is Cost of finishing base stock to produce marketable heating oil .12
jj
fC>pst )\ heating oU exchisivr of miscellaneous charges and credits — per bbl. $1. 44
>;^!i]s Miscellaneous refinery charges and credits —per bbl , . 02
Cost of Finished Heating Oil— $/Bbl $1. 46
-WGal 3. 48
CONCENTRATION OF ECONOMIC POWER 10087
After the above outlined methods of distributing the elements of cost have
been applied to all products made, all the crude oil costs and processing costs for
the refinery are fully accounted for. This procedure, if carried out in the manner
outlined, involves considerable detailed effort if the refinery is one producing many
different products.
Entirely apart from the method of costing products heretofore described, and
for the sake of simplicity in view of the large number of grades carried, inventories
are evaluated bv the method knovv^n as the "Federal Trade Commission Method"
or "Sales Value" Method".
Cost of crude and other products processed or blended during 1938 — Standard Oil
Company of New Jersey
New Jersev Refineries $62, 525, 998. 75
Baltimore Refinery 15, 182, 996. 66
Charleston Refinery 1, 527, 548. 97
Total $79,236, 544. 38
10088
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
10089
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10090
C CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
10091
1, 078, 674. 21
15.5, 411. 33
389, 048. 45
22, 643. 27
s
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10092
CONCENTRATION OF ECONOMIC POWER
Standard Oil Company (Ohio)
reply to question 32 op tnec questionnaire
32. The refinery cost statements prepared by the company do not result in any
figures for the cost of fuel oil. Cost figures as to gasoline, however, are arrived at
and for the principal grade of gasoline, that is the regular grade-accounting for
over 90% of the total gasoline production, were as follows for the various refineries
operated by the company and its subsidiary. The Latonia Refining Corporation,
Latonia, Kentucky.
Cost (At refs.) As Per Ref. Cost Statements of Reg. Gid. Gas. {Averages for Yr. 1938)
Standard Oil Co. Refineries:
Cleveland Refinery 6.85j5 per gallon
Toledo Refinery 6.66 "
Lima Refinery 6.67 " "
Latonia Refining Corporation: Latonia Refinery. _ _ 6.59 " "
The method by which these gasoline cost figures are arrived at is as follows:
The cost of all crude oil and other charging stock plus all operating expense,
including depreciation, overheads, taxes, royalties, supplies, chemicals, lead, etc.,
are added together to make up the total expense of manufacturing all of the prod-
ucts made. From this total is then deducted the net realization, or net back, on
all products other than gasoline. The balance is treated as being the cost of
manufacturing the gasoline, and when divided by the number of gallons of gasoline
manufactured becomes the cost per gallon.
By the term "net back" or "net realization" from the sale of other products, as
used above, is meant the total amount received for such products less the freight
or other transportation charges incurred and less the estimated expense incurred
in making and handling the sales.
It can thus be seen from the method described that no cost figures are
arrived at as to fuel oil.
Sun Oil Company
REPLY TO item NO. 32 OF TNEC QUESTIONNAIRE
There is no exact method for the determination of costs in a multiple product
industry. The method our company follows is that of taking entire costs and
applying these, equally against the products produced in proportion to their
gallonage. When these products are sold a profit or loss is sustained depending
upon whether or not the costs as heretofore determined are greater or less than the
selling price. On the theory that no profit is realized until the product is sold, this
method results in an accurate determination of profits earned.
Sun Oil Co. Refinery Expenses and Products Refined, Year 1938
Marcus
Hook
Toledo .
Yalfi
Refinery Expense:
Labor _,
$3,870,878.18
fiW, 107. 76
2, 027, 669. 78
628, '31.83
89, 323. 24
64, 7W. 87
1, 687, 209. 87
1,012,044.28
$835, 881. 22
78, 457. 14
275, 913. 68
36, 345. 99
22,204.11
12, 333. 4.5
267, 538. 57
220, 123. 96
$49,744.00
Supplies & Repair Material
10, 873. 44
Fuel
7,200.58
Cbemicals
4,161.06
Insurance.
4, 476. 07
Taxes
5, 480. 34
Depreciation .
Miscellaneous ;
13,531.98
Less: Package Costs, eto--........— .. -
$9, 938, 197. 88
804,387.14
$1, 438, 798. 12
$95,457.47
$9,430,810.71
22. 468, 969
Crude Run to Stills— Barrels
2, 649, 147
662,182
CONCENTRATION OF ECONOMIC POWER 10093
Sun Oil Co. Refinery Expenses and Products Refined, Year 1938 — Continued
Marcus
Hook
Toledo
Yale
Products (Barrels):
Qasoline
Kerosene
Gas Oil.
FuelOU
Lubricating Oils...
Asphalt
Propane & Butane
Vapor Gas
Loss '
752, 302
170, 787
271, 477
052, 814
207,984
34, 578
306, 033
620, 452
947, 458
1, 347, 074
115, 292
162, 982
835, 598
214, 060
110, 661
323, 052
51,312
511,061
' 374, 172
14, 379
22, 468, 969
2, 649, 147
662, 152
> Statement indicates a negative loss whereas our actual refining loss runs between 1% and 2%.
SUPPLEMENTAL REPLY TO ITEM 32 PER LETTER RECEIVED SEPTEMBER 1, 1939
As we statea in our answer to this question, there is no exact method for the
determination of costs in a multiple product industry. We, therefore, regret our
inability to give the per unit cost of a gallon of gasoline and fuel separately at
the Refinery Gate. We are attaching hereto, howeyer, as Exhibit 2, statement
setting forth a summary cost statement of each refinery, the crude run therein
and the products resulting from this crude calculated on the U. S. Bureau of
Mines basis.
The Texas Corporation
T. N. E. C. questionnaire FOR OIL COMPANIES
Question 32.
Summary cost statement for each domestic refinery operated (a) by the report-
ing company, of (b) by its subsidiaries or aflfiliates, for the year 1938, showing
the principal elements of cost determining the cost of a gallon of gasoline and fuel
oil (separately), at the refinery gate (exclusive of any selling expenses). Explain
briefly the costing policy followed with particular reference to the method of
proration of the elements of costs of the refining operations among the various
products produced.
Answer.
(1) Refining costs cannot be precisely determined:
We are outlining below a few of the outstanding facts or circumstances support-
ing the belief that it is humanly impossible to determine the precise cost of any
particular quantity of refined petroleum products at the refinery gates:
What we have to say in the following paragraphs wiU be equally applicable to
any refined petroleum product that has been normally processed; however, in
order to simplify our explanation, we will speak in terms of "Gasoline."
(1) The identity of the Gasoline is indeterminate, i. e., we are absolutely
unable to say in most cases from what particular crude any specific quantity of
Gasoline was manufactured.
To elaborate on the difiference, which the class of crude from which the Gasoline
is manufactured would have on the cost of Gasoline, I have merely to call atten-
tion to the fact that certain crudes are produced practically at the refinery gates,
while other crudes must be transported hundreds of miles, either by pipe line,
tanker or rail, at considerably higher costs. Also, some of these crudes are
expensive and some are relatively low in cost. Some of the crudes produce a
ve?y high percentage of Gasoline and yield valuable by-products, while others
produce a low percentage of Gasoline and the by-products are less valuable.
The fact that these various crudes are mixed to a considerable extent in trans-
porting to the refinery and are stored in 55,000 to 120,000 barrel tanks at the
refinery, makes it impossible for the operating personnel to prevent the con-
tamination of grades, and it is therefore evident that it is impossible to determine
10094 CONCENTRATION OF ECONOMIC POWER
from which crude oil any particular quantity of Gasoline is manufactured. Since
it is impossible to determine the crude oil from which the particular Gasoline
was manufactured, and the crude transportation cost and purchased price, it is
then impossible to determine the cost of the products from any particular crude oil.
(2) The total cost of petroleum products may be approximately classified as
follows:
(a) The cost of charged stocks and other raw materials used.
(b) Total refinery operating cost allocated where possible, to specific processes
and departments.
(c) General overhead and administrative expenses allocated to refining opera-
tions on an arbitrary basis.
(d) Loading and shipping expenses.
The items listed above constitute the total Refining Department cost which is
easily determined. The total cost calculated in this manner represents the cost
of ail petroleum products manufactured from the crude oil, but the difficulty
lies in allocating these costs to any particular grade of product such as Gasoline.
The reason for this is apparent. From the same barrel of crude oil a variety of
products may be and is manufactured, many of these being taken simultaneously
from the same operating equipment. For example, a given barrel of crude oil
produces successively Gasoline, Kerosene, Gas. Oil, Lubricating Oils of various
viscosities, Fuel Oil, Wax, Asphalt, Coke and Gas. These stages are a part of the
continuous treatment of that barrel of crude oil. To ascertain exactly what part
of the entire cost of raw materials and processing the barrel is applicable to any
particular product is then a physical impossibility due to the nature of the material
itself and the method of removal from the whole.
(3) Waiving the difficulties outlined above, any attempt to arrive at the cost
of Gasoline must necessarily be done in retrospect, as it would be impossible with a
reasonable force of clerks to calculate an hourly or even a daily cost of Gasoline.
The practice is, where costs are prepared, to prepare them on the basis of the
calendar month. Due to the volume of work involved in this calculation, it
requires approximately sixty days from the last day of any month before the
costs for that month are available. This latter statement, of course, applies only
to large refineries where the number of individual products run into the hundreds
and sometimes even into the thousands. This condition clearly indicates that
Gasoline may be delivered or sold at the refinery gates several weeks before the
cost of such Gasoline has been determined, and this is assuming that we waive the
difficulties of cost determination, as pointed out under Sections (1) and (2) above.
(4) Under Section (2) Item (c) above, it is indicated that general overhead and
administrative expenses are allocated to refining operations on an arbitrary basis.
This is also partially applicable to (b) as well. Speaking with reference to a
large refining company operating several refineries scattered throughout the
United States, a portion of general overhead and administrative expenses must
necessarily be distributed to each of the refineries. The best that can be said for
the method of distributing these expenses is that it is a matter of opinion, and the
method to be used is generally outlined by the accounting heads.
(5) The method of determining the cost of products, which has been used by
many large refiners for several years, is called "sales realization method," of which
the following account appears in the report made during 1932 to the U. S. House of
Representatives by the U. S. Tariff Commission:
"Under this method, all groups of cost items are distributed among the
several major products in the same proportion that the total sales of each of
such major products bear to the sales of all products. In distributing costs
in this way, no distinction is made between the cost of processes undertaken
solely or primarily for the production of one or more specific products only
(so-called 'separable' costs) and the cost of processes not undertaken solely
or primarily for any specific product or products (so-called 'inseparable'
costs) . The cost of every^process irrespecitve of its purpose or the number or
character of its products is distributed in the same proportions over all
products of the refinery." (pp. 71, 72.)
, While The Texas Company does not employ the method outlined exactly, our
method is very similar to, and a variation of, the one defined. The method
employed by The Texas Company is described next below.
(2) Method employed by The TexaS Company in estimating refining costs:
(CONCENTRATION OF ECONOIN POWER
10095
I. REFINERIES RUNNING FOR GASOLINF ANl
jrtation at regular pipe
if transportation to the
^t" of all products.
)il, Gas and Coke at
as their elimination
une.
and Kerosene) and the
Crude Oil is charged at posted field prices plus trai
line, marine, or rail freight rates (depending on thtj inot
refinery), plus refining expenses to determine the "Total (
From the above is deducted the production of i-'ucl
Market Value. The latter are considered "By-Producl
from the crude is ne^ossary to produce Gasoline and Ker
The remaining products are the Refined Oils (Gasoli'
combined cost of these two products is the cost remaining after deducting the
market value of "By-Products" from "Total Cost".
The combined cost of Gasoline and Kerosene is distributed to the several grades
of Gasolines and to Kerosene in proportion to their market value.
This method determines the finished cost of Kerosene, c^nd the cost of the base
stocks from which Gasolines are finished by blending with Leading Lead or
Natural Gasoline. The cost of the Tetra-Ethyl Lead and/or Natural Gasoline
used is added to the cost of Gasolines produced, to determine the finished cost of
Gasolines:
EXAMPLE ONE
Barrels
Cost per
barrel
Amount
Crude Oil at Posted Price .. -
1.0000
$1.00
.19
$1.00
Gathering and Pipage.. .
.19
Delivered Cost of Crude -
1.19
.38
1.19
Refining Expense
.38
Total Cost --
1.57
1.57
Less: By-Products:
Fuel Oil
.0371
.1006
.0898
.0066
.81
.95
.14
.00
.03
Gas .
.10
Coke -.-
.01
Loss ■- " -- ---
.00
Total...- - -
.2341
.7659
.14
Cost of Refined Oils
1.87
1.43
Bbls.
Ratio mar-
ket value
Cost per
bbl.
Cost per
gal.
Cost Prorated to Refined Oils:
392 Gasoline Base Stock
0. 5836
.1289
.0534
106.00
90.00
80.00
$1.94
1.74
1.55
■SO. 0461
USM Gasoline Base Stock
.0415
Water White Kerosene
.0369
Total
.7659
1.87
.0445
0^
70
Per gallon
Oost per
?al.
Fire-Chief Gasoline:
392 Gasoline Base Stock
99.00
01.00
$0.0461
.0491
$0. 0456
Natural Gasoline-
. 0005
Tetra-Ethyl Lead . .
. oo;ii
Cost Fire-Chief Gasoline.
100.00
---.--.
.0492
USM Gasoline:
USM Gasoline Base Stock
98.00
02.00
.0415
.0491
.0407
Natural Gasoline
.0010
Cost USM Gasoline _
100.00
.0417
10096
CONCENTRATION OF ECONOMIC POWER
II. REFINERIES RUNNING FOR QASOLINB, KEROSENE, LUBRICATING OILS AND
ASPHALT
This method requires that the Refinery Expenses be sub-divided as follows:
Crude Refining Department. — For Manufacture of Gasoline and Kerosene.
Lubricating Oil Department. — For Manufacture of Lubricating Oils.
Asphalt Department. — For Manufacture of Asphalt.
Crude Refining Department. — The costs of Gasolines and Kerosene are com-
puted by charging the Crude Oil at delivered cost, adding the expenses of the
Crude Refining Department, and deducting By-Products at Market Value. In
addition, the distillates and residua reserved foi: manufacturing Lubricating Oils
(which would otherwise be processed through cracking stills for Gasoline) are
deducted at their potential values as cracking stocks. The potential value of a
product is computed by evaluating the finished yields from cracking the stocks
at current market values of Gasoline, Fuel Oil and Gas, and deducting the expenses
of the operations necessary to finish.
EXAMPLE TWO
Barrels
Cost per
bbl.
Amount
Crude Oil at Posted Price
1.0000
$1.15
.14
$1.16
Gathering and Pipage ...
.14
Delivered Cost of Crade... -
1.29
.30
1.29
Cnidn TiAflning KvpensfiS.
.30
Total Cost
1.69
1.59
Less: By-Products:
Lubricating Distillate -
.1000
.1699
.0685
.0021
1.20
.65
.71
.00
.12
Fuel Oil
.11
Gas
.06
Loss
.00
Total By-Products .
.3405
.28
Cost of Refined Oils
.6595
1.98
1.31
The above cost of Gasoline and Kerosene is distributed to the different grades
of Gasoline, and to Kerosene, in proportion to the market value of these products.
The cost of Natural Gasoline and Tetra-Ethyl Lead is added as illustrated in
Example One.
Lubricating Department. — Beginning with the Lubricating Distillate at its poten-
tial cracking value, expenses of the various processes in the Lubricating Depart-
ment are added, step by step, until the finished cost of each Lubricating Oil is
developed.
Any Gas Oil recovered in these finishing processes is considered as a by-product
of the Lubricating Department, and is credited at its potential cracking value.
EXAMPLE THREE
Barrels
Cost per
bbl.
Amount
Lubricating Distillate
1.0000
$1.20
.20
$1.20
Vacuum Stilling Expenses 1
.20
Total Cost
1.40
1.40
Less: By-Products:
GasOU
.1200
.0100
1.20
.14
Loss .
.00
Total
.1300
.14
Cost Lubricating Stocks
.8700
L46
1.26
CONCENTRATION OF ECONOMIC POWER
10097
The production of Lubricating Stock is shown above in one lump figure, althoujrh
It actually may contain several fractions of different viscosities, the cost being
distributed to the different viscosities in proportion to the relativr mrket values
of the production, as follows: voiuco
EXAMPLE FOUR
100 Pale Stock
300 Pale Stock
500 Pale Stock
750 Pale Stock
Total...
Barrels
0.1500
.3000
.1500
.2300
.8700
Cost per
bbl.
$1.25
1.30
1.45
1.48
Amount
$0.31
.39
.22
.34
1.26
Each of these Lubricating Stocks require treatment with acid, after which it
S? examX ^ Lubricating Oil of the same viscosity as the stock treated,
EXAMPLE FIVE
Barrels
Cost per
bbl.
Amount
100 Pale Stock
1.0000
.$1. 25
.20
Treating Expenses
$1.25
. 20
Total Cost
1.45
1.45
100 Viscosity Pale Oil..
.9500
.0500
1.53
Sludge and Loss
.00
Total
1.0000
1.45
rr^Hl^J^^' ^^^ ^"*^ "^^^ Viscosity Pale Stocks would be finished in a similar
P«!IffinrRo"^^'^ Naphthenic Base Lubricating Oils for this iUustration, however
S?hf fin^'t ^"k ^yV^^f^ Oils, although differing in the processing required,
would be finished by using the same principles of cost e m c ,
Asphalt Department.— Asphalt is produced by further distillation of that portion
^' Jf?f J.^si^H? fyom crude that may normally be disposed of as Fuel Oil This
finn f^i'^".^n^^ .• *" "'^i^i^i^g' or solidifying, of the Fuel Oil to required specifica-
wS;/ h,?r^ • *• """n °'" '^^^^'''/ P°^"*^- The finished product is used in various
wajs, but principally as road paving material and for the impregnation and
coating of dry felt for the manufacture of roofing ^
+n ;t^ l^^ "!l^*^ifJ charged to the Asphalt Department is evaluated as Fuel Oil.
m^ i'''-^^^'^ the expenses of distillation or reducing to asphalt. The products
recovered in processing are credited at Fuel Oil or potential cracking values
depending on the distiUation range of the product ci^tcKing vaiues,
EXAMPLE SIX
Barrels
Cost per
bbl.
Amount
Fuel Residuum
1.0000
$0.65
.30
Reducingi-Expenses
$0.66
.30
.95
.95
Less:
Fuel Distillate
.2000
.0100
.2100
.65
Loss "
.13
.00
13
Total
Cost Asphalt Group I
.7900
1.04
.82
10098
CONCICNTRATION OF ECONOMIC POWER
lliis illustrates the method of costing Asphalt of one particular grade, however,
each grade is computed separately. Each may require a different degree of
distillation, but the same cost principles can be applied.
These cost methods have been in effect for several years in The Texas Com-
pany, and were adopted only after exhaustive and comprehensive studies by our
accountants in collaboration with our operating management. The system was
de.iigned to meet the requirements of the Refining Department for recording actual
costs :^and to forecast probable results from old or new equipment and apparently
has accomplished the desired results.
Various methods of costing are used by others in the oil industry but as far as
>we know none use the same system as The Texas Company. For this reason
our, cost figures applied to different products could not be compared correctly
with the cost figures of other units of the Industry, or with costs of the Industry
as a whole.
(3) Costs as determined by the method described above:
Averago. cost of gasoline and fuel oil, year 1938
Gasoline,
per gallon
Fuel oil,
per barrel
The Texas Company (Delawaie):
Port Arthur Works
Port Neches Asphalt Plant •_
Shreveport Works '
Houston Works _
West Dallas Works _
San Antonio Works
El Paso Works
Amarillo Works .■
West Tulsa Works.
Pryse Works
Lockport Works
Casper Works, _ -...
Craig Works
Cody Works.
Norfolk Asphalt Plant '
Delaware River Asphalt Plant '
Providence Asphalt Plant '
California Petroleum Corporation (Utah): Calpet Works.
International Refining Company: Sunburst Works
Indian Refining Company: Lawrenceville Works
The Texas Company (California):
Los Angeles Works
Fillmore Wcks
Coalinga Works
$0. 0594
$0.6050
.0529
.0508
.0509
.0611
.0480
.0573
.0733
.0630
.0588
.0621
.0724
.6622
.6106
.7747
.7653
.6944
.6984
.6467
.7776
.9520
. 5189
.4627
.6024
.0688
.0525
.0559
.0626
.0550
.9439
.7650
.8432
.8264
.6918
1 No Finished Gasoline or Fuel Oil manufactured at these plants.
Tide Water Associated Oil Company
Estimated per gallon values of gasoline — Used in estimating values of inventories
of gasoline at December 31, 1938 for income purposes
First Second
grade grade
Third
grade
Avon Refinery (Associated, California) .
0.0646
.0646
.0696
.0563
0.0471
.0471
.0515
.0438
0. 0421
Watson Refinery (Wilmington, California)
.0421
Bayonne Refinery (Bayonne, New Jersey)
.0465
(CONCENTRATION OF ECONOMIC POWER 10099
REPLY TO ITEM #32 OF TNEC QUESTIONNAIRE
We have no method of accurately computing the cost of each product manu-
factured from Crude Oil, chiefly due to two facts: first, because it is impossible
to assign to each product its just proportion of the cost of the raw material, the
largest single item of cost, and secondly, because the refining processes are con-
tinuous and there is such an interrelation between them as to make the allocation
of the processing costs to individual products impossible without major arbitrary
assumptions.
A number of arbitrary costing methods have been attempted to approximate
costs of certain products under a given set of conditions and assumptions.
We have experiment°ed with various methods, but in all cases arbitrary assump-
tions must be employed in the division of costs and value of by-products which
defeat any attempt to determine profit or loss on each product by accurate costing.
Union Oil Company of California
REPLY TO item NO. 32 OF TNEC QUESTIONNAIRE AS CONTAINED IN SUPPLEMENTAL
LETTER RECEIVED SEPT. 1, 1939
The company feels it should not be called upon to furnish the information
requested in this question as the determination of costs involves so many con-
stantly varying factors, some of them more or less arbitrary, that the results
obtained without detailed explanation would neither be fair to the company nor
serve as an accurate basis for any computations the committee might desire to
be made thereon.
NON-MAJOR COMPANIES
Amerada Corporation
ANSWER to question 32 OF THE TNEC QUESTIONNAIRE
Ans. Not applicable— not engaged in refining.
American Republics Corporation
reply to item 32 OF T. N. E. C. QUESTIONNAIRE
(b) American Petroleum Company, Norwsorlhy Topping Plant
Cost of Crude on
Cost of ToDping Plant operations -
Topping Plant depreciation.
Total Cost
Gasoline
0. 04624
.00371
.00031
.05026
Fuel oil
0. 01.543
.00107
.00010
.01660
COST POLICY
1. The potential market value of each product recovered from topping plant
operations each month is calculated.
2. The potential market value of all products recovered from topping plant
operations each month is obtained by the addition of the potential market values
of each of the products recovered.
3. All costs for each month are apportioned to each product recovered in same
percentage as the potential market value of each such product (#1 above) bears
to the potential market of all products recovered (#2 above).
J.24491— 40— pt. 17-A XQ
10100 CONCENTRATION OF ECONOMIC POWER
Ashland Oil & Refining Company
32. Summary cost statement for each domestic refinery operated (a) by the
reporting company, or (b) by its subsidiaries or affihates, for the year 1938,
showing the principal elements of cost determining the cost of a gallon of gasoline
and fuel oil (separately), at the refinery gate (exclusive of any selling expenses).
Explain briefly the costing policj^ followed with particular reference to the method
of proration of the elements of costs of the refining oper.itions among the various
products produced.
REFINERY COSTS, YEAR 1938
Cost Per
Barrel of
Crude Oil
Refined
Amount of
Expense
Operating:
Labor
0. 0978
.0129
,064R
. 0176
. 0457
. 0056
174,301.81
Electric Power
22, 033. .58
Fuel -
115, 101.85
Process Chemicals _
31,416.05
Royalties
81, 483. 27
Telephone, Freight & Misc. Expense
10, 010. 44
Total -i; -.
.2442
435, 217. 00
Maintenance:
Labor .._
Material
. 0450
.0186
80, 133. 06
86, 652. 18
Total
.0036
106, 785. 24
Fixed Charges:
Depreciation . . . . .
. 0557
.0075
.0037
99, 304. 60
Insurance .
13. 380. 72
Property Taxes 1.. ...
6, 553. 4S
Tei*al
.0669
.0475
110.238.80
Overheau: General Administrative
8i. 020. 57
^otal Manufacturing & Overhead Expense Except Tetra-Ethyl Lead
Tctra-Ethvl Lead .
. 45?2
.1335
1. ,5876
80.5,891.61
237. 703. 53
Crude Oil Refined, 1,781,344 (bbls.)
2,828.140.60
Total Cost
2. 1733
3, 871, 804. 74
Barrels
Per C -nt
Product Yields:
873, 649
154, 24S
295, 786
42, 276
303, 464
49. 04
8.66
16.60
Residual Fuel Oil .._
2 37
17.04
Total Yield - .
1, 669, 423
111,921
93.71
Refining Loss . .
6.29
1, 781, 344
100.00
CONCENTRATION OF ECONOMIC POWER lOlOl
Our company makes no eCFort to prorate the cost of manufacture between
various refined products. Costs are broken down into direct charges against
various process operations, maintenance, materials, royalties, etc., and totalled
to show the expense of refining a barrel of crude oil. Corresponding figures are
compiled to show the prices realized for the various refined products and the total
figure is compiled showing the gross realization each month from the products
refined from a barrel of crude oil. The difference between the amount realized
from the products from a barrel of oil and the cost of manufacture, including the
posted market for crude oil, represents the refining profit or loss per barrel, as the
case may be. Since the allocation of profit or loss between the particular products
is purely arbitrary, we believe there is very little advantage in making such an
allocation for the purpose of determining the cost of producing any particular
product, although generally speakihg, we consider gasoline our main item and the
balance by-products. We believe that the only realistic method for arriving at
sales prices is to take the highest figure which competitive conditions.isr 'each
product will permit. We believe that arbitrary cost figures often result in arbi-
trary sales prices which are not realistic.
Barnsdall Oil Co.
reply to item 32 of t. n. b. c. questionnaire
In relation to this question for a cost statement for refineries, inasmuch as the
reporting company has no refineries, and inasmuch as it is not engaged in the
manufacture or sale of gasoline, the question has no application to the reporting
company.
REMARKS — QUESTION 32
In answering Question No. 32 we submit a copy of our Cost Statement for the
year 1938 for each of our three refineries. This Cost Statement is prepared on
what is known as the By-products method.
There is no known method of arriving at an aceurate cost of the various products
made from crude oil when those products are aU derived from one operation and
from the same piece of distillation equipment. All of the regularly used methods
use the wholesale selling price of the finished products as a basis for determining
the cost of manufacture.
The By-products method has served our Company as a comparison of opera-
tions from month to month and is based on the theory that the distillation equip-
ment is used primarily to produce gasoline, the other products produced in the
process of producing the gasoline being considered as By-Products. On that
theory the cost of making gasoline is the total cost of crude oil, plus transportation
and processing expense, less the amount recovered from the sale of By-Products,
(products other than gasoline produced).
The statements attached include a prorata of advertising and wholesale selling
expense and the administrative expense of our Company applied to refinery opera-
tions. You will also notice that the cost of "Q"ing and Ethylizing are shown
as separate items.
10102
CONCENTRATION OF ECONOMIC TOWEll
Cost of making gasoline from skimming and cracking plant operations
WICHITA REFINERY
Total Crude Oil & Transportation
Skimmin? Plant Costs
Cracknig Plant Costs
Less: Value of By-Products
Kerosene
38-40 Distillate
Tractor Distillate
Diesel Fuel
Fuel OU
Fuel Oil— Residuum
Reduced Crude— Okmulgee
Reduced Crude— Wichita
Oas Residue
Total By-Products
Deduct Prorata:
Advertising & Selling Expense
Administrative Expense
Total Advertising, Selling & Administrative Expense-
Net Value of By-Products -
Cost of Gasoline From Crude (Before Depr. Inc. Evap. Loss)
Add: Cost of Purchased Casinghead.
Cost of Gasoline After Adding Casinghead (Before Depr.)-
Add Prorata:
Refinery Depreciation - - --•
Advertising & Selling Expense.- --
Administrative Expense -
Cost of Gasoline Delivered (Not Inc. "Q" nor Ethyl)
Additional Cost of "Q"ing--- - -
Additional Cost of Ethylizing
Average Cost of All Grades of Gasoline Shipped
I M. Cu. Ft.
•Indicates red figures.
CONCENTRATION OF ECONOMIC POWER
10103
Cost of making gasoline from cracking plant operations
CORPUS CHRISTI REFINERY
Ultimate Yield From Crude Blend:
Gasoline— Stills
Fuel Oil - -
Fuel Oil— Slop
Oas Residue -.
Total Yield.
Loss .
Grand Total.
M. Cu. Ft. Gas..-.
Gallons Gasoline From Crude Blend-
Purchased C. H. Gasoline Added
Purchased Third Grade Gasoline
Total Gasoline Produced.
Summary of Costs:
Crude Blend & Transportation,
Cracking Plant Expense.. .:
Total Crude Blend & Processing.
Less: Value of By- Products:
Fuel Oil
Fuel Oil-Slop
Gas Residue
Total By-Products.
Deduct Prorata:
Adv., Selling <t Commission.
Administrative E.xpense
Total Adv., Selling & Admin. Expense.
Year J 938
Barrels
Net Value of By-Products _
Cost of Gasoline From Crude Blend (Before Depreciation Includ-
ing Evaporation Losses)
Add:
Cost of Purchased Casinghead
Cost of Purchased 3rd Grade Gasoline
Cost of Gasoline After C. IT. & 3rd Grade Gasoline (Before De-
preciation) -
Add:
Depreciation _
Commission— Cargo
Commission — "A" Units
.^dministiative Expense
Average Cost of all Grades of Gasoline.
.'<93. 671
.'564, 400
*1, 959
140, 612
1, 596, 724
110,864
1, 707. 588
Amount
2, 091. 008. 93
357, 898. 61
2, 448, 907. 54
348. 450. 71
•882. 26
42, 246. 60
389, 815. 05
3, 324. 85
22,571.70
25, 896. 55
363, 918. 50
2,084,9.S9.04
16, 964. ,'^0
33, 587. 01
2, 135. 540. 55
140,712.10
37. 860, 64
3.001.94
33. 174. 80
Gallons Percent
37,534.182
23, 704, 800
*82, 278
5, 905, 704
67. 062, 408
4, 656, 288
71, 718, 696
844, 932
37, 534, 182
325, 285
739, 576
38, 599, 043
Per bbl.
crude bid.
1. 2245
.2096
Per gal.
0.0147
.0147
1.0.500
.0001
.0010
.0522
.0454
2, 3,50. 290. 03
52, 34
33. 05
Ml
8,23
93.51
6.49
100.00
Per gal.
gasoline
0. 0557
.0095
,0097
, 0.555
, 05,53
.0036
.0010
.0001
.0009
. 0609
I M. Cu. Ft.
•indicates red figures.
10104
CONCENTRATION OF ECONOMIC POWER
Cost of making gasoline from skimmings and cracking plant operations
BARNSDALL REFINERY
Year 1938
Barrels
Gallons
cntimate Yield From Crude:
Qpsoline
Kerosene. .-
Tractor Distillate
Rerun Distillate
Gas Oil
Diesel Fuel
Wax Distillate
Fuel Oil— Industrial
Fuel Oil
Reduced Crude
L Stock, _..
Topped Crude
Gas Residue
567,731
33,331
6,481
14, 565
•54, 788
5.352
15, 942
15, 778
235, 047
•13, 840
16,H, 697
13, 020
35, 757
23, 424, 702
1, 39«, 902
272, 202
611,730
•2,3P1,096
224, 784
669, 564
662, 676
9, 871, 974
•581, 280
6,871,074
546. 840
1, 601, 794
Total Yield.
Loss
1,027,973
73, 430
43, 174, 866
3, 084, 060
Total Crude Charge.
M. Cu. Ft. Gas
1, 101, 403
46, 258, 926
214, 869
Gallons Gasoline From Crude (Less Evaporation Losses) -
Purchased C. n. Gasoline Added— Refinery. _
Purchased C. H. Gasoline Added— Pipe Line
23, 424, 702
9, 434, 205
277, 668
Total Gasoline Produced.
33, 136, 675
Amount
Per bbl. of
crude
Per gal.
gasoline
Summary of Costs:
Crude Oil. _
1,251,330.48
130, 341. 99
1. 1361
.1184
.0534
Crude Oil Transportation..'...
.0056
Total Crude Oil & Transportation. .
1, 381, 672. 47
107, 626. 76
169, 380. 18
1. 2545
.0977
.1538
.0590
Skimming Plant Costs
. 0046
Cracking Plant Costs.
. 0072
Total Crude & Processing Costs
1, 658. 679. 41
1. 5060
.0708
Less: Value of By-Products:
Kerosene ... .
58,085.95
12, 519. 25
21, 031. 10
•57, 527. 40
7, 865. 40
16, 739. 10
20,741.76
10, 692. 30
164, 409. 16
•11,625.60
133, 647. 73
10. 864. 61
21, 485. yO
Per gal.
0. 0415
.0460
.0144
.0250
0350
.0250
.0313
.0177
.0177
.0200
.0195
.0199
'. 1000
Tractor Distillate
Rerun Distillate
Gas Oil
Diesel Fuel .
Wax Distillate
Fuel Oil— Industrial
Fuel Oil— Light
Fuel Oil— Heavy
Reduced Crude ..
L Stock ..i
Topped Crude
Gas Residue ,
Total By Products
408, 929. 26
Deduct Prorata:
Adv. & Selling Expense
27, 476. 37
26, 564. 25
.0022
.0021
Administrative Expense
Total Adv., Selling & Administrative Expense
54, 040. 62
Net Value of By-Products
354, 888. 64
1, 303, 790. 77
.0152
Cost of Gasoline From Crude (Before Depreciation Including
Evaporation Losses)
.0556
Add: Cost of Purchased Casinghead
385, 805. 30
1, 689, 596. 07
93, 078. 36
73, 217. 34
70, 640. 96
.0397
Cost of Gasoline After .\dding Casinghead (Before Depr.)
.0510
Add Prorata:
Refinery Depreciation
.0028
Advertising & Selling Expense
.0022
Administrative Expense
. 0021
Cost of Gasoline Delivered (Not Inc. "Q" nor Ethyl).
1, 926, 532. 73
40, 453. 97
.0581
.Additional Costof "Q"ing
.0012
.A-verage Cost of All Grades of Gasoline Shipped
1,966,986.70
. 0594
1 M. (;u. Ft.
•Indicates red iigures>
CONCENTRATION OF ECONOMIC POWER
Chalmette Petroleum Corporation
REPLY TO item 32 OF T. N. E. C. QUESTIONNAIRE
10105
The Chalmette Petroleum Corporation operates only one refinerv The main
product of the refinery is gasoline. During i 938 the refinery produced in addition
■to gasoline, Bunker C Fuel Oil and #2 Gas Oil. In determining the cost of gaso-
line, the fuel and gas oil is priced at the prevailing markets and the dififeren^e
between the actual cost of these products and the market prices, is either chareed
or credited against gasoline. The gasoline when sold stands aU seUiug and over-
fSlrnvs^^^^^^^' principle elements determining the cost of gasoline are as
(A) Cost of Crude.
(B) Cost of Casinghead used in Blending.
l?}^ ^°i^\ "i^'^'ifacturing Expenses at Refinery (Including Depreciation)
(D) lotal storage Expenses (Including Depreciation on Storage Tanks).'
ADDITIONAL INFORMATION ON REPLY TO ITEM NO. 32 OF TNEC QUESTIONNAIRE
From letter of Aug. 4, 1939 to Mr. J. R. Brackett.
Question No. 32.
Summary of unit cost 19S8
January
February '.V.'.'.'
March "I"'"
April
May... '.'.'...'.'.'
June:
Cost low due to blending only
Ref. down account fire
July
August
September """
October. ...~ '"".'.".'
November I-II!!II"I"
December
Gasoline cost
per bbl.
$2. 2035
2. 3049
2.2856
2.2565
2. 3966
1. 7973
2. 3863
2. 4413
2. 2669
2. 1221
2.027
2.1292
Fuel oil cost
per bbl.
1.95
.95
'. 86742
. 80252
.80
.75
. 75922
.75
.75
.75
.75
.76
Champlin Refining Company
REPLY TO question 32 OF TNEC QUESTIONNAIRE
32. We have never made this kind of analysis for the reason that we doubt
the accuracy of any per gallon cost of separate commodities which To uld be
thT^Son '°''' ^' ^" "°* ^^^' '^^ ^^"'■^•^ ^^^"^ble with ^Sh to a^wer
CosDEN Petroleum Corporation
REPLY to item 32 OF T. N. E. C. QUESTIONNAIRE
Refinery operating costs for the fiscal year ended April 30, 1938. are as follows:
Cost of crude oil _ „.. ,., ^-„ „
Cost of blending stock::: *'^' ]oi' fSf' o^
Cost of asphalt drums ^1?' S ??
Direct operating expense 836 022 46
HicKOK Oil Corporation
reply to item # 32 OP T. N. E. C. QUESTIONNAIRE
Answer: None.
10106 CONCENTRATION OF ECONOMIC TOWER
Houston Oil Company of Texas
REPLY to item 32 OF T. N. E. C. QUESTIONNAIRE
32. Summary cost statement for each domestic refinery operated (a) by the
reporting company, or (b) by its subsidiaries or affiliates, for the year 1938, show-
ing the principal elements of cost determining the cost of a gallon of gasoline and
fuel oil (separately), at the refinery gate (exclusive of any selling expenses).
Explain briefly the costing policj' followed with particular reference to the method
of proration of the elements of costs of the refining operations among the various
products produced.
Houston Oil Company of Texas, Viola refinery, manufacturing expense-topping stills
Charged: Mixed Crude
Direct Manufacturing Expense:
Labor and Insurance -
Consumable Supplies -.
Fuel -
Repairs — - - --
Boiler Station Operations:
Labor and Insurance..-
Fuel
Repairs -.
Fresh Water
Miscellaneous
Prorata chargeable to manufacturing expense
Laboratory...
Electricity
Fresh Water System..".
Warehouse Operations —
Pump Station Operations
Indirect Manufacturing Expense:
Yard Upkeep
Fire Protection
Property Taxes Estimated.
Processing; Tax -
Depreciation
Overhead.-
Yiela:
Gasoline.
Kerosene '
Fuel Oil'.
Loss
For twelve months
ending Dec. 31, 1938
Barrels
Value
168, 946. 69
7, 220. 52
231.55
613.29
187. 64
$226, 574. 07
6, 897. 61
1, 706. 24
69C. ir;
1, 160. 78
1, 020. 34
11.475.24
8, 038. 21
170. 51
169. 37
363. 33
37.68
245. 16
17, 277. 26
10, 210. 90
2, 944. 48
1, 255. 87
102. 25
36.93
972. 11
4, 899. 26
254, 062. 83
67, 125. 37
12, 126. 65
88, 287. 98
1, 406. 69
153,672.57
20,931.07
79, 459. 19
168, 946. 69
254, 062. 83
' Kerosene and fuel oil are inventoried at average market (jobbers) listings during the month in which
produced. The remaining cost is allocated to the production cost of gasoline.
Kendall REPiyir" '^ompany •
REPLY TO item 32 OF T. N. E. C. QUE,STIONNAIRE
Casoline costs:
Crude Oil Distillation e/gal.
Crude oil cost allocated to gasoline 4. 7237
Distillation expense allocated 0. 1 68?.
Total — untreated straight-run gasoline 4. 8920
CONCENTRATION OF ECONOMIC I'OWEIt 10107
Gasoline costs — Continued.
Gasoline treating: cigal.
Treating loss - 0. 0483
Expense... 0. 0740
Total — gasoline treating 0. 1223
Total cost of finished straight-run gasoline 5. 0143
Cracking:
Charging stock : 5. 0681
Expense 1. 7016
6. 7697
Less: Byproducts 0.8604
Total cost of cracked gasoline 5. 9093
Cost of blending and mixing regular gasoline 0. 46
Cost of blending and mixing ethyl gasoline 0. 8189
Fuel Oil Costs:
Crude Oil Distillation:
Crude oil cost allocated to gas oil 3. 6756
Distillation expense allocated 0. 1276
Total - - 3. 8032
The cost of crude oil and the distillation expenses (including labor, supplies,
maintenance, utilities, taxes, insurance, depreciation, as well as a portion of
refinery overhead) are spread over the yield according to the so-called "realiza-
tion method". Treating, blending and mixing, and cracking expenses include
those parenthetically enumerated as well as royalty and ethyl fluid costs.
Lion Oil Refining Company
reply to item #32 op tnec questionnaire
Answer: Not available.
National Refining Company
reply to item #32 of t. n. e. c. questionnaire
No costing system has been used. The method of pricing inventories is the
proportionate part of total refinery expenses attributed to each product, based
on the total net-back for each product.
SUPPLEMENTAL REPLY TO ITEM #32 AS CONTAINED IN LETTER OP AUGUST 4, 1939
The unit prices based on the valuation of inventories of gasoline and fuel oil
during 1938 for the three refineries are as follows:
For the Coffeyville Refinery beginning with January, 1938 on thru November
the prices were unchanged.
White Rose Ethyl 0.045 per gallon
White Rose .035"
Royal . .03 "
For the month of December 1938 the changes were as follows:
White Rose Ethyl 0.0488 per gallon
White Rose. .0412 "
Royal-. .0326 " "
10108 CONCENTRATION OF ECONOMIC POWER
There is no fuel oil in stock at the Coffeyville Refinery.
For the Findlay Refinery beginning with January 1938 on through Novemhr
the prices were unchanged.
White Rose Ethyl 0.063 per gallon
White Rose ._ ..- .053 "
Royal - 048 "
Fuel Oil .028 "
For the month of December the prices were as follows:
White Rose Ethyl 0.0662 per gallon
White Rose .0588"
Royal.- .04 " "
Fuel Oil .035 "
For the Marietta Refinery beginning with January 1938, the prices are as
follows:
WRE
WR
Royal
Fuel oil
January
0.0875
.0875
.0876
.0925
.0826
.0925
.0926
.0925
.0875
None
None
None
0.0485
.0485
.0485
.0485
.0485
.0485
.0486
.0486
.0485
.0486
.0486
.05875
0.046
.046
.046
.048
.046
.046
.046
.046
.046
None
None
None
0.0286
February . .. -
.0286
March
.0286
April -
.0285
May -
.0285
June . .
.0285
July ---
.0285
August —
.0285
.0285
October .
.0285
November ...— .
.0286
December — - .
.036
Plymouth Oil Company
reply to item #32 of t. n. e. c. questionnaire
See answers to questionnaire forwarded by Republic Oil Refining Company.
CONCENTRATION 01'" ECONOMIC POWER 10109
Quaker State Oil Refining Corporation
supplemental reply to item #32 as contained in letter of august 17th
Unit prices in valuation of inventories of gasoline and fuel oil at the beginning
and end of the year 1938 were as follows:
Gasoline:
Below 65 Octane
65 Octane and above
Etbyl
Heavy Fuel OU
12/31/38
0.0393
.0.532
.0583
. 01966
REPLY TO ITEM #32 OF T. N. E. C. QUESTIONNAIRE
The reporting company does not have at any refinery any cost system for
determining the cost of a gallon of gasoline and fuel oil separately. Depart-
mental cost figures are maintained only for reflection of department operating
efficiency. At the cose of the year, the auditors determine the cost of the various
petroleum products at inventory by method based on sales realization.
Republic Oil Refining Company
reply to item 32 of t. n, e. c. questionnaire
Briefly and summarily stated, materials manufactured are costed monthly by
allocating among the various products produced that month the cost of the raw
material and manufacturing costs on the basis of the net back received at the
Refinery on the various finished products produced. In the belief that it would
be more helpful, we are enclosing herewith Financial Statement for the month
of January 1939, marked "See Question 32."
10110
GONCENTRATIOX OF ECONOMIC POWER
005
88
88
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i-H -^ <£)
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888
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5; to
88
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88
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e; £: 2 o
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CONCENTRATION OF ECONOMIC POWER
10111
gtOO I
CO ^ I
» > .*^
.30 ««
29.2 S
So 3-S
■ a a a §
5-a
4.J
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-H 00 1^ c^ »o <o
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00
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8.70
0.09
9.66
5.72
0.54
4.04
12
06
odaiio^^-«'oico'^t'
oooOTfOMoooocoog
a
' -91
1 l>
77, 27.
232,96
123, 42
47, 97
146, 57
74,22
1
s:ggss;?s";j:-^'
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N
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^
Seo^-t^-HOj-j-cDto
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CD
o>
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t; a
2mSqo"'°°'^°'^"
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^^
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M rt CO pi •-< " .-i rH ci
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C4 -H CO ' ^" fH
"
m
SSSS8SS855
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i2 'I'
888888
8
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38, 288.
26, 781.
37, 112.
11, 284.
44, 399.
75, 163.
07, 204.
47, 618.
103.
Pi
£§
06 •— i (N CO '^' tf)
S
b4
8,28
6,78
7,11
5,16
7,20
7,611
^
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C^
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■<»>
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10112 CONCENTRATION OF ECONOMIC POWER
Richfield Oil Corporation
reply to item no. 32 op tnec questionnaire
A determination of the separate cost of gasoline or other refined products
produced at the Corporation's refinery is impossible due to the fact that the
principal elements contributing to the cost of refined products cannot be allocated
to the various products produced, except on an entirely arbitrary basis. For
this reason, no attempt is being made to answer this question.
South Penn Oil Company
REPLY to ITEM #32 OP T. N. E. C. QUESTIONNAIRE
7%e Penmoil Company
South Penn Oil Company, Triad Oil Company and Bradford Transit Company
do not operate any refineries, consequently they do not have the data requested.
As to The Pennzoil Company the following data has been furnished, viz..
Summary of Cost Statements, Gasoline & Fuel For Year 1938
Cost per
Gallon
Transport or Third Grade Gasoline $.0500
Pennzip or Regular Grade Gasoline . 0652
Ethyl or Premium Grade Gasoline . 0766
Fuel Oil from Primary DistiUation 8,140,986 gal. % . 0381
Fuel Oil from Neutral Department 14,967,498 gal. % .0411
Average Cost of Fuel Oil ._ . 0400
The above costs of gaeoline and fuel oil have been determined by using the
"Sales realization method". The processing material consumed in each depart-
ment was priced at cost. Direct distribution was made of expenses properly
chargeable to each department. Utility department expenses were prorated
according to service rendered. Refinery office expenses were allocated on direct
labor and investment basis.
Third Grade Gasoline. — The third grade gasoline yield from primary distillation
totaled 35,067,312 gallons for the year 1938 for which a gross return of $1,747,-
688.05 was realized. This represented 3* 19% of the gross return of the entire
yield of the primary distillation which petcentage applied to the total material
cost and manufacturing expense for the year 1938 plus 50% of the value of the
distillation loss resulted in a cost of $1,755,367.89 or $.0500 per gallon.
Material cost and manufacturing expense itemized as follows:
Crude Oil $5, 371, 880. 11
Slop Oil 18,977.57
5, 390, 857. 68
Direct and Indirect Labor and Expense 306, 985. 58
Total Cost— Primary Distillation. $5, 697, 843. 26
Fuel Oil from Primary Distillation. — The fuel oil yield from Primary Distillation
totaled 8,140,986 gallons for the year 1938, for which a gross return of $317,042.40
was realized. This represented 5.48% of the gross return of the total yield of the
Primary Distillation which percentage applied to total cost plus adjustment for
distillation loss (see third grade gasoline) resulted in a cost of $309,479.51 or
$.0381 per gallon.
CONCENTRATION OF ECONOMIC POWER
10113
Fuel Oil from Neutral Department. — The fuel oil yield from the Neutral Depart-
ment totaled 14,967,498 gallons for the year 1938, for which a gross return of
$582,235.67 was realized. This represented 31.58% of the gross return of the
entire yield of the Neutral Department which percentage applied to the total cost
(see below) resulted in a cost of $614,932.71 or $.0411 per gallon.
Material Cost and Manufacturing Expenses as follows:
Wax Stock from Inventory $173, 527. 55
" " " Production - 1,476,860.37
$1, 650, 387. 92
Direct and Indirect Labor and Expenses 296, 834. 11
Total Cost— Neutral Department $1, 947, 222. 03
PENZIP GASOLINE BLENDING DEPARTMENT
Products Yielded
Gallons
Yielded
Average
Sell. Price
Per Gal-
lon
Gross Re-
turns
Per Cent
of Total
Material
Cost & Man-
ufacturing
Expenses
Total
Cost Per
Gallon
Revenue:
Pennzip .
46,211,013
251,911
0. 0618
$2,856,716.07
100.00%
$3,014,311.17
0.0652
46, 462, 924
2,856.716.07
100.00%
3,014,311.17
Material: Straight Run Gasoline
20, 910. 967
546,079
963, 927
64,681
12, 308, 784
11,668,486
.0500
.0687
.0636
.0618
.0633
.0673
1, 045, 548. 35
37, 515. 63
61, 305. 76
3,997.29
779,146.03
785,289.11
Casing Head Gasoline from Pur-
Cracked Gasoline from Dubbs #3
Craelced Gasoline from Dubbs #4
46, 462, 924
2,712,802.17
301,509.00
Direct and Indirect Labor and Ex-
penses . -.
3, 014, 311. 17
ETHYL GASOLINE BLENDING DEPARTMENT
Revenue:
Ethyl
4, 669, 751
37,969
.0725
$338, 415. 77
100.00%
$357, 834. 71
0.0766
4, 707, 720
338, 415. 77
100.00%
357, 834. 71
Material Cost:
Cracked Gasoline from Dubbs
#4 Production
4, 707, 720
.0673
316,829.66
41,005.15
,
Direct and Indirect Labor and
357,834.71
o
a
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s
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ij
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124491— 40— pt. 17-A-
(6)
Miscellaneous
feSo^S
b-
•5 -
1
t
1
a
$233,090.45
304, 778. 05
$71,687.60
5, 555. 99
5|
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(3)
Investments in
Unconsolidated
Petroleum
Affiliates
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$27, 890, 577. 46
7,671,624.28
66,250.00
2, 886. 54
a 1
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and Equipment..
Less: Reserves for
Depreciation, De-
pletion and Amor-
tization -
1
111
P
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3
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4. Investments and
Advances in AflU-
iated Companies—
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-11
10115
10116
CONCENTRATION OF ECONOMIC POWKR
(5)
MisoeUaneous
6S"o^S
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2, 326, 160. 42
12, 463, 463. 43
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^4
CONCENTRATION OP ECONOMIC POWER
10117
to o>
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$205, 295. 76
322, 946. 43
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155, 009. 06
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413, 136. 63
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3, 072, 630. 28
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Less: Reserves for
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tization
Net---
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ncome:
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Ratio to Total As-
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a 5
8 «
PS a
10118
CONCENTRATION OF ECONOMIC POWER
1
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CONCENTRATION OF ECONOMIC POWER
10119
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9.5
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48.1
.$1, 704, 313. 49
4.3
Income:
1. (J ross Revenue
Less: Inter Depart-
mental Sales
Net Gross
Revenue...
Ratio to Total
Assets %..
2. Net Income Before
Interest and Div-
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Ratio to Total As-
sets % .
10120
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
10121
S -
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1,589,621.82
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$27,025,763.00
38, 261, 806. 35
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30, 682, 622. 32
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5,247,081.06
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6, 526, 889. 28
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11,588,114.69
49, 692, 666. 54
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165, 156. 62
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111, 977. 91
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62,670,344.39
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1
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o
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10122
CONCENTRATION OF ECONOMIC POWER
oTJ
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CONCENTRATION' OF ECONOMIC POWER
10123
i
_i
-
8
OO ■
^
O 1
§
1? :
CO
•5 1
CO
OJ
l^
W5 1
s
•3 ■
c»
t^ »
o
■
CO lO
o
00
N
s
s
5
^ s
^
;§
,
-
s
—^
g
-
00
X5
<z
§
s
S
1
^s
tvT
•*
J.
1
t
ifeS
1
0) tf
0-5
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iri 'I
og3
> o
4)
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8
a
3
o
o
.°S
►^
^fc
OS
ao^:!
tf
iz;
tf
8^
a
ci
1
10124
CONCENTRATION OF ECONOMIC POWER
eo
e
cq
S
? s
(5)
Miscellaneous
fe?*5f;£
tc
OS
eo
?5»
rt 00
o
1 1
§
a
<
$116,297,709.87
19; 749, 042. 07
oo---
to" CO
o>
OS l^
to "5
co>o
ss
m
$102,507,503.67
$15, 013, 793. 12
(4)
General In-
vestments
^o^l
r-
s
; 1 ; i
a
§
§
$36, 680. 95
(3)
Investments in
Unconsolidated
Petroleum Affili-
ates
fe?o^2
o
8
CO ! ■
1
a
".
o
«««
of
.$9, 444, 292. 70
.$3, 335, 794. 91
(2)
Foreign
Petroleum
Branches
6§o^S
i :' i
a
§
a
(1)
Domestic Petroleum Branches
a
s
&^o^2 1 00 -*
ou«o
OS 1 1
OB j 1
3
§
a
<
$35,206,035.79
3, 626, 795. 97
c»os
00 00
OS to'
CO -^
Nco
oTtr;"
ss
-Too"
CO
05r-<
eo-eo
loto
$40,501,689.29
$34,838,151.13
•3 60
g.a
■as
fe^-s^S
to -^
2.2
17.5
38.2
t-to
CO 1 j
3
§
a
<
$11,428,036 32
3, 491, 064. 97
7, 936, 971. 35
6. 558, 286. 09
34,381.93
S8
CO 00
00 pi
$15,210,553.23
$29,300,769.10
i
o.
11
e
ei Tf
O-H
CO ■ 1
<
3
3
O
a
$9, 140, 805. 89
3,741,478.47
^§
CO ^H
oTco
OS »o
CO
o"
:8
lid
$6, 452, 451. 47
$1. 855, 696. 47
'
3
_o
o
3
1
PL(
3
6?"o^3
to S
60.5
49.8
21.1
CMOS
OS p4
CO(M
00
3
3
o
a
$264,879,712.91
48, 784, 733. 80
216, 094, 979. 11
18, 668, 769. 98
18,929.08
OSiO
pf
$236,922,204.64
$42, 314, 660. 15
"ca
o
^6
s s
ss s s
§8
8 1::
3
3
O
a
<
$456,952,300.78
79, 393, 715. 28
357. 558, 686. 60
37, 491, 243. 96
89, 891. 96
9, 410, 284. 36
2S
pi 00
OS t-
^ o
co"pi
co«
$126,658,854.88
44,164,394.08
A&sets Used or Em-
ployed:
1. Properties, Plant
and Equipment- -
Less: Reserves for
Depreciation,
Depletion and
Amortization
I
■<
c
3
O
>
O o 3
CO'
4. Investments and
Advances in Af-
filiated C om pa-
les— Unconsoli-
dated
<
1
'5
3
ce
.^
e
m
lis
^^
ll
Co
to !■»•
"a
o
00
Income:
1. Gross Revenue
Loss: Inter Depart-
mental Sales
o o
u. a
C) 3
■£(5
CONCENTRATION OF ECONOMIC POWER
10125
1
O 1^
CO
si
;
j
s -
I-: «
CO
co-
co
Ol
u
i
1
i
i
1
I
CO
2
i i
CO
1
20.1
$14,654,613.05
3.6
3
o
2
■ZZ
2. Net Income before
Interest and Div-
idends
Ratio to Total As-
25.7
23.8
26.1
9.0
42.3
32.9
05
i i
1 ! I '
$116,398,576.69
20, 504. 904. 78
95,893,671.91
3,711,120.34
"i,'954.'i66.'69
65. 278. 33
CO
CO
o
J3 :
B i
n i
«» 1
. . CO Ci
.1 lO .
II . IO
i ': S
1 1 o
: i ^
i i
j
j j
Mi ill!
i !
$11,488,085.04
i
2 ',
g i
i 1
I rt ira
M i ^
! i i
i ; si
i :
; 1 ; ;
i
M M
1^ •«<
8.5
24.2
45.5
12.6
58.6
i i
i i i i
$35,021,580.09
3, 893, 217. 76
31, 218, 362. 33
9,961,211.78
1, 334. 38
""583,"642.'i5
116. 244. 23
00
OO 1
s ;
i i
1 ; g 1
1 : «5 1
in t-^
5.2
14.2
5.0
19.7
.3
CO
i i i 1
$25,562,466.01
6, 619, 429. 92
18,943,036.12
5,876,063.83
U, 236. 77
'"'968,'667.'7i
042. 00
CO
■t;
i
^ :
S ;
g ;
o I
1 t^
.1 -* 1
; ; 13 ;
II -^-F 1
i i S ;
03 -^
r)<C< . .11.
c^
; ; i ;
$8. 807, 475. 24
3, 820, 688. 24
4,986,787.00
67,670.79
is.'oo
o
si
5 ;
IM 1
C» I
$191, 617. 22
3.8
59.0
59.7
58.8
52.4
49.5
25.4
8.2
g
; ;
$267,349,920.65
51,478,090.37
215, 871, 830. 28
21,628,022.42
12, 344, 84
"'i,'l76,'534.'56
16, 190. 12
2
i
OC. .
U i
$9, 542, 494. 40
4.0
s s
22 § i ;22
S
; !
i ; i ■;
.$4.53,140,018.71
86, 226, 331. 07
366,913,687.64
41, 244, 089. 16
24, 915. 99
11,488,085.04
"4,'622,'944. 45
198, 369. 68
i
$142,950,801.92
49, 148, 071. 17
93, 802, 730. 75
22.1
$17, 088, 277. 12
4.0
Assets Used or Em-
ployed:
1. Properties, Plant
and Equipment. _
Less: Reserves for
Depreciation, de-
pletion and Am-
ortization
Net....
2. Current Assets
3. Non-Current Secur-
ity Investments..
4. Investments , and
Advances in Af-
filiated Compa-
nies— Unconsoli-
dated
5. Intangible Assets...
6. Deferred Charges...
7. Other Assets
1
o
Eh
OO
Income:
1. Gross Revenue
Less: Inter Depart-
mental Sales
Net Cross
Revenue...
Ratio to Total As-
sets %..
2. Net Income before
Interest and Divi-
dends
Ratio to Total As-
sets ...%..
10126
CONCENTRATION OF ECONOMIC POWER
3
(3
09
o
to
fiq
ot3
S o
s
■as
III
££9
^•5^2
6?o^^
fe^OgnJ
65"o^2
"S 60
«9
C3
fe^oeS
^o^S
S
5S S
00-*
CO to
-HO
50 CD
tOM
Odd
o>o
ojod
S5
e^—i rt
OOO 00
t~to
00 cf
a 2
° si nil
-<
Bt.
COCO
OOTl"
OOO
C^OO
§2 IS
NO!
ceo
•OCDt^ 00
CONCENTRATION OF ECONOMIC PC)WER
10127
i
1 °
i '^
So
i
J5
10
:
:
i
.
• 00
s
i
1
i
i
:
1
a
1
i
8
. <3>
S
i
i
5
;
3 K
i. n
i. s
87, 120. 710. 87
25.8
$14, 544, 487. 03
4.3
Income:
1. Gross Re venue
Less: Inter De-
Dartmental Sales.
2S
eg
>•
«C:
<^
.22
2. Net Income before
Interest and
Dividends
Ratio to Total As-
sets %..
10128 CONCENTRATION OP ECONOMIC POWER
Answer to Request Made in Temporary National Economic Committee's
Letter of August 14, 1939 for Supplemental Data in Connection with
Answers Submitted by Consolidated Oil Corporation on July 21, 1939
to Items 1 1-K (1) and Xh-K (2) of the Questionnaire for Oil Companies
OF April 19, 1939
Attached hereto, marked Pages #3, 4 and 5, are analyses for each of the years
1936, 1937 and 1938 respectively of Assets and Income (on a consolidated basis)
of the reporting company and its subsidiaries. The following comments are
explanatory of the methods which have been employed in the preparation of
such attached statements.
Analyses have been prepared in the form suggested by the Committee insofar
as it has been found possible to conform thereto. All of the various amounts
reported have been stated in units of one hundred thousand dollars, and are to
be further regarded as approximations to the extent indicated hereinafter.
For the reason that assets used or employed during the period in question by
foreign branches engaged in the petroleum industry did not exceed 10% of the
total consolidated assets, foreign activities have been combined with domestic
activities.
Accounting and statistical records of the reporting company and its subsidiaries
are not maintained on a basis whereby, in all cases, Assets and Income can be
classified according to actual subdivision between branches or departments of the
business. Where this condition has been encountered, therefore, the suggestion
of the Committee has been followed, in that certain assets not specifically allo-
cable to a branch or branches have been arbitrarily allocated to various depart-
mental groupings on the basis of the percentage relationship of the amounts of
gross Capital Assets employed in such departments. In the computation of
departmental net income, a similar allocation has been made of certain expenses
not susceptible to departmental subdivision on an actual basis
As indicated in the original answer to Question 11-K, the functions of refining
and marketing are performed largely by Sinclair Refining Company (a wholly-
owned subsidiary of the reporting company), engaged in transportation by pipe
line, in refining and in marketing. The accounting methods employed by this
company make possible the statistical segregation of Capital Assets, but pre-
clude the practicability of effecting a departmental segregation of other assets
used in refining and marketing. The company's accounting methods similarly
preclude the allocation, on a departmental basis, of gain or loss resulting from
such activities. The operation of refining plants by Sinclair Refining Company
is treated, for accounting purposes, as a component of the integral function of
refining and marketing. In the attached analyses, therefore, each asset feature
(except Capital Assets) applicable to Refining, Manufacturing and Marketing
has been shown as one figure. Related gross revenue and approximate net
income have, of necessity, each been similarly treated.
The amounts of gross revenue reported in the attached analyses for each of
the years in question differ substantially from the gross revenue of the reporting
company and its subsidiaries on a consolidated basis. In order to display gross
revenue on a branch basis, it has been necessary to include elements of revenue
arising from inter-branch transactions, but the gross revenue reported for a
given branch does not include inter-company revenue arising from transactions
pertaining to such branch between companies severally engaged in such branch.
It will be noted that the amounts of departmental net income reported in the
attached analysis for the year 1938 are not in conformity with the related amounts
reported in the original answer to Question 11-K (1). These differences are
generally attributable to the realinement (as compared with methods used in
preparing the original answer) of certain branch functions in a manner which
would appear to conform to the instructions accompanying the request for this
supplemental data; the inclusion in the attached analysis for the year 1938 of
the results of foreign activities; the arbitrary allocation of certain expenses not
considered in the original answer; the reallocation of net income of certain minor
pipe line facilities referred to in Footnote A to the original answer; and the exclu-
sion from the original answer of the net income of certain subsidiaries which had
assumed an inactive status prior to the end of the year 1938.
CONCENTRATION OF ECONOMIC POWER
10129
■3s
alol
5t5
=s3
1^
^
6S
6§
S S
S S
»0 00
S 2
8 8
8 8
S -^
8 g
8 8
8 8
8 8 8
8 8
>n oco
S 8'
OS
00^
888
CO CC "3
82
8 8
8 8
-H CM
oo
88
88
8 8 8 888^
8 8
t^ »-H -^ ^
» «
>■* O —i
ooo o>o
8 8
a PS'
» S.2 ^
^ S-2 9
Q ■-€ "
3 CJ ^
■a " " b
g 3V5O
O ■""••
00 ^ o) Q
o S^ P
•a "S^2
>>..'5fr; o
M
J2 H
■*^ fc:
go cgbc
-ro? a
"I -a-
c5sa^£|<5
so S ><!•" luS
olz; 5 5oo
^§ o «
^ « O^-H p o
W o §
10130
CONCENTRATION OF ECONOMIC POWER
4>
S
.9
a
o
O
S
C5
=3 a
«> s
u o
■2^ P 09
05 t) « "J
Si
6?
6?
65
^
8 S
S S
>Si
00 e^
-^ IS
8 8
Soo
SJ5
8 8 8 8888 8
§ 2
8 8' 8S'8l
s
OR; S 1 a
1 ? «
■ "OS'S
'<J Oi?
H ^ ® S<p S S ®
--( CO eo
8 2
§a> oco
8" 8"
8" 8
g O _ O (U _
^ gi o .^ o
£ Vi 03 OD P OJ
Sort;? «
a
CONCENTRATION OF ECONOMIC POWER
10131
S' 8
8 8
8 8
fS8
88
CC CO
S 2-
888
OiCOCC
8 88 8888
8 88 81
C» N
00 •-■
8 S
8 8
I So
a gQ-
S B<2 "
■§ SSt3
>" -fcS
O 03 fe *
"3, :§ S S
si
a.g
ii
3 a
•a —
1 OT3
■<ss
<)
: CO s o
'2 I
SSEf
I bo S
® 2 S ®
■eO-2 »•«
►Soo
0? S 03 a>
•2 ffi.o
a* ». (B
-0«
a o
124491 — 40 — pt. 17-A
^^
•OT3 ^
B O CO
-12
10132
CONCENTRATION OF ECONOMIC POWER
•^
d s
a Si
m
OS e
2 « "
■»-> BisE
oB
8 g
88
a>co
?S 8
88 8
88
a
3
a
IK'S
^«
fc-'-S
O u.
'o 3
» g
?0
88
<S be
Soap
Pm J
:ar=^Sa
so c
Saggfe
S2S
S^
=■ J^oS
O-^O'^
ss??
6? ;6?
-2
o ©
O ^,-.0
u CO ® 03
*o o r*- CO
s^
CONCENTRATION OF ECONOMIC TOWER
10133
8 S
88
S 8
8 8
i 8
88
oo
88
88 8 8
18 8 8
a .
~ O. a> V «>
''I
^§
73 03
It
03 O
88
88
0>— I
88
88
88
^^
3oa>;<;g
58S
S'"8 =
8'"8'
8 ;8
s? ;65
2
2
D 03 '05
S o 2 o
>Hah
U CQ O) CO
a^ <N
Mo %
■z £
2 a
10134
CONCENTRATION OF ECONOMIC POWER
at
SaS to
I
08 J5
2 8
8 8
I i
e<5cd
oo
oiri
88
S S
2 g
S&-
SS ''^
88
PS
«A
sgasQ
3 «
.a o
11
|i
13 a>
^S
en o
|u ^
9 m 08 -I
;^
Kg
88
3 M O C
O <0 O «D
o>o oo
o . o .
O-H o'S
8:3 8^
o . o .
-to .»s<
icj o r^ 00
6?c
t.05 *<" «
T 5
!z: s
CONCENTRATION OF ECONOMIC POWER
10135
ihS
0136
CONCENTRATION OF ECONOMIC POWER
1
IBJO^JO
-H
;-^ I
28 : ,
jneojaj
I I 1
_*
§
a
(N CO <e>
06 Jg OS
s
<!
^" ^
4L
mo'i p
" ;- 1 g :
—
■jaaojaj
I I '
coe^coci CON
0P50 CO Qco
2a
s
to" CO CO
a
a
<
SI S SI
^ . . S
mo%}o
; ; 1 <N ;
tmen
onsol
petrc
ffiliat
jnaojaj
1 ! ! '
a
M IC ^4 kO •-• to
M CM M
10 >o >o
Inves
in unc
dated
leum a
a
TP -fir Tj?"
CO CO CO
SI SI SI
■ CO
\V%01 JO
'i^ ' 00 ' CO <
II
jaaojaj
1 1 1
^g
t~rt t~.-< 03
as
§
a
<
"Sa
3
CM CM
mo% JO
' — 1 1 00 '
ro '00 .
a
jnaojaj
' I !
coco <-< •»*< CO «-t
a
3
S 2 «
a
<!
2 2 **
n-i ^
lejoi JO
s ; ;
K5 1
1
jnaojaj
I I
^^°
g~-
CO
s
.9|
a
3
a
55
«»
3
«fl
<
2
c
moi JO
CO 11-1
CD '
a
jnaojed
;
;
-^ Cl Tf" C> t^ 00
m
s
a
a
n
3
a
^ 2
H
[e%o% JO
g :°° ; s ;
a
jnaojaj
■ 1 1
coot^r^ coco
,-1 CO "O ,-( »o ^
»C ^H 00 CO
3
CO cf CO
Ph
a
|C CO
§ :g ; 8 :
ia30j8ti
§
H
a
•<
£0 i
6^l6?5^'fe?
"SoS
.«|«„o=^
3
c3 Brt „'-' a
go «
s n'S
w~ n.o-- w-^jj t;5
i;0 KOWI? «
i^ •? •
g^ J. «
1
.
•^
CO
•0
1
>o
1
$14, 783, 697
2, 332, 379
00
CO
oo" 1
CO r
SI
CO
00-
CO
8
«
00
00
10 -rf
s? ;
CO
$36, 525, 884
17, 457, 768
$19. 068, 116
$49, 839, 408
00
oT
§ s
n \ s ;
CO
$138,115,061
52,324,159
' $85,790, 902
$39, 913, 053
3
CO
2 §
2
00 I
t~-
$135, 328, 800
70, 537, 136
S
§ i
3 ;
s i
(N"
s
2 g
00
'^ 1
"^
$130, 687, 030
71, 853, 097
S
CO
s?
00
10
So ;
CO 1
CO
ss ;;
s
CD 1
>o
$241,627,083
148, 359, 154
OS
CO
5 !
?3 i
5
Til
8 1
s
II §§
8
$697,067,561
362, 863, 693
00
3
$149, 509, 387
8, 851, 730
s
CO
00
10
Assets ased or employed:
1. Properties, Plant and
Op :
I'm CO
•0
a
CO
3
go
3
c4
|.2
1
3,0
3 m
CONCENTRATION OF ECONOMIC POWER
10137
■^CD CO
5;2 8"^ ^15
(N 0» -^
O CO ^
(N w5 OO
-^ , O ■ 1-1
Oi ^ 05 •*
SI SI
<C I -H
t^m to?!
«»0 lO<D
-1 N
00O5 lO C^
(MM M<«
i-H CO
o> — • r^ »c
CO O t^ CO
6 c "o /?,
1 P H O g
3 o-g«j fc:
C^-O o I Q
W rt « O O
00*^1 (D „
►Ha) I — 5j
few 'Saras
^52
«!
ggfl
653
i"0
«^«
a o ,
o -^
:3 o w
•§.2'"' 2.2
'mrt ©Sea
.-1 <M
og
OS
a p
0c
5°
s 50
a. ^i
Occ ® _
o?o pg
p o *i
o ®
p«
Mai)
'S a
s©
•-• 03
(S
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• «— I ^ ^ °3 ri
<D O ti/) © bJU^
o';3 t; o © o
a M-- p » i2
.3 O p — -g aj
aj Q M aj H HI
p 0,U, p oX!
p o S p o
■O P o 13 © ""
o) ©•:: (u'P'S
3 p O 3 C. cj
S a
3 01 3 3 3 S
•n -^ -> m o t- Oa
R K
10138
CONCENTRATION OF ECONOMIC POWER
VI
IB^OJ JO
M
»-H
ro
« . ,
n
OS
•^11
^
*-4
3
O
inaojaj
; 1
" 1
cc r^
ZO
O 1
o
CM 00 1
CO
cS
<N •*
h-
CM O
CO
a
CO CO
CS
S 1
lO
t- f;
CM
Th
'">
3
or lo
^
■* !
■^
O^ CO
u^
cf
o
O
to m
■^ ■
s
m
g
to 00
CO
^
•^
O CO
CO
^
<;
^
S" i
&
'^
oo"
n
IBJOJ JO
;S
«o
CM 1
CM
-•
>•
— c
jaaojej
n
is
i
i
0-.
s
i
la
3
ito
CO
erf
lO
to
o
;s
-r
o
lO
V
a
6
00
o>
t^
•^
®
<
ioo
2S
CM
CM
o
■ «^
«»
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^.^i£
IBJO^JO
;
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;
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o
tmen
lonsol
petro
ffiliat
5naoj[a<j
; 1
; ;
J
H
1 ;
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CONCENTRATION OF ECONOMIC POWER 10151
Shell Union Oil Corporation
50 West 50th Street
New Yt>RK, September 1, 19S9.
Mr. James R. Brackett,
Executive Secretary, Temporary National Economic Committee,
Apex Building, Washington, D.^C.
Dear Sir: We have your letter of August 14th requesting additional informa-
tion in connection with items 11-k (1) and 11-k (2) of your original "Question-
naire for Oil Companies".
We have again gone quite thoroughly into this matter of segregating assets as
well as income on a departmental basis and we attach information which we have
compiled from our own records and those of our subsidiary companies.
In connection with the attached analysis of assets, we should like to point out
that we have had to resort to approximations and estimates in making some of
these allocations of intangible assets, cash and the like. The attached segregation
of assets, therefore, is not as carried in our own books of account and has been
especially prepared in an endeavor to meet your particular request.
In connection with the request for segregation of gross revenue and net income,
we must again refer you to our previous letter dated May 27, 1939. Our com-
panies operate on the basis of a single unit and we do not know of any satisfactory
basis of theoretically calculating the net income for various divisions or depart-
ments.
Yours very truly,
S. W. DXJHIG,
Vice President and Treasurer
SWD-S
End.
10152
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OP ECONOMIC POWER
10153
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CONCENTRATION OF ECONOMIC TOWER
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22.27
36.41
119,037.224.32
66, 839, 628. 23
860,428.06
32.04
32.11
.78
12,446,199.40
84,327,287.65
23,000.00
tn.tos.m.Ds
418,000.00
is.or
.S8
$108,646,612.76
99.44
3. Non-«unent Security Invest-
.03
4. Investmentsand Advancesin
AmUated Companies— Un-
3, 107, 880. 98
1,662,564.82
41,290,361.46
100.66
100.00
100.00
2,169.23
275,169.35
1,840,101. 81
.07
16.66
1,811,934. 79158.30
i,293,'786."07
201,290.44
23,832,403 09
33,i86.63
2.00
457,055.90
622,676.67
27.40
1.27
47,438.92
24, 636, 007. 50
2.86
59.43
4, 781, 431. 91
H.SS
55.29
8. Totals -
$735,079,170.31
100.00
tir,B90,93S.W
S.71
$113,937,814.98
15.50
$77,664,145 32
10.55
$166,972,472.09
21.35
$184,436,097.02
25.09
$108, 645. 612. 76
14.78
$121,123,967.66
16.48
Income:
$373, 836, 665. 29
60.85
$57, 702, 740. 83
7.85
100.00
(371,381,805.97
100.41
$41,822,612.86
3&71
$13,724,270.04
12.05
11.19
23.78
$31,303,616.30
40.36
$13,697,868.81
17.66
8.37
23.74
$207,294,632.67
132.06
$18,880,364.74
12.03
66. 45 $338, 531, 335. 09
183.65
33 73 $3,294,296.20
1.70
90.66
$6,624,803.86
6.00
$5,733,601.28
5.28
1.76
9.94
$123,742,571.59
102. 16
$2,669,984.01
2.20
3,1.09
I Net Income Before Interest
and Dividends
Ratio to Total Assets ....%..
100.00 tiST,en.ts
.SO
6.71
4.61
Assets Used or Employed:
1, Properties, Plant and Equip-
$714,798,958.47
341,389,137.96
100.00
100.00
$196,161,097.89
83,620,001.92
27.30
24.49
$119,933,173.29
69,324,736.28
16.78
20.28
$184,384,786.88
104,389,400.81
36.80
30.58
$181,880,307.56
04,105,441.01
3&45
18.78
$33,430,693.86
20,049,567.04
4 67
Less: Reserves for Deprecia-
tion, Depletion and Amor-
tization
5.87
Net
373, 409, 820. 61
211,858,082.88
109,366,230.28
100.00
100.00
100.00
111,541,095.97
4, 516, 426. 32
19, 827. 06
29.87
313
.03
60, 708, 437. 01
1,659,177.32
60, 000. 00
13 68
.78
.04
79, 995, 385. 07
46,667,027.31
21.42
21.50
117,783,865.64
61,607,606.62
776,639.12
31.54
29.08
.71
13,381,036.82
116,316,639.31
23,000.00
3.59
$17,896,893.83
811,000.00
8.35
.18
,54,86
3. Non-current Security invest-
$108,807,764.10
99.49
.02
4. Investments and Advances
in Affiliated Companies—
3, 078, 670. 14
1,813,260.63
26, 137, 177. 81
100.00
100.00
IQO.OO
2, 201. 60
224.882.38
1,718,681.10
.07
12.40
.6.88
1, 811, 936. 79
693,734.47
4, 74t, 079. 08
68.86
38.26
18.88
1,264,431.76
201.600.49
6,702,271.96
41.07
39,340.77
2.17
610,524.76
613,73L37
33.67
3.04
43, 177. 67
24,391,836.84
2.38
97.03
7. Other Assets .,
26.67
8- Totals
$724,663,141.96
100.00
tn, 988,363.08
1.48
$117,200,605.47
16.17
$76,862,627.84
10.61
$124,060,913 79
17.12
$177,931,703.58
24.66
n
$108,807,764.10
15.01
$137,787,880.23
19.02
Income:
1. Oross Revenue
S341, 206, 403. 64
47.08
$28,467,977.69
3.93
100.00
$SSl,8St,08tM
106.04
$37,095,304.14
31.65
$8,604X63.34
7.34
10.87
30.23
$28,840,649.43
34.92
$10,932,740.89
14.23
7.87
38.40
$204,926,697.07
165.20
$2, 482, 984. 33
2.0O
60.06
8.72
$316, 509, 269. 74
177.88
$% 932, 020. 45
1.66
92.76
$4,363,931.60
4.01
4,211,011.82
3.87
1.28
14.79
$113,302,719.12
82.23
4,t81,68t.94
S.tl
33.20
2. Net Income Before Iiitoest
and Dividends
100.00
$3, 588, 749. 91
12.61
10.30
15.04
Ratio to Total Assets- %
Italics Indicate red figures.
124491 — 40— pt. 17-A (Face p. 10160) No. 1
CONCENTRATION OF ECONOMIC POWER 10161
Sun Oil Companv,
Philadelphia, Septemler 1, 19S9.
J. Howard Pew,
President
J. N. Pew. Jr.,
Vice President.
Temporary National Economic Committee,
Apex Building, Washington, D. C.
Attention of Mr. J. R. Brackett, Executive Secretary.
Gentlemen: We very much regret the delay in making reply to your letter
of August 14th. This, however, was occasioned by the inability of our staff to
furnish the information you requested in the form indicated.
In a mass production industry it is impossible to accurately determine the
income that accrues in any particular branch or division. None of the several
arbitrary methods for determining the effectiveness of interdepartmental opera-
tions is of value excepting only for purposes of comparison, and no two such
methods produce like results. The very breaking down of the industry into
divisions is purely arbitrary, as no two integrated companies would agree as to
the activities that should be allocated to each division. In the ultimate deter-
mination of our profits or losses we take the total amount of money received
from the sale of all our products and from this deduct all our operating costs,
including those of transportation, and the difference is our profit or loss.
As regards the analysis of consolidated assets covered in the form which you to
sent us, it is obviously impossible to break down the cash in the banks so that a
part of this cash should appear as a credit to each of these arbitrary divisions.
The same reasoning applies to practically all current assets.
Very truly yours,
J. Howard Pew.
The Texas Company
regal department
135 East 42nd Street
Qeorgw W. Rat, Jr.
New York, August 28lh, 1939.
Mr. James R. Brackett,
Executive Secretary, Temporary National Economic Committee,
Apex Building, Washington, D. C.
Dear Sir: Your letter of August 14th to The Texas Corporation has been
referred to me for reply.
It is impossible to compile the data you request by September 5th, 1939 or
by September 18th, 1939.
Furthermore, the information requested involves the use of so many arbitrary
assumptions that the information when compiled, in our opinion, would be
valueless.
I assume that in view of this you will withdraw your request for the additional
information.
Very truly yours,
George W. Ray, Jr., Attorney.
GWR-ARL
10162 CONCENTRATION OF ECONOMIC POWER
Tide Water Associated Oil Company
tide water division
17 Battery Place
George T. Mukray, Jr.
Assistant to the President
New York, Septemher 8, 1939.
Mr. James R. Brackett,
Executive Secretary, Temporary National Economic Committee,
Washington, D. C.
Dear Mb. Brackett: Referring to your letter to me of August 17, 1939 and
our recent conversation regarding this Company's unit value of gasoline and
divisional profits desired by the Committee.
I believe I made it sufficiently clear to you during our conversation that our
Company, as well as all other oil companies, considers it impossible accurately
to determine the cost of a gallon of gasoline or other products manufactured
from crude oil. Recognizing this fact, you have indicated, that your purpose
would be served if we informed you of the unit value of gasoline used in con-
nection with the preparation of our annual return of taxable net income. Ac-
cordingly, we send you herewith a statement giving the information desired by
you, and I hope that the Committee will accept and use this information with
our qualification that the unit values represent estimates prepared for the pur-
pose of valuing the Companies' inventories of gasoline and that we do not present
them as actual costs of gasoline.
We have again carefully considered what information might be given to the
Committee indicating divisional profits of our Company. If in my conversation
with you I failed to make it clear, please be advised that our Company has not
adopted and is not using an accounting system designed to reflect profits by divi-
sions. The development of such an accounting system has been considered by
our executives from time to time but it has always been recognized that the profits
of the divisions of an integrated oil company can only be estimated by arbitrarily
assigning to each division a profit on products or services supplied to other divi-
sions of the Company. Another circumstance making it impracticable in our
opinion to determine divisional profits is the fact, as you will appreciate, that
several classes of important assets and liabilities, and carrying charges, cannot
readily be apportioned and allocated to the various operating divisions of the
Company, although all divisions share in such assets, liabilities and carrying
charges and would have to consider them in determining divisional profits. Also,
we consider that it is impossible to determine what proportions of the capital stock
and surplus of the Company may be said to be employed by the various branches
of our Company. Therefore, for the foregoing reasons, our executives have always
believed it impracticable to determine a basis for such inter-divisional profits, and
for that reason the income of the Company is determined and considered only on
a consolidated basis for the Company as a whole. It has always been thought
that an inter-divisional profit system would be meaningless and of no value by
reason of arbitrary assumptions necessary for the computation of divisional profits.
For the foregoing reasons, I regret to advise again that we cannot give you any
information regarding divisional profits. Please be assured that we wish to co-
operate with the Committee in its investigation, but we cannot furnish the re-
quested information because it is not available and we know of no practicable
manner in which to prepare it.
Sincerely yours,
Geo. J. Mvkray, Jr.
GJM:RR.
CONCENTRATION OF ECONOMIC POWER 10163
Union Oil Company of Caufqrnia
Union Oil Building
W. R. EnwARiis,
Secretary.
K. H. EsTii.L,
AssiftaTit Serrelary.
Los Angeles, Calif., September 6, 1939.
Mr. James R. Braokett,
Executive Secretary, Temporary National Economic Committee,
Apex Building, Washington, D. C.
Dear Sir: In reply to your letter of August 14 asking for an analysis of assets
and income for the various departments of the Company for the years 1^36-38
inclusive, and with reference to our letter of September 1, we are attaching sched-
ules showing the information requested insofar as it is practicable for us to furnish
it.
Generally, the form of the report suggested by you is satisfactory except that
we have added an additional column, "Unallocated", in which we have placed
current assets and net income. Current assets consisting of cash, accounts and
notes receivable, inventories, materials and supplies, have not been allocated to
departments as we see no reasonable way in which such allocation can be made.
The company operates through departments rather than separately incorporated
companies for each departmental activity, and, further, our accounting system
does not provide for departmental allocation of the current assets which might
be required by each department to carry on its current operations provided it had
to separately maintain itself. Physical properties, v/ith applicable depreciation
reserves, have been segregated in accordance with departmental classification.
Gross revenue has been segregated according to departments to show the reve-
nues obtained by such departments, as transportation where services are performed
for other parties. Gross revenues from sales of crude and refined oil products are
shown under the marketing department. Net income (as specified before interest
and dividends) has been placed in the unallocated column. While in the main it
is true that all departmental activities enter into the realizing of net income, it is
impracticable, if not impossible, to determine to what extent each department
contributed to that net income; further, no so-called departmental profit can be
considered realized until the products are finally sold by the marketing department.
We trust the attached statements, together with the explanation above, will
satisfactorily answer your questions.
Very truly yours,
W. R. Edwards, Secretary.
S.
124491— 40— pt. 17-A 14
10164
CONCENTRATION OF ECONOMIC POWER
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10167
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6S2
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(a) ProduLcion (in-
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31, 919, 660. 86
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$42, 345, 735. 20
31, 919, 660. 86
$10,426,074.34
5, 420, 877. 64
95, 503. 00
< 567, 000. 00
^1
Less: Reserves for
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10168
CONCENTRATION OF ECONOMIC POWER
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10184
CONCENTRATION OF ECONOMIC POWER
V o>
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CONCENTRATION OF ECONOMIC POWER 10185
CosDEN Petroleum Corporation
PRODUCERS AND REFINERS PETROLEUM PRODUCTS
Fort Worth, Texas, September 6, 1939.
Temporary Natl Economic Comm.,
Congress of the United States,
Apex Building, Washington, D. C.
(Att: Mr. Jas. R. Brackett, Executive Secretary.)
Gentlemen: We enclose Analysis of Consolidated Assets and Consolidated
Income of the Cosden Petroleum Corporation for the fiscal year ending April 30,
1938, as requested in your letter of August 14.
Under the "Miscellaneous" column in this schedule we show investments that
are not applicable to any individual department but which are used directly and
indirectly by all departments as each department does not maintain a separate
accounting system. These assets, of course, may be prorated to the Production,
Transportation and Refining Departments.
We trust that this information will be satisfactory.
Very truly yours,
Cosden Petroleum Corporation,
j. w. burrbll.
JWB: ACB
Enc.
10186
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
10187
Dan Danciger,
President
Joseph Danciger,
Vice President
Jack Danciger
Vice-President
A. Danciger,
f^ecy. <t Treas.
Danciger Oil & Refining Co.
A CORPORATION
Offices 14th Floor, W. T. Waggoner Bldg. Address Reply, P. O. Box G70.
Fort Worth, Texas, Seplember 6, 1939.
Re: Items il-k(l) and n-k(2) of the "Questionnaire for Oil Companies"
Mr. James R. Brackett,
Executive Secretary, Temporary National Economic Committee,
Congress of the United States, Apex Building, Washington, D. C.
Dear Sir: We wish to acknowledge receipt of your letter of August 15, 1939,
requesting an analysis of the assets and income (on a consolidated basis) of this
Company and its subsidiaries, classified by branches or departments engaged in
production, manufacturing and refining, transportation, and marketing, for the
years 1936, 1937 and 1938. We are attaching the analysis for each of the three
years in question.
In order to make the departmental breakdown required in the attached state-
ments, the following procedure was followed: Current Assets, Non-Current
Security Investments, and Deferred Charges, which in general pertain to the
Companies as a whole, are allocated on the three Departments on the same
percentage basis as Properties, Plants and Equipment.
Total Gross Revenue, as shown in the attached statements, is after elimination
of inter-company and inter-department sales. The books of each department
reflect these inter-company and inter-department items. In allocating Gross
Revenue to the three departments, we have ascertained the percentage which
the gross revenue (including inter-company, etc., items) of each department bears
to the total revenue (including inter-company, etc., items), and have applied the
resulting percentages to the Gross Revenue with intercompany, etc., items
eliminated.
Marketing assets are comparatively negligible in amount, and are included
with Refining and Manufacturing assets. Properties, Plants and Equipment are
stated at cost. Reserves for Depreciation and Depletion give effect to adjustments,
made in later years, in accordance with agreements reached with the Bureau of
Internal Revenue.
If further information is desired, kindly let us know.
Very truly yours,
Danciger Oil & Refining Company,
By G. B. Magruder, Jr.
CMS:H
Danciger Oil & Refining Company
Analysis of consolidated assets and consolidated income, classified by departments
1936
Total
Production
Transportation
Refining and
manufacturinf?
Amount
Per-
cent
Amount
%of
total
Amount
%of
total
Amount
%of
total
Assets Used or Employed:
1. Properties, Plant and
Equipment
Jjess: Reserves for De-
preciation and De-
pletion ..
$6,110,323.35
2, 244, 139. 48
100
100
$3,415,827.09
1, 273, 795. 36
56.0
57.0
$429, 563. 42
175, 668. 75
7.0
7.6
$2. 264, 932. 84
794, 675. 37
37.0
35 4
Net -.
3, 866, 183. 87
1, 566, 365. 88
1,361.75
45, 529. 95
100
100
100
100
2, 142, 031. 73
877, 164. 90
762. 58
25, 496. 77
55.4
56.0
56.0
56.0
253, 894. 67
l09, 645. 60
95.32
3, 187. 10
6.5
7.0
7.0
7.0
1, 470. 257. 47
579, 555. 38
503. 85
16, 846. 08
38 1
2. Current Assets
3. Non-Current Security
Investments
6. Deferred Charges
37.0
37.0
37.0
$5, 479, 44 L 45
100
$3,045,455.98
55.6
$366, 822. 69
6.7
$2,067,162.78
37.7
10188
CONCENTRATION OF ECONOMIC POWER
Analysis of consolidated assets and consolidated income, classified by Departments-
Continued
1936— Continued
Total
Production
Transportation
Refining and
manufacturing
Amount
Per-
cent
Amount
%of
total
Amount
%of
total
Amount
total
Income:
1. Gross Revenue
Ratio to Total Assets.
2. Net Income Before
Interest and Divi-
dends. . -
$6,383,861.57
116. 50
343, 918. 20
6.28
100
100
$3, 236, 617. 82
106.28
119, 781. 37
3.93
50.7
34.8
$223, 435. 14
60.91
4,914.15
1.34
3.5
1.4
$2,923,808.61
141.44
219, 222. 68
10.6
45.8
63.8
Ratio to Total Assets.
1937
Assets Used or Employed:
1. Properties, Plant and
Equipment- - _ .
.$6,825,800.96
2, 734, 157. 45
100
100
$3, 951, 476. 71
1, 500, 439. 95
57.9
54.9
$428, 464. 67
212, 932. 54
6.3
7.8
$2,445,859.68
1, 020, 784. 96
35.8
Less Reserves for De-
preciation and De-
pletion
37.3
Net -
4,091,643.51
1, 717, 621. 56
4, 958. 98
36,036.79
100
100
100
100
2, 451, 036. 76
994, 502. 87
2, 87;. 25
20, 865. 30
59.9
57.9
57.9
57.9
215, 532. 13
108, 210. 16
312. 42
2, 270. 32
5.3
6.3
6.3
6.3
1, 425, 074. 62
614.908.53
1, 775. 31
12, 901. 17
34.8
2. Current Assets..^
3. Non-Current Security
Investments
6. Deferred Charges
35.8
35.8
35.8
$5, 850, 260. 84
100
$3,469,276.18
59.3
$326, 325. 03
5.6
$2, 054, 659. 63
35.1
Income:
1. Gross Revenue
Ratio to Total Assets.
2. Net Income Before
Interest and Divi-
dends.. . .- . -
$7,487,919.10
127. 99
393, 645. 40
6.73
100
100
$3, 661, 592. 44
105. 54
188, 930. 62
5.45
48.9
48.0
$224, 637. 57
68.84
19, 438. 96
5.96
48.1
47.1
$3,601,689.09
175.29
185, 275. 82
9.02
3.0
4.9
Ratio to Total Assets .
1938
Assets Used or Employed:
1. Properties, Plants and
Equipment
$6, 986, 685. 63
3,151,684.78
100
100
$4,072,049.13
1,658,917.52
58.3
52.6
$413, 637. 64
243, 501. 10
5.9
7.7
$3, 500, 998. 86
1, 249, 266. 16
35.8
Less: Reserves for De-
preciation and De-
pletion
39.7
Net
3, 835, 000. 85
1,932,865.27
1, 261. 75
19,902.86
100
100
100
100
2, 413, 131. 61
1, 126, 860. 44
735.60
11, fi03. 37
62.9
58.3
68.3
58.3
170, 136. 54
114,039.05
74.44
1, 174. 27
4.4
5.9
6.9
5.9
1, 251, 732. 70
691,965.78
461. 71
7, 125. 22
32.7
2. Current Assets
3. Non-Current Security
Investments
6. Deferred Charges
35.8
35.8
35.8
$5, 789, 030. 73
100
$3, 552, 331. 02
61.4
$285, 424. 30
4.9
$1,951,275.41
33.7
Income:
1. Gross Revenue--
Ratio to Total Assets.
2. Net Income Before
Interest and Divi-
dends.
$6, 794, 471. 35
117. 37
1SZ,277.7Z
100
$3, 349, 674, 38
94.30
143, 933. 17
4.05
49.3
$115,506.01
40.47
10, m. OS
3.61
1.7
.$3, 329, 290. 96
170. 62
eeS. 916. 86
i3.es
49.0
Ratio to Total Assets.
CONCENTRATION OF ECONOMIC POWER
10189
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10190
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
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10201
10202
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER
10203
CO 1<» •*
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.3697
97, 183. 76
""7,"972.'50'
2,640.32
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19, 062. 48
6, 892. 00
57, 724. 66
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1, 075, 599. 00
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1. 6645
1, 045, 606. 15
.0569
4. Investments & advances— AflQliated
companies- unconsolidated
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6. Deferred charges -
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1. Gross Revenue
Ratio to Total Assets ._
2. Net Income before Interest and Divi-
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Ratio to Total Assets
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10204
CONCENTRATION OF ECONOMIC POWER
Republic Oil Refining Company
Analysis of consolidated assets and consolidated income
DECEMBER 31, 1936.
Total
C. Refining and
Manufacturing
D. Marketing
Amount
Per
cent
Amount
Per
cent
Amount
Per
cent
Assets Used or Employed:
1. Properties, Plant and Equipment _
Less Reserve for Depreciation
$1, 520, 000. 00
518, 000. 00
100
100
$1, 466, 000. 00
490, 000. 00
96.45
94.60
$.54,000.00
28, 000. 00
3.55
5.40
Net
1, 002, 000. 00
1, 949, 000. 00
100
100
100
100
100
100
100
976, 000. 00
1, 645, 000. 00
97.40
84.40
26, 000. 00
304, 000. 00
2.60
2. Current Assets
15.60
3. Non-Current Security Investment
4. Investments and Advances in Affiliates
Companies— Nonconsolidated
5. Intangible Assets..
6. Deferred Charges. - - .. ..
27,000.00
27.000.00
100
7. Other Assets
8. Totals
2, 978, 000. 00
100
2, 648, 000. 00
88.92
330, 000. 00
11.08
Income:
1. Gross Reserve
8, 966, 000. 00
3tol
123,000.00
lto24
100
100
5, 032, 000. 00
1.9 to 1
123,000.00
1 to 21.52
56. 12
100
3,934,000.00
11.92 to 1
43.88
Ratio to Total Assets
2. Net Income before Interest and Divi-
dends -
Ratio to Total Assets
DECEMBER 31, 1937.
Assets Used or Employed:
1. Properties, Plant and Equipment
Less Reserve for Depreciation . .
$1, 728, 000. 00
669,000.00
100
100
$1,693,000.00
656,000.00
97.98
98.06
$35, 000. 00
13, 000. 00
2.02
1.94
Net
2. Current Assets
1, 059, 000. 00
3, 033, 000. 00
100
100
100
100
100
100
100
1, 037, 000. 00
2, 571, 000. 00
97.92
84.77
22,000.00
462, 000. 00
2.08
15.23
3. Non-Current Security Investment
4. Investment and Advances in Affiliates
Companies — Unconsolidated
25,000.00
25,000.00
8. Intangible Assets.
6. Deferred Charges .
30,000.00
30, 000. 00
7. Other Assets ..
8. Totals ....
4, 147, 000. 00
100
3, 663, 000. 00
88.33
484,000.00
11.67
Income:
1. Gross Revenue . .
12,357,000.00
2.97 to 1
384, 000. 00
1 to 10.8
100
100
8, 255, 000. 00
2.25 to 1
384, 000-,00
1 to 9.53
66.80
100
4,102,000.00
8.47 to 1
33.20
Ratio to Total Assets
2. Net Income before Interest and Divi-
dends
Ratio to Total Assets
DECEMBER 31,
1938.
Assets Used or Employed:
1. Properties, Plant and Equipment
Less Reserve for Depreciation
$2,235,000.00
829, 000. 00
100
100
$2,208,000.00
813, 000. 00
98.79
98.06
$27,000.00
16.000.00
1.21
1.94
Net
1,406,000.00
4,400,000.00
100
100
1,395,000.00
3,976,000.00
99.21
90.36
11.000.00
424,000.00
.79
2. Current Assets..
9.64
3. Non-Current Security Investment
4. Investment and Advances in Affiliated
56,000.00
100
56,000.00
100
20,000.00
ioo
20,000.00
7. Other Assets
8. Total . .
5,882,000.00
100
5, 447, 000. 00
92.60
435.000.00
7.40
Income:
1. Gross Revenue . -.
16, 810, 000. 00
2.85 ^0 1
-353,000.00
1 to 16.66
100
12, 912, 000. 00
2.37 to 1
-353,000.00
1 to 15.43
76.81
3, 898, 000. 00
8.96 to 1
23.19
Ratio to Total Assets
Ratio to Total Assets
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10206
CONCENTRATION OF ECONOMIC POWER
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43 « S ®
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10207
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10210 CONCENTRATION OF ECONOMIC POWER
Standard Oil Company, Inc., in Kentucky
Analysis of consolidated assets and consolidated income, classified by branches or
departments
YEAR 1930
Total
(1) Marketing
(2) general In-
vestments
Miscellaneous
Amount
Per-
cent
Amount
%of
total
Amount
%of
total
Amount
%of
total
Assets Used or Employed:
1. Properties, Plant and Equipment-
329.0
137.8
100
100
Less: Reserves for Depreciation,
Depletion and Amortization
Net
191.2
51.7
89.8
100
100
100
100
100
100
100
191.2
51.7
.4833
.1307
2. Current Assets
3. Non-current Security Invest-
ments .
89.8
.2270
4. Investments and Advances in Af-
filiated Companies-Unconsoli-
dated
6. Intangible Assets.
• 2.8
1.4
58.7
2.8
1.4
68.7
.0071
.0035
.1484
6. Deferred Charges
7. Other Assets — Mdse. Inventory..
8. Totals -- -
395.6
100
305.8
.7730
89.8
.2270
Income:
1. Gross Revenue — less Federal &
State Excise Taxes
460.0
100
.1163
Ratio to Total Assets :..
2. Net Income Before Interest and
Dividends . .
37.9
100
.0959
Ratio to Total Assets
(1) (a) Production, (b) Transportation, (c) Refining and Manufacturing; (2) Foreign Petroleum Branches;
(3) Investments, etc. Columns eliminated — We have no investment.
YEAR 1937
.\ssets Used or Empjoyed:
1. Properties, Plant and Equipment
Less: Reserves for Depreciation,
depletion and Amortization
339.3
136.7
100
100
Net -
202.6
61.3
70.9
100
100
100
100
100
100
100
202.6
61.3
. 5055
.1529
2. Current Assets
3. Non-Current Security Invest-
ments -
70.9
.1769
4. Investments and Advances in Af-
filiated Companies Unconsoli-
6. Intangible As.«et3
3.5
1.7
60.8
3.5
1.7
60.8
.0087*
.0042-
.1517
7. Other Assets — Mdse. Inventory
8. Totals - --
400.8
100
329.9
.8231
70.9
.1769
Income:
1. Gross Revenue— Less Federal &
State Excise Taxes
534.9
100
133.5
Ratio to Total Assets
2. Net Income before Interest and
41.8
100
104.3
Ratio to Total Assets
CONCENTRATION OF ECONOMIC POWER
10211
Analysis of consolidated assets and consolidated income, classified by branches or
departments — Continued
YEAR 1938
Total
(1) Marketing
(2) general In-
vestments
Miscellaneous
Amount
Per-
cent
Amount
%of
total
Amount
total
Amount
%of
total
Assets Used or Employed:
1. Properties, Plant and Equipment.
Less: Reserves for Depreciation,
Depletion and Amortization
354.1
141.1
100
100
Net
213.0
64.6
69.4
100
100
100
100
100
100
100
213.0
64.6
.5184
.1572
2. Current Assets
3. Non-Current Security Invest-
ments
69.4
.1689
4. Investments and Advances in Af-
filiated Companies Unconsoli-
dated. _
5. Intancible Assets
4.8
1.8
57.3
4.8
1.8
57.3
.0117
.0044
.1394
6. Deferred Charpes '
7. Other Assets..
8. Totals
410.9
100
341.5
.8311
69.4
.1689
Income:
1. Gross Revenue
518.1
100
126.1
Ratio to Total Assets
2. Net Income before Interest and
Dividends.
37.7
100
.0917
Ratio to total Assets
H. W. PiEBPONT, President
Standard Oil Company
(Nebraska)
Omaha, Neb., August 21, 1939.
File A
Mr. James R. Brackett,
Executive Secretary, Congress of the United States,
Apex Building, Washington, D. C.
Dear Sir: I have your letter of August 14th requesting certain information
to Items 11-k (1) and 11-k (2).
Inasmuch as our company is a marketing company only, there is no further
information for us to give.
Yours very truly,
H. W. PlERPONT.
12441)1— 40— pt. 17- A-
10212
CONCENTRATION OF ECONOMIC POWER
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02S
CONCENTRATION OF ECONOMIC POWER
10213
i
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