jHE ample facilities of OVn OFFICE ARC AT YOUR DISPOSAL TO BUY, SELL OR OB- TAIN THE BEST MARKETS ON STAND- ARD OIL ISSUES AND WE FEEL CONFIDENT OUR SERVICE WILL BE NOT ONLY SATISFAC- TORY BUT SUPERIOR TO ANY oTHE|,.^ U8HAKY OF THE MAY 2 0 1932 iff vtHSlTY ©F ILUNCIS STANDARD 3SIDIARIES . I SUBS. EN BLOC FACTIONS I OLD STOCK ISSUES ARL H. PFORZHEIMER & CO. 26 BROAD STREET NEW YORK CITY TELEPHONES 4860.1-2-3-4 BROAD Weekly Summary Our Weekly Summary off Avail-! able Public Infformation, which has become indispensible to thousands off investors in oil securities, will be sent to you regularly upon request. Independent Oil Booklet Our Booklet on independent! Oil Stocks containing data oi\ 196 miscellaneous oil com- panies, will be supplied upor^ application. Special Information We are also in a position to ffurnish the ffullest and most ac- curate infformation available in reply to any particular inquiries that might be made in regard to the oil securities. CARL H. PFORZHEIMER & CO. NEW YORK CITY 25 BROAD STREET TELEPHONES 4.860>1.2-3-4 BROAD STANDARD ^^^^^3 OIL STOCKS fHE LIBRARY OF THE ^ MAY 2 0 1932 UNIVtHSITY OF ILLINOIS. SIXTEENTH EDITION 1918 Copyrighted June, 1918, by GENERAL SERVICE CORPORATION 52 Wall Street, New York TABLE OF CONTENTS Page Foreword 3 Crude Oil Prices 15 Ang-lo-American Oil Company, Ltd 21 Atlantic Refining Company 23 Borne Scrymser Company 28 Bucl^eye Pipe Line Company 29 Chesebrough Manufacturing Company 32 Colonial Oil Company 33 Continental Oil Company 34 Crescent Pipe Line Company 35 Cumberland Pipe Line Company, Inc 31 Eureka Pipe Line Company 39 Galena-Signal Oil Company 41 Illinois Pipe Line Company 45 Imperial Oil Company, Ltd 102 Indiana Pipe Line Company 47 International Petroleum Company, Ltd ■ 10?^ Market Range 64-65 National Transit Company 49 New York Transit Company ". 5^ Northern Pipe Line Company • 54 Ohio Oil Company 55 Penn-Mex Fuel Company 58 Pierce Oil Corporation 61 Prairie Oil and Gas Company 68 Prairie Pipe Line Company 70 Solar Refining Company 72 Southern Pipe Line Company 74 South Penn Oil Company 76 South West Pennsylvania Pipe Lines 79 Standard Oil Company of New Jersey ' 96 Standard Oil Company — California 81 Standard Oil Company — Indiana 87 Standard Oil Company — Kansas '91 Standard Oil Company — Kentucky 93 Standard Oil Company — Nebraska 95 Standard Oil Company — New York 112 Standard Oil Company — Ohio 117 , Swan and Finch Company 119 Union Tank Line Company 112 Vacuum Oil Company 124 Washington Oil Company 127 FOREWORD SINCE the publication of the 1917 booklet on Stand- ard Oil Stocks, the oil industry has undergone a full year of operation under war conditions and with earnings subjected to the impost of war taxes. It is a matter of congratulation that in anticipa- tion of any call from the National Government or its Allies, the oil industry, as a whole, putting aside all ^ consideration of individual profit, got together in a S spirit of wholehearted co-operation and offered united S support in meeting the war demands of the nation. * When it was deemed advisable by the Fuel Admin- istrator to name an oil director to co-operate with the 2 industry, the Government's choice fell by good for- ^ tune upon Mark L. Requa, of California, an engineer of international reputation with practical experience in oil production. Mr. Requa found an united industry ready and anxious to sink private interest for the public good; with no disposition to profit by the in- ternational necessity for petroleum products and a universal willingness to work and sacrifice to win the war. As a result governmental intrusion in the con- duct of the industry has been entirely of a construc- \ five rather than a corrective nature. The oil director and his staff have been successful " in oibtaining a priority classification for oil shipments, in improving the movement of tank cars and in ob- taining for oil producers an acceleration of deliveries of well drilling supplies. ^' The industry of itself has been entirely equal to J the problem of meeting the increased demand for pe- ^ troleum products of all kinds. Where domestic and ex- 1^ port needs have not been met within the past year, the ^ fault cannot be ascribed to a lack of supplies but to f lJTH(ena-Sli:nai oii <'(> < ' rn 50V/: 8,000,«MM> 1*^.000.000 'la lena-Si^na! <'>il < V. Pfd 2.000,000 2.000,000 Sniar Refini ntr rurnpanv 300 500.000 2.000,000 ><>u*h Penn Oil •'"ompany 300'^,^ 100% 2.500.000 12.500.000 Standard Oil. Kansas .. . 100% ... 1.000.000 2.000,000 .«?tandard Oil, Nebraska.. 25% .... 800.000 1,000.000 Standard Oil, New York 400% .. ^ft.OOO.OOO 75.000.000 nVaters-Pierce Oil Co.... 2625% .... 400,000 10,500,000 •'Standard Oil, Kentuckv 200' r .1^1,000.000 .1?3.O00,O0O ^Standard Oil, California, 107^ 44,933,994 50,000,000 '015 ^Ohio O'l Com-oany 1. S3 1-3% $20,000,000 oprairie Oil & Gas Co 150% 27,000,000 1916 Standard Oil Co., Calif... 50% .... $50,000.(100 $75,000,000 'National Transit Co 12,727,575 6,362,500 Swan & Finch l(K)% 500.000 1,000.000 ("^hesebrougrh Mfsr. Co... 200% .... 500.000 1.500.000 'Standard Oil r^o.. Ohio... 100% ,. . 3.500,000 T.OOO.OOO "^Colonial Oil Company 1917 South Penn Oil Company. 60% $12,500,000 $20,000,000 Standard Oil Co., Calif.. 33 1-3% 75,000,000 100,000,000 ''Ohio Oil Company 15,000,000 60,000,000 lostandard Oil, Indiana 30,000,000 Standard Oil. Kentucky. . 100% .... 3,000,000 6.000.666 Cumberland P'pe Line .50% 1 000-000 1,500,000 ^^Continental Oil Co 3,000,000 12,000,000 8 Growth of Capitalization 1918 i2Ang-lo- American Oil Co. oO'^c $10,000,000 $15,000,000 isswan & Finch Company 50 9r 1,000,000 1,500,000 "Galena Signal Oil, Pfd 20^o 2,000,000 8,000,000 Galena Signal Oil, Com 20'/o 12,000,009 16,000,000 1 — Continental Oil Company (of Colorado) was incorporated with $3,()00,0(»U capital stock to acquire the Continental Oil Company (of Iowa), having- a capital stock of $300,- ooo. the exchange being made on the basis of ten shares for one. 2 — Waters-Pierce Oil Company was absorbed July 25, 1913, by the Pierce Oil Corporation. The terms of exchange being $1,250 in cash and $2,625 in new stock. 3 — Standard Oil Co. of Kentucky increased is authorized capital stock to $3.U00,U00 by declaring a cash dividend of 200 per cent, and awarded rights to Its stockholders to subscribe at pai for two shares of new stock for each share of old stock. The stockholders thereupon used their cash dividend to exercise their subscription rights. 4 — Stockholders of Standard Oil, California, met on March 16, 1914, and approved the proposition to increase the authorized capital stock from $50,000,000 to $100,ooo.ouO. The company will take no action on this capital increase until business conditions are thoroughly normal. How- ever, the company on February 2, 1914, awarded the shareholders the privilege of purchasing 45,184 shares of treasury stock at par. This was equivalent to subscrip- tion rights of 10 per cq-.l. on the outstanding stock and raised the issued capital to $49,686,655. 5 — Ohio Oil Company in separating its pipe lines from its producing properties, formed the Illinois Pipe Line Com- pany, capital $20,000,000 and, turned over its transport- ation properties in return for the $20,000,000 capital stock, which was then distributed pro rata among Ohio Oil Company shareholders. 6 — Prairie Oil & Gas Company in separating its pipe line properties formed a $27,000,000 corporation, the Prairie Pipe Line Company, the stock of which was then dis- tributed pro rata, in the shape of a 150 per cent, stock dividend, among Prairie Oil and Gas Company share- holders. 7 — National Transit Company reduced its capitalization one-half by retiring 103 shares and distributing a 50 per cent, cash dividend ($12.50), leaving the same nuniOti of shares outstanding, but reducing the par from $2.' to $12.50. 8 — Colonial Oil Company distributed 100 per cent ($250,000) in liquidation. 9 — Ohio Oil Company authorized an increase of capital to $60,000,000 and the directors declared a 300 per cent, stock dividend by raising the par value of 600,000 shares from $25 to $100. The Secretary of State of Ohio refused to sanction this method and the matter is in abeyance. 10 — Standard Oil Company of Indiana stockholders have authorized an increasing- capital to $100,000,000 but no steps have been taken to distribute the increase. 11 — Continental Oil Company shareholders have authorized an increase to $12,000,000, but no steps have been taken to adjust the capital. 12 — Anglo-American Oil stockholders enjoyed "rights" to subscribe to 50 per cent, of their stock holding at 150 per cent, of par ($7.50). Dividend Disbursements 9 13 — Swan & Finch stockholders on May 2, ISIS, authorized a capital increase to $2,000,000 and subscription rights at par to 50 per cent, of present holdings will be ex- tended. 14 — Galena Signal Oil Company stockholders on May 21, 1918, authorized an increase of preferred stock to $10,- 000,000 and common stock to $20,00u,000, of vx'hich $2,- 000,000 preferred and $4,000,000 common vs'ill be paid for new properties. The $20,000,000 stock then out- standing will enjoy the right to subscribe at par to $4,000,000 additional preferred stock. Dividend Payments The progressive earning pov/er of this group of companies is rejected not only in the growth of their capitalization but also in the increase of cash divi- dend disbursements and expansion of net assets. The significant record of cash dividend disbursements by years and quarters is shown in the foUovvang table: First Second Third Foui-th Quarter Quarter Quarter Quarter Total 1918 $26,483,747 $25,293,752 ! . . . 1917 23,097,668 26,428,252 $22,968,751 $27,463,252 $98,627,875 1916 22,179,085 *30. 406,454 21,980,168 24.002,168 98,627,875 4915 15,241,966 14,368,636 15,891,966 16,898,636 62,401,204 1914 17,904,636 16,426,306 14,430,636 14,931,306 63,692,884 1913 t55,652,423 15,552,096 15,213,746 21,377,096 107,795,361 1912 10,220,396 11,983,746 13,190,396 16,392,096 51,786,631 ♦Includes $250,000 disbursed by Colonial Oil Company in liquidation, and $6,363,786 disbursed by National Transli Company from accumulated assets to reduce its capital 50 per cent. tincludes $39,335,352 disbursed by Standard Oil Company of New Jersey from repayment of loans to former subsidiaries. Increase in Net Investment More striking perhaps is the growth in net assets which can be shown by taking a group of selected companies which have furnished financial statements continuously since the dissolution: Net Investment COMPANY Dec. 31, 1912 Dec. 31, 1917 Ang-lo-American Oil Company $13,005,686 *,$20,996,208 Atlantic Refining- Company 23,404,623 51.763,107 Ohio Oil Company 64,225,412 t80,950,749 Prairie Oil & Gas Company 55,217,688 t71, 743,457 Solar Refining Company 3,512,179 4,649,118 South Penn Oil Company 16,408,286 26,997,129 Standard Oil Company — California. 65,129,996 114,645,688 Standard Oil Company — Indiana... 40,216,046 119,845,588 Standard Oil Company — Kansas. . . . 2,088,479 5,361,665 Standard Oil Company — Kentucky . 3,799,252 8,356,345 • Standard Oil Company — New York. 74,386,338 101,467,574 Standard Oil Company — Ohio 7,540,345 ' 15,150,311 Swan and Finch Company 1,088,689 1,559,088 Union Tank Line > $885,881 17,463,778 Vacuum Oil Company 29,675,276 55,134,939 *As of Deceriiber 31, 1916. fAfter separation of pipe line ) properties. tDeficit. 10 After the War Prospects These figures show the steady accumulation of equities for the shareholders in addition to the liberal dividend policy of these companies and presage a continuation in the future of the policy of progressive capital adjustments through stock dividends. The data heretofore set forth demonstrates the ability of these companies to maintain their progres- sive increase in earnings in spite of the handicaps of increased costs of labor and materials and transpor- tation difficulties, which are incident to war time con- ditions. In their relations with labor, these com- panies have been happy in anticipating the rising scale of living costs for all their employees by wage advances and bonus systems. Future of the Industry In looking forward to the post war period, it must be remembered that none of these companies have been called upon to make outlays for special construc- tion. Hence there will be no necessity to write off' against earnings, large sums for special investment, as will be the case with so many other industrial concerns. The effect of peace upon the industry, will be. exceedingly stimulating, as it will release a great number of tankships now in service with the allied fleets and put them into service, restoring the de- pleted petroleum supplies of all European and Ori- ental countries. One of the outstanding effects of the world war has been the tremendous wastage of horses, which will result and already has resulted in recourse to motor tractors for tillage, as well as for general trans- portation. The effect of this practically will be to double the European demand for motor spirit. The close of the war will also bring about a more general use of oil as fuel in marine transportation. A large proportion of the vessels now being rushed to completion in the ship yards of the United States and England are oil burners and the demands for liquid fuel, will bring that branch of the industry into almost equal prominence with the manufacture of gasolene. Standard Oil Company of New Jersey, , Standard Oil Company of New York, Atlantic Refining Company, Vacuum Oil Company and Standard Oil Company of California, already have fortified them- selves to hold dominant positions in the international fuel oil trade. Sxpansion Due to Motor Vehicles 11 Finally the close of the war will bring about a resumption in capacity output for motor driven vehicles, motor trucks and farm tractors, as well as pleasure cars and a consequent increase of the de- mand for motor spirit and lubricants. Stimulus of Automobile Industry It seems hardly necessary to state that the expan- sion of the oil industry in the last five years has been the result of the enormous growth in the use of self-propelled vehicles. This situation has been treated exhaustively by the Federal Trade Commission in its report on the "Cost of Gasolene." The Commission's investigation covered only the year 1915, but disclosed that the total horsepower of gasolene engines manufactured in the country was 11,279,143 h. p. in 1913; 13,887,331 h. p. in 1914 and 22,524,858 h. p. in 1915. Figures for 1916 and 1917 on total horsepower are not available but the result of this increase in internal combustion engines is reflected in the refinery output of gasolene. The intimate relation between the growth of the automobile industry and the expansion of the oil industry may be summed up graphically in the fol- lowing table: Kegristered Refinery Produc- Crude Oil Automobiles in tion Gasolene Marketed United States (Gallons) Bbls. (42 gals.) 1917 4,941,276 2,729,712,033 341,800,000 1916 3,544,952 2,058,880,596 300,767,158 1915 2,423,788 1,849,790,000 281,104,104 1914 1,508,000 1,460,037,200 265,762,535 1913 1,191,000 1,099,350,000 248,381,744 The increase in refinery output of gasolene be- tween 1913 and 1917 was 1,630,362,033 gallons or 150 per cent, in the four year period. The marketed pro- duction of crude oil increased in the same time only 39 per cent. The discrepancy was met by the introduction of pressure stills in refining practice to obtain a higher yield of gasolene, by accustoming consumers to use a a lower gravity gasolene which enabled refiners to utilize a larger proportion of their naphthas for motor spirit and by the use of casinghead and absorption gasolenes. In spite of the immense increase in gasolene con- sumption, refiners have been able to avoid a gasolene shortage without unduly expanding their refining plants or increasing too greatly their output of their by-products. 12 The Gasolene Situation The gasolene problem in 1918 is discussed in an informed manner by R. D. Leonard, general manager for Domestic Sales of the Atlantic Refining Company. In a recent pamphlet on the ''Relation Between Gas- olene and the Growth of the Automobile Industry," he says in part: "The subject of immediate interest in the meeting of the demand for gasolene for the year 1918, and it should be understood that any prediction or prophesy of how this will be accomplished must be based on the past experiences as revealed by the statistics of the petroleum industry, and not on any assured facts pertaining to the future. The gaso- lene requirements for the year 1918 must of necessity come from the crude oil produced from the earth, and from the natural or "casing head gases that likewise are produced from internal or unseen regions. The only visible or definite stock of supply is the crude oil that is held in storage above ground, and it would be rather a discouraging outlook, as the normal stocks of crude oil available in storage are seldom in excess of Ave- or six months' consumption requirements, in addition to which the gasolene in stock at refineries is seldom in excess of thirty to sixty days' requirements, if it were not for the optimistic view that the previous experiences of the pe,tro- leum industry put into the matter. The latest figures which are available indicate the stocks of crude oil and gasolene as follows: — Crude Oil Producers' Tank? 120,000,000 barrels Pipe Line — Storage 92,500,000 barrels Total 212,500,000 barrels ' Equivalent in Gasolene Approximatelj^ . . . 34,000,000 barrels Gasolene in Stock at Refineries 6,000,000 barrels "The .experience of the past is that in addition to the regular production being used up to meet the demand for petroleum that stocks have been draAvn on each year for some time past to keep up with the demand. In 1916 it is estab- lished that the crude oil in storage was drawn up to the extent of 24,000,000 barrels, and in 1917 the crude oil stocks were further reduced by approximately 24,000,000 barrels. Although the figures as stated above are not very optimistic, yet the past experience of the petroleum industry indicates that the demand has always been met, and that it is nothing unusual for both the producer and refiner to face apparent shortages and to find the medium of keeping abreast of the demand. Refining and Yield of Gasolene "Assuming that the production of oil in 191S will increase in the same proportion as the production of 1917 over 1916, the problem then becomes one of comparing the estimated consumption or demand of gasolene with the possible produc- tion of gasolene from crude run by the refineries throughout the country. It is generally estimated that the 234 refineries throughout the country have a still capacity for running crude oil considerably in excess of the available production figures, so that it is generally understood there is no shortage in refinery still capacity at the present time io take care of the maximum crude oil production. From a study of the avail- able figures it is apparent that approximately s,". per cent, of the crude oil produced in this country is ru)^ in refinery stills. The Gasolene Situation 13 and that 15 per cent, of the crude oil produced goes direct to railroads and others for fuel purposes. A chart showing the production of crude and the gasolene yields from crude and from other sources would be about as follows: Estimate Production in 1918 Crude Produced and Values 1917, li'/c (42j 388,000,000 Crude Run at Renneries S2% {^2) 318,100,000 Yield of Gasolene 21 per cent Gasolene (50) 56,100,000 Casing Head and Absorption 5,000,000 61,100,000 Consuini>4;ion in 1918 Domestic Autos (4,500,0Gu ) . . ' Barrels 45,000,000 Industrial and Other Barrels G, 100,000 Export and War Barrels 13,000,000 63,100,000 Shortage Barrels 3,000,000 Stock, January 1, 1918 Barrels 6,000,000 "Although the above figures indicate that the available gasolene from crude oil produced in the United States and the gasolene from other sources for the year 1918 is short of the actual demand, it is possible that this shortage would be made up from the stocks of gasolene available from crude oil drawn froin storage, and to some slight extent from the yield of gasolene from Mexican crude, which was not included in the figures given. The problem of facing an apparent shortage is simply a repetition of the past history of the petroleum industry, and if the problem is left in the hands of the men who have been vital in the building up of the industry in the past, the supply for the year 1918 will un- doubtedly be very amply met." Position of Group in industry Bearing upon the position witiiin the oil industry of the Standard Oil companies and recalling that the gasolene business is now the basic factor of the oil trade, the following excerpt from the recent gasolene report of the Federal Trade Commission is illumin- ating : "On the basis of tank-wagon sales in towns having a population of 2,500 or over, estimates have been made of the relative volume of the sales of gasolene by the several Stand- ard companies in their respective territories. As these esti- mates are based upon only a part of the total business, and as the Commission is not in possession of complete statistics of the so-called independents, the estimates must be taken with allowance for a small margin of error. The figures, however, are believed to be approximately the correct per- centages, and indicate fairly accurately the comparative posi- tion of the several Standard companies in their respective territories. They show that the Standard companies control approximately 65 per cent, of the gasolene business through- out the United States. Although their ]iercentage of control has declined since 1906, when testimony taken in the Standard Oil case showed them to possess approximately 8 5 per cent, of the business, nevertheless they still occupy a dominant position in the trade, and the aggregate volume of their busi- ness has increased. 14 Marketing: Territory "Moreover, a material part of the apparent decline in percentage of control by Standard companies is due to the fact that certain large companies, in which various Standard stockholders have considerable interests, are classed as 'inde- pendents' in this report. Standard stockholders owned about 30 per cent, of the stock of the Tidewater Oil Company and about 25 per cent, of the stock of the Texas Company, which are here classed as 'independent.' "Another company included among- the 'independents' in 1915 is the Midwest Refining Company, though it is known to have operated in such a way as to have made it an ally rather than a competitor and is now reported to have come nnder the direct control of the Imperial Oil Company (Ltd.) of Canada, which is a Standard concern. These facts indicate that the statement that Standard companies controlled ap- proximately 65 per cent, of the gaisolene business of the United States is conservative. It does not mean that all the remain- ing: 35 per cent, of the business was strictly competitive. "Estimated percentages of the total quantity of gasolene sold in the several Standard marketing territories by the geveral Standard companies operating therein during 1915: Per Cent, of Total Territory of — Sales of Gasolene Standard of New York 70 Atlantic Refining Company 70 Standard of Ohio 70 Continental Oil Company 63 Standard of New Jersey 60 Standard of Nebraska 60 Standard of Indiana 60 Standard of Kentucky 50 Standard of California 48 Standard of Louisiana 33 Magnolia Petroleum Company 27 "At a hearing by the Commission on June 12 and 13, 1915, representatives of the Standard Oil Company of New York, stated that 70 per cent, was approximately correct for their territory to the best of their knowledge. Representatives of the Standard of Ohio also stated that according to oil inspec- tion records in Ohio, their company sold about 65 per cent, of the gasolene in that State, which figure is only a little less than the Commission's estimate. The Indiana percentage, it should be observed, applies to the whole territory, but in some States — as in Kansas and Iowa — the percentage was somewhat lower. Indeed, the Indiana company's volume of sales for Kansas, computed on the basis of tank-wagon sales at towns of 2,500 or over, w^as only 46 per cent, in 1915." Petroleum Production and Prices The amount of crude petroleum marketed in 1917 established a new high record according to the pre- liminary estimate of the United States Geological Sur- vey. The Government figures covering petroleum consumption for the past six years are as follows: Bbls. 42 Gals. 1917 341.800,000 300,767,158 1915 281,104,104 1914 265,762,535 1913 248,381.744 1912 237,298,340 Crude Oil Prices 15 The Geological Survey's monthly summary of field statistics gives the amount of crude oil in storage on December 31, 1917, as 120,616,240 barrels in all fields outside of California, while the latter had 32,450,465 barrels above ground, making a total of 153,066,705 barrels at the close of last year. These figures com- pare with 125,039,125 barrels on December 31, 1916, in all fields east of the Rocky Mountains and 44,036,190 barrels in California, making a total storage on De- cember 31, 1916, of 169,075,415 barrels. TJiis withdrawal of practically 1,500,000 barrels monthly on reserve stocks, together with the neces- sity for stimulating production, which had begun to lag because of the scarcity and high cost both of labor and drilling materials, resulted in a steady up- ward movement for all grades of crude oil throughout 1917 and into 1918, when $4 a barrel for Pennsylvania crude and $2.25 a barrel for Mid-Continent oil estab- lished new high levels for the industry. The course of the crude oil markets for the principal grades in the last three years is shown in the following tables: PENNSYLVANIA CRUDE Produced in Pennsylvania, New York, West Virgrinia and Southeastern Ohio 1918 1917 1916 High Low Higrh Low Higrh Low January . . . $3.75 $3.75 $3.05 $2.85 $2.35 $2.25 February . . 4.00 3.75 3.05 3.05 2.40 2.35 4.00 4.00 3.05 3.05 2.60 2.40 4.00 4.00 3.10 3.05 2.60 2.60 4.00 4.00 3.10 3.10 2.60 2.60 3.10 3.10 2.60 2.60 July 3.10 3.10 2.60 2.50 August .... 3.50 3.10 2.50 2.30 September . 3.50 3.50 2.40 2.30 October.. . . 3.50 3.50 2.60 2.40 November . 3.50 3.50 2.60 2.60 December . 3.75 3.50 2.85 2.60 MID- CONTINENT Produced in Oklahoma, Kansas and North Texas 1918 1917 1916 Hig^h Low Hig:h Low Higrh Loav January... $2.00 $2.00 $1.70 $1.40 $1.30 $1.20 February.. 2.00 2.00 1.70 1.70 1.30 1.30 March 2.25 2.25 1.70 1.70 1.55 1.30 April 2.25 2.25 1.70 1.70 1.55 1.55 May 2.25 2.25 1.70 1.70 1.55 1.55 June — — 1.70 1.70 1.55 1.55 July — — 1.70 1.70 1.55 .31 August — — 2.00 1.70 1.25 .90 September. — — 2.00 2.00 .90 .90 October ... — — 2.00 2.00 .90 .90 November . — — 2.00 2.00 1.00 .90 December.. — — 2.00 2.00 1.40 1.00 16 Crude Oli riic'c.-« Price changes on other grades of oil are as fol- 1918 lOi: 1916 1 Somerset Hig-h Low Hig-h Low High Low $3.60 .152.55 $3 .,55 $2.20 $3.40 $2.05 Wooster 3.58 2.38 2.88 1,90 1.80 1.50 2.08 3.08 1.58 1.73 1.33 lUinois 2.33 2.18 2.18 1.62 1.83 1.47 Princeton 3.32 2.12 2.12 1.62 1.83 1.47 1.98 1.98 1.43 1.68 1.33 Indiana 3.18 l.?J8 1.98 1.53 1.58 1.18 Healdton 1,43 1.31) 1.20 .75 .80 .40 3.68 3.43 2.43 3.08 3.13 1.73 North Texas (light) . . . . 2.25 3.00 3.00 1.40 1.55 .90 North Texas (heavy) . . , 1.30 1.05 1.05 .75 .80- .40 North Louisiana (light) . 2.25 2.09 2.00 1.40 1.55 .90 North Louisiana (heavy) 1.35 1.00 1.00 .85 .90 .65 Humble 1.35 1.00 1.00 .80 1.00 .60 1.35 1,00 1.00 .80 1.00 .45 1.35 1.00 1.00 .80 1.00 .60 California (14 degrees) . 1.33 .98 .98. .73 .73 .43 California (25 degrees) . 1.32 1.07 1.07 .83 1.07 .621/2 Wyoming (Elk Basin) . . 1.85 1.70 1.70 1.35 1.35 .60 Wyoming (Big Muddy) . 1.50 1.30 1.20 .90 Mr. Requa in a letter to the Petroleum War Serv- ice Committee, dated May 17, 1918, said the Govern- ment's disposition v/as to favor existing crude oil prices as maximums and to discourage further ad- vances or bonuses. This was received favorably as a stabilizing factor. Gasolene Prices Conforming to the changes in the crude oil mark- ets, the price of gasolene advaneedi until a maximum price of 24 cents wholesale was reached in the New^ York market in March, 1916. There was a recession from this figure to 22 cents and then a rise back to 24 cents in March, 1917, at which price the local market has remained stationary for more than a year. In the Mid-Continent region prices advanced steadily throughout 1917 and one price advance in April, 1918, brought the wholesale price to 22% cents a gallon Chicago basis. The movements of the gasolene m.ark- ets at New York and Boston, are shown as follows: NEW YORK GASOLENE PRICES {Garage Basis) 1918 191 1916 Hif^h Low Hi^h Low Hig^h T $ .22 $ ow January . . . $ .24 $ .24 $ .23 $ .22 .21 February . . .24 .24 .23 .23 .22 .34 .24 !2i .24 .24 .23 April .24 .24 .24 .24 .24 May .24 .24 .'24 .24 .24 June .24 .24 .24 July 24 .24 .24 .24 August .... .24 .24 .2 4 .23 Septeml:»er . .23 .22 October. . . . „24 .24 '*2 .22 November . 24 .24 ,22 ' .22 December . .24 .24 00 .22 Refining Statistics 17 CHICAGO GASOLENE PRICES (Tank Wagon Basis) 1918 1917 1916 High JjOw High Low ±iign January . . . . $ .31 « ? .21 $ .19 9279^ Liabilities 1917 1916 Change Capital Stock $5,000,000 $5,000,000 Depreciation 2,012,442 1,738,189 +$274,253 Accounts Payable. 321,354 309,306 + 12,048 Oil Pur. & Sale Contingent 232,549 337,800 — 105,251 Profit and Loss 4,465,767 4,553, 887 — 88,120 Total Liabilities $12,032,113 $11,939,182 + $92,931 The decline in the company's earnings may be traced to the falling off in its "gathering line" business, due to the progressive exhaustion of the West Virginia fields. Its trunk line traffic, which is less profitable showed an appreciable increase, as it receives all the oil gathered in Kentucky by the Cumberland Pipe Line Company. The Book Value of the stock fell to $189.31 a share, of which $36.78 represents net cash assets. Traffic — Runs, receipts and deliveries of the line since the dissolution are as follows: Runs Other Receipts Deliveries 1918 (3 mos.) 1,506,912 3,181,050 4,791,635 1917 7,144,670 13,678,574 20,496,208 1916 7,737,768 11,064,700 19,992,288 1915 8,368,851 8,450,178 16,191,510 1914 8,986,601 8,709,041 16,285,753 1913 10,764,342 11,245,908 21,948,350 1912 11,499,665 13,394,733 24,656,482 Officers — President — Forrest M. Towl, New York City. Vice-Pres. and Gen'l Mgr. — W. J. Alexander, Parkersburg, W. Va. Vice-President — A. D. McVey. Secretary and Treasurer — E. R. Shepard. Asst. Sec'y and Treas. — C. A. McLouth and E. W. Ziegler. Directors — Forrest M. Towl, W. J. Alexander, J. Cochrane, A. D. McVey, John J. Kinney. Transfer Office — 210 Seneca Street, Oil City, Pennsylvania. Annual Meeting — Fourth Thursday in January. Galena-Signal Oil Company 41 GALENA-SIGNAL OIL COMPANY The Galena-Sig-nal Oil Company was incorporated in 1901 under the laws of Pennsylvania as a consolidation of the Galena Oil Works and the Signal Oil CompanJ^ The Galena Oil Companj^ was organized as early as 1869 by General Charles Miller, who purchased certain patents for making lubricating oils. These oils had immediate success through the striking demonstrations of their results on many railroads in the United States. By 1879 the use of Galena Oils had increased to such an extent that General Miller and his partners controlled the trade in lubricating oils with railroads operating about 40 per cent, of the railway mileage in the United States. Recently the company was credited by Government offi- cials with being one of the first companies whose product successfully passed the chemical and service tests for aero- plane lubrication in the Liberty motor. Capitalization — The present capitalization of the company consists of $2,000,000 eight per cent preferred stock and $12,- 000,000 common stock, the latter having been increased from $8,000,000 by a 50 per cent, stock dividend on May 15, 1913. Stockholders met on May 31, 1918, and authorized an in- crease of the common stock from $12,000,000 to $20,000,000 and to create a new class of 8 per cent, cumulative preferred stock to the amount of $8,000,000. The company also was empowered by the stockholders to make this new preferred stock redeemable on three months' notice at $115 a share. With the approval of the capital increase, the company has arranged to issue $2,000,000 of the new preferred and $4.- 000,000 of the new common stock in part payment for the capital stock of the American Republic Corporation, a holding company for all of the stock of the Republic Production Com- pany and the American Petroleum Company and one-half of the stock of the Petroleum Refining Company, Inc., of which the Galena Signal Oil Company already owns 50 per cent. It is proposed, moreover, to offer an additional $4,000,000 of the new preferred stock for subscription at par, pro rata, to all stockholders. This would make the new capitalization of the company as follows: Authorized Outstanding: 8% Preferred (Old) $2,000,000' $2,000,000 8% Preferred (New) 8,000,000 0,000,000 Common Stock 20,000,000 16,000,000 In the official call for the special meeting, the objects of the proposed increase of capitalization were stated as follows: "To acquire property at Houston, Texas, viz., producing property, on which there are now forty-tw^o wells; the aver- age daily production for the year 1917, being 3,690 barrels; including pump house, rigs, tanks and other equipment. "Tank farm of 141 acres, on which there are forty-eight steel tanks, of 55,000 barrels capacity each, holding in stor- age about 2,271,000 barrels of crude oil; also necessary pump- ing machines and equipment. "The Norsworthy Farm of 80 acres, on the Houston Ship Canal, with dock, tanks, pump house and equipment. "Main pipe line of twenty-four miles of six-inch pipe, with right-of-way owned, together with necessary gathering' lines. "One-half inteVest of new refinery and 550 acres, on the Houston Ship Canal, your company already owning one-half interest. 42 Galena- Sigmal Oil Company "The acquisition of this property will enable your company to extend its business into a larger field of operations and thereby establish a greater degree of permanency for your company. "It may simply and briefly be stated that the production from the Humble Field is a naphthene base oil, from which the finest quality of light colored oils are obtained for the lubrication af all kinds of machinery, such as aeroplanes, automobiles, gas engines, air compressors, turbines, Diesel engines, etc. — oils in every respect that will meet the most exacting specified requirements of the United States Navy, owing to their good body, low cold test and other essential qualities. "The various grades of lubricating oils that can be manu- factured from the Humble Field oil are superior to any other oils to be had in the market, not excluding the Franklin and heavy West Virginia oils, as regards the high viscosity and remarkable low cold test. From a business point of view the possibility of expansion and proper development of this property should cer.tainly make a very valuable acquisition to your com.pany. "There is a great demand for the oils manufactured from the Humble production in this country as well as in European countries and South America — therefore, by acquiring this property your company will be in a position, to supply, de- velop and establish a trade not heretofore possible. "From a very careful investigation, the estimated earnings to accrue as a result of the purchase of these properties would be as follows: Estim,ated Earnings from Property to be Acquired $1,000,000 8% on $2,000,000 Preferred Stock... $160,000 12% on $4,000,000 Common Stock... 480,000 Interest Charges 168,000 808,000 Surplus $193,000 "After the additional $4,000,000 of preferred capital stock is sold and proceeds empl©yed in enlarging refinery and the pur- chase of steamers, tank cars, etc., as mentioned in Notice of Special Meeting, the estimated result of increased capacity would be as follows: Estimated Earnmgs on Property to be Acquired and New Investment $3,000,000 8% on Total New Issue of $6,000,000 Preferred Stock $480,000 12 Yo on $4,000,000 Common Stock.. 480,000 Interest Charges 168,000 1,138,000 Surplus $873,000 "The above estimated statement of earnings is on the new properties to be acquired and the proposed increased capital stock, and does not take into account the business and earn- ings of the company on its present capitalization." The Texas producing, pipe line and refining properties en- umerated are owned by the Petroleum Refining Company, Inc., a Delaware corporation with $1,500,000 capital, and the Republic Production Company and the American Petroleum Company, both Texas Corporations, each capitalized for $1,- 500,000 of stock and $1,500,000 of 6% bonds. $200,000 of the Republic Production Company's bonds have been retired. The American Republic Corporation, a Delaware corporation Galena-Sigmal Oil Company 43 with $10,000,000 authorized capital and $3,000,000 common and $500,000 preferred stock outstanding, owns all the stock of the Republic Production Company and the American Pe- troleum Company and one-half the stock of the Petroleum Refining Company. The Republic Production Company re- ported under the Texas taxation laws an output of 1,670,581 barrels of crude oil in 1917. "It is apparent that with the consummation of its plans the company will become a complete unit in the industry, en- g-aging in the production, transportation, refining and market- ing of crude oil and its by-products. Dividends — Dividends at the rate of 8 per cent, per annum have been paid to date on the preferred stock. Since the dis- ■olution, dividends on the common stock have been paid as follows 1918- — Mar 31 3% $360,000 1914- — Dec 31 3% $360,000 1917- —Dec 31 3% 360,000 Sep 30 3% 360,000 Sep 29 3% 360,000 Jun 30 3% 360,000 Jun 30 3% 360,000 Mar 31 3% 360,000 Mar 31 3% 360,000 1913- —Dec 31 3% 360,000 1916- —Dec 31 3% 360,000 Sep 30 3% 360,000 Sep 30 3% 360,000 Jun 30 4% 480,000 Jun 30 3% 360,000 May 15 50% Stic. Div. Mar 31 3% 360,000 Mar 31 4% 320,000 1915- —Dec 31 3% 360,000 1912- —Dec 31 4% 320,000 Sep 30 3% 360,000 Sep 30 4% 320,000 Jun 30 3% 360,000 Jun 30 4% 320,000 Mar 31 3% 360,000 Mar30 4% 320,000 Total Dividends since dissolution: Properties — This company is engaged in the manufacture of lubricating and signal oils, and has an extensive plant at Franklin, Pa. It also owns and operates plants at Toronto, Canada; Parkersburg, W. Va. ; Boston, Mass.; Rouen, France, and Elizabeth, N. J. The latter plant supplies the export trade. Extensive additions to this plant are now under way on 125,000 square feet of additional land which the com- pany has acquired recently. As a producer of lubricating oils, the company has an extensive and profitable trade with rail- roads throughout the world and manufactures one hundred and thirty different brands of oil for special purposes of railroads. The oils of the Galena-Signal Oil Company are the stand- ard of lubrication, not only among American railways In ireneral, but upon nearly all of the railways of Canada, South America and France, with an increasing demand from other foreign countries. The company's yearly output is more than 800,000 barrels of lubricants, from which it supplies over 90 per cent, of the railroads of this country; 75 per cent, of the total street car mileage of this country; 70 per cent, of the railroads of South America, and a goodly percentage of the street railroads. The company recently has renewed for ten years on a more profitable basis, some of Its important contracts with government-owned French railroads. The Company markets its oils to the railroads under a contract system, guaranteeing a certain mileage performance of equipment with due efficiency, per gallon of oil consumed. This manner of purchasing oils has proven a great saving in the operating expenses of the railroads everywhere, and haa Preferred Common $1,000,000 8,920,000 44 Galena- Signal Oil Company also resulted in building up an enormous business for the Galena-Signal Oil Company. In order to keep in touch with the individual requirements of the various railroads, the company maintains a corps of expert mechanics, who study the requirements and differing conditions to be met with in actual service. With the enormous development of the automobile in- dustry, a demand has arisen for special brands of automobile lubricants, which this company has met with such success that the General Motors Company and other large organiz- ations depend upon it for all lubricants and greases in getting their cars out of the factory. This new line has necessitated the purchase of 23 acres adjoining the company's plant at Franklin, where a compounding plant has been erected for the manufacture of motor oils. The company's new refinery at Galena, Texas, is situated on a 580-acre tract having a half mile frontage on the Hous- ton Ship Canal, in which tankers of 26-foot draft can be handled. The plant now in operation consists of two 1,000- barrel steam stills and eight 500-barrel crude stills. Exten- sions under way will enable the plant to handle 15,000 barrels of crude daily. Dr. E. R. Lederer, formerly chief chemist of the Atlantic Refining Company's Eclipse plant at Franklin, Pa., is in charge of the refinery, which will supply a large part of Galena's foreign business. The company's balance sheet as of December 31, 1917, compares as follows: Assets: 1917 1916 Cash $.363,32^ $1,293,165 Securities 1,851,645 1,002,206 Accounts Receivable 5,780,110 4,618,251 Inventory 2,520,792 1,855,207 Property and Plant 1,658,688 1,218,538 Goodwill, etc 6,950,000 6,950,000 Total Assets $19,074,557 $16,937,367 Liabilities Preferred Stock $2,000,000 $2,000,000 Common Stock 12,000,000 12,000,000 Accounts Payable 2,371,475 1,160,812 Contingency 1,617,881 902,861 Surplus 1,085,201 873,694 Total Liabilities $19,074,557 $16,937,367 Earnings of $2,526,527 are indicated for 1917 in that $211,- 552 was added to surplus and $715,020 to Contingency Reserve after payment of $1,600,000 in dividends. Earning were equal to about 16.90% on the common stock. This compares with Indicated earnings of $1,804,682 for 1916, equal to about 11.74% on the common stock. While the company's cash resources decreased during the year and its accounts payable doubled in amount, the com- pany increased its working capital to $8,094,394, an increase of $486,377 over the amount at the close of the previous year. Officers — President — General Charles Miller. Vice-President — C. C. Steinbrenner. Officers — President — General Charles Miller. Vice-President — C. C. Steinbrenner. Vice-President — L. J. Drake, Jr. Vice-President — G. C. Miller. .■ Secretary — J. French Miller. Assistant Secretary — G. F. Proudfoet. Treasurer — E. H. Sibley. Illinois Pipe Line Company 45 Directors — General Charles Miller, L. J. Drake, Jr., C. C. Steinbrenner, George C. Miller, J. French Miller, D. D. Mallory and G. F. Proudfoot. Transfer Office — Liberty and South Park Streets, Franklin, Penna. Annual Meeting — Fourth Tuesday in February. ILLINOIS PIPE LINE COMPANY The Illinois Pipe Line Company was incorporated in De- cember, 1914, under the laws of Ohio, to take over the Ohio Oil Company's trunk and gathering: pipe line systems, with the equipment belonging thereto, in the States of Illinois, Indiana, Ohio and Pennsylvania. Capitalization — $20,000,000. Par value, $100. The 200,000 shares of stock were distributed pro rata among the holders of the 600,000 shares of the Ohio Oil Company on February 1, 1915. The company began operation on January 2, 1915. Dividends — The company's dividend record since organiz- tion is as follows: 1918— Jun 29 8% $1,600,000 1916— Jun 24 12% $2,400,000 1917 — Dec 17 10% 2,000,000 Jan 15 15% 3,000,000 Jun 15 12% 2,400,000 1915— Jul 20 5% 1,000,000 1916 — Dec 19 12% 2,400,000 Total Dividends since organization $14,800,000 Business — The company acts as a common carrier of cruda oil in the States of Illinois, Indiana, Ohio, and Pennsylvania, in which its extensive systems of gathering and trunk lines are located. The company also operates three short lines in the new Wyoming oil fields. Properties — The company's gathering: lines carry mor« than four-fifths of the crude oil produced in the Illinois fleld. Its main trunk line extends for nearly 1,000 miles from Wood River, 111., on the banks of the Mississippi River to Centerbridge, Pa., joining a trunk line of the Prairie PIp« Line in the west with the pipe line of the Standard Oil Com- pany of New Jersey in the East. Another trunk line mni from Martinsville, 111., to Preble, Ind., joining there the Indiana Pipe Line. A third trunk line runs to Lima, Ohio, and effects a junction with the Buckeye system. It Is apparent that the company's trunk line system fur- nishes a direct conne«tion between the Mid-Continent oil Oela and the Atlantic seaboard refineries and by reason of this is assured of heavy trafllc, irrespective of production east of Mississippi River. The company has filed with the Public Utilities Commis- jslon of Ohio an inventory of the property purchased from the Ohio Oil Company as follows: Illinois Fifty tanks $500,000 Eight-inch lines 1,322.000 Twelve-inch lines 150,000 Three stations 525,000 Eleven stations 550,000 Coal, office furniture, etc 175,000 Telegraph lines 82,000 Gathering lines and pumps 4,310,000 46 Illinois Pipe L.ine Company Ohio Eight-Inch lines $3,679,000 Twelve-inch lines 1,155,000 Four stations 700,000 Sixty-three tanks 630,000 Gathering and Wooster lines 30,000 Telegraph and equipment 78,500 Furniture 105,000 Indiana Eight-inch lines $2,737,000 Twelve-inch lines 1,388,0§^ Fifteen tanks 150,000 Fixtures, etc 120,000 Four stations 700,000 Telegraph lines 92,600 Gathering lines 169,500 Peamsylvania Coal and supply lines for operating. $250,000 Cash 200,000 Total four States $19,998,6^ In Wyoming, the company has in operation an 8-inch trunk line 22 miles in length from the Big Muddy field to Casper, Wyo. The company also has 315,000 barrels of steel tankage in the Big Muddy field. Two other short lines are operated in Wyoming, one from the Grass Creek field to Chatam, whence the oil is shipped by tank cars to Casper, and one from the Buffalo Basin field to Greybull, via Frannie. Balance Sheet — The company's balance sheet as of De- cember 31, 1917, compares with that of the previous year as follows: Assets: 1917 1916 Change Property $19,764,846 $18,618,150 $1,146,696+ Cash & Accts. Receivable 1,021,014 2,037,482 1,016,46»— Materials and Supplies.. 281,188 176,061 105,127-f Other Investments 412,000 412,0004- Total Assets $21,479,048 $20,831,693 $647,355+ Lriabilities : Capital Stock $20,000,000 $20,000,000 Accounts Payable 242,173 466,451 $224,278— Tax Liability 1,199,243 1,199,243+ Surplus 37,632 365,242 327,610— Total Liabilities. . . $21,479,048 $20,831,693 $647,355+ The financial statement indicates net profits, after depre- ciation, of $5,271,633 for 1917, inasmuch as surplus decreased $327,610 after the payment of $4,400,000 in dividends and the setting aside of $1,199,243 as a reserve for war taxes. While the net profits were greater by $441,215 than those for 1916, net earnings available for dividends after deducting $1,199,243 for war taxes were $4,072,390 as compared with $4,830,415 in 1916, and equal to about 20.36 per cent, earned on t^e stock against approximately 24.15 por cent, in 1916. The value of the company's pipe lines increased $1,146,696 during the year (after depreciation, the amount of which is not indicated), the growth being due to pipe line extension.'^ In Wyoming. Traffic carried by the company's pipe lines since organiz- ation has been as follows: Indiana Pipe Line Company 47 Runs from Wells Other Receipts Deliveries (Barrels) (Barrels) (Barrels) 1918 (4 mos.) 3,071,319 211,459 3,476,752 1917 10,954,066 5,312,172 16,983,693 1916 12,578,141 13,672,789 28,956,653 1915 14,045,285 9,214,981 20,835,261 1914 17,088,736 309,600 15,080,208 Otticers — President, J. RoDy Penn, Jr. Vice-President, "Ward A. Miller. Treasurer, J- E. Herr. Secretary, O. F. Moore. Directors — J. Roby Penn, Jr., Daniel Roach, George P. Jones, and O. F. Moore, Findlay, O., Ward A. Miller, Lima, O., and M. W. Porter. Transfer Office — Findlay, Ohio. INDIANA PIPE LINE COMPANY The Indiana Pipe Line Company was incorporated March 19, 1891, under the laws of Indiana. Capital Stociv — The capital stock is $5,000,000. Par v*»1u©, 150. Dividends — Since the dissolution, dividends have been de- clared payable as follows: 1918- — May 15 6% $300,000 1915 — Feb 12 4% $200,900 Feb 15 10% 500,000 1914 — Nov 14 5% 250,000 1917- —Nov 15 6% 300,000 Aug 14 6% 300,000 Aug- 15 4% 200,000 May 15 8% 400,000 May 15 4% 200,000 Feb 14 8% 400,000 Feb 15 6% 300,000 1913 — Nov 15 8% 400,000 1916- —Nov 15 4% 200,000 Augl5 8% 400,000 Augl5 4% 200,000 May 15 8% 400,000 Mayl5 4% 200,000 Feb 15 8% 400,000 Feb 15 4% 200,000 1912— Nov 15 8% 400,000 1915- —Nov 15 4% 200,000 Aug 15 6% 300,000 Augl4 4% 200,000 May 15 6% 300,000 May 15 4% 200,000 Total : Dividends since Dissolution $7,350,000 Properties — The Indiana pipe lines comprise an important link in an extensive system, consisting of the properties of three pipe line companies, serving the Lima-Indiana oil fields. The company owns complete gathering lines and col- lects direct from the wells all oil produced in the State of Indiana. Its importance, however, depends upon its trunk lines, which carry Mid-Continent oil destined for Canada or that goes to the Atlantic seaboard on the Northern route. The company's main trunk line extends from Whiting Indiana, to the Ohio State Line, via Kanakee, Laketon and Preble, Indiana, a distance of about 127.5 miles, the system consisting of two 8-lnch lines and one 8-inch loop to each of the four divisions. A majority of the collecting lines center at Montpelier, Indiana, from which point they extend to Broad Ripple, near Indianapolis, a distance of 65 miles; to Smlthfleld, 27 mlle«; to Leyton, 13 miles; to Mount Pleasant, 26 miles; to Preble, 25 miles. Other branches of the system extend from Baker to Laketon, Indiana, 19 miles; from Grant, Indiana, to Main Line, 16 miles; and from Leyton, Indiana, to Adgate, Ohio. ?1 miles. The most important branch line projects from Preble to Montpelier, where connections are made with the lines of the Ohio Oil Company. 48 Indiana Pipe Line Company The company has four large main line pump stations, between Griffith and Preble, and numerous branch and field lines stations. It has steel tankage capacity of 1,500,000 barrels in the field, and at Grifllth, Whiting, Preble and Montpelier. At Whiting the company supplies the crude oil for Standard Oil Company Indiana's main refinery. This pipe line system was constructed in 1889 and doubt- less the depreciation during its service has been considerable. In 1911, the property, including the pipe line and telegraph equipment onlj^, was assessed for taxation at a valuation of $5,130,000. It is clear that the Company must depend largely upon the trunk line business for the greater portion of its futur« earnings, owing to the permanent decline in production In the Indiana fields. By virtue of their location, the Indiana pipe lines will hold the traffic from the mid-continent field, which should increase substantially during the next few years, on account of the greater demands upon the newer fields of that western section of the country. Balance Sheet — The company's financial report for 1917 compares as follo^^•s: — 1917 1916 Increase Net income from all sources.. Sf;i,454,154 $1,800,886 $158,318 Dividends *1,200,000 900,000 300,000 Carried to P. & L. Acct $254,154 .$400,836 $453,318 *DivideRd paid in the first from earning-s in 1917. The Balance Sheet as of as follows: — Assets: Pipe Line Plant $4, Materials and Supplies. . . . Cash, Other Investments and Accounts Receivable quarter of 1918 is distributed December 31, 1917, compares 1917 1916 Change ,440,966 $4,773,077 —$322,111 36,753 36,768 — 15 4,838,219 + 935,171 5,773,390 Total Assets Liiabilities : Capital Stock Accounts Payable Reserve Account for Ac- crued Depreciation Fire Insurance Reserve... Profit and Loss Surplus. . . Total Liabilities . . . $10,251,109 $9,648,064 +$603,045 1917 1916 Change $5,000,000 $5,000,000 754,909 479,553 +$275,356 1,763,096 1,686,979 + 76,117 1,875 4,457 -- 2,582 2,731,229 2,477,075 + 254,154 $10,251,109 $9,648,064 +$603,045 The company's earnings have shown a steady growth since 1914, due to its advantageous position as the terminal line for Standard Oil Company of Indiana, which uses enormous quantities of crude oil at its Whiting, Ind,, plant. The company also gets the benefit of hauling Mid-Continent crude destined for the big refinery of the Imperial Oil Company, Ltd., at Sarnia, Canada. The company was able during 1917 to increase its dividend disbursement $300,000 and add $659,- 800 to its working capital. The Book Value of the stock at the close of the year was $77.31 a share ($50 par), of which $50.18 represented net cash assets. National Transit Company 49 Deliveries — Statistics of the company's traffic since the dissolution are as follows: Other Receipts Runi» Deliveries (Barrels) (Barrels) (Barrels) Total 12 months, 1912. 31,491,859 739,922 32,155,776 Total 12 months, 1913. 32,343,486 625,103 32.894,071 Total 12 months, 1914. 25,121,350 493,639 25,25fi,059 Total 12 months, 1915. 28,973,944 363,708 29,771,943 Total 12 months, 1916. 34,842,759 273,702 34,697,420 Total 12 months, 1917. 36,884,718 188,523 35,886,552 Total 4 months, 1918. 10,380,274 56,071 10,622,084 A review of the cohipany's operations since the dissolution shows the following": Additions Depreci- Net Profits Rate to Plant ation Surphis 1917 $1,454,154 29.08% $ $76,117 $2,731,229 1916 1,300,836 26.00% 38,666 179,779 2,477,075 1915 1,271,416 25.43% 115,991 173,265 2,076,239 1914 1,268,792 25.30% 61,596 345,870 1,604,822 1913 1,770,972 35.00% 26,432 418,154 1,486,031 1912 1,976,383 39.50% 569,911 1,315,058 On December 31, 1906, the company's net assets were $4.- 365.744 against $7,731,229 on December 31, 1917, showing a growth of $3,365,485 over the period. Directors — D. S. Bushnell, New York; A. C. Beeson, D M. Collett, Walter C. Shields, all of Hunting-ton, Ind.; and Georg-6 E. Pifer, Montpelier, Ind. Officers — President — D. S. Bushnell. Vice-President — A. C. Beeson. Secretary — Georg-e Chesebro. Treasurer — W. A. Harris. Transfer Office — No. 26 Broadway, New York City. Annual Meeting — Third Thursday in March. NATIONAL TRANSIT COMPANY The National Transit Company was incorporated In 1861 under the laws of Pennsylvania. It was formerly a holding company for pipe line stocks, subsequently turned over to the Standard Oil Company of New Jersey. Capital Stock — The capital stock was formerly $25,455,150, with shares at a par value of $50. In 1911, however, the capital stock was reduced to $12,727,575, with par value of shares at $25, A further reduction of the capital to $6,362,500 by the retirement of 103 shares and the distribution of the com- pany's surplus by a cash dividend of $12.50 to each share, was made in April, 1916. The new share have a par value of $12.50 and all fractions have been eliminated. The company also announced the segregation of its ma- chinery business from its pipe line operations and to that end has Incorporated the National Transit Pump and Ma- chine Company, under Pennsylvania laws, with a capital of $2,545,000. Par value $25. All the stock with the exception of ten qualifying shares is held as an asset by the National Transit Company. The object of this segregation was mainly to take ad- vantage of the exemptions from taxation on capital investe«! In manufacturing in the State of Pennsylvania and also to 50 National Transit Company keep its pipe line accounting-, which is subject to the scrutiny of the Interstate Commerce Commission, free from other sources of revenue. , The company's industrial plant, which now operates as a separate unit has been greatly increased in the last year and now represents an investment of $2,500,000. It manufactures gas engines and heavy oil engines, for drilling and pumping oil wells, pumping machinery for pipe line systems and waterworks plants; pipe line tools and other oil fiei^ accessories. An official statement to stockholders concerning th« re- duction in capital, says in part: — "The revenues of the company have been largely de- creased by reason of the reduction of rates for transportingf oil, which became effective in August, 1914. In the judgment of the Board of Directors the present capitalization of the National Transit Company is i)' excess of the amount re- quired for the business that may oe done by the company at this time. "There is no prospect of expansion of its business through development of new fields of production within the territory where it operates; therefore, It is thought well to conrert such of its assets as may be necessary for the purpose into cash, and liquidate the stock of the company to the extent of 50 per cent., making the par value of the shares $12.50, Instead of $25; and the total amount of capitalization $6,- 362,500. This amount is just about equal to the present pipe line investment, less depreciation." Dividends — Since the dissolution, dividends have been de- clared as follows: 1918- — Jun 15 4% J 914— -Jun 15 3% $381,827 ?917- —Dec 15 4% 254,500 Maris 3% 381,827 Jun 15 4% 254,500 1913- -Dec 15 3% 381,827 1916- —Dec 15 4% 254,500 Sep 15 3% 381,827 Apr 1 50% 6,363,786 Jun 15 3% 381,827 1915- —Dec 15 2% 254,551 Mar 15 3% 381,827 Sep 15 2% 254,551 1912— -Dec 15 3% 381,827 Jun 15 2% 254,551 Sep 15 3% 381,827 Mar 15 2% 254,551 Jun 15 3% 381,827 1914- —Dec 15 3% 381,827 Mar 15 3% 381,827 Sep 15 3% 381,827 Total Dividends since the . . $12,981,914 Properties — Owns about 1,300 miles of pipe line in the State of Pennsylvania, of which 555 miles are trunk line* and 745 miles gathering lines. The trunk lines extend from Nedsky, Allegheny County, where connection is made with three branches of the Southwest Pennsylvania Pipe Ldne Company, and extend in a northeasterly direction to tHe New York State line near Rixford, where connection is made with the New York Transit Company. Those lines aggregate 206 miles. The eastern lines start at Colegrove, where the oil Is received from the Northern Pipe Line, and extend from Milway, a distance of 175 miles. From Mllway three linee branch out, one extending to Fawn Grove, SB miles; one to Atlantic Refining, Point Breeze, 7-0 miles; one to Centerbridge, 70 miles. The eastern lines aggregate about 350 miles. The gathering lines are located in western Pennsylvania, and carry about twelve per cent, of the total trafflc. The bulk of the Company's traffic Is long haul. The source of the Company's local traffic Is the Pennsyl- vania oil region, from which It supplies refineries at Olean. Pittsburgh and Franklin. It receives mid-continent oil at National Transit Company 51 the Pennsylvania border from the Buckeye Pipe Line and at it« grreat pumping station at Bear Creek, Pa., acts as a transfer a&ent, switching Pennsylvania and western oil over other trunk lines to the Atlantic seaboard. Th-e National Transit Pump and Machine Company, which foi?«nerly confined its activities to pipe line machinery has entiered the the general commercial field and has established branch offices at New York, Philadelphia, Chicago and San PVancisc®. The company has doubled the capacity of its pilewrt, as well as its mechanical force, and now employs more than 1,500 men in its Oil City shops. The company's product Includes practically every device connected with pumping powers, from pipe line tools and fittings and pumps of the smallest powers to the immense machines turned out for municipal water works, mines, ofRce buildings and factories, marine service or pipe line pumping stations. The financial statement of the company for December 31, 1917, compares as follows: 1917 1916 Net Earnings $820,405 $1,208,891 Dividends 509,000 354,500 Other Disbursements 2,510 110 Surplus $308,895 $954,281 Assets: 1917 1916 Pipe Line Plant $8,137,442 $8,160,828 Other Investments 4,404,802 3,590,135 Cash 523,404 333,852 Accounts Receivable 174,225 976,378 Deferred Assets 38,363 37,359 Unadjusted Debits 178,776 13,330 Total Assets $13,457,012 $13,111,877 Lfiabilities : Capital Stock $6,362,500 $6,362,500 Current Liabilities 336,371 730,225 Accrued Depreciation 2,630,057 2,203,109 Unadjusted Credits 449,891 446,745 Surplus 3,678,193 3,369,298 Total Liabilities $13,457,012 $13,111,877 Net earnings for 1917 after war taxes were at the rate of 12.7 per cent, on $6,362,500 stock outstanding, compared with 19 per cent, in the previous year and 8.05 per cent, in 1915 on $12,727,575 stock outstanding in that year. The Book Value of the stock has increased to $19.73 a share as compared with $19.11 a share at the close of 1916. Reviewing the operations of the company since the disso- lution affords the following comparison: Net Profits Rate Depreciation Surplus 1917.. $820,405 12.70% $426,948 $3,678,193 1916 1,208,891 *19.00% 429,607 3,369,298 1915 1,024,631 8.05% tlJ73,502 2,415,017 1914 1,482,187 11.60% 2,408,592 1913 2,315,556 18.00% 2,453,715 1912 1,909,806 15.00% 1,665,46« ♦After 50 per cent, reduction in capital. tAccrued depreciation f j om Dec. 31. 1911. 52 New York Transit Company Traffic — The company's traffic in recent years is set forth as follows: — Other Receipts (Barrels) Total 4 months, 1918. 5,609,003 Total 12 months, 1917. 17,867,886 Total 12 months, 1916. 18,962,962 Total 12 months, 1915. 16,624,243 Total 12 months, 1914. 16,451,353 Total 12 months, 1913. 20,957,987 Total 12 months, 1912. 21,502,500 Officers — President — W. V. Miller. Vice-President — R. Huyck. Secretary — r. Ball. Assistarii Secretary — R. C. Lay. Treasurer — C H, Lay. Assistant Tieasurer — D. R. Mackenzie. Transfer Office— .No. 206 Seneca Street. Oil City, Penna. Annual Meeting: — First Monday in May. NEW YORK TRANSIT COMPANY The New York Transit Company was incorporated Jan- uary 18, 1S93, under the laws of New York State. The Com- pany purchased from the National Transit Company, at the time of organization, the line from the New York State line throug-h Glean to the New Jersey border and seaboard; also the line from Olean northwest to Buffalo and gathering linea in New York State. Capital Stock — The capital stock is $5,000,000. Par value, $100. DiA-idends — Since the dissolution, dividends have been paid as follows: — 1918- — Apr 15 8% $400,000 1915- — Jan 15 5% $250,000 Jan 15 6 7f 300,000 1914- —Oct 15 6% 300,000 1917- —Oct 15 6% 300,000 Jul 15 8% 400,000 Jul 14 4% 200,000 Apr 15 10% 500,000 Apr 14 4% 200,000 Jan 15 10% 500,000 Jan 15 6% 300,000 1913- —Oct 15 10% 500,000 1916- —Oct 15 A% 200,000 Jul 15 10% 500,000 Jul 15 4% 200,000 Apr 15 10% 500,000 Apr 15 A% 200,000 Jan 15 10% 500,000 Jan 15 4% 200,000 1912- —Oct 15 10% 500,000 1915- —Oct 15 4% 200,000 Jul 15 10% 500,000 Jul 15 4% 200,000 Apr 15 10% 500,000 Apr 15 4% 200,000 Total Dividends since the ^8,550,000 Properties — The company owns and operates its main trunk line, about 300 miles in length, extendinj? from ()!f^»r' N. Y., to Unionville, X. Y., where oil is transferred to what was formerly a private pipe line of the Standard Oil Company of New Jersey running from Unionville to Bayonne, N. J. An off-shoot of this line at "Weehawken, N. J., crosses under the Hudson River, New York City and the East River to deliver oil to the Standard Oil of New York refineries in Long Island City and Brooklyn. These lines of the Standard Oil Company of New Jersey were purchased late in 1915 by the New York Transit Company and are now operated as part of its system. A branch line, 56 miles in length, runs from Olean, N. Y., to Buffalo. The main trunk line is a triple six-inch line capable of handling 45,000 barrels a day. New York Transit is assured a heavy and profitable traffic It all times, since it supplies large refineries of the Standard Runs (Barrels) 752,654 2,523,010 2,577,165 2,695,140 2,722,515 2,707,525 2,939,549 Deliveries (Barrels) 6,373,120 20,375,452 21,702,953 19,411,408 18,956,586 23,526,265 24,687,692 New York Transit Company 53 Dil of New York at Long Island City and Buffalo, and the refinery at Bayonne of the Standard Oil Company of New Jersey. The company owns about one-third of the tankage at Clean, N. Y., which is one of the largest storage points in the United States. The financial statement of this company for 1917 com- pared with that of the previous year, is as follows: 1917 1916 Increase Net Profits $1,461,618 $1,339,121 $122,497 Dividends 1,000,000 900,000 100,000 Surplus 461,618 $439,121 $22,497 The above earning:s are equal to 29.23 per cent, in 1917 on $5,000,000 capital stock compared with 26.78 per cent, in 1916 and 16.27 per cent, in 1915. The Balance Sheet as of December 31, 1917, compares as follows: — Assets: 1917 Pipe Line Plant , $6,689,235 Materials and Supplies 212,080 Cash, OtheF Investments and Accounts Receivable 6,023,518 Total Assets $12,924,833 I^iabilities: 1917 Capital Stock $5,000,000 Accounts Payable 656,489 Reserve Account for Ac- crued Depreciation .... 1,256,383 Fire Insurance Reserve... 12,392 Profit and Loss Total Liabilities 5,999,569 1916 Cliange $6,683,336 + $5,899 77,789 + 134,291 5,684,896 4- 338,622 $12,446,021 +$478,812 1916 Change $5,000,000 669,347 — $12,858 1,228,477 -f 27,906 10,247 + 2,145 5,537,950 -f 461,619 $12,446,021 +$478,812 Although the company traffic expanded very little in 1917, it was able to increase its earnings substantially through operating economies resulting from its acquisition of short line dividends would be $24.66. A holder of one share of Ohio N, Y., during 1916. Earnings were practically $13 a share more than before acquisition of these lines. As a result the company increased its 1917 dividends to $20 a share and will be able to pay liberally during 191S. The Book Value has advanced to $220 a share of which $107.34 represents net cash assets. Traffic — Operations Since the dissolution follows: Total 12 months, 1912 Total 1^ months, 1913 Total 12 months, 1914 Total 12 months, 1915 Total 12 months, 1917 Total 4 months, 191S Other Rei'eipts (Barrels) . 14,450,169 . 14,762,156 11,444,816 11,054,733 14,492,490 5,166,613 Runs (Barrels) 182,291 196,510 203,857 185,411 168,012 48,285 Deliveries (Barrels) 15,134,912 15,443,721 11,625,445 11,069,067 15,074,107 5,479,6,)6 The company's growth and earnings for the past six years are shown as follows: Earnings 1917 $1,461,618 1916. 1915. 1914. 1913. 1912. 1,399.121 813,729 1,434,741 2,070,495 2,420,211 Rate 29.23% 26.789r 16.27% 28.06 41.50 48.40% Plant Additions $5,899 22 223 1,479;032 1,797 129,233 Depreci- ation $27,906 55,373 78,678 101,402 419,433 573,590 Surphis $5,999,569 5,537,950 5,202,434 5,085,100 5,100,359 5,029,864 54 Northern Pipe Line Company Directors — D. S. Bushnell, George Chesebro, W. A. HarrU, J. R. Faat, New York City; George H. Cobb, A. J. Mo- Clatchey, H. R. Rowe, Binghampton, N. Y. Officers — President — D. S. Bushnell. Vice-President — George H. Cobb. Secretary — George Chesebro. Treasurer — W. A. Harris. Transfer Office — No. 26 Broadway, New York City. Annual Meetini: — Last Tuesday in January. NORTHERN PIPE LINE COMPANY The Northern Pipe Line Company was incorporated July 8, 1889, under the laws of Pennsylvania. Capital Stock — The capital stock was $1,000,000, but in 1906 this was increased to $4,000,000. Par value, $100. Dividends — Since the dissolution, dividends have been paid as follows: 1918— Jul 1 Jan 3 1917 — Jul 2 Jan 5 1916— Jul 1 Jan 2 1915 — Jul 1 5% $200,000 9 % $360,000 5% 200,000 5% 200,000 5 % 200,000 5% 200,000 5 % 200,000 1915— Jan 2 1914— Jul 1 Jan 2 1913 — Jul 1 Jan 2 1912— Jul 1 5% $200,000 5% 200,000 5% 200,000 5% 200,000 5% 200,000 5% 200,000 Total Dividends since the Dissolution $2,760,000 Properties — The company owns a trunk pip« lin« system 227 miles in length, embracing a total of 525 miles of 5, 6 and 8 inch pipe. The line extends from the western border of Pennsylvania, near the northern border of Lawrence County, where It receives the oil from the Buckeye Pipe Line Com- pany. The line from that point extends east to Bear Creek, Clarion County, and then extends northeast to Colegrove, McKean County, where a connection is made with the eastern branch of the National Transit Line, and all oil handled by that branch of the Transit Company is secured from the Northern Pipe Line. From this point the line then extends north to Clean, N. Y., where It connects with the New York Transit lines. The company's traffic has had a steady growth and its permanency is practically assured. It has no gathering lines. The financial statement of this company for 1917 com- pared with that of the previous year is as follows: 1917 1916 Increase Net Profits $629,963 $600,898 $29,065 Dividends *. 560,000 400,000 160,000 Surplus . $69,963 $200,898 *$130,935 *Decrease. Net profits were equal to 15.74 per cent, in 1917 on the company's $4,000,000 capital stock, compared with 15.02 per cent, in 1916 and 10,71 per cent, in 1915. The Balance Sheet as of December 31, 1917, compares as follows : — Assets: 1917 1916 Change Pipe Line Plant $2,957,862 $2,977,254 — $19,392 Materials and Supplies... 9,651 8,696 + 955 Cash, Other Investments and Accounts Receivable 3,236,776 2,872,152 + 364,624 Total Assets $6,204,290 $5,858,102 -f$346,188 Ohio Oil Company 55 Liabilities: 1917 Capital Stock $4,000,000 Accounts Payable Reserve for Depreciation. Fire Insurance Reserve... Profit and Loss Total Liabilities. . 411,322 1,007,846 13,473 771,647 1916 $4,000,000 206,886 943,611 5,921 701,684 Change +$204,436 + 64,235 + 7,552 + 69,963 $6,204,290 $5,858,102 -f$346,188 The company's business shows a steady increase and as a result, it was able to increase its dividend to $14 a share and add to its cash assets. The Book Value of the stock increased to $119 a share of which $70.63 represents net cash assets. The progress of the company since the dissolution is shown comparatively as follows: Plant Depreci- Earnings Kate Account ation Surplus 1917 $629,963 15.74% *$19,392 $64,235 $771,647 1916 600,898 15.02% *4,032 69,733 701,684 1915 428,433 10.71% ...... 80,831 500,786 1914 421,981 10.55% *14,501 243,567 472,352 1913 707,205 17.68% *32,084 269,703 450,371 1912 434,822 10.87% 279,777 143,096 *Decrease after depreciation. On December 31, 1906, the company's net assets were $4,005,513 against net assets of $4,771,647 on Dec. 31, 1917. Traffic over these lines since the dissolution has been as follows: Receipts Deliveries (Barrels) (Barrels) 1918 (4 mos) 6,644,198 6,774,030 1917 17,106,608 17,406,378 1916 15,981,603 15,964,488 1915 14,802,169 11,766,651 1914 12,944,018 13,962,857 1913 17,627,342 17,574,819 1912 14,733,351 15,815,364 Directors — D. S. Bushnell, New York; D. M. Sachs, L. Z. Duncan, F. G. Boyer, all of Oil City, Pa.; B. A. Towl, New York. Officers — President — D. S. Bushnell, 26 Broadway, N. Y. V.-P. & Gen. Mgr. — D. M. Sachs, Oil City, Pa. Secretary — -George Chesebro, 26 Broadway, N. T. Treasurer — W. A. Harris, 26 Broadway, N. Y. Transfer Office — 26 Broadway, New York City. Corporate Office — Oil City, Penna. Annual Meeting, Third Thursday in January, THE OHIO OIL COMPANY The Ohio Oil Company was incorporated In 1887 under the laws of Ohio. It Is now only a producer and marketer of crude oil, having divorced its extensive transportation system. Capital Stociv — The capital stock was $2,000,000, but it was increased to $10,000,000 and then to $15,000,000, the present capitalization. Par value, $25. On January 31, 1917, the stockholders voted approval of an increase in capitalization to $60,000,000, whereupon the directors voted a stock dividend of $75 a share to be paid 56 Ohio Oil Company March 20, 1917, to stock of record February 15. The com- pany's intention was to exchange one share of $100 par value for each of the outstanding 600,000 shares of $25 par value, but the Attorney General of Ohio ruled that the capital stock of an Ohio company cannot be increased by raising the par value of shares. The company issued notice to thia effect on March 20, 1917, adding- that "the directors have not determined what further action, if any, will be taken in the matter." Dividends — Since dissolution company has been as follows: 191S- — Jun 20 24% $3,600,000 Mar 20 24% 3,600,000 1917- —Dec 20 24% 3,600,000 Sep 20 24% 3,600,000 Jun 20 24 7c 3,601^,000 Mar 20 24% 3,600,000 1916- —Dec 20 20% 3,000,000 Sep 20 24% 3,600.000 Jun 20 24% 3,600,000 Mar 2 4 24% 3,600,000 1915- —Dec 20 24% 3,600,000 Sep 20 8% 1,200,000 Jun 21 8% 1,200,000 Mar20 10% 1,500,000 the dividend record of the 1915- — Feb .2 133 1- ■3% Stk.D. 1914- —Dec 19 8% $1,200,000 Sep 21 5% 750,000 Jun 20 8% 1,200,000 1,200,000 4,800,000 Mar20 8% 1913- —Dec 20 32% Sep 20 8% 1,200,000 Jun 20 8% 1,200,000 Mar 20 9% 1,350,000 1912- —Dec 20 5 % 750,000 Sep 20 5% 750,000 Jun 20 5% 750,000 Mar20 5% 750,000 Total DivideTids since the Dissolution $58,800,000 The dividend record of this company has been the most remarkable of any company in the group. In the six years and six months since the dissolution, each shareholder has received 392 per cent, on $25 par value or $98, and in addi- tion one-third of a share of Illinois Pipe Line Company stock of $100 par value. The dividends paid nn this stock since 1915 aggregate 74 per cent., so that the fractional share of pipe line dividends would be $24.66. A holder of one share of Ohio Oil Company stock at the time of the dissolution would have received up to this time cash dividends of $122.66, or an average of $18.87 a year. On December 21, 1914, the stockholders ratified a proposi-. tion to turn over the company's trunk and gathering pipe line systems, with the equipment belonging thereto in Illinois, Indiana, Ohio and Pennsylvania, to a newlj formed corpora- tion, known as the Illinois Pipe Line Company, and receive in return that company's $20,000,000 capital stock. As there were 200,000 shares, $100 par value, of pipe line stock to be distributed among 600.000 shares, $25 par value, of Ohio Oil Company stock, the directors declared a 133 1-3 per cent, dividend, payable on and after February 1, 1915, in Illinois Pipe Line stock to Ohio Oil Company stockholders of record January 2. 1915. Properties — The company controls extensive tracts of oil lands in Ohio, Indiana, Illinois, Wyoming and Kansas. It ranks with the largest individual producers of crude oil among the former subsidiary companies of Standard Oil. The company's producing wells yield three-fourths of the produc- tion from the Illinois and Indiana fields. The company has taken a reading part in the development of the new oil fields of Wyoming and Montana, which experts declare will prove the country's greatest basin of high grade oil. Its first investment was in the Grass Creek Field, north of Thermopolis, Wyo., where it now has about 6,000 barrels of Ohio Oil Company 57 daily production and is transporting- oil through the Illinois Pipe Line Company's lines to Chatham, where the oil is loaded on tank cars and shipped to Casper, Wyo. Further north the company purchased during 1916, an extensive tract in the Torchlight Dome from the Valentine interests. In the Elk Basin district, which runs north and south of the Wyom- ing-Montana state line, the company has extensive holdings and has proven up the territory by bringing in a number of wells, two of which are in Montana. The oil from this sec- tion is handled by the Illinois Pipe Line, which has a pump- ing station and a short 3-inch line to Frannie, Wyo. Late in 1916, the company purchased for $500,000 a half interest from the Merritt Oil Corporation in a 500 acre tract in the heart of the Big Muddy field, eighteen miles east of Casper, Wyo., on which they now have production. The company has acquired additional acreage in the Big Muddy field, which is regarded as one of the most pro- lific pools of high grade oil developed during- 1916. The company is thoroughly entrenched in every developed section of the Wyoming fields. In October, 1916, the United States Court of Appeals rendered a decision confirming its title to 6,000 acres in the Grass Creek field, Wyoming, which the Government had tried to seize under the Land Withdrawal Act. Recently the company has made a contract to deliver 1,000,000 barrels of its Wyoming production to the new refin- ery of the Imperial Oil Company at Regina, B. C. The company has an extensive' field organization in Wyoming, consisting of geologists, engineers and drilling ex- perts, and is pushing active development Vv'ork in practically every important oil district in the state. In September, 1916, the company entered the new Kansas fields by purchasing the Mid-Kansas Oil and Gas Company properties in the Augusta pool, covering 7,000 acres wath twenty producing wells. The company's balance sheet as of December 31, 1917, compares with the previous years as follows: Assets: 1917 1916 Increase Property Account $17,303,763 $16,922,132 $381,631 Cash, Accts. Rec, Mdse, etc. 68,180,479 65,851,085 2,329,394 Total Assets $85,484,242 $82,773,218 $2,711,024 Liabilities: Capital Stock $15,000,000 $15,000,000 Accounts Payable, etc 4.533,493 926,297 $3,607,196 Surplus 65,950.749 66,846,921 896,172 Total Liabilities $85,484,242 $82,773,218 $2,711,024 A comparison of the balance sheets indicates net earnings for 1917, after allowing for Federal taxes, of $13,503,828, equivalent to 90.02 per cent., compared with net earnings in 1916, with no allowance for war taxes, of $14,835,178, equiv- alent to 98.9 per sent. Profit and loss surplu.s" decreased $896,- 172 after payment of $14,400,000 in dividend.'^. The Inilance sheet does not disclose the amount re.^erved for taxes, but accounts •«'»ayable, including tax liability, show an increase of $3,607,196. 58 Penn-Mex. Fuel Company Reviewing- the operations solution affords the following Indicated Earningrs Rate 1917. . . *i(;i3,503,828 90.02% 1916. . 14,835,1^8 98.9% 1915. . 16,621,920 110.8% 1914. 9,720,354 64.8% 1913. . 22,803,661 152.0% 1912. . of the company since the dis- comparison : Additions to Production Properties After Dividends Depreciation Surplus ,1514,400,000 $381,631 .'^65,950,749 13,800,000 612,000 66,846,921 7,500,000 1,166,650 t65,811,743 $1,673,320 1,461,384 68,849,427 63,479,073 49,225,412 4,350,000 8,550,000 3,000,000 *After War Taxes. fAfter disposing of its pipe line properties carried at $12,- 159,604 to the Illinois Pipe Line Company. JDecrease, Otticers* — President — J. C. Donriei. Vice-President — J. K. Kerr and O. D. Donnell. Secretary — F. E, Hurley. Treasurer — J. L. Cook. Directors — J. C. Do nnell, O. D. Donnell, R. J. Berry and E. Hurley of Findlay, Ohio, and J. K. Kerr, Marshall, 111. Transfer Agent — W. B. Filson, Findlay, Ohio. Annual Meeting: — Thursdaj^ following fourth Wednesday in May. PENN-MEX. FUEL COMPANY Incorporated in Delaware In 1912 with a capital stock of 110,000,000. Par value, $25.00. Fifty-one per cent, of the stock is owned by the South Fenn Oil Company, one of the leading oil producing- companies of the world, which has assumed active control of the field operations. Properties — The company controls nearly 300,000 acres of leases and lands held in fee in the principal producing sec- tions in the State of Vera Cruz, Mexico, which are rated among the best in that country. Its principal producing area Is in the Alamo field, which lies about twelve miles south and a little west of the famous Potrero del Llano well of the Mexican Eagle Company. This tract of 93,000 acres stretches for twenty-three miles along the south bank of the Tuxpain River. The company also has producing wells in tbe Pani]o<. aim} Chijol fields in th«^ not-tbern ser-tion of thf State f\(iiHeerT t^' the Panuco River Production — The company has a production of more than 11 0,000 barrels daily, all under control. An official descrip- tion of its producing properties is given in the president's annual report, herewith appended. Pipe Lines — The company has built twenty-eight miles of eight-inch lines, which in paralleled by a six-inch water line and three pumping stations. These stations known as the initial, interdmediate and termin.'il, are about sixteen miles apart. The engines pump under 800 to 900 pounds pressure and as the oil is heavy, two Nati Tial Transit California type oil heaters are included in the e luipment. These are oper- ated by the , exhaust steam from the big pumping engines. The pipe line extends from the Aiamo field to Tuxpam Bar, where the company has an exteniiive storage plant and .'sea- loading terminals. These sea-loading facilities, which have a delivery capacity of 1,800 to 2,500 barrels per hour, can load four tankers at one time. O ving to quick tide changes it is necessary to load with great rapidity. The present nor- Penn-Mex. Fuel Company 59 mal capacity of the pipe line is 40,000 barrels per day, which can be raised to 60,000 barrels rinder pressure. The entire pipe line and pumping station sjvBtem was installed by the National Transit Company and is thoroughly up-to-date. The machinery and pumping equ pment connected with the pipe line system represents an investment of more than $1,000,000. The company also hai fourteen miles of narrow gauge railroad from Zapotal, at ^iie head of navigf tion oi the Tuxpam River to the Alamo i'elds. There is a i iachine shop and storage station at Zapot?,l. Traffic — The company's production and shipments for the last three years as follows: Production Shipments Tankage 1917 3,963,636 3,815,078 850,000 *1916 3,493,276 3,353,489 644,435 1915 3,666,405 3,073,176 *Figures for 1916 are for eleven months, as no oil was produced or shipped during July, 1916, because of the forced exodus of Americans from Mexico. The company's financial statement for year 1917, is as follows: Income : — Oil Earnings, Gross $1,664,610.50 Less Royalty Oil Purchased. 67,770.19 Ji;i,596,840.31 Gasolene Earnings 3,761.94 Interest Earnings 3,899.63 Miscellaneous Earnings 2,250.51 Total Gross Income .$1,606,752.39 Deduct : — General and Operating Expenses $557,433.13 Exportation Taxes 285,213.59 Interest on Indebtedness 127,741.66 Depreciation 247,306.11 $1,217,696.49 Net Loss through P. and L. Susp 158,996.99 $1,376,693.48 Net Income, Year 1917... 230,058.91 Add: — Surplus December 31, 1916 330,589.12 Net Surplus December 31, 1917 $560,648.03 The Balance Sheet of the company as of December 31, 1917, follows: — Assets Properties : — Oil Wells and Development 1,133,004.76 Pipe Lines and Storage System.. 1,518,125.28 Railroad, Launches & Telephones 147,4 41.92 Machine Shop and Saw Mill 40,688.06 Terminal Lldgs., Wharf, etc.... 51,844.62 Camp Bldgs. and Equipment... 44,153.26 Horses, Wagons and Automobiles 15,518.69 Gasolene Plant 11,303.09 Farm and Garden Implements... 4,437.14 $12,170,695.77 Less Reserve for Depreciation . . . 650,533.86 $11,520,161.91 60 Penn-Mex. Fuel Company Stock Owned and Advances: — Penn Fuel Company stock Adv. to Penn Fuel L. & T. Co. . . 5,000.00 30,293.80 35,293.80 Current Assets: — Cash Accounts Receivable . Crude Oil in Tft-nks... Material and Supplies $84,467.22 404,661.84 255,533.52 322,003.40 1,066,665.98 Total Assets $12,622,121.69 I^ia bill ties Capital Stock . Notes Payable (South Penn Oil Company) Accounts Payable Surplus (Invested in Plant) $10,000,000.00 2,000,000.00 61,473.66 560,648.03 Total Liabilities $12,622,121.69 The president, Joseph C. Trees, in a lengthj^ statement to the shareholders, said: "In submitting- a report of the affairs of your company during- the year 1917, we regret to say that results from the point of earning-s have not been up to what we hoped for. This is due to the very abnormal condition that exists in the shipping- situation, the labor situation and the revolutionary condition generally in Mexico. "However, results from development work have been very satisfactory, the following- being the important results: "The first well completed during the year was Alamo No. 6, which, on a second test, showed a production of about 4,500 barrels, of which about 25 per cent, was sediment. "Along- the latter part of August, Alamo No. 2 Ijegan to emit shale which gradually increased until the 29th, when she bridged completely, thus shutting off production. A new wood rig- was erected, and on October 2 9th, the tools were run in and the bridge successfully broken. Since that time the production from No. 2 has reached 22,000 barrels daily, with the g-ate valve open one and one-quarter turn. "When Alamo No. 2 ceased producing Alamo No. 7 was located 200 feet from No. 2 and drilling rushed with all pos- sible speed to December 3, Avhen drilling was stopped at a depth of 2,147 feet, or 10 feet less than No. 2. A few days later a test of the output was made and it showed 11,170 barrels during 24 hours, without affecting in the slig-htest degrees the pressure guage or production of No. 2 which, at this time, was 21,000 barrels. "Perez No. 1, in the Panuco District, was completed and tw^o g-uages of its production was taken, the first showing about 45,000 barrels and the second about 43,000 barrels daily. "Moline No. 2 was drilled to a depth of about 2,700 feet, or about 350 feet below where a geologist said production should be encountered, and the well came in showing a pro- duction conservatively estimated at 40,000 to 45,000 barrels daily. "This production of more than 110,000 barrels per day is all under perfect control. "No additional acreage was acquired during the year for the reason that the promulgation of the new constitution in Mexico, and the many decrees emanating therefrom, made it extremely hazardous to attempt the transfer of titles. Pierce Oil Corporation Gl "Exportation taxes jumped from .044c per barrel in Jan- uary, 1917, to .103c per barrel in December, 1917. "A note of $250,000 was paid during the year, thus re- ducing the debt that amount. "The year's shipments amounted to 3,815,078 barrels, with a gradual falling off toward the last of the year due to the great number of tank ships being engaged in Govfrnment work. "Your production is all shut in with the exception of Alamo No. 2, which was curtailed to about 7,000 barrels per day during December, but later opened to about 10,000 bar- rels, or just enough to keep your stocks up to 850,000 bar- rels." Officers — J. C. Trees, President. L. W. Young, Jr., Vice-President. E. E. Crocker, Vice-President. H. C. Reeser, Secretary. P. J. Huffman, Treasurer. H. M. Krimbill, Assistant Treasurer. Levi Smith, General Manager. Directors — M. L. Benedum, G. W. Crawford, E. E. Crocker, R. W. Cummins, J. G. Gray, F. J. Huffman, J. C. McKinney, J. C. Trees, L. W. Young, Jr. Transfer Office^ — Farmers' Deposit National Bank Bldg., Pittsburgh, Pa. PIERCE OIL CORPORATION Incorporated in Virginia in June, 1913, to take over the assets and business of the Waters Pierce Oil Company (estab- lished in St. Louis, Missouri, in 1855) and the Pierce Fordye© Oil Association (established in 1910 to take over the busines.* in Texas of the Waters Pierce Oil Company). Capitalization — Authorized Outstandinji: I'ar Common Stock . $33,000,000 $17,485,750 $25 10-Year Gold Debenture, 6c. 10,000,000 9,523,000 5-Year-6% Conv. Gold Notes 2,000,000 2,000,000 Interest January and June, payable at Ladenburg, Thal- mann & Company, New York. Stockholders met December ?3, 191"), and ratified an in- crease of the capital stock from $30,000,000 to $33,000,000 and authorized a further issue of $2,000,000 five-year- six per cent, gold notes, convertible into common stock at 20 at the option of the holder and redeemable at par after eighteen months. The notes were underwritten by Hayden, Stone & Company and Ladenburg, Thalmann & Company, At the time of incorporation provision was made for $15. 000,000 preferred and $15,000,000 common, each $100 par $10,500,000 of common was issued and the preferred stock was trusteed as security for an issue of $8,000,000 ©sie year six per cent, gold notes. From the proceeds of the sale of these notes, tho $400,000 capita] stock of the Waters Pierce Oil Company was acquired on a basis of $1,250 In cash and $2625 of new stock for each share of Waters Pierce stock fractional shares being taken up pro rata. On June 25, 1914, the stockholders voted to make the capitalization $30,000,000 all common stock of a par value of $25, and authorized an issue of $10,000,000 ten year, six per cent, convertible gold debentures. Of the new stock, $10,500,000 was exchanged for the out- standing common stock; $10,000,000 is reserved for issue under the debenture agreement; $3,100,000 of stock was set 62 Pierce Oil Corporation aside to sell for cash for capital expenditures in the exten- sion of the company's business and $6,400,000 was reserved to acquire new properties or shares in any corporation or associ- ation, which means the Pierce Fordyce Oil Association, when permission to do "SO is obtained from the State of Texai. Meanwhile as the corporation holds 90 per cent, of outstand- ing Pi«rce Fordyce certificates, it controls the business of that company and has deposited the certificates as additional security for its $10,000,000 gold notep. The sale of the new $10,000,000 debenture issue provided funds for the retirement of the $8,000,000 gold notes and cleared the way for the cancellation of the company's pre- ferred stock. In December, 1917, the company obtained a license to transact business in the State of Texas, and on December 31, 1917, acquired by purchase 32,378 shares of a total of 36,023 shares of Beneficial Interest of the Pierce-Fordyce Oil Asso- ciation, the remaining 3,645 shares having since been prac- tically acquired. Business — The corporation constitutes a complete cycle in the oil industry, being engaged in the producing, transport- ing, refining and marketing of petroleum products. Its posi- tion is strongly entrenched as previous to the dissolution, It controlled the marketing business of the Standard Oil Com- pany in the Southwestern States and Mexico, where it was engaged in the oil business many years before any other oil companies entered the Mexican field. Producing: Properties — One hundred and twenty-nine thou- sand acres of oil lands in Oklahoma, Arkansas and Mexico, owned in fee or lease and estimated to contain sufllcient oil to supply the requirements of the refineries for more than twenty-five years. Included in these holdings are leases in the Gushing and Morris Fields in Oklahoma, adjacent to the company's newest refinery and 10,000 acres in the Panuco field, adjacent to the company's refinery at Tampico, Mexico. Transportation Properties — The company operates its own pipe lines from its producing properties to its refinery In Oklahoma and has pipe line connections between Its produc- ing field in Mexico and the Panuco River, whence it barge* its oil to the Tampico refinery. The company also has three tank steamships, numerous oil barges and tugs, and also owns and operates 1,3S9 tank cars. The company expended approximately $2,000,000 on the construction of 100 miles of eight-inch pipe line from the Healdton field to its Fort "Worth refinery. Refinery Properties — Five refineries of modern construction located at Forth Worth and Texas City, Texas; Sands Springs, Oklahoma; Tampico and Vera Cruz, Mexico. The combined daily charging capacity of these refineries is 26,500 barrels of crude oil. The company has a long time contract with the Mag- nolia Pipe Line to supply crude oil to its Texas refineries, while its Sands Springs refinery is connected directly with Ciishing production through the company's own pipe line. Marketing Properties — The combined companies have 1,122 main distributing stations, through which they dis- tribute their product in rnore than 17,000 cities and towns. Nearly all of the distributing stations are on freehold prop- erty owned by the corporation and comprise brick, stone and iron built warehouses and offices. The company markets gasolene, naphthas, lubricating oils, greases, wax, cotton seed oil, linseed oil, turpentine, soap, oil lamps, stoves and all appliances and accessories for the use of petroleum. Pierce Oil Corporation 63 Earnings — Combined Comparative Income Account of Pierce Oil Corporation and Pierce-Fordyce Oil Association for years ending December 31, 1917 and 1916: Trading Profits (sales, less producing and market expenses; : 1917 1916 United States $3,197,721 ^2,960,888 Mexico 757,050 676,621 Ji;3,954,771 $3,637,509 Other Income: Interest Earned Etc $128,557 $125,750 Flood Loss Reserve Restored 25,715 Total Income $4,109,043 $3,763,2^» Deduct — Income Charges: Interest on Floating Indebtedness... $280,469 $146,742 Bad Debts 109,308 95,^S9 Other Income Charges 262,655 191,711 $652,432 $433,542 Net Operating Income $3,456,611 $3,329,717 Deduct — Profit and Loss Charges: Interest on Debentures & Gold Notes $717,968 $733,103 Depreciation of Capital and Working Assets, Including Depletion of Oil Leases : 933,445 91,304 Estimated Federal Taxes 180,000 54,234 Federal Taxes of Previous Years, Ad- justed in 1917 15,709 $1,847,122 $878,641 Net Surplus for the Year $1,609,489 $2,451,076 Consolidated Balance Sheet for 1917 compares with that of the previous year as follows: Assets Current and Working Assets: 1917* 1916t Cash in Banks and on Hand $869,526 $1,877,487 Notes and Accounts Receivable.... 2,639,767 2,541,307 Inventories of Merchandise, Ma- terials and Supplies 5,265,825 3,519,341 Tank Steamers and Barges 1,790,476 1,790,200 Tank Cars 1,991,022 444,207 Stable and Garage Equipment 273,455 181,118 Iron Barrels and Drums 409,238 250,022 Drilling Tools and Equipment 61,104 16,436 Interest, Insurance, etc.. Prepaid.. 394,003 254,835 Miscellaneous Investments 38,109 $13,732,525 $10,874,953 Capital Assets: Oil Lands, Leaseholds and Devel- opment, Pipe Lines, etc., (includ. the capital stock and advances to Mexican Fuel Co. and Mid- west Prod. Co.). $22,438,370 $20,389,630 Real Estate Occupied by Refineries and Distributing Stations 2,678,895 2,012,019 Buildings, Plant and Equipment... 7,903,873 4,604,116 $33,021,138 $27,005,765 Total Assets $46,753,664 $37,880,718 C. H. PFORZHEIMER & CO., 21 Oealers in Standard Oil Securities RANGE OF STANDARD OIL ST" Capital Par High Low 1 High Low £1,000,000 £1 20 6% 16 2,000,000 1 3,000,000 1 Ji;5,ooo,ooo $100 78.-) 245 810 560 Borne Scrvmser 200,000 100 300 110 365 220 Buckeye Pipe Line' Co... 10,000,000 50 202 64 177 150 Cheseb'gh Mfs". Co. (new) 1,500,000 100 Chesebrough I\lfg'. Co. . . . 500,000 100 900 550 705 645 250,000! 100 195 100 145 90 Continental Oil (Iowa) . . 300,000 100 1850 600 2700 1690 Continental Oil (Colo.)... 3,000,000 100 230 180 Crescent Pipe Line Co... 3,000,000 50 90 25 70 52 Cumberland. Pipe Line Co. 1,488,851 100 115 60 98 58 Eureka Pipe Line Co.... 5,000,000 100 460 120 395 335 Galena Signal (Common) 8,000,000 100 308 190 312 285 12,000,000 100 210 165 Galena Signal (Preferred) 2,000,000 100 150 125 147 130 Indiana Pipe Line Co.... 5,000,000 50 165 60 163 112 20,000,000 100 Intern'l Petroleum Co.... £20,000,000 £1 ™ National Transit Co .i;i2,727,572 iP25 57 22 35 National Transit Co 6,362,500 12.50 New York Transit Co.... 5,000,000 100 405 115 370 308 Northern Pipe Line Co... 4,000,000 100 190 75 127 90 Ohio Oil Co 15,000,000 25 142 65 149 120 Penn-Mex Fuel Co 10,000,000 25 Pierce Oil Corporation... 10,500,000 100 70 30 Pierce Oil Corp, (new) . . . 13i857,500 25 . Prairie Oil & Gas 18,000,000 100 350 180 447 275 Prairie Oil & Gas (new) . 18,000,000 100 Prairie Pipe Line 27,000,000 100 500,000 100 ^50 398 760 600 Solar Refining Co. (new) . 2,000,000 100 350 175 Southern Pipe Line Co... 10,000,000 100 315 120 280 230 South Penn Oil Co 2,500,000 100 925 360 1025 880 South Penn Oil Co 12,500,000 100 287 188 South Penn Oil Co. (new) 20,000,000 100 S. W. Penn Pipe Lines... 3,500,000 100 240 95 175 144 Standard Oil — California. 25,000,000 100 227 110 Standard Oil — California. 50,000,000 100 200 130 273 163 Standard Oil — California. 74,529,983 100 Standard Oil — Cal. (new) 99,373,311 100 Standard Oil — Indiana... 30,000,000 100 375 200 423 308 Standard Oil — Kansas. .. . 1,000,000 100 630 130 610 445 2,000,000 100 500 266 Standard Oil — Kentucky.. 1,000,000 100 950 150 698 310 Standard Oil — Kentucky.. 3,000,000 100 Standard Oil — Ky. (new) . 6,000,000 100 Standard Oil — Nebraska.. 800,000 100 390 170 375 298 Standard Oil — Nebraska. . 1,000,000 100 500 260 Standard Oil — New Jersey 98,338,382 100 435 350 448 328 Standard Oil — New York. 15,000,000 100 695 267 705 575 Standard Oil — New York. 75,000.000 100 183 136 Standard Oil — Ohio 3,500,000 100 355 140 400 257 Standard Oil — Ohio 7,000.000 100 500,000 100 300 175 330 175 Union Tank Line Co 12 000 000 100 102 45 94 60 A'acuum Oil Co 15,000,000 100 202 140 199 170 AVasb.ington Oil Co 100.000 10 40 8 52 20 The ample facilities of our office are at your dispos^h Oil Issues and we feel confident our services will i ii BROAD STREET, NEW YORK • Telephones 4S60- 1-2-3-4 Broad :KS in new YORK MARKET 1914- I 1915 1 191G I 1917 | 1918 High JLow I High Low | High L,o\y | High Low | High Low I I'TO I 3G7 I — 540 710 300 265 665 198' 140 103 I 130 102 18% 9 19% 13% — 18 14% 21 15^2 141/4 11% 1 808 400 700 530 1010 620 1150 775 970 890 375 250 295 250 530 275 460 400 475 435 i 184 95 125 98 125 85 123 101 91 1 500 302 450 300 333 300 1 695 620 750 650' 1025 725, 145 80 180 90 180 160 275 175 282 220 590 270 660 400 510 425 70 35 53 36 48 39 45 30 38 29 40 70 41 155 45 165 120 160 120 355 195 295 215 260 200 243 190 216' 180 197 145 173 144 206 148 190 119 148 130 152 135 145 134 147 134 145 120 125 120 155 80 117 93 117 87 116 80 103 92 165 120 210 118 255 250 125 196 178 141/2 5 131/2 10 15% 101/4 141/2 121/2 49 27 38 28 ' 35 30 20 14 21 12 14 121^ 335 195 242 220 235 170 240 175 220 180 133 68 116 88 122 92 110 94 115 95 201 140 188 122 398 190 435 280 365 298 71 52 72 54 61 33 47 391/2 117 40 21 10 19 9 10% 351/4 81/4 111/2 8% 615 290 462 210 655 360 700 385 502 407 255 125 358 205 345 220 280 242 400 220 - 325 216 415 270 420 270 315 290 262 170 243 200 230 187 220 175 195 170 425 200 390 253 625 308 609 530 349 240 300 260 397 270 387 202 382 345 560 393 895 490 488 330 565 430 505 280 365 305 436 315 568 385 257 - 160 238 178 500 370 560 413 335 140 175 105 109 65 92 78 258 140 242 179 77 30 54 30 365 810 335 715 335 494 445 355 307 202 945 570 640 800 385 700 280 650 803 450 475 285 199 345 220 286 245 630 535 463 311 540 385 435 375 155 96 .135 90 100 93 103 79 115 79 104 82 400 215 490 315 373 325 5." ,'>5 40 31 26 248 700 210 583 300 510 577 470 510 ?ip tuy, sell or obtain the best markets on Standard t not only satisfactory but superior to any other. 66 Pierce Oil Corporation Liiabilities Current Liabilities: 1917 1916 Notes Payable, Secured and Un- secured $3,741,412 $1,S82,238 Accts, Payable and Accrued Liab . . 2,612,402 2,390,474 Estimated Federal Taxes 180,000 Steamship Obligations 630,418 $6,164,232 $3,772,702 Funded Debt: 6% Convertible Sinking Fund De- bentures Payable at 105% of Acc. Value July 1, 1914 $9,523,000 $9,765,000 6% FiveYear Convertible Gold Notes, Due Dec. 31. 1920 2,000,000 2,000,000 Car Purchase Obligations Deferred. 975,871 925,091 Pipe Line Construction Loan 1,000,000 Purchase of Oil Lands and Lease- holds 57,609 $13,498,871 $12,747,700 Capital Stock: Authorized— 1, 320,000 Shares of $25 Each $33,000,000 $33,000,000 Less : Held for Conversion of — 10-Year 6% Debentures 10,000,000 10,000,000 5-Year G% Convert. Gold Notes. 2,500,000 2,500,000 Unissued 3,014,250 6,642,500 $15,514,250 $19,142,500 $17,485,750 $13,857,500 Cc^pital Stock of Subsidiary Company Outstanding: 3,645 Shares of Beneficial Interest of Pierce-Fordyce Oil Assoc'n, which have option of Redemp- tion at 106 in Notes and Cash or Capital Stock of a Par Val. of 911,250 Surplus : Capital Surplus 5,848,197 5,702,313 Profit and Loss Account Surplus... 2,845,363 1,800,502 $8,693,560 $7,502,815 Contingent Liabilities: Litigation Pending $50,000 Total Liabilities $46,753,664 $3^,880,718 *Consolidated balance sheet of Pierce Oil Corporation and subsidiary companies. tBalance sheet of the Pierce Oil Corporation. Remarks — The company's financial report for 1917, which includes earnings of the Pierce-Fordyce Oil Association, in- dicates improvements in Trading Profit over the previous year. The reports for 1917 show that during the year the com- panies, considered as a system, earned $3,450,611,37 available for the payment of interest charges. Interest payments amounted to $717,967.68, so that the income available for that purpose was more than 480 per cent, the amount required. During the year liberal charges were made against income Pierce Oil CorQoration 67 for depreciation, bad debts, fire losses and miscellaneous ex- penses. There was charged off to depreciation of capital and working- assets, including depletion of oil leases $933,444.98 during the current year, compared with $91,303.97 during 1916. This large deduction decreased the net surplus for the year to $1,609,489.68, a falling off from that of the previous year of $841,586.19. The operations In Mexico during the year are reported to show a profit in Mexican currency, but owing to the de- cline in the exchange market to have resulted in a loss of $54,683.01, which also was charged against the income of the year. It is stated that in normal conditions the business in Mexico is very profitable. The properties located in Mexico have been well protected and the organization maintained during the trying conditions of the last twelve months. As of December 31, 1917, the companies, together had current and working assets, amounting to $13,732,525.32, whereas their current liabilities aggregated oniy $6,164,232 54. The cash on hand at the end of the year amounted to $SG9,- 525.68. In the current and working assets the receivables and other items subject to fluctuations in Mexican exchange have been written down to the nominal value of $1.00. This writing down at December 31, 1915, made necessary an ad- justment of the accounts amounting to $921,711.85 in United States currency. That amount was charged to capital sur- plus, to which account the final value of the items will be credited. Net earnings for the year after deduction of war taxes amounted to $2.30 a share. Property additions during 1917 are summa.rized as follows: The properties acquired through the purchase of the Pierce- Fordyce Oil Associa tion include land and recently constructed refineries a*t Fort Worth and Texas City, Texas, and an eight- inch pipe line from the Healdton field in Oklahoma to the Fort Worth refinery (about 100 miles) completed in December, 1917, at a cost of approximately $2,000,000. At the Sands Spring, Oklahoma, refinery the capacity was increased about 30 per cent, by various additions. A continuous plant for the treatment of gasolene by an improved method was also in- stalled. A lubricating oil and wax plant with a capacity sufficient for the corporation's trade in the United States was complete in December, 1917. At the Tampico Refinery, two additional 55,000-barrel storage tanks were erected and the gasolene finishing plant started in 1916 was completed. The Fort Worth refinery had its capacity doubled and a contin- uous gasolene treating plant was installed. At the Texas City Refinery new installations increased the refined oil, gasolene, lubricating oil and paraffin wax capacity, about 20 per cent. There also were purchased 481 steel tank cars, 74 auto trucks and autos and the motorship ' Salarina." Notwithstanding the continued unsettled political condi- tions in Mexico, the corporation's organization throughout the Republic was maintained, and no property losses of any con- sequence occurred. During the year business improved both in volume and profits. All sales were made on a cash gold and silver basis. The railways being unable to handle all rail shipments from the Tampico refinery, the company leased two locomotives and 46 box cars and purchased 12 additional box cars, all of w^hich, together with the tank car equipment in Mexico, meet all the present requirements. Directors — Henry Clay Pierce, Clay Arthur Pierce, Eben Richards, C. W. Cahoon, Charles Hayden, Wal- ter T. Rosen, Frederick Lewisohn, Willet L. Wag- ner, John L. Gray, Prairie Oil & Gas Company Officers — Henry Clay Pierce, President. Clay Arthur Pierce, Vice-President. Eben Richards, Vice-President. C. W. Cahoon, Vice-President. James H. Brookmire, Treasurer. Frederick G. Colley, Secretary and Comptroller. Finance Committee — Henry Clay Pierce, Chairman; Eben Richards, Charles Hayden, Walter T. Rosen. 0]>eraling: Committee — Clay Arthur Pierce, Eben Richards, C. \V. Cahoon, James H. Brookmire, John L. Gray, Frederick G. Colley, Samuel L. Kamps. Counsel — Boyle & Priest, Missouri; Van Vorst, Marshall and Smith, New York; E. B. Perkins, Texas; A. Shanklin, Mexico. Trustees, Ten-Year Debentures — Albert T. Wiggin, Clias. H. Sabin, Moritz Rosenthal. Stock Transfer Agent — The New York Trust Company, Stock Registrar — United States Mortgage and Trust Com- pany of New York. Auditors — Price, Waterhouse & Company. THE PRAIRIE OIL & GAS COMPANY The Prairie Oil & Gas Company was incorporated on De- cember 15, 1900, under the laws of Kansas. The company acts soleiv as a producer, purchaser and marketer of crude oil. It o])( T-ales in Oklahoma, Kansas, Texas and Wyoming. Capital Stock — The authorized capital stock is $20,000,000, of which $18,000,000 is outstanding. Par Value, $100, Bonds — On December 31, 1911, there was $17,000,000 ol bonded debt ourstandins. of which $8,000,000 bonds were retired during 1912, and $5,000,000 during 1915, making the present amount oustanding $4,000,000. These are fifty-year debenture 6s, due 1955 to 1960; interest January and June 1st. The company announced after the annual meeting on December 8, 1914, that the stockholders had authorized the svorking out of plans to separate its producing and transport- ing business. As a result, the Prairie Pipe Dine Company was Incorporated in Kansas with a capital of $27,000,000, all of which was turned over to the parent company In exchang-? for its pipe line properties. This stock was then distributed to Prairie Oil and Gas Company shareholders. Dividends. — Since dissolution, dividends have been paid as follows : 1918- — Apr 30 5% $900,000 I'^Mi^— Jan ir; 3% $540,000 Jan 31 5% 900,000 191 n— Apr 21 150% Stk. Div. 1917- —Oct 31 7% 1.260,000 19 14 — None Jul 31 3% 540,000 1913 — Pv'b 2S 6% 1,080,000 Apr 30 5% 900,000 1912 — IN'ov 30 1,080,000 Jan 31 5% 900,000 Sep 2 3 6% 1,080,000 1916- —Oct 31 5% 900,000 Jun 29 1,080,000 Jul 31 5% 900.000 Mar 30 7% 1,260,000 Apr 29 5% 900,000 Total : Dividends since the $14,220,000 Properties — -The company controls leases on hundreds of thousands of acres of oil lands, in Oklahoma, Kansas, Texas and Wyoming. It is one of the largest and most enterprising oil development companies in the country. It controls valu- a,blc properties in the leading producing areas of Kansas and Oklahoma and for several years past has maintained a daily production from its properties in those two states ranging Prairie Oil & Gas Company between 20,000 and 25,000 barrels. Since the segregation of its pipe line properties, the company has purchased prac- tically all of the oil ^run by the Prairie Pipe Line Company. In connection with its marketing business, it maintains steel storage for 50,000,000 barrels of crude oil, representing an investment of upwards of $12,000,000. Following a recent decision of the Federal Courts declar- ing the Texas Corporation license tax law unconstitutional, the company has entered the Texas fields. The Prairie Oil & Gas Company of Texas was incorporated in January, 191S, with a nominal capital of $20,000 and with headquarters in Houston. The company thereafter took up leases on 78,000 acres in the new fields of Stevens, Eastland, Coleman, Erath, Parker and Palo Pinto counties, North AVest Texas. The company also entered into an arrangement with the Texas and Pacific Coal Company to develop 50,000 acres of its proven oil lands in the vicinity of Ranger, Eastland county. The terms of this agreement are said to include the payment of a bo-nus of $1,500,000 to the Texas and Pacific Coal Company, the Prairie company moreover to drill tv^enty-one test wells, free of cost to the Texas & Pacific Company if no oil is found and both companies to divide equally the net profits from the oil produced. The company has constructed five 55,000-barrel storage tanks near Ranger to take care of expected production and the Prairie Pipe Line Company is running a new line, south through the Healdton field to handle the oil. The company has made no official announcement of its entrance into the Wyoming fields but it is understood to have acquired an interest in the West and Hazlitt holdings which cover upwards of 50,000 acres in various promising producing acres in Wyoming and Nebraska The company's financial report for 1917 compares with the previous year as follows: — Assets: 1917 1916 Changes Person Property $26,725,212 ii;22,934,428 -f $3,790,784 Realty 403,647 3,175,393 — 2,771,746 Bills Receivable 6,500,000 6,701,673 — 201,673 Accounts Receivable.... 28,326,005 8,359,926 + 19,966,079 Securities 712,500 -j- 712,500 Merchandise 34,800,058 37,345,391 — 2,545,333 Cash 5,137,988 5,942,892 — 804,904 Total Assets $102,605,409 $84,459,703 +$18,145,706 Liabilities : Capital Stock $18,000,000 $18,000,000 Bonds 4,000,000 4,000,000 Bills Payable 3,000,000 3,000,000 Accounts Payable 23,861,952 12,262,570 +$11,599;382 Surplus 53,743,458 47,197,133 + 6,546,325 Total Liabilities.. $102,605,409 $84,459,703 +$18,145,706 A gain of $6,546,325 in surplus, after di.stributing $3,600,000 in dividends, indicates earnings of $56.37 a share after all charges. This compares with indicated earnings of $8 8 a share in 1910. The company makes no reference to its war taxes, but an increase of $11,599,382 in accounts payable would indicate that the company's 1917 tax liability is included therein. Growth of the company's volume of business is indicated by an increase of practically $20,000,000 in acronnts receivable. Oil in storage decreased $2,545,333, indicatiim ;i hi nvy with- drawal from reserve supplies, as the market price of Okla- homa crude advanced 60 cents a barrel during the year. 70 Prairie Pipe L-ine Company The company's working capital increased to $48,614,599, a gain of $5,527,287. At the close of the year the book value of the stock was $393 a share. Because of the segregation of the company's pipe lirie properties in January,* 1915, it is difficult to make a compara- tive table illustrating the company's growth over the five- year period. However, on December 31, 1911, the company had net assets of $36,915,175, while on December 31, 1917, net assets were ' $71,743,457, despite the wUhdrawal of pipe line assets. With the current demand and pro vailing high prices for Mid-Continent oil, the company would seem to be assured a substantial profit in spite of war taxes. Officers — President — J. E. O'Neill. Vice-Presidents — Nelson K. Moody and W. S Fitzpatrick. Treasurer — E. T. Patterson. Secretary — John T. Hallihan. Directors — The above-named officers. Transfer Office — Independence, Kansas. , Annual Meeting — Second Tuesday in December. PRAIRIE PIPE LINE COMPANY The Prairie Pipe Line Company was incorporated January 14, 1915, under the laws of Kansas to take over the trans- portation business and the equipment incident thereto of the Prairie Oil and Gas Company. Capitalization — $27,000,000. Par value, $100. The stock was distributed pro rata among the holders of the $18,000,000 outstanding capital stock of the Prairi« Oil and Gas Company. Dividends — Since organization, dividends have been paid as follows : 1918— Apr 30 10% $2,700,000 1917— Jan 31 10% $2,700,000 Jan 31 10% 2,700,000 1916— Oct 31 10% 2,700,000 1917— Oct 31 10% 2,700,000 Jul 31 10% 2,700,000 Jul 31 5% 1,350,000 Apr 29 10% 2,700,000 Apr 30 10% 2,700,000 Jan 15 5% 1,350,000 Total Dividends since organization $24,300,000 Business — The company aets as a common carrier of crude oil in the States of Kansas, Oklahoma, Arkansas, Missouri and Illinois, through which its vast network of gathering and trunk delivery lines extend and which furnish 'n connection with other pipe line systems, the largest outlet for . Mid-Continent oil to the Atlantic seaboard and Gulf ports. Being a public utility corporation engaged solely In trans- portation, the company does not act as a purchaser or marketer of crude oil. Properties — The transportation system of this company is the largest in the industry. Briefly stated, It operate* S.OOO miles of grathering and trunk lines, 2.000 miles of pri- vate telegraph and telephone lines. 23 main pumping stations and 60 field pumping stations. Its gathering lines are con- nected with 4.000 producing leases and about 16,000 producing wells in Oklahoma and Kansas. The capacity of Us gathering equipment is 170.000 barrels a day and its trunk line system can deliver 175,000 barrels a day. In order to expand its facilities the company has expended upwards of $5,000,000 in laying 325 miles of eight- Prairie Pipe Liine Company 71 inch and twelve-in>ih pipe to loop its delivery lines from Car- rolltown, Mo., and to double its trunk line from Carrolltown to Wood River, 111. With the completion of these improve- ments it is able to deliver 120,000 barrels a day through Car- rolltown for points east of the Mississippi River. During 1C16, the company completed an 8-inch line from the new Augusta and El Dorado pools in Butler County, Kansas, to Neodesha, Kansas, and during 1917 added a second 8-inch line to take care of the mounting production of the district. The company also has built 80 miles of eight-inch line from its Jonesburg Station to Chautauqua County, Kansas, to the Blackwell Pool in Kay County, Okla. During 1918 the com- pany expects to complete a new 8-inch line 285 miles in length, running from Cushing, Okla., through the Healdton field to Ranger, Texas. The bulk of the Eastbound traffic goes in the company'ii own lines to the Standard Oil Company of Indiana's refin- eries, at Whiting, Indiana, and Wood River,^ Illinois. Other shipments, according to tariffs on file witt the Interstate Commerce Commission, go via the Indiana, Buckeye and International Pipe Lines to the Imperial Oil Company, Ltd., refinery at Sarania, Ont. ; via Indiana, Buckeye, National Transit, New York Transit and Northern pipe lines to re- fineries at New York harbor, Philadelphia, Baltimore and Pittsburgh; via Illinois Pipe Line, Indiana and Buckeye pip© lines to refineries at Lima, Ohio, Toledo, and Cleveland. With the completion of the Tidewater Oil Company's transconti- nental line from Stoy, 111., to Wood River, the Prairie lines have a further avenue of delivery to the Atlantic seaboard. To the South, the company is able to deliver 35,000 bar- rels a day to the Standard Oil Company of Louisiana refinery at Baton Rouge, La., via the Oklahoma Pipe Line and the Standard Oil of Louisiana's pipe line. In its tax return to the State of Oklahoma, on July L 1914, Prairie Oil and Gas Company reported an investment of $4,647,744 In pipe line equipment in Oklahoma and $21.- 318,669 outside of the State. Eighteen months later these properties were turned over to the Prairie Pipe Line Com- pany for $27,000,000 in stock. With the certainty that Oklahoma and Kansas are the principal sources of supply for the great refining groups of the Mid-Continent and the Atlantic seaboard, it is worth while noting the expansion of traffic on this system in the last five years: Runs Deliveries (Barrels) (Barrels) 1918 (4 months) 17,996,000 19,122,211 1917 48,353,00^ 45,104,68.S 1916 35,856,450 43,846,96^ 1915 32,136,566 43,490,023 1914 40,366,858 39,268,292 1913 37,840,240 34,850,953 1912 30.870,203 33,668,504 Prairie Pipe Line Company's financial statement for 1917 ' compares as follows: Assets; 1917 1916 1915 Real Estate . $96,673 $96,067 $95,050 Bills Receivable 3,000,213 3,000.214 5 000 214 Personal Property... 37,198,278 33,722,550 29!l95;911 Due from Banks. ........ 7,691,186 4,761,245 3,421 776 Accounts Receivable..... 2,047,162 2,260,130 2,675^825 Total Assets $50,033,462 $43,840,206 $40,388,776 72 Solar Refining: Company Liabilities: Capital Stock $27,000,000 $37,000,000 $27,000,000 Accounts Payable 564,775 641,835 348,358 Accrued Depreciation 3,863,253 2,554,537 1,241,677 Tax Reserve Account.... 4,759,683 362,290 Surplus 13,845,750 13,281,544 11,798,741 Total Liabilities... $50,033,462 $43,840,206 $40,388,776 An increase of $5G4,206 in surplus after distributing $9,- 450,000 in dividends and reserving $4,759,683 for taxes, indi- cates that operating profits in 1917 were at the rate of 54.7 per cent., compared with 40.5 per cent, in 1916. After deduct- ing $17.62 a share for war taxes, the balance available for dividends was $37 a share. In view of the company's pro- gram of plant expansion in Texas and southern Oklahoma it is encouraging to note that net cash assets are $7,413,053 after ^setting aside $4,759,683 for war taxes. Plant investment in- ■creased $3,475,728 after writing off $1,308,716 for depreciation. 'Tile book value of the stock increased to $151.28. Under rhe recent decision of the Supreme Court, making all interstate pipe lines common carriers, the company has filed with the Interstate Commerce Commission its schedules of rates. From Oklahoma to Cleveland, Ohio, via the Ohio Oil Company and the Buckeye Pipe Line or via the Indiana Pipe Line and the Buckeye Pipe Line, the rate is 58 cents a barrel, plus a gathering charge of 12 cents. To New York, Philadelphia or Pittsburg, via the same lines and eastern connection, the rate is 70 cents a barrel. This covers a haul of approximately 1,200 miles. . Officers — President, William P. Gates. Vice-President, Clark F. Kountz. Treasurer, F. N. Wilhelm. Secretary, R. G. Hare. Directors — The above and George Coyle, of Tulsa, Okla. Transfer Office — Independence. Kansas. Annual Meeting: — First Tuesday in March. THE SOLAR REFINING COMPANY The Solar Retiriing Curiipan> was incorporated in 1886 under the laws of Ohio. Capital Stock — $2,000,0 00; par value, $100. The capital stock was $500,000. On June 16, 1913, the stockholders rati- fied the proposal to increase the capital to $2,000,000 by a 300 per cent, stock dividend, which was distributed June 30. Dividends^ — Since the dissolution dividends have been paid as follows: 1918_jun 20 5% $100,000 1914— Dec 20 5% $100,000 1917 — Dec 20 30% 100,000 Jun 20 -V r mo.O'.K) Jun 20 5% 100,000 1913 — Dec 20 35% 700.000 1916 — Dec 20 5% 100,000 Jun 30 300% Stk. Div. Jun 20 5% 100,000 Jun 20 20% 100,000 1915 — Dec 20 5% 100,000 1912 — Dec 20 20% 100»000 Jun 20 5% 100,000 Total Dividends since the Dissolution $2,300,000 Properties — This company owns a refint-ry at Lima, c)hl() which is complete in all its branches, manufacturing some gpecialties. The plant has a maximum capacity of about 15,000 barrels per day. It has pipe line connections with the Buckeye Pipe Line Company and the Illinois Pipe Lme. It is reported that the company owns about 280 acres of plant land and that it employs about 800 men. The plant Solar Refining: Company 73 is in good repair and the management is able, active and progressive. The company will have expended $1,000,000 in plant expansion by the close of 1918 in persuance of a policy adopted in 1914. Part of this expenditure has been for the installation of Burton pressure stills for the manufacture of motor spirit. By these extensions the company has expanded its output and earning- capacity by 50 per cent, in the last three years. The company distributes the greater part of its products in the States of Ohio, Kentucky, Indiana and Michigan. The company's financial report for 1917 compares with that of the previous year as follows: 1917 1916 . Change. Profit for Year $1,831,509 $1,104,601 + $726,908 Less Dividends 700,000 200,000 -}- 500,000 Income and War Excess Profits Taxes 689,190 -f 689,190 Carried to Surplus $442,319 $904,601 — $462,282 Balance Sheet as of December 31st Assets: 1917 1916 Change Real Estate $60,457 $60,457 Plant $3,075,105 $2,732,082 + $343,023 Incomplete Construction. . . 308,859 290,115 -{- 18,744 $3,383,964 $3,022,197 + $361,767 Less Depreciation 1,761,878 1,687,564 -j- 74,314 Plant After Depreciation.. $1,C>22,086 $1,334,633 -f $287,453 Inventories 1,282,362 1,028,155 -f 254,207 Insurance Res. (invested). 242,094 240,843 -|- 1,251 Accounts Receivable 618,927 230,680 -f 388,247 Cash & Other Investments 1,940,874 1,698,458 + 242,416 Total Assets $5,766,800 $4,593,226 +$1,173,574 Liabilities : Capital Stock $2,000,000 $2,000,000 Accounts Payable 383,490 341,427 + $42,063 Liability for Taxes 689,190 + 689,190 Surplus 2,694,118 2,251,799 + 442,319 Total Liabilities $5,766,800 $4,593,226 -f$l,173,574 Profits for 1917, after depreciation but before deducting war taxes, exceeded those of the previous year by 66 per cent, and were the largest in any year since the dissolution. After allowing $689,190 for income and war excess profits tax, net profits for 1917 were equal to 57.11 per cent, on the com- pany's $2,000,000 capital stock, against 55.23 per cent, in 1916, 17.69 per cent, in 1915 and a deficit in the previous year. Notwithstanding the payment of $700,000 (35 per cent ) in dividends in 1917 and $689,190 for war taxes, the companv added $442,319 to its surplus. Net assets increased during the year from $4,251,799 to $4,694,120. Working capital on De- cember 31, 1917, amounted to $3,700,767, indicating the strong financial position of the company. Book value of the stock was over $234. a share on December 31, 1917. The value of the company's plant account increased $361 - 767 during the year against which $74,314 was charged to depreciation making an increase of $2S7,453 in the value of the plant account after depreciation. The most interesting 74 Southern Pipe Line Company feature of the development of the Solar Refining Company since the dissolution has been the steady increase in its Plant Account given in the table below. The conservativeness of the company's management is emphasized by the large amounts charged off from year to year to depreciation. The figures are as follows: 1917. 1916 . 1915. 1914. 1913. 1912. Plant Investment ^3,383,964 3,023,19'? 2,587,040 2,500,499 2,306,761 2,272,769 Accrued Depreciation $1,761,878 1,687,564 1,637,912 1,562,398 1,507,010 1,450,930 Increase 1912 to 1917 $1,111,195 $310,948 Net Plant $1,622,086 1,334,632 949,128 938,101 799,751 821,839 $800,247 Analysis of the company's progress in the six years since the dissolution shows the following: New Plant Incomplete Invest- Con- Depre- Book Net Profits Kate ment struction ciation Value 1917. *$1,142,319 57.10% $343,023 $308,859 $74,314 $234.70 1916. 1,104,601 55.20% 45,042 290,115 49,652 212.59 1915. 353,960 17.60% 86,541 75,514 167.35 1914. t244,610 193,738 55,388 159.66 1913 . 925,724 46.28% 33,991 56,070 181.89 1912. $702.40 *After deducting $689,190 for war taxes. fDeflcit. tOn $500,000 capital, equivalent to $175.60 on present capital. The effect of the company's steady reinvestment of profits in plant expansion is evident in the earnings of the last two years. Trading profits for 1917 were $1,831,510 before de- ducting war taxes, or practically double trading profits in 1913, when the plant, prior to recent improvements, was run to full capacity. With the completion of additional improve- ments during 1918, the company ought to be able to show trading profits of $2,000,000 or at the rate of 100 per cent, on its present capital, during normal years. Officers and Directors — President — J. G. Neubauer. Vice-President — F. T. Cuthberi. 2nd V.-P. & Treas. — F. G. Borges. Secretary — N, D. Keys. Gen. Supt.— J. W. McCarthy. Transfer Office — Lima, Ohio. Annual Meeting — First Wednesday in January. SOUTHERN PIPE LINE COMPANY The Southern Pipe Line Company was incorporated la 1890 under the laws of Pennsylvania. Capital Stock— The capital stock was $5,000,000, but it was increased to $10,000,000 in 1906. Par value, $100. Dividends — Since the dissolution, dividends have been de- clared payable as follows: Southern Pipe Line Company 75 1918- — Jun 1 6% ^ ?60o,ooa 1915- —Mar 1 6% $600,000 Mar 1 6% 600,000 1914- —Dec 1 6% 600,000 1917- —Dec 1 6% 600,000 Sep 1 8% 800,000 Sep 1 6% 600,000 Jun 1 8% 800,000 Jun 1 6% 600,000 Mar 1 8% 800,000 Mar 1 6% 600,000 1913- —Dec 1 8% 800,000 1916- —Dec 1 6% 600,000 AugSO 8% 800,000 Sep 1 6% 600,000 Jun 2 8% 800,000 Jun 1 6% 600,000 600,000 Mar 1 8% 800,000 Mar 1 6% 1912- —Dec 2 8% 800,000 1915- —Dec 1 6% 600,000 600,000 > Aug31 8% 800,000 Sep 1 6% Jun 1 6% 600,000 Jun 1 6% 600,000 Mar 1 6% 600,000 Total Dividends ; since the dissolution . . . . $17,400,000 Properties — The company owns and operates 1,130 miles of pipe line and four pumping stations and owns 1,179,323 barrels of Iron tankage. The main line is 261 miles long, extending from Fayette County, Pa., from a point on the Pennsylvania-West Virginia State Line, about twelve miles northeast of Morgantown, via Watson, State Line, Knepper and Millway, to Philadelphia. It embraces 541 miles of 8-inch pipe and 578 miles of 6-Inch pipe. Oil is received at the western terminus from The Eureka Pipe Line Company, which is delivered to refineries at Phila- delphia and to the National Transit Company at Millway. Oil is received also from the National Transit Company at Millway. The company has no gathering lines. Traffic — Business of these lines for the past five years has been as follows: Operations Oil In Othpr T?*»reipts Deliveries Tankage 1918 4 months. 4,954,790 5,019,707 527,824 1917 16,545,467 16,339,308 599,663 1916 16,162,025 15,873,633 476,342 1915 12,007,811 12,268,015 1914 12,288,691 11,890,943 710,731 1913 17,489,806 17,367,896 681,649 1912 20,598,159 20,619,580 573,740 Southern Pipe Line Company's financial report for 1917 compares with that of the previous year, as follows: — 1917 1916 Increase Net Profits $2,534,565 $2,354,371 $180,194 Dividends 2,399,999 2,399,999 Surplus $134,566 *$45,628 $180,194 ♦Deficit. Net profits were equal to 25.34 per cent, earned in 1917, compared with 23.54 per cent, in 1916 and 19.66 per cent, in 1915. The Balance Sheet as of December 31, 1917, compares as follows: — Assets: 1917 1916 Change Plant $5,945,800 $5,948,315 — $2,515 Other Investments 7,624,522 7,097,297 -f 527,225 Accounts Receivable 313,048 333,151 — 20,103 Cash 220,616 367,489 — 146,873 Total Assets $14,103,986 $13,746,252 -f $357,734 76 South Penn Oil Company Liabilities 1917 1916 Change Capital Stock $10,000,000 $10,000,000 Depreciation 1,312,143 1,141,431 +$170,712 Accounts Payable 66,188 13,732 + 52,456 Profit and Loss Surplus. . . 2,725,655 2,591,089 + 134,566 Total Liabilities $14,103,986 $13,746,252 +$357,734 The company shows a surplus after dividends for the first time since 1914. This result was due to a 10 per cent, in- crease in traffic. The Book Value of the stock increased to $127 a share of which $80.92 were net cash assets. The company's development since the dissolution is set forth comparatively as follows: — Plant Depre- Book Net Profits Ratio Investment ciation Yahie 1917 $2,534,565 25.34% $170,712 $127.25 1916 2,354,371 23.54% ^8,813 169,570 125.91 1915 1,966,756 19.66% 17,373 168,980 126.36 1914 2,528,883 25.28% 7,049 85,550 130.69 1913 3,743,658 37.43% 40,154 177,571 135.41 1912 3,810,450 38.10% *539,760 129.97 *Accrued depreciation to December 31, 1912. It is apparent that the reduction in pipe lino rates af- fected the company's high earning power but a liberal divi- dend policy has been maintained because of the company's large cash resources. Directors — Forrest M. Towl, J. W. Vandergrift, C. E. Loane, C. A. McLouth, H. C. Dorworth. Officers — President — Forrest M. Towl. Vice-President and Gen. Mgr. — J.. W. Vandergrift. Vice-President — J. H. Baker. Secretary and Treasurer — E. R. Shepard. Asst. Secretary and Treasurer — C. E. Loane. Transfer Office — No. 210 Seneca Street, Oil City, Penna. Annual Meeting — Second Thursday in January SOUTH PENN OIL COMPANY The South Penn Oil Company was incorporated in 1889. under the laws of Pennsylvania. The company acquired con- trol of the Penn-Mex. Fuel Company in 1912 by obtaining 51 per cent, of its $10,000,000 capital stock. Capital Stock — The capital stock is $20,000,000. Par value, $100, having been increased from $2,500,000 to $12,500,000 and then to the present figure. On May 1, 1913. the stock- holders at a special meeting voted to increase the capital stock from $2,500,000 to $12,500,000. 75,000 shares were dis- tributed pro rata as a stock dividend of 300 per cent, on July 31, 1913, and the balance of 25,000 shares were offered to the stockholders for subscription at par until the same date. On February 14. 19*17, the shareholders voted to in- crease the capital to $20,000,000, which was done by a 6§ per cent, stock dividend distributed on March 15, 1917, to stock of record February 14. South Penn Oil Company 77 Dividends — Since the dissolution, dividends have been pay able as follows: L918- — Mar 30 5% $1,000,000 1915- —Mar 31 3% $375,000 1917- —Dec 31 5% 1,000,000 1914- —Jun 30 5% 625,000 Sep 29 5% 1,000,000 MarSl 5% 625,000 Jun 30 5% 1,000,000 1913- —Dec 31 5% 625,000 MarSl 5% 1,000,000 Sep 30 3% 375,000 Mar 15 60% Stk. Div. Jul 31 300% Stk. Div. 1916- —Dec 30 11% 1,375,000 Jul 31 100% Rights 250,000 Sep 30 8% 1,000,000 Jun 30 10% Jun 30 8% 1,000,000 MarSl 10% 250,000 Mar 31 5% 625,000 1912- —Dec 14 10% 250,000 1915- —Dec 20 5% 625,000 Sep 14 10% 250,000 Sep 20 3% 375,000 Jun 15 10% 250,000 Jun 30 3% 375,000 Total Dividends since the dissolution . . , ... $14,250,000 Properties — The company is the largest prod,ucer of high grade Pennsylvania oil. It owns about 10,000 wells in the Appalachian Field, extending throug-h western New York, western Pennsylvania and West Virginia, having a dally pro- duction of approximately 12,000 barrels. Its leases cover about 1,500,000 acres of lands, and those actively operated comprises about 300,000 acres, while it is estimated that more tlian 600,000 acres of its leased land Is semi-tested territory. The company also controls the New Domain Oil and Gas Company which is active in the Kentucky fields. Many of the company's old wells are small pumpers, which it does not operate unless the price of crude justifies doing so. At the present time the company has a production of several hundred barrels a day from wells yielding from one-half to one barrel of oil daily under the pump. During August, 1917, the company purchased the proper- ties of the Big Creek Development Company, comprising 7,500 acres in Lincoln County, West Virginia. On this prop- erty are 455 producing wells, yielding an average of 1,500 barrels daily. The property is fully equipped and served by the Eureka Pipe Line. The price paid was upwards of $4,000,000. The company also purchases from the producers all the oil run direct from the wells by the New York Transit Com- pan, National Transit Company, South West Penna. Pipe Lines and Eureka Pipe Line. The company receives a broker- age commission of 5 cents a barrel for acting as purchasing agent. South Penn Oil Company's financial statement for 1917 compares as follows: — 1917 1916 1915 Net Earnings $6,107,723 4,000,000 $4,745,089 4,000,000 $5,314,150 1,750,000 Dividends Balance to Surplus.. $2,107,722 $745,089 Sh^et $3,564,150 Comparative Balance Assets: 1917 1916 1915 Plant $14,176,027 5,446,628 2,090,216 $11,224,681 5,444,738 1,298,044 $10,819,102 5,441,138 1,400,999 Stock Held Materials & Merchandise Cash and Oil on Hand.. 2,349,982 4,349,193 4,343,325 Notes, Bonds & M'tgages 3,208,612 2,600,000 2,428,671 Accounts Receivable .... 721,367 302,461 284,498 Total Assets $27,992,832 $25,219,117 $24,717,732 78 South Penn Oil Company Liiabilties: Capital Stock $20,000,000 $12,500,000 $12,500,000 Accounts Payable 995,702 329,710 573,414 I'rofit and Loss Surplus. *G,997,129 12,389,407 11,644,318 Total Liabilities $27,992,832 $25,219,117 $24,717,732 *After deducting- stock dividend of $7,500,000. The company's earnings for 1917 are equal to 30.53 per cent, on the $20,000,000 stock outstanding at the close of the year, or at the rate of 48.85 per cent, on former capitaliza- tion. This compares with 37.95 per cent, earned in 1916 and 42.5 per cent, in 1915 on $12,500,000 stock outstanding in those years. On March 15, 1917, the company distributed a stock dividend of 60 per cent., or $7,500,000, from the surplus earnings of former years. The Book Value of the stock was $135 a share on December 31, 1917, compared with $199 a share at the close of the previous year on former capitali- zation. Earnings as represented for 1917 include income and excess profits tax, but the company states that it was able to add approximately $400,000 to surplus after dividends and war taxes. The company's growth since the Dissolution is shown com- paratively as follows: — Capital Net Current Earnings Dividends Assets Assets 1917 $6,107,723 $4,000,000 $19,622,655 $7,374,475 1916 4,745,089 4,000,000 16,669,419 8,219,988 1915 5,314,150 1,750,000 16,260,240 7,884,079 1914 (Deficit) 1,250,000 12,146,584 8,433,524 f 1,500,000 1913 6,637,702 ^ 7,500,000 13,721,539 10,323,846 I (Stk. Div.) 1912 750,000 12,084,228 4,324,058 From the Dissolution at the close of 1912 to April 1, 1918, the company has distributed to its shareholders, $14,- 250,000 in cash, $15,000,000 in stock and subscription rights at par to $2,500,000 of stock. The progress of the company, despite the depletion of the Appalachian Fields, is shown by the fact that net assets on December 31, 1896, were $11,758,- 003; on December 31, 1906, $14,915,185 and on December 31, 1918, $26,997,129. Officers — Chairman — Joseph Seep. President — L. W. Young, Jr. Vice-President — E. E. Crocker. Secretary — R. W. Cummins. Treasurer — S. G. Hartman. Directors — The above-mentioned officers In addition to J. L. McKinney and P. H. Curry. Transfer Office — No. 424 Sixth Avenue, Pittsburg, Pa. Annual Meeting — Third Tuesday in January, Southwest Penn Pipe liines 79 SOUTH WEST PENNSYLVANIA PIPE LINES The South West Pennsylvania Pipe Lines was incorporated tn 1885 under the laws of Pennsylvania. Capital Stock — The capital stock is $3,500,000. Par value, $100. Dividends — Since the dissolution, dividends have been de- clared, payable as follows: 1918- — Apr 1 3% $105,000 1914 — Dec 31 3% $105,000 1917- —Dec 31 3% 105,000 Oct 1 3% 105,000 Oct 1 3% 105,000 Jul 1 5% 175,000 Jul 2 3% 105,000 Apr 1 5% 175,000 Apr 2 3% 105,000 1913— Dec 31 5% 175,000 1916- —Dec 31 3% 105,000 Oct 1 5% 175,000 Oct 1 3% 105,000 Jul 1 5% 175,000 Jul 1 3% 105,000 Apr 1 5% 175,000 Apr 1 3% 105,000 1912 — Dec 31 5% 175,000 1915- —Dec 31 3% 105,000 Oct 1 5% 175,000 Oct 1 3% 105,000 Jul 1 5 175,000 Jul 1 3% 105,000 Apr 1 5% 175,000 Apr 1 3% 105,000 Total Dividends since the ^3,325,000 Properties — The company owns and operates 1,646 mile* of pipe lines of various sizes from 2-inch to 12-inch pipe, of which the trunk lines embrace 100 miles of 8-inch, 271 milei of 6-inch, 39 miles of 5-inch, and 12 miles of 4-inch pipe. There are three trunk line pumping- stations and thirty-three local pumping- stations. The company also owns 1,472,006 barrels of iron tankage. Oil is received from The Buckeye Pipe Line Company at various points on the Ohio- Pennsylvania boundary line; from the Eureka Pipe Line Co. at points on the West Virginia- Pennsylvania State line, chiefly coming from Littleton, Downs, Morgantown and Brice; from the National Transit Company at Nedskey and from the Tuscarora Oil Company at Cooks Ferry. The producing field in Pennsylvania from which oil is re- ceived extends from the Northern boundary of Beaver and Allegheny Counties to the western and southeun lines of Pennsylvania and east to the Monongahela Riven Most ot the oil transported is received from and delivered to other transporting companies. Traffic — Business over these lines for the last five years has been as follows: — Oil in Other Receipts Runs Deliveries Tankagre (Barrels) (Barrels) (Barrels) (Barrels) 1918 (4 mos.). 3,699,607 426,005 4,039,769 476,185 1917 12,305,109 1,468,123 12,681,423 395,134 1916 12,991,915 1,276,031 14,378,994 467,098 1915 10,584,530 1,300,732 12,549,583 607,350 1914 9,185,864 1,385,119 10,506,968 780,698 1913 13,300,253 1,340,515 14,638,052 688,800 1912 14,202,960 1,456,436 16,106,403 522,506 so Southwest Fenn Pipe L-ines Southwest Pennsylvania Pipe Lines' financial statement for 1917 compares with that of the previous year, as follows: 1917 1916 Decrease ♦Profits $338,536 $456,358 $117,823 Dividends 419,999 419,999 Surplus t$81,463 $36,359 $117,822 ♦Profits are equal to 9.67 per cent, in 1917 on $3,500,000 capital stock, 13.04 per cent, in 1916 and 9.90 per cent, in 1915. fDeficit. The company's Balance Sheet as of December 31, 1917, compares with previous year as follows: — Assets: 1917 Plant $3,949,758 Other Investments 1,331,891 Accounts Receivable 105,737 Cash 78,339 1916 $3,936,037 1,219,891 116,529 218,833 Total Assets $5,465,726 $5,491,290 Liabilities 1917 Capital Stock $3,500,000 Depreciation 856,361 Accounts Payable 40,208 Oil Pur. and Sale Conting. 101,270 Profit and Loss 967,887 1916 $3,500,000 750,782 74,157 117,000 1,049,350 Change + $13,721 + 112,000 — 10,792 — 140,494 — $ 25,564 Chang-e Total Liabilities $5,465,726 $5,491,290 +$105,579 — 33,949 — 15,730 — 81,463 — $25,564 A decline of 5% per cent, in the company's trunk line business resulted in a slight deficit after the payment of the usual $12 dividend. There was an increase in gathering line business but it was not sufficient to offset the shrinkage in trunk line activities. The Book Value of the stock was $127.65 on December 31, 1917, of which $42.16 a share repre- sented net cash assets. Since the Dissolution, the company's progress is shown comparatively as follows: — Book Earningrs Ratio Depreciation Value 1917 $338,536 9.67% $105,579 $127.65 1916 456,358 13.04% 107,028 129.98 1915 346,453 9.90% 106,815 127.94 1914 406,359 11.60% 70,387 131.04 1913 806,227 23.03% 125,505 135.43 1912 967,661 27.90% *341,047 133.82 ^Accrued to December 31, 1912. The effect of reduced rates on the company's earnings is apparent but a conservative dividend policy has kept the surplus unimpaired, and its cash position strong. Net as- sets on December 31, 1916, were $4,549,350 against net assets of $3,453,384 on December 31, 1906. Directors — Forrest M. Towl, E. G. Wright and J. M. Magee, Pittsburgh, Pa. ; V. S. Swisher, J. F. Connors and E. R. Shepard, Oil City, Pa. Officers — President — Forrest M. Towl. Vice-President and Gen. Mgr. — E. G. Wright Vice-President — V. S. Swisher. Secretary and Treasurer — E. R. Shepard. Assistant Treasurer — C. A. McLouth. Transfer Office — 210 Seneca Street, Oil City, Pennsylvania Annual Meeting — Wednesday after third Thursday in Jan- uary. 81 STANDARD OIL COMPANY (California) The Standard Oil Company of California was incorporated in 1906 under the laws of California to consolidate the Stand- ard Oil Company of Iowa, a marketing company, and the Pacific Coast Oil Company, which was organized in 1879 and acquired by Standard Oil Interests in 1900. Capital Stock — $100,000,000 is the authorized capitalization since July 14, 1914, when the stockholders voted on a resolu- tion to this effect passed by the directors on January 6th. The company is therefore the first of the former Standard Oil subsidiaries to raise its capitalization to an equality with the parent company. The original capital was $25,000,000 but after dissolution, the stockholders on July 20, 1912, authorized an increase to $50,000,000, which was accomplished by extending subscription rights at par first to 80 per cent, of holdings and thereafter to 10 per cent, of holdings. On July 14, 1914, the stockholders authorized an increase of authorized capitalization to $100,000,000, which was accom- plished first by a 50 per cent, stock dividend and thereafter by a 33 1-3 per cent, stock dividend. The various increases of the company's outstanding capital are set forth in the following table: — Stock Dividend Outstanding: or Sub. Rights New Capitalization at Par Capitalization Aug. 31 1912... $25,000,000 80% Sub. Rights $44,93.3,994 Feb. 2, 1914 *4r>, 183,993 10% Sub. Rights 49,686,655 Apr. 30, 1916... 49,686,665 50% Stock. Div. 74,529,983 Apr. 15, 1917... 74,.529,983 33 1-3% Stk. Div. 99,373,310 *2,500 shares at $200 per share were issued in November, 1913, in part payment for the 4,000 acres of producing lands, purchased from the Murphy Oil Company. Income Tax Ruling — By resolution of the Board of Direc- tors of the company, it is provided that the stock dividend declared January 18, 1916, shall represent surplus profits of the company prior to March 1, 1913, amounting to $20,353,- 068.34, and the first surplus profits earned thereafter up to $4,490,259.40 and that the stock dividend declared January 16, 1917, shall represent the first surplus profits of the com- pany earned after March 1. 1913, over and above $4,490,259.40. In view of this action of the board, the ofllce of the Com- missioner of Internal Revenue has ruled that the proportion of the surplus of the company earned to March 1, 1913, and refiected in the stock dividend declared January 18, 1916, may be eliminated by stockholders in their income tax re- turns for the year 1916. Therefore, under this ruling 18.0743 per cent, of the 1916 stock dividend is returnable for income tax purposes, and the remainder of the 1916 stock dividend is not taxable. Dividends — Since the dissolution an initial dividend of 2V2 per cent, was paid on November 15, 1912, and thereafter a quarterly rate of 2V2 per cent, has been maintained through- out all the increases of capital. Cash dividends paid from November 15, 1912, to June 15, 1918, aggregate $36,558,345. Business — The Standard Oil Company, California, repre- S3ents /n its organization every branch of the oil industry, bein? engaged in the producing, refining, transporting and market- ing of oil and its by-productg. Proflucing Properties — Until the early part of 1913, the company was a large purchaser of oil, its own wells furnish- ing but 10,000 barrels a day. Development work in 1913 S2 Standard Oil Company — California brought success in all fields and by the close of the year the bringing in of a series of gushers had raised the com- pany's production for that year to a daily average of 26,575 barrels. During 1917, the production from the company's own wells was 18,286,588 barrels, a gain of 3,509,464 barrels over the previous year. The growth of the company's produc- ing and pipe line business is shown in the following table: — • Daily Average Average Crude Production Daily Pipe Oil Stored Own Wells Line Runs Dec. 31 1917 45,352 BblB. 83,596 Bbls. 15,101,696 Bbls. 1916 35,632 Bbls. 75,944 Bbls. 22,753,178 Bbls. 1915 31,656 Bbls. 90,715 Bbls. 26,682,064 Bbls. 1914 34,869 Bbls. 109,949 Bbls. 26,058,077 Bbls. 1913 26,575 Bbls. 85,902 Bbls. 24,310,310 Bbls. 1912 10,846 Bbls The success which has crowned the efforts of the com- pany's production department is the belated reward of $14,- 000,000 spent in exploration and development work before the company's wells netted a cent of profit. Refining Properties — The company operates three refineries That at Point Richmond, near San Francisco, was practically rebuilt at an expenditure of $10,000,000 during 1912. The secondary refinery at El Segundo, near Los Angeles, was completed in 139 days during 1913 and the Kern River refinery, near Bakersfleld, was completed in November, 1913. The combined capacity of the three refineries is over 100,000 barrels a day at this date and is Increasing constantly, a» building operations never have ceased since the company began independent operations. The Point Richmond refinery on San Francisco Bay in one of the most complete In the world. It spreads over 435 acres and employs 1,700 men. 65,000 barrels of crude oil are refined daily. There are 117 big stills, adequate condenser! and receiving houses, 41 agitators, 182 storage tanks, an engine house capable of developing 22,000 horsepower; an acid plant manufacturing 170,000 pounds of sulphuric acid daily for purifying oils; a grease plant; an asphaltum plant; a can factorj^ with a capacity of 25,000 five-gallon cans a day; a cooperage works; a machine shop, a tank car repair shop, a ship yard, and pumping houses, and interconnecting the entire plant runs a maze of pipe lines, 360 miles In all, through which are handled the crude and many of the refl.ned oils, as well as steam, air and fresh and salt water. From the refinery the oils are run by gravity directly to the railroad yards, where 50 tank cars can be loaded at once. Other pipe lines convey oil to the company's pier extending a mile out into the bay, where the company's ships and barges are loaded. There Is a second shipping pier at Point Orient, five miles below the refinery. The company recently has purchased 100 acres imme- diately adjoining its refinery to provide for further ex- tensions. To obviate fire danger, oil for the Richmond refinery Is stored at the tank farm at San Pablo, which covers 1,200 acres. The company now has storage capacity there for 25,000,000 barrels of oil and is increasing its tankage facilities. The El Segundo refinery on the ocean front near Lot Angeles is adjacent to the Pullerton field and the new Merced standard Oil Company — California 83 Hills district, both of which have been developed by the company. The plant has a daily capacity of 30,000 barrels, storage for 2,800,000 barrels of refined oils and 1,100,000 barrels of crude oil, and additional tankage is under con- struction. There Is also an acid plant with a dai.iy output of 24,000 pounds and an asphalt plant with a daily capacity of 75 tons. Loading racks for tank cars and a shipping pier adjoin the refinery, providing facilities for loading 860 tank cars daily. A cooperage shop, casing plant and machine shop complete the equipment and make the refinery as up- to-date as any in the country. Acreage for extending the plant to six times its present capacity, when necessary, has been acquired recently. The new Bakersfield refinery, with a present capacity of 10,000 barrels, is situated in the heart of one of the oldest producing districts and is supplied by the company's own wells. The Kern River oil is fourteen degrees gravity and under, and this plant specializes in asphaltum products. The company has installed a very large gasolene com- pression plant on its McNee properties in the Midway field. The plant will handle 12,000,000 cubic feet of natural gas daily and will yield between 15,000 and 20,000 gallons of gasolene daily. Transportation Properties — The company operates a total of 1,100 miles of pipe line. The main trunk lines extend for 350 miles through the San Joaquin Valley from Midway to Point Richmond, with a branch line to Coalinga. There are three lines paralleling each other, two eight-inch lines and one twelve-inch line, the last just completed. The total capacity of these lines is 80,000 barrels a day. From the Santa Maria field to Port Hartford there is an eight-inch line, 40 miles in length. From the Newhall field to Ventura runs forty miles of four-inch line and the twenty-three miles between the Whittier-Fullerton districts to El Segundo li transversed by two six-inch lines and an eight-inch line recently completed. The combined capacity of the company'* lines is In excess of 100,000 barrels a day. During 1913, the California legislature passed a law requir- ing all pipe lines to become common carriers. Although pro- testing that the law was unjust, as it might deprive it of the use of lines, which it had built solely to transport it« own oil, the company accepted the law and was the only pipe line company in the state to do so. The other companiei have appealed to the Federal Courts against the enforcement of the statute. For water transportation the company operates a fleet of thirty vessels, consisting of ocean-going tankers, barges, river boats, tugs and launches, ranging in carrying capacity from 500 barrels to 80,000 barrels. The "Richmond" and a sister ship, the "J. A. Moffett," of 60,000 barrels carrying capacity, were joined during 1916 by the "D. G. Scofield" of 8,704 gross tonnage with carrying capacity for 80,000 barrels of oil, and "La Primera," a steamship of 612 tons, for carrying package goods to the Orient. Three other tankships of 8,000 tons, with 85„000 barrels capacity are under construction for the company at the Union Iron Works, San Francisco. With the delivery of these later vessels, the company's fleet will repre- sent a total carrying capacity of nearly 750,000 barrels of oil and 250.000 cases. 8 4 Standard Oil Company — California The company's fleet is constituted as follows: Carrying Capa (Barrels S. S. "D. G. Scofleld" Coastwise & Foreign 80,000 S. S. "Richmond" Coastwise & Foreign 65,0€0 S. S. "J. A. Moffat" Coastwise & Foreign 65,000 S. S. "Acme" Coastwise & Foreign 80,000 *S. S. "D. G. Scofield" Coastwise & Foreign 80,000 S. S. "Capt. A. P. Lucas". . .Coastwise & Foreign 40.000 S. S. "Col. E. L. Drake" Coastwise & Foreign 40,000 S. S. "El Segundo" Coastwise & Foreign 34,000 S. S. "Ascunsion" Coastwise & Foreign 21,000 S. S. "Atlas" Coastwise & Foreign 16,000 S. S. "Maverick" Coastwise & Foreign 12,000 S. S. "George Loomis" Coastwise & Foreign 7,000 Carrying Capacity (Barrels) M.S. "La JNIerced" Coastwise & Foreign Case Oil Barge S. O. Co. No. 95 Coastwise & Foreign 48,000 Barge S. O. Co. No. 93 Coastwise & Foreign 28,000 Barge S. O. Co. No. 91 Coastwise & Foreign 23,000 Barge No. 1 Harbor 4,500 Barge No. 2 Harbor 800 Barge No. 3 Harbor 2,000 Barge No. 4 Harbor 5,500 Barge No. 5 River 2,200 Barge No. 6 Harbor 650 Barge No. 7 Harbor 5,500 Barge No. 8 Harbor 2,200 Gasolene Barge "Petroleum" Harbor 400 Gasolene Barge "Petroleum" No. 2 Harbor 1,200 Gasolene Barge "Pico" Harbor 1,200 Stern Wheeler "Petroleum" No. 3 River 1,500 Gasolene Barge "Contra Costa" Harbor 7,500 Gasolene Barge "Benecia" Harbor 2,200 Stern Wheeler "San Jose" River 500 Tug "Standard No. 1" Harbor Freight & Launch "Dispatch" Harbor Two-thirds of the company's output of llluminants is e>: ported, mostly to the Orient, ships of the Standard Oil Companj of New York loading at Port Richmond for China and Japan. Twenty-five per cent, of the American oil shipped to China last year went from California and all but a few cargoe* was furnished by Standard Oil Company of California. The company also furnished sixty per cent, of the American oil that went to Japan. Cargoes of the company's llluminants went last year to British India and the Dutch Indies. The company also has worked up a substantial trade in lubricants in Australia. The company markets gasolene and engine and stove dis- tillates in Central and South American countries. The company maintains an extensive marketing organiz- tion for the distribution of its output. There are fifteen main supply stations between Nome, Alaska, and San Diego, Cal., and nearly 200 subsidiary stations from which refined oils are distributed through contiguous territi^ry by the company's tank wagons. The domestic business covers the Pacific slope stations, Alaska and the Hawaiian Islands, and the com- pany's export stations are located through Japan. India, Java and the West Coast of Central and South America. \ standard Oil Company — California 85 The company claims the distinction of having inaugurated the Service Station idea, whereby gasolene is sold direct to the consumers. The company has more than 300 of these stations in operation and is continually adding to the number. Standard Oil Company, California's, financial statement for 1917 compares as follows: — 1917 1916 Net Earnings $30,377,073 $21,263,520 Depreciation 3,620,494 3,658,216 Balance . $26,756,579 $17,605,304 Depletion 2,276,839 Balance $24,479,740 $17,605,304 Excess Profits and Income Tax (Esti- mated) 5,830,116 Balance $18,649,624 $17,605,304 Cash Dividends 9,316,247 6,831,915 Surplus $9,333,377 $10,773,389 Previous Surplus 30,782,324 44,852,263 Total Surplus $40,115,701 $55,625,652 Stock Dividend 24,843,327 24,843,328 Final Surplus $15,272,374 $30,782,324 Balance Sheet — The balance sheet as of Dec. 31, 1917: Assets: 1917 1916 Plant $80,979,929 $72,010,645 Other Investments 1,676,610 99,369 Inventories 26,799,564 26,166,272 Deferred Charges 730,710 Accounts Receivable 10,371,893 8,031,708 Employes' Liberty Loan 1,007,892 Cash 5,356,758 2,646,756 Unexpired Insurance, Taxes, etc.... 445,509 Total $126,923,160 $109,400,259 liiabilities : Capital Stock $99,373,310 $74,529,983 Accounts Payable 5,312,669 3,837,952 Capital Stock Premium Account..., 250,000 250,000 Excess Profits Income Tax (Est.).. 5,830,116 Merchandise Due on Contract 884,687 . . . . . . Surplus 15,272,378 30,782,324 Total . . $126,923,160 $109,400,250 For its first year of operation as a $100,000,000 corpora- tion, Standard Oil Company of California reports net trading profits of $30,377,073, from which after reserving $5,830,116 for war taxes; $3,620,494 for depreciation, and $2,276,839 ' for well depletion, it had $18,649,624 available for dividends. The year proved the best in the company's long and suc- cessful history. In his report to the shareholders. President W. T. Rheem touches briefly but informingly on the company's various activities, as follows: During 1917 the company drilled and completed 120 wells. It added to its holdings by purchase and lease 1,395 acres of 86 Standard Oil Company — California developed properties, which at the time of purchase were producing- about 2,000 barrels per day and which had since been increased to 3,000 barrels per day. During the year the company also endeavored "by wild catting-" to develop new oil fields. This effort has been attended with some failures and considerable success, the most notable success being in the Merced Hills, some seven miles east of the City of Los Angeles, from which the company now has a produc- tion of 10,700 barrels per day from seven wells finished. The smallest company well in this field came in with a production of 500 barrels per day and the larg-est at the rate of 8,000 barrels. This last named well, although several months old, is still producing 5,000 barrels per day. This particular field, in which the company has 767 acres under lease, promises to be a prolific producer. As to pipe lines the report says that the Northam El Segundo system was increased by the addition of 10-inch line 22.6 miles in length, a branch line of 6-inch pipe was constructed to the new fields in the Merced Hills (Montebello) 9.5 miles. j Of the expenditures for plant account $3,276,221 was "used to increase the plants of the refineries at Richmond, El Segundo and Bakersfield. This expenditure covered increased still capacity, delivery lines from El Segundo to San Pedro harbor, both for fuel oil and light products and other con- struction of less magnitude made necessary by the ever in- creasing demand for the company's products. There were added to the company's fleet during the year 1917 the steamers John Ena with a carrying capacity of 105,000 cases, and the Dunsyre, capacity 85,000 cases, the motor ship La Merced, capacity 38,000 cases, and several smaller boats for towing and barging. The steamer Colonel E. L. Drake was tendered to the United States Gov- ernment in May, 1917, was accepted and is now exclusively in the service of the Government. There were added to the sales departments in 1917 38 new sub-stations, 21 new service stations and 206 autos and auto trucks. The gross production of crude oil from the company's wells in 1917 was 18,286,588 barrels, against 14,177,124 bar- rels in 1916, a gain of 3,509,464 barrels, or a daily average gain of 9,720 barrels, equivalent to an increase of 23,74 per cent. The total crude oil runs to the company including its own production for 1917 was 83,596 barrels a day, against 75,944 barrels a day in 1916, an increase of 7,652 barrels a day. The company's stocks of crude oil and their equivalent as of December 31, 1917, were 15,101,696 barrels, against 22,753,- 178 barrels on December 31, 1916, or a total decrease in its stocks of 7,651,482 barrels. The total value of all sales of all products, both foreign and domestic, for the year 1917 shows an increase of 42.45 per cent over that of 1916. The export business of the com- pany for 1917 showed but little change from that of 1916. The company paid in taxes, exclusive of income and ex- cess profits taxes, during the year 1917 $1,416,399, against $946,285 in 1916, an increase of 49.68 per cent. The continued shrinkage includes oil stocks in California during 1917, amounting to approximately 12, 300,000 barrels, representing an increased demand, rather than a decline in output, as production was fairly constant during the year, brought about higher quotations for crude oil, the base price in January, 1917, of 73c per barrel advancing during the standard Oil Company — Indiana 87 year to 98c. per barrel. While crude oil was demanding the higher price mentioned, the price of gasolene to the con- sumer remained stationary during the year. "The growth of the company's business as evidenced in 1917," the report says, "has been upon the most healthy basis and is shown to be the result of the increase in population and commercial importance of the territory in which the company naturally does business and not a consequence of participation in war business which would have been reflected in increased export sales." The growth of the company in earning power and in physical expansion is shown in the following table: — Piant Acct. Capital After and Year Earning:* Kate Dividends Operation Surplus V 1917. .*$24,479,740 24.6% $9,316,247 ii;80v979,929 t^ll4,645,688 1916.. 17,605,304 23.6% 6,831,915 72,010,645 105,312,307 1915.. 9,529,946 19.8% 4,968,666 65,834,282 94,538,928 1914.. 10,058,338 20.2% 4,856,098 65,415,338 89,977,673 1913.. 10,911,481 24.0% 4,493,399 58,933,865 80,272,736 1912.. 7,106,156 15.8% 1,123,359 38,431,750 65,129,996 *Before deducting $5,830,116 for War Taxes. tAfter deducting War Tax Reserve. On December 31, 1911, net assets were $39,213,195 and on December 31, 1917, net assets were $114,645,688, showing a gain of $75,432,493 or 192 per cent, in the six year period. The company's sales showed a growth in value of 42.45 per cent, over 1916, which year in turn had shown a growth of 45 per cent, over 1915. This showing in the face of the standstill imposed upon its export trade by war conditions indicates the sustained prosperity in view for the company. Officers and Directors — President — W. R. Rheem. Senior Vice-President — K. K. Kingsbury. Vice-President — W. S, Miller. Vice-President and Director of Producing — P. H. Hillman. Treasurer and Director of Mfg. — R. J. Hanna. Sec'y and Director of Pipe Lines — H. M. Storey. Main Office' — Standard Oil Co. Bldg., San Francisco, Cal. Transfer Offices — Equitable Trust Co. , New Yo^k,^ and company'^ offices, San Francisco. Annual Meeting: — February 20th, Richmond, Cal. STANDARD OIL COMPANY (Indiana) The Standard Oil Company (Indiana) was incorporated in 1889. Capital Stock — Authorized, $100,000,000; outstanding, $30,- 000,000; par value, $100. The capital stock was originally $500,000, having been increased to $1,000,000 in 1892. In March, 1912, the stockholders approved the increase in stock from $1,000,000 to $30,000,000 by the payment of a 2900-per cent, dividend in capital stock, which was distributed on May 15, 1912. On March 1, 1917, the stockholders approved an increase of the capital stock to $100,000,000 and voted to amend the company's charter so that it could engage in the business of producing crude oil and transporting oil and its by- product by pipe line, ships and tank cars. No announcement has been made as to when or how the capital will be in- creased. 88 Standard Oil Company — Indiana Dividends — Since the dissolution, dividends have been de- clared payable as follows: 1918- -May 31 6% 31,800,000 1915- -Feb 28 3% $900,000 Feb 28 6% 1,800,000 1914- -Nov 30 6% 1,800,000 1917- —Nov 30 6% 1,800,000 Aug 31 6% 1,800,000 Aug 31 6% 1,800,000 May 29 6% 1,800,000 May 31 6% 1,800,000 Feb 28 7% 2,100,000 Feb 28 6% 1,800,000 1S13- -Nov 29 12% 3,600,000 1916- 3% 900,000 Aug 31 7% 2,100,000 Aug 31 3% 900,000 May 31 6% 1,800,000 May 31 3% 900,000 Feb 28 7% 2,100,000 Feb 28 3% 900,000 1912- -Nov 30 10% 3,000,000 1915- —Nov 30 3% 900,000 Aug 31 3% 900,000 Aug 31 3% 900,000 May 15 2,900% Slk.Div. May 31 3% 900,000 Total Dividends since the Disso] $39,000,000 Properties — The company owns and operates refineries at Whiting, Ind. ; Sugar Creek, Mo.; Alton, 111.; Casper, Wyo., and GreybuU, Wyo., each of which is connected with exten- sive pipe line systems. The company is building a sixth re- finery at AVichita, Kan., which is adjacent to its newly ac- quired producing properties in the Butler County (Kan. ) fields. The refinery at Whiting is within a short distance of Chicago and Lake Michigan, and is regarded as one of the largest and most modern plants in the world. The plant is com- pletely equipped for the production of every product deriv- able from crude oil, and the buildings occupy nearly 400 acres of land. The capacity of the plant, which includes 92 crude stills and 200 Burton process pressure stills, is about 60,000 barrels of crude daily. The refinery at Wood River, Illinois, near upper Alton, on the Mississippi River, is said to be one of the most modern refineries in this country. The plant had originally sixteen 1,000-barrels stills, but there were added between 1913 and 1916 more than 100 additional stills for the production of motor spirit. The plant occupies about 400 acres of ground, and additional land has recently been purchased to provide a frontage on the river. The capacity is 40,000 barrels of refined product daily. The company has added extensive improvements recently to enlarge the capacity of this plant for the refining of Oklahoma oil. The Sugar Creek Refinery is located near Kansas City. The plant covers about 115 acres, has a capacity of li,000 bar- rels and specializes in gasolene, motor spirits and fuel oil. Efforts to oust the company from operating in Missouri were successfully resisted in June, 1913, and with the suspension of the Supreme Court's writ of ouster, the management announced that $1,000,000 would be spent in enlarging the Sugar Creek refinery and $500,000 more in building up marketing stations throughout the state. The company also has built a $1,000,000 refinery at Casper, Wyo., adjacent to the Salt Creek and Big Muddy oil fields, where seventy stills are now in operation. Sixty of these are devoted to the manufacture of motor spirits, the company's new substitute for gasolene, and ten of them to make petro- leum coke, a by-product from refinery waste used to make electric carbons. The company has a contract with the Mid- west Refining Company to supply it with crude oil and dis- tillate. The refinery at Greybull, Wyo., completed during 1917, consists entirely of Burton pressure stills operated on distillate furnished by the adjacent plant of the Midwest Refining Company. standard Oil Company — Indiana 89 During- 1918, the company arranged through the Chamber of Commerce of Wichita, Kan., to build a $1,000,000 refining plant to operate on crude oil from the nearby and prolific Butler County oil fields. During August, 1917, the company purchased for $1,500,000 the producing- properties in Butler, Chautauqua and Mont- g-omery counties, Kansas, of John A. Bell, Jr., and associates. Commenting on the purchase, Vice-President Drake said it was the forerunner of further acquisitions as favorable op- portunities offered. Before consummating the purchase, the company obtained legal authorization from the State of Kansas to engage in the business of oil production. Since February, 1913, the company has had an enormous growth in business through the installation at its refineries of a new process for cracking oil by which a high per- centage of gasolene is obtained. The process, which was devised by Dr. Wm. M. Burton, one of the company's directors, has opened the way for break- ing up the hydro-carbons of petroleum into whatever com- bination is needed and condensing them under compression. In the process, the vapor, instead of passing into con- densers, as previously, is subjected to high temperature under a pressure of eighty pounds to the square inch. Since the Installation of these pressure stills, the company now runs the oil from its crude stills, which formerly was used for fuel oil, through the Burton stills and obtains a high yield of low gravity gasolene, which undergoes a sweetening process and is then mixed with the first run gasolene. Since the dissolution. Standard Oil Company, Indiana, ha.« expended more than $20,000,000 in refinery expansion and in building up its marketing service. Through its Burton Pro- cess stills, it has become the leading manufacturer of tht world in the gasolene field, the present output of motor fue^ from its five refineries being above 1,500,000 gallons a day. During 1917 the company produced and marketed 500,000,000 gallons of gasolene or about 25 per cent, of the total output of the country. An officer of the company testified recently before tht Federal Trade Commission that the company's gasolene out put was running 20,000 barrels monthly below its marketing? demands. The Standard Oil Company, Indiana, maintains an ex- tensive marketing organization, and has stations throughout Indiana, Michigan, Illinois, "Wisconsin, Minnesota, Iowa, North and South Dakota, Kansas and Missouri. The company con- trols about 50 per cent, of the business of this territory in the face of the keenest competition from nearly 100 refineries in the Mid-Continent field. In addition to its enormous gasolene business the com- pany turns out nearly every by-product of crude oil. It ha!» the largest candle works in the country, outside of the Prn* Works of the Standard Oil Company of New York. Its wax business has been particularly heavy since the outbreak of the war. During 1917, the company purchased the Karpen Building, one of the largest office buildings in Michigan Boulevard on the Chicago lake front. This investment is re- flected in the increase in the "Real Estate item" in its 1917 balance sheet and also in the appearance of $438,500 of First Mortgage bonds, which were outstanding on the property when acquired. Another source of profit to the company Is its royalties from leasing the rights to use the Burton process. Standard Oil of Kansas. Imperial Oil Company, Solar Refining, Tide- water Oil Company. Standard Oil Company of New Jersey 90 Standard Oil Company — Indiana and Continental Oil Company, are now lessees of the process. The company's balance sheet as of December 31, 1917, compares with the previous year as foll(5ws: — Assets: 1917 1916 Change Real Estate $6,856,708 $4,220,743 + $2,635,965 Construction *39,187,196 28,642,318 -[- 10,544,878 Personal Property 7,609,043 4,555,575 -f 3,053,468 Accounts Receivable 9,261,156 6,917,147 + 3,344,009 Secur. & Other Invest.. 18,043,643 13,142,028 -f 4,901,615 Merchandise 41,417,364 25,588,088 -f 15.879,276 Cash 4,559,607 3,399,092 + 1,160,515 Total Assets $126,934,717 $86,414,991 $40,519,726 Liabilities: Capital Stock $30,000,000 $30,000,000 First Mortgage Bonds.. 438,500 + $438,500 Accounts Payable 6,650,629 3,178,334 -j- 3,472,295 Surplus t89,845,588 53,236,657 + 36,608,931 Total Liabilities $126,934,717 $86,414,991 $40,519,726 ♦Construction figures are arrived at after allowing $12,- 474,132 for accrued depreciation. tBefore providing $17,000,000 for War Taxes. The company does not furnish an Income Account but the increase to surplus of $36,608,931, after dividends of $7,200,000 indicates earnings (after depreciation of $2,008,925) of $43,- 808,931, or at the rate of $146 a share. This compares with earnings of $100 a share in 1916. After providing $17,000,000 or $56.66 a share for War Taxes, the company had $89.36 a share available for dividends. The year was in all respects the most notable in the company's history. The expansion in the company's business during the year is revealed by an increase of over $40,500,000 in assets, or nearly 47 per cent. Inventory increased $15,879,276 in value and the construction account shows an addition of $10,544,778 to plant. Working capital at the close of the year was $66,631,141, an increase of $20,813,119 during the year. The growth of the company in earning power and equip- ment is shown in the following table: — Real Estate Book Earning:s Kate and Plant Surplus Value 1917 $43,808,931 146% *$53,652,947 $89,845,588 t$342.82 1916 30,043,376 100% 37,418,635 53,236,657 277.45 1915 15,898,376 53% 30,044,154 26,793,042 189.31 1914 6,590,924 21.9% 25,340,612 14,394,666 147.94 1913 14,687,696 48.9% 21,698,423 15,303,742 151.01 1912 ±10,500,000 35% 19,133,445 10,216,046 134.05 *After $12,474,132 accrued depreciation. jAfter deducting $56.66 a share for war taxes. ^Estimated. The growth in plant account in the last five years has been $36,519,502 after depreciation, or better than 90 per cent. As a result of ploughing back earnings into the prop- erty, net profits have increased more than 200 per cent and net assets increased from $40,216,046 on December 31, 1912. to $119,845,588 on December 31, 1917, a gain of $79,629,542. The average earnings over the last five years have been 74 per cent. The Federal Trade Commission in May, 1918, lodged com- plaint against the company for alleged violations of the Clay- ton Act or the Federal Trade Commission Act. The charges relating to prices and methods of marketing are a rehash standard Oil Company — Kansas 91 of the charges set forth by the commission early in 1917 in its report on gasolene prices. Officers — President — W. P. Cowan. Vice-President — Lauren J. Drake. Secretary and Treasurer — G. W. Stahl. Asst. Secretary and Treasurer — Charles D. Gano. Directors — W. P. Cowan, L. J. Drake, Alfred D. Eddy, Geo. W. Stahl, Wm. M. Burton. Transfer Office — 72 West Adams Street, Chicago, 111. Annual Meeting — First Thursday in March. STANDARD OIL COMPANY (Kansas) The Standard Oil Company of Kansas was incorporated In 1892 under the laws of Kansas. Capital Stock — The capital stock is $2,000,000. Par value, $100. The original capital was $500,000, which was increased in 1906 to $1,000,000, and in May, 1913, to $2,000,000. Dividends — Since the dissolution, dividends have been paid as follows: — 1918- — Jun 15 6% $120,000 1915 — Sep 15 3% $60,000 60,000 Feb 28 6% 120,000 Jun 15 3% 1917- —Dec 15 9% 180,000 Feb 27 3% 60,000 Sep 15 5% 100,000 1914 — Jun 15 3% 60,000 Jun 15 5% 10Q,000 Feb 28 10% 200,000 Feb 20 5% 100,000 1913 — Nov 29 13% 260,000 1916- —Dec 15 5% 100,000 100,000 Sep 15 10% 200,000 Sep 15 5% Jun 30 100% Stk Div. Jun 15 3% 60,000 Jun 30 10% 100,000 Feb 29 3% 60,000 Feb 28 7% 70,000 1915- —Dec 15 3% ' 60,000 1912 — Dec 14 5% 50,000 Total Dividends since the Dissolution . . $2,220,000 In November, 1916, the stockholders approved a resolution to amend the charter of the company to enable it to engage in the production and transportation of crude oil, and in No- vember, 1917, it obtained legal permission from the State of Kansas to engage in the business of oil production, but so far it has not acquired producing properties. Properties — The company's refinery was equipped during 1913 at a cost of f 500,000 with twelve high pressure stills of the new tower variety for the manufacture of "motor spirits" and forty stills of 300-barrel capacity. Late in 1915, the company began the erection of twenty- two fire stills and five tar stills and three 150-feet cement smoke stacks. During 1916, these 27 additional stills were brought into operation to help relieve the gasolene stringency, making a total of 92, of which 60 are under the Burton patents, with the result of doubling the capacity of its gaso- line production. To c(yiserve its basic supplies, the company is not making fuel oil for the market. During 1917, the com- pany began the erection of twenty additional stills to keep up with its growing business. The plant, including refineries, storage tanks, acid works, mechanical shop and pump house and clay restoring plant, covers fifty-six acres. The construc- tion throughout is brick, steel and concrete. The company manufactures gasolene and naphthas, motor spirits, refined oils, gas oil, black oils, road oils, fuel oil and petroleum coke. The company had been disposing of Its products on contract until late in 1914, when it entered 92 Standard Oil Company — Kansas actively into competition with other mid-continent refineries for the local jobbing trade. The company's financial statement for year ending De- cember, 1917, compares with the previous year as follows: 1917 1916 Changes Net Profit $2,487,629 $1,270,313 +$1,217,316 Reserve for Taxes 1,064,647 -f 1,064,647 Dividends " 480,000 240,000 + 240,000 Balance to Surplus. . $942,982 $1,030,313 — $87,331 Net profits for 1917 increased 96 per cent, over those of the previous year and were equal to 124.38 per cent, on the stock before deducting- w^ar taxes. The amount available for dividends, after allowing $1,064,447 for war taxes, was equal to 71.15 per cent, on the company's $2,000,000 capital stock compared with 63.51 per cent, in 1916 and 28.19 per cent, in 1915. The company's balance sheet for year ending December 31, 1917, compares as follows: Assets: 1917 1916 Changes Real Estate and Plant $2,306,948 $2,120,449 -f $186,499 Cash 731,841 520,586 -f 211,255 Securities 1,269,034 615,564 -f 652,470 Accounts Receivable 1,339,138. 766,821 -f 572,317 Inventories 1,663,9!28 1,078,158 -f 585,770 Total Assets $7,310,889 $5,101,578 +$2,209,311 Liiabilities : Capital Stock $2,000,000 $2,000,000 Accounts Payable 435,101 337,319 + $97,782 Depreciation Reserve 449,476 345,576 + 103,900 Tax Reserve 1,064,647 + 1,064,647 Surplus 3,361,665 2,418,683 + 924,982 Total Liabilities $7,310,889 $5,101,578 +$2,209,311 The balance sheet shows an increase of $2,209,311 in assets over the previous year. Noteworthy increases were .$653,470 in Securities owned, $572,319 in accounts receivable and $585,770 in inventories. Working capital at December 31, 1917, amounted to $3,504,193, compared with $2,643,810 at the close of 1916. After paying $480,000 (24%) in dividends, the company increased its surplus $942,982 and increased its book value from $220.93 at the close of 1916 to $268.08 at De- cember 31, 1917. The company's developments since the dissolution is illus- trated comparatively as follows: Book Year Earnings Rat© Plant , Surplus Value 1917. . . $2,487,629 124.3% *$2,306,948 t$3,361,665 $268.08 1916 . . . 1,270,313 63.5% 2,210,449 2,418.683 220.93 1915. . 563,946 28.1% 1,490,033 1,468,369 173.41 1914. . 33,218 16.6% 1,394,872 1,144,423 152.22 1913. . 1,912,627 95.6% 1,102,092 1,371,105 168.,55 1912. . 1,106.190 $110.6% 591,940 1,088,479 4:208.84 *After $449,476 accrued depreciation. tAfter reserving $1,064,647 for war taxes. $On $1,000,000 capital. In the last five years the company has increased its plant account by $1,815,008 after depreciation, with a resultant standard Oil Company — Kentucky 93 heavy increase in earning capacity. When it embarks in the producing- business, which it is now authorized to do, the scope of its earning power will be still further enlarged and this will lead inevitably to another capital adjustment. Net assets of the company on December 31, 1911, were $1,032,289, as against $5,361,665 on December 31, 1917, indi- cating an average yearly growth of $721,562 in book value, after dividends, since the dissolution. Omitting the two years, 1914 and 1915, when the company suffered not only from the stagnation induced by th^ outbreak of the war, but also through a radical change in the method of marketing its products, the company has shown average earnings in four years of $1,694,185 or at the rate of 84 per cent. Serving a territory in which there is a very heavy demand for gasolene and lubricants for automobiles and farm tractors and with ample supplies of crude oil adjacent to its plant, the company seems reasonably sure of maintaining its high earning power. Officers — President — J. C. McDonald. Vice-President — Thomas Black. Secretary and Treasurer — E. A. Warren. Directors — The above-mentioned officers and in addition A. S. Hopkins and A. L. Morrison. Transfer Office — Neodesha. Kansas. Annual Meeting — Second Wednesday in May. STANDARD OIL COMPANY (Kentucky) The Standard Oil Company of Kentucky was incorporated in 1886 under the laws of Kentucky. Capital Stock — $6,000,000; par value, $100. The capital stock was originally $600,000, but it was increased to $1,000,000 in 1892. In December, 1913, the stockholders voted to in- crease the capitalization from $1,000,000 to $3,000,000, and on February 1, 1917, the stockholders again voted to increase the capital from $3,000,000 to $6,000,000. In connection with each increase in capital stock, the stock- holders were awarded a cash dividend with the privilege of accepting new stock in payhaent. Dividends — Since the dissolution dividends have been paid as follows: 1918- — Apr 1 3% $180,000 1915 — Oct 1 4% $120,000 Jan 2 3% 180,000 Jul 2 4% 120,000 1917- —Oct 1 3% 180,000 Apr 1 >4% 120,000 Jul 2 3% 180,000 Jan 2 4% 120,000 May 1 100% Stk. Div 1914 — Oct 1 4% 120,000 Apr 2 5% 150,000 Jul 1 5% 150,000 Jan 2 5% 150,000 Apr 1 5% 150,000 1916- —Oct 1 5% 150,000 Feb 14 200% Stk. Div. Jul 1 5% 150,000 Jan 2 50,000 Apr 1 5% 150,000 1913 — Oct 1 5% 50,000 Jan 2 5% 150,000 Jul 1 5% 50,000 Total Dividends since the dissolution $2,670,000 Income Tax Notice — Of the 100 per cent, dividend paid May 1, 1917, $1,382,334 is declared out of profits earned prior to March 1, 1913, and the remainder, $1,617,666, is declared out of profits earned since that date. Properties — This is a marketing company, operating In southern Indiana and Illinois and south of the Ohio River and east of the Mississippi. At the time of its organization, the 94 Standard Oil Company — Kentucky company purchased the various plants and marketing sta- tions of the Chess-Carley Company throughout the Southern States. It also purchased all the properties of the Con- solidated Tank Line Company in 1892. The company's main distributing stations are located at Louisville and Covington, Ky. ; Birmingham, Ala. ; Jacksonville, Fla. ; Atlanta, Ga., and Jackson, Miss. The company announced late in 1916, the purchase of a large river front acreage at Louisville and the approval of plans for the erection of a refinery. Construction already is under way. The refinery when completed will cost $1,000,000, employ 200 men and have an annual output of 500,000 barrels of gasolene, in addition to other by-products. The refinery will operate on Kentucky and Oklahoma crude oils. Com- pletion of the refinery has been delayed owing to difficulty in obtaining deliveries of material. The company expects, however, to have the plant completed and in operation by the end of 1918. Standard Oil Company of Kentucky's financial report for 1917 compares as follows: — 1917 1916 1915 Net Profits *$1,967,020 $3,068,598 $1,124,640 Dividends t660,000 600,000 480,000 Surplus $1,307,020 $1,468,598 $644,640 *After setting aside estimated Federal Income and War Tax Reserve of $560,000. tin addition, the company distributed a 100 per cent stock dividend on May 1, 1917. The company Balance Sheet as of December 31, 1917, compares with previous year, as follows: — Assets 1917 1916 Change Plant Imp. and Equip... $5,232,280 $3,524,003 +$1,708,277 Merchandise 3,642,129 2,402,274 -j- 1,239,855 Cash Accts. Receiv. and Other Investments.... 3,318,570 3,553,854 — 235,284 Total Assets $12,192,979 $9,480,131 +$2,712,848 Liabilities: 1917 1916 Change Capital Stock $6,000,000 $3,000,000 +$3,000,000 Accounts Payable 1,771,109 . 1,116,767 + 654,342 Reserve Accrued Deprec. 1,331,314 1,148,719 + 182,595 Insurance Funds 174,211 165,320 + 8,891 Federal Income and War Tax Reserve 560,000 + 560,000 Surplus 2,356,345 4,049,325 — 1,692,980 Total Liabilities. . .$12,192,979 $9,480,131 —$2,712,848 The above earnings, after deducting $560,000 as an al- lowance for Federal Income and War Tax Reserve, a.re equal to 32.78 per cent, earned in 1917 on $6,000,000 capital stock outstanding at the end of the year and equal to 65.56 per cent, on the former capitalization. This compares with earnings of 68.95 per cent, in 1916 and 37.4 per cent, in 1915 on $3,000,000 capital stock outstanding in those years. Book Value of the stock was $142 a share on December 31, 1917. The balance sheet shows a large increase in plant account, presumably representing the new refinery at Louisville. The company apparently enjoyed a large increase in its gross earnings during the year and net earnings before taxes show a 'growth of 25 per cent, over the previous year. standard Oil Company — Nebraska 95 The company's growth since the dissolution is shown com paratively as follows: Cash Net Current Capital & Earnings Dividends Assets Surplus 1917. . . , *$3,527,020 $660,000 $5,189,590 *$8,356,345 1916. . . « 2,068,598 600,000 4,839,361 7,049,325 1915, , 1,124,640 480,000 3,664,410 5,580,727 1914 704,376 470,000 3,272,027 4,936,086 1913 1,002,457 100,000 2,762,922 4,701,710 1912 None 2,008,749 3,799,253 *After settinj^ asidQ $500,000 for war taxes. Ofiicers — President — C. T. Colllngs. Vice-President — C. H. Stansbury. Secretary and Treasurer — Joseph C. Steidle. Assistant Secretary — S. W. Coons. Directors — C. T. Collins, C. H. Stansbury, S. W. Coons, J. C. Steidle, James B. Brown, A. K. Whitelaw and C. G. Middleton, Transfer Office — 426 West Bloom Avenue. Louiaville, ,Ky. Annual Meeting — First Thursday in February, STANDARD OIL COMPANY (Nebraska) The Standard Oil Company of Nebraska was incorporated In 1906 under the laws of Nebraska. Capital Stock — The capital stock Is $1,000,000, having been Increased from $800,000 in 1913, to which amount It wa« Increased from $600,000 In 1912. Dividends — Dividends have been declared as follows: 1918- — Jun 20 10% $100,000 1914- — Jun 20 10% $100,000 1917- —Dec 20 10% 100,000 1913- —Dec 20 15% 150,000 Jun 20 10% 100,000 Jun 20 25%,- Stk. Div. 1916- —Dec 20 10% 100,000 Jun 20 15% 120,000 80,000 Jun 20 10% 100,000 1912- —Dec 20 10% 1915- —Dec 20 10% 100,000 Jun 20 10% 80,000 Jan 20 10% 100,000 Apr 15 33 1-3% Sk.Div. 1914- —Dec 20 10% 100,000 Total Dividends since the Dissolution $1,330,000 Properties^ — This is exclusively a marketing company, oper- ating more than 130 distributing stations in Nebraska. It handles the products of Standard Oil Company, inairft, Standard Oil Company, Kansas, and the Midwest Refining Company, of Casper, Wyoming. No statement of earnings has been issued, but the Federal Trade Commission reports that in 1915, the company earned $561,914, or at the rate of 56.19 per cent. On December 31, 1915, the company had a canital and surplus of $1,858,707. As later earnings were at a higher rate, the company prob- ably has a book value around $2,500,000. Officers — President — A. H. Richardson. I Vice-President — George M. Smith. Secretary — H. L. AUeman. Assistant Secretary — Jas. A. Gilmore. Treasurer — R. C. Mcintosh. Transfer Office — Brandeis Building, Omaha, Nebraska. Annual Meeting — First Monday in January. 96 Standaid Oil Company of New Jersey STANDARD OIL COMPANY of New Jersey (Reorganized Company) In accordance with the decision of the United States Supreme Court rendered on May 15, 1911, the Standard Oil Company of New Jersey divested itself of the centrol oi thirty-three subsidiary companies which previously had h^^t^r closely affiliated through co-ordinate trade relations. The re-organization took effect as of December 11, 1911. Capital Stock — The capital stock of the re-organized com- pany is $100,000,000, ©f which $98,338,300 is outstanding. PaT value. $100. Dividends — Since re-organization, dividends have been de- clared and paid as follows: — 1918- — Jun 15 5% $4,916,919 1914- — Dec 15 5% $4,916,919 Maris 5% 4,916,919 Sep 15 5% 4,916,919 -1917- —Dec 15 5% 4,916,919 Jun 15 5% 4,916,919 Sep 15 5% 4,916,919 Mar 15 5% 4,916,919 Jun 15 5% 4,916,919 1913- —Dec 15 5% 4,916,919 Mario 5% 4,916,919 Sep 15 5% 4,9164)19 1916- —Dec 15 5% 4,916,919 Jun 15 5% 4,916,919 Sep 15 5% 4,916,919 Mar 15 5% 4,916,919 Jun 15 5% 4,916,919 Feb 15 40% 39,335,352 Mar 1 5 5 7o 4,916,919 191'2- —Dec 15 5% 4,916,919 1915- -Dec 15 5% 4,916,919 Sep 15 5% 4,916,919 Sep 15 5% 4,916,919 Jun 15 5% 4,916,919 Jun 15 5% 4,916,919 Marl5 5% 4,916,919 Mar 15 5% 4,916,919 1911- —Dec 15 7% 6,883,686 Total : Dividends since . . . $174,058,932 The special distribution of $40 per share resulted from the accumulation of funds due to the settlement of loans made to the various former subsidiaries prior to dissolution. Properties — By virtue of the broad character of its charter, the Standard Oil Company of New Jersey is naturally a hold- ing company, while its diversified functions In operations con- stitute It a complete cycle In the industry, being a producer, refiner and transporter, as well as marketer of crude oil and its products In all parts of the world. Business — With the inauguration of its policy of industrial democracy in its plants, the company began the publication of a house organ called "The Lamp." In the first issue, of May, 1918, the company asked and answered the question "What is the Standard Oil Company?" in the following com- prehensive manner: "The Standard Oil Company! "What volumes of romance have been written around and about that name! What reams of colorful fiction the mere mention of it can inspire! With what transcendent sagacity It has been endowed by a hundred historians, and wl'at would be the monumental range of its activities, and the complete- ness of its control of all forms of modern industry if the old time newspaper paragrapher were always right. There was for many years no enterprise too obscure, no undertaking too great, to be immune from the suggestion of Standard Oil auspices. One h?.s but to consult the veracious chroniclers of the past to discover in the development of dairy lunch sys- tems, the financing of fantastic patents, the creation of bank- ing trusts, the success of a popular chewing gum or the down- fall of a political party, the dominant hand and mind of the Standard Oil. "When a man on the street said, 'The Standard Oil people are in this,' he was probably honestly retailing what he heard standard Oil Company of New Jersey 97 from some one who didn't know. When a newspaper story went on to say, 'It is well known that the Standard Oil Com- pany is behind the project,' it meant probably that there was no one else handy to blame, and anyway the use of the name made the story look important. "The times are changing more rapidly than most of us realize, and as knowledg-e spreads, many illusions and miscon- ceptions of the misty past are dissipated. It is quite possible, however, that some readers of The Lamp — the employees of the Standard Oil of New Jersey — are not informed as to the scope of our operations, and for their benefit a word or two of the activities of the company may be in order just here. "The dissolution of the Standard Oil Company left the Standard Oil Company of New Jersey,* a manufacturing enter- prise, with a large foreign business. The company drills oil wells, pumps them, refines the crude oil into many forms and sells the product — mostly abroad. It does nothing else. It has 8,000 stockholders, and among them are many prominent in important enterprises. The company itself is only con- cerned in the oil and natural gas business. The producing end of this business is carried on through its subsidiary, the Carter Oil Company. This company, however, furnishes only a limited proportion of the crude Which is run through the company's refineries, the balance being- purchased from day to day in the open market being produced by thousands of other oil operators. From the producing- fields the oil is transported by means of pipe lines across the continent to the company's interior refinery, or to the refineries at the Atlantic seaboard in the neighborhood of Bayonne and Baltimore. "The company's position in respect to the pipe lines, how- ever, is the same as its position in respect to the railroads, that of a shipper. The company's refinery in Mexico is of course supplied from the Mexican field, and in addition, large quantities of crude are broug-ht from Mexico to the New Jersey refineries, by tank steamers. From the crude thus received, either by pipe line or by tank steamer, the refineries manufacture gasolene, naphtha, refined oil, fuel or gas oil, road oils, lubricating oils, parafl?^in oils and refined wax and many other commodities. To provide containers for the vari- ous products which it produces, the company operates fac- tories for the manufacture of cases and cans, and wooden and iron barrels. The company maintains marketing stations at all important points in New Jersey, Maryland, West Virginia, Virg-inia, North and South Carolina, and the District of Co- lumbia. The selling- end of the business, in addition to pro- viding" for the needs of the domestic territory is largely con- cerned with the foreign trade which constitutes an important percentage of the company's business. Importing plants and distributing- stations have been established in Europe, South and Central America, Porto Rico, Cuba and the West Indies. "For its foreign and domestic business the company has at present in service and under construction in this country fifty-four ocean-going vessels having- a total dead weight capacity of 486,480 tons. In spite of some considerable losses through enemy attack the company's vessels constitute the largest individual fleet flying the American flag. The total fleet built and under construction in American yards since the outbreak of the European war aggregates twenty-four steam- ers of a deadweight capacity of 286,100 tons. "But the most valuable possession of the company is in- tangible — it is the spirit which pulsates throughout the organ- ization — the mastery of business detail gained by the intimate and long experience of the veterans in its service — the great- est asset is in short the oft-proved loyalty and tested capacity of its employees." 98 Standard Oil Company of New Jersey Kefining: Properties — The company directly and through subsldarles operates extensive and modern refineries In the Western Hemisphere as follows: Charging: Capacity Location (Barrels) Bayonne, New Jersey 45,000 Bay Way, New Jersey.... 25,000 Jersey City, New Jersey 15,000 Parkersburg-, West Virginia 2,500 Baltimore, Maryland 6,000 Baton Roug-e, Looiisiana 40,000* Yale, Oklahoma 25,000t Sarnia, Canada 15,000 Vancouver, B. C 4,500* Regina, Canada 2,000* Halifax, Nova Scotia 2,000* Talara, Peru 6,000* Tampico, Mexico 10,000t Total daily charging capacity 198,000 ♦When extensions under way are completed. tUsed only as a Topping Plant. At its Bay Way, N. J., works the company installed dur- ing 1916 one hundred and fifty Burton pressure stills, where- by it has increased its gasolene output 1,500,000 barrels (50 gallons capacity) annually. In addition to the above, the company operates a refinery In Roumania, where its subsidiary, the Romana-Americana, has important producing properties. The company also oper- ates a benzine plant at Regensburg, Germany. The company also, through a group of foreign subsidiaries, owns storage installations, marketing stations and equipment in France, Belgium, The Netherlands, Scandinavia, Germany, Roumania and Italy. Pipe Line Properties — In order to supply crude oil to tts New York and Baltimore refineries, the company owned and operated a pipe line system having a daily capacity of nearly 98,000 barrels. These pipe lines are located as follows: 1. Extending from Centerbridge, on the boundary line of New Jersey and Pennsylvania, to the Bay Way and Bayonne refineries. 2. Extending from Unionville, on the boundary line of New York and New Jersey, via Newfoundland and Saddle River, N. J., to the Bayonne Refinery and the Hudson River. 3. Extending from Fawn Grove, Pa., on the boundary line of Pennsylvania and Maryland, to the Baltimore re- finery. In addition to the above lines, there is also a short pipe line connecting the Bayonne and Jersey City refineries, and five lines carrying refined oil between Bayonne and Bay Way. Under the recent decision of the Supreme Court these lines have been classed as common carriers. As this placed con- trol of these operations under the Interstate Commerce Com- mission it was deemed advisable to turn them over to separate corporations. Accordingly, the pipe lines extending from Fawn Grove, Pa., to Baltimore, Md., have been sold to the Maryland Pipe Line Company. ; the line between Bayonne and Centerbridge, Pa., has been sold to the Tuscarora Oil Company, Ltd. ; the line between Unionville, N. Y., and Sad- standard Oil Company of New Jersey 99 die River, N. J., which branches from there to Bayonne, N. J., and Hunter's Point, Long Island, has been sold to the New York Transit Company. Marine Properties — Befitting its premier position as an international marketing organization, the company operates the largest fleet of tank ships on the seas, all of those in active service at the present time flying the Stars and Stripes. The dead-weight tonnage of the fleet in operation is 486,480 tons and there are under construction in American ship yards for future delivery, fifteen additional tankships. Lfin It? $11,000,000 capitalization and is now paying 4 per cent, semi- annually on $28,547,280 on March 1 and September 1. Properties — When its Halifax refinery is completed, the company will be operating- four refineries in British North America, one on the Atlantic seaboard at Halifax, receiving crude oil by tankship from Trinidad, Mexico and the United States Gulf Coast; one on the Pacific Coast at Vancouver, receiving- crude oil from California and Peru; one at Reg-ina, in Saskatchewan, to supply the great wheat-raising country, and one at Sarnia, Ont., in the heart of Canada's industrial section and adjacent to the Great Lakes. The company also operates a topping and asphalt plant at Montreal, a com- pounding and marketing station at Quebec, and is considering the erection of a plant at Toronto. With the completion of the Halifax plant, the company will have a daily refining capacity of 25,000 barrels. The company maintains supply and marketing stations throughout the Dominion. Oil is supplied to the Sarnia refinery through the com- pany's subsidiary, the Imperial Pipe Line Company, Ltd., which operates an 8-inch line, 155 miles In length, from Sarnia to Cygnet, Ohio, where it connects with the Buckeye Pipe Line. The Vancouver refinery Is supplied with crude by the International Petroleum Company, Ltd., which operates a fleet along the Pacific Coast from its Peruvian field. The new refinery at Regina is supplied by oil from the Montana and Wyoming fields. Raw material for the new Halifax re- finery will be brought in tankships from Trinidad. The Sarnia refinery, which spreads over 96 acres has been rebuilt practically in the last three years. The latest addi- tions are two batteries, each containing ten pressure stills of the Burton variety for producing motor spirit. These stllla have a daily capacity of 6,000 barrels daily. There are also thirty-six stills of 7,000 barrels capacity, twelve of the old type, sixteen modern tower stills, four continuous run stills, four reducing stills and four tar stills. The refinery also operates a grease factory, wax plant, acid plant and candle factory. It also manufactures its own cans, cases and barrels and has a boiler shop and foundry in which It constructs its own tank cars and storage tanks. The company's employees erected entirely the large and modern ofl^ce building on the refinery grounds. Another subsidiary, the Perfection Company, manufactures and sells Perfection oil stoves. In order to handle its growing business in western Canada, the company expended $1,000,000 during 1915 in com- pleting a modern refinery and shipping station at Impoco on Burrard Inlet, near Vancouver, B. C. There is deep water navi- gation and rail connection to the plant. This plant covert 83 acres and is now operating six modern stills with a ca- pacity of 1,500 barrels daily. A battery of ten Burton pres- sure stills has been installed giving the refinery an additional capacity of 3,000 barrels daily and largely increasing its gaso- lene output. In its marketing business, the company operates 550 marketing stations of which ten are bulk storage stations lo- cated at Sault St. Marie, St. Catherine's, Toronto, Montreal, Halifax, Brockville, Prince Rupert and Impoco, near Van- couver. At Fort William there is tankage for 6,000,000 gal- lons and at West Fort for 550,000 gallons. Three steel storage tanks of 40,000 barrels each have been erected recently at the Sarnia plant and two 37,500 barrel tanks for asphaltlc oils and a large gasolene +ank have been erected at Toronto. 104 Standard Oil Company of New Jersey The company owns and operates about 1,000 modern tank cars as part of its marketing equipment. To supply its trade on the Great Lakes and handle the output of its seaboard refineries, the company maintains an extensive fleet of tank steamers and barges. The gross tonnage in operation on January 1, 1917, was 23,895 tons, as follows: — Vessel Tonnage Vessel Tonnage Imperial 796. Polarine 3,286 Imperoyal 2,253i Retlaw 4,061 Impoco 2,25: Royalite 2,300 locolite 2,300 Sarnolite 2,300 locoma 1,669 Talaralite 2,300 Kaministique 2,773 Torontolite 2,300 The four vessels of the Sarnolite class are 250 feet long, 43 feet beam and 58 feet moulded depth, the dimensions permitting their use as ocean going vessels and also making it possible for them to pass in and out of the existing canal system between the Atlantic and the Great Lakes. They will carry Trinidad crude to the Halifax refinery as the Imperoyal and Impoco are now carrying Peruvian oil to the Vancouver refinery. As the company's stock is not in the hands of the general public, no financial statement is issued. It is reported that net profits in 1917 were in the neighborhood of $16,000,000, a result that can be ascribed to the investment of $10,000,000 in plant expansion in the last five yeare. The company subscribed $1,000,000 to each of the three recent Canadian war loans. Officers — President — W. H. Hanna. Vice-President — J. L. Englehart. Vice-President — G. W. Mayer. Vice-President — C. O. Stillman. Secretary-Treasurer — W. T. McKee. Directors — The above and A. S. Rogers, J. P. Rogers, "W. C. Teagle, G. H. Smith, W. W. Oswald and T. H. Smallman. Registered Offices — Sarnia, Ontario, Canada. Administration Office — Dominion Bank Bldg., Toronto. Can. Imperial Oil, Ltd. Chartered December 14, 1917, under the laws of the Do- minion of Canada. Capital Stock — Authorized, $50,000,000. Par value, $100. Business — The company was organized "to acquire and take over as a going concern the refining of petroleum and the business of marketing petroleum and its by-products now carried on in the Dominion of Canada and Newfoundland under the style or name of The Imperial Oil Company, Ltd.," in pursuance of a formal agreement made under date of De- cember 11, 1917, between the Imperial Oil Company, Ltd., and A. M. McQueen, as trustee. The charter of the new company gives it very wide powers not only in connection with the business of refining and marketing petroleum products, but in the way of investment of surplus funds, the holding of shares in other companies and in dealing in and operating farm and other properties. The company is authorized to carry on its business "in any province of the Dominion of Canada and in any and all for- eign countries." Provisional Dtrectors — Walter Clarke Teagle, Charles Or- rln Stillman, George William Mayer, Gilead Harrison Smith, and Hon. W. J. Hanna. Corporate Office — Dominion Bank Bldg., Toronto, Ont. St^-ndard Oil Company of New Jersey 105 International Petroleum Co., Ltd. Chartered in September, 1914, under the laws of the Do- minion of Canada. Capitalization Authorized Issued 'Par Preference Shares £100,000 £100,000 £1 Ordinary Shares 3,900,000 1,151,525 1 The Preference shares are not redeemable and non-cumu- lative. They enjoy ^ preference to assests in liquidation but the Ordinary shares have priority as to dividend up to 6 per cent Dividends^ — An initial dividend of 50 cents a share was paid January 28, 1918, to holders of share warrants. Divi- dends are payable at the Farmers' Loan & Trust Company, New York and London, or the Royal Bank of Canada, Toronto. Earnings — The company reported to the Toronto Stock Exchange (in October, 1917,) net profits of $905,614 for the year ended December 31, 1917. This was at the rate of 15 ^/^ per cent, on the 1,151,125 ordinary shares outstanding. The company reported its assets as follows: Property Assets .$6,223,600 Other Investments 346,000 Inventories 1,942,000 Accounts Receivable 2,177,000 Cash 498,000 5^11,186,600 The balance credited to profit and loss for the year was $905,614, against a carry over of $395,482 from the previous year. 1 he company was organized as a subsidiary of the Im- perial Oil Company, Ltd., to take over the producing terri- tory, refining and transportation properties and the market- ing business of the London and Pacific Petroleum Company, Ltd., and the Lagunitos Oil Company, Ltd., both English companies operating in Peru. The London and Pacific Petroleum Company was regis- tered in London in 1889 and has a ninety-nine-year lease on extensive tracts of oil lands adjacent to the Port of Talara In Peru, where its refinery, tank farm and sea loading sta- tion is located. The company was capitalized for £250,000 preference shares and £390,000 debentures have been issued. The company paid £200,000 in preference shares and royalties for its producing lands. Since 1912, the company has paid 6 per cent, dividends. The latest earnings reported were £11,978 in 1911 and £51,832 after deducting £29,997 for de- preciation in 1912. The Lagunitos Company was capitalized for £30,000 pref- erence shares and £220,000 common shares and paid the London and Pacific £25,000 cash and £125,000 in ordinary shares for a concession to develop certain territory. This company's production was 3,722 tons in 1911, 14,706 tons In 1912 and 39,650 tons in 1913. Earnings for 1913 showed a surplus of £20,973 after all charges out of which a special dividend of £18,484 was distributed among the preference shareholders. The combined companies have a present output of 6,50(1 barrels daily which can be increased greatly. The present refinery of the company has a charging capacity of 1,500 barrels, but a new refinery of 5,000 barrels capacity is now under construction. With the completion of the new refinery the company will be able to supply gasolene, illuminating oil and lubricants along the west coast of South America. The 106 Standard Oil Company of New Jersey company has also built up a successful marketing business in fuel oil throughout this territory in which coal has been a scarce commodity. The company's producing properties are at Negritos and Talara. Recent development of the company's properties have proven up a large acreage and a force of expert drillers has been recruited in Canada to work in the Peruvian fields during 1917. It is possible that sufllcient production may be developed to offset the rapidly declining production of lighter oils in California. The surplus crude oil is shipped to the Imperial Oil Company refinery at Vancouver, B, C, and the Standard Oil Company, California, refinery at Richmond, Cal. For this purpose the company owns several large tank steam- ers and has others under charter. The vessels which it owns are the "Azor," 2,332 tons; "Circassian Prince," 2,258 tons; "Liuz Blanca," 4,868 tons; "Mina Brea," 4,145 tons. The company's refined product is sold through distributing stations at Payta and Callao, in Peru, and Pisagua, Iquique, Tocopilla, Antofogasta, and Taltal, in Chile. Fear that the earnings of the company would be affected by the intention of the Peruvian Government to levy a heavy export tax on petroleum, was dissipated in November, 1915. when the tax was placed at one shilling a ton. The company's stock is listed upon the Toronto Stock Exchange. Directors and Officers — W. H. Hanna, President; G. H. Smith, Vice-President; J. L. Englehart, W. C. Teagle, Sir Edmund Osier, W. Nesbitt; Secretary, H. F. Miller, 63 Bay Street, Toronto, Canada. Head Office — Dominion Bank Bldg., Toronto, Canada. Standard Oil Company, Louisiana Capital, $10,000,000. Par, $100. All owned by Standard Oil Company of New Jersey. The capital was $5,000,000, but on November 21, 1917, the shareholders voted to increase it by a stock dividend. Incorporated under Louisiana laws to carry on all branches of the mineral oil business. The company has a modern refinery at tidewater above Baton Rouge, La., and in connection with it an extensive storage and shipping station. The company also owns an extensive pipe line system, and operates a can and casing factory, acid plant and other accessories in connection with its refinery. Within the past three years, growing importance of the Mid-Continent and Gulf Coast oil fields induced the parent company to enlarge greatly the facilities of the Louisiana company. The original plant represented an investment of $2,500,000, aside from the pipe lines. Three million five hun- dred thousand dollars was appropriated in 1914 for extensions and the refinery, through the addition of 42 new stills, now has a charging capacity of 40,000 barrels a day. The Baton Rouge plant, tank farms and deep water loading station cover several hundred acres along the Mississippi River. Oil for the refinery is carried through the company's pipe line, which connects at the Arkansas border, with the lines of the Prairie Pipe Line Company, through that State, which In turn connect at the Oklahoma border with the Oklahoma Pipe Line, owned by the Standard Oil Company of New Jer- sey, which traverse the southeastern oil regions of Oklahoma and connect with the Prairie lines running south from Gushing. standard Oil Company ot New Jersey 107 The delivery capacity of the Oklahoma and Prairie lines south has been raised by recent extensions to 35,000 barrels a day. The Lousiana lines consisted originally of an 8-inch trunk line, with gathering lines throughout the Caddo an-d Red River pools in northern Louisiana, The 8-inch line is now being looped and a new 12-inch trunk line is being laid. As the pipe runs through marshy ground, it is being set in solid cement after being paraffined, in order to prevent deteriora- tion. The company also is doubling the capacity of three of its seven pumping stations. Tlie company's extensive pipe line system is now capable of handling 75,000 barrdla a day. In addition to its great tank farm at Baton Rouge, the company has built thirty tanks of 55,000 barrels capacity each, at Oxford, La., for the storage of Red River oil, which Is usable only for fuel and lubrication. The company also has erected at Trees City, La., in the Caddo field, a plant for the extraction of gasolene from casinghead gas. At Bridge Junction, Ark., on the west bank of the Miss- issippi River, opposite Memphis, Tenn., the company has erected a station with storage capacity for 2,500,000 barrels. Refined and fuel oils are delivered to this plant from Baton Rouge in the company's barges. The company is also among the largest producers of crude oil in the Louisiana fields. It controls extensive acreage in the Caddo and Red River districts and acquired in 1916 $2,000,000 worth of leases in the new Crichton field, with 4,000 barrels of production. The company's domestic marketing business is confined to the States of Louisiana, Arkansas and Mississippi, but it also supplies large quantities of refined oils to the Standard Oil Company, Kentucky, and other marketing concerns operating in the Southern and lower Atlantic States. The bulk of the business, however, is supplying oils for export to the Standard Oil Company of New Jersey. As the company's stock is owned entirely by Standard Oil Company of New Jersey, no financial statements are issued but the Interstate Commerce Commission's report on the Mid-Continent pipe line systems, showed the growth of the company over a three-year period. Since the last balance sheet given below, the company has expended more than $5,000,000 in refinery expansion and adding to its producing properties. The following financial statements are illumin- ating: — Comparative Balance Sheets as of December 31 Assets: 1911 1912 1913 Refinery . . .*. $3,976,259.77 $4,895,574.22 $5,364,819.27 Sales Dept 460,728.02 514,142.80 709,889.29 Crude Dept 2,721,879.41 3,012,020.90 4,406,608.82 Producing Dept 6,657,223.93 8,029,129.62 9,298,188.31 Sundry Property 447,393.95 447,508.58 610,649.64 Inventory 1,921,102.78 2,827,057.84 3,519,794.15 Bills Receivable 274,909.20 427,123.45 889,431.98 Accounts Receivable. 352,660.69 435,341.20 440,441.98 Cash 101,526.86 170,198.57 62,310.32 Total Assets $15,913,684.61 $20,758,097.18 $25,302,133.76 108 Standard Oil Company of New Jersey LiabUities: 1911 1912 1913 Capital $5,000,000.00 $5,000,000.00 $5,000,000.00 Standard Oil Co. (N. J.) Loan Account. 9,338,384.91 11,467,479.91 7,902,931.26 Accounts Payable... 543,578.96 557,088.87 773,560.68 Depreciation 1,000,000.00 2,040,106.17 2,485,021.81 Profit and Loss 31,302.30 1,693,422.23 9,140,620.01 Total Liabilities.. $15,913,684.61 $20,758,097.18 $25,302,133.76 OflBcers and Directors — President — F. W. Weller. Vice-President — P. H. Bedford. Vice-President — P. S. Morris. Secretary and Treasurer — A. K. Gordon. Directors — The above and D. R. Weller, C. O. Scholder, A. C. Bedford, J. A. Moffett, Jr. and C. K. Clarke. Carter Oil Company Incorporated in Pennsylvania in 1872 by Col. John J. Carter. Was for many years one of the leading producing companies in the Appalachian field and was acquired by Standard Oil Company of New Jersey in 1906. Capital Stock — $25,000,000. Par value, $100. All but direc- tors' qualifying' shares are owned by the Standard Oil of New Jersey. The capitalization was increased from $2,000,000 in October, 1917. Financial Statement — As the company operates in Kansas, where it has an investment of upwards of $5,000,000, it has reported on its financial status as of December 31, 1917, showing- capital and surplus of $38,098,605. The company reported its quick assets as follows: — Assets Oil on Hand $22,068,647 Accounts Receivable 1,720,421 Cash 14,773 Total Current Assets $23,803,841 Total Capital Assets 24,252,345 $48,056,186 Liabilities Capital Stock $25,000,000 Accounts Payable 9,957,581 Surplus 13,098,605 $48,056,186 The company has many valuable wells throughout Penn- sylvania and West Virginia and ranks next in importa-noe to the South Penn Oil Company in that region. In the last three years, it has taken rank among the leading producing organ- izations in the Mid-Continent fields. In 1914, through the purchase of the Avelon Oil and Gas Company and the Purvis Turner Oil and Gas Company, both Ohio corporations, for a total outlay of about $400,000, the company acquired important production in the North Lima fields. During 1916 and 1917, the company took up thousands of acres of leases in the new Kentucky fields and is conduct- ing an extensive develonment campaign in that State. For some time, the parent company had forseen that the principal source of supply for some years to come would be standard Oil Company of New Jersey 109 In Oklahoma, and early in 1914, Col. Carter went to Okla- homa and arranged to take over the producing leases of Thomas Slick, who controlled a large holding of the most promising acreage in the newly developed Cushing pool. As the Slick holdings were largely departmental leases, the Secretary of the Interior refused to sanction the transfer, under the 4,800 acre limitation rule. Secretary Lane's action was based on his assertion that the controlling ownership of the Carter Oil Company and the Prairie Oil and Gas Com- pany were identical. In February, 1915, Col. Carter again visited Oklahoma and succeeded in acquiring for his company valuable hold- ings in the Cushing field by taking over from John H. Mark- ham, Jr., the Eliza Yarhola, 160-acre allotment and the Luther Manuel 160-acre allotment, both in the north end of the Cushing field. T3en 55,000 barrel tanks and 900,000 bar- rels of oil went with the leases. The Eliza Yarhola property Is regarded as one of the most remarkable oil properties In the cou-ntry. The seven producing deep sand wells on the lease maintained a steady average above 15.000 barrels a day for several months. The Luther Manuel lease also was de- veloped into one of the most profitable producing properties in the Cushing field. In addition to the tankage and oil obtained with its Mark- ham, purchase, the Carter Oil Company bought twenty -thre€ 55,000-barrel tanks and contents from the McMan Oil Com- pany; seventeen 55,000-barrel tanks filled and nine building from White and Sinclair, and seventeen 55,000-barrel tanks and contents from the Devonian Oil Company. The com- pany also made several important contracts with Cushing producer.s for future deliveries at the low price prevailing in March and April, 1915. Late in September, 1915, the company purchased from the Quaker Oil and Gas Company, a subsidiary of the Pure Oil Company, 3,250.000 barrels of Cushing oil and the tanks con- taining it at $1.05 for the oil and the tanks. When crude advanced the Quaker company tried to back out of the sale but after legal proceedings had been instituted, a compromise was made whereby the Carter Oil Company took 31 tanks, containing 1,705,000 barrels, at their price and left the Quaker company retain 29 tanks. By December 31, 1915, the Carter Oil Company had 20,000,- 000 barrels of Cushing oil in storage and a daily production in Oklahoma of 15,000 barrels. During 1916, the company purchased from the Merritt Oil and Gas Company for $500,000 its Boynton pool prop- erties, consisting of 720 acres and a one-half interest In 160 acres more, with 900 barrels daily production from 40 wells. The company also purchased for $800,000 the Skelley & Russell acreage at Healdton and for $225,000 the P. L. Yoakum production at Jenks, Okla. In December, 1916, the company purchased the Derby Oil Company's properties in the Augusta (Kansas) pool covering 1,400 acres with 1,800 barrels of daily production. The price was around $2,000,000, bringing its investments for the year in Mid-Continent produc- tion up to $3,500,000. During 1917, the company purchased for $1,000,000, a large tract of acreage in the El Dorado pool, Butl'er County, Kansas, with a production of 3.000 barrels daily. The com- pany acquired an extensive acreage throughout the prolific Butler County fields and at the close of 1917 had a daily pro- duction of over 10,000 barrels in Kansas and about as much again in Oklahoma. 110 standard Oil Company of New Jersey To get this oil to tidewater, the Oklahoma Pipe Line has completed a 40-mile extension from the Glenn Pool to the Carter tank farm at Gushing. With this line working the company can ship 15,000 barrels a day to Baton Rouge for transfer by tankships to the Bayonne refineries. The company has erected near Yale, Okla., a topping plant of 25,000 barrels daily capacity, where it distills the gasolene and kerosene from its crude and ships the distillate to Standard Oil Gompany of Louisiana. The installation of a $175,000 casing head gasolene plant at Norfolk will also increase its output of gasolene. President — A. F. Corwin, Pittsburgh, Pa. First Vice-Pres. — F. C. Harrington, Sistervllle, W. Va. Second Vice-Pres. — Edgar G. Pew, Tulsa, Okla. Treasurer and Asst. Secy. — G. B. Ware, Titusville, Pa. Directors — A. F. Gorwin, F. C. Harrington, Edgar G. Pew, A. Glarke Bedford. Office — Sisterville, W. Va. The West India Oil Company This company, which was incorporated originally foi $100,000, increased its capitalization in July, 1S15, to $3,000,000 for the purpose of bringing its capital to a parity with the company's assets. The company markets the New Jersey Company's prod- ucts in Guba, the West Indies and Central America. This brings the Panama Canal within its territory and it has marketing stations both for fuel oil and refined products In the Canal Zone. The company also operates through a sub- sidiary, the West India Refining Company, a small refinery at Havana, Guba. Standard Oil Company of New Jersey owns all but the directors' qualifying shares. Officers of the company are F. D. Asche, president, and G. T. White, sec- retary. Deutsche-Amerikanische Petr. Gesellschaft Capitalization — 30,000,000 marks ($7,140,000), of which only 9,000,000 marks is issued in the form of voting shares, the remaining 21,000,000 marks being held in a security known as Genuss-Scheine, which is stock without voting power. The business of the company is the transporting and marketing of oil. The company owns important storage and marketing stations throughout the German Empire and up to the outbreak of the war operated a fleet of 40 tank ships, most of which have since been sold to Standard Oil Company of New Jersey and transferred to American registry. The company is the doniinant factor in the llluminaVCui: oil trade throughout Germajy, in which It has had o ly two im- portant rivals, naively, the J >>utsche Bank gi of com- panies, headed by Ibe S^/eaua lomana Compan; , Blelch- roeder banking g C)iii> comp.' /es, headed by Deutsche H rdol Aktien Ges< jlficha .'t Allied with the D. A. P. G. are a group of smaller Ger- many marketing companies owned by the Standard Oil Gom- pany of New Jersey, known as the Mannhelm-Bremer Petr. Aktien Gesellschaft (Mannheim-Bremen Petr. Gompany), the Stettin-Amerjkanische Petr. Import Gesellschaft (Stettin- American P^etr. Importing Company), the Konigsberger- Handels Compagnie (Konigsberg Trading Gompany), and the Amerikanische Petroleum Anlagen Gesellschaft (American Petroleum Depots Company), which is a branch of the Amer- ican Petroleum Company of Holland. standard Oil Company of New Jersey 111 This company was transferred early in 1917 to a group of German shareholders, headed by Wm. Reidmann, who had long been president of the company. Capital — 25,000.000 lei (equivalent to francs). In 1913 the capital was increased from 12,500,000 lei by a 100 per cent, stock dividend. The company owns important producing properties in the principal producing areas of Roumania and also operates a large and modern refinery. The company's product is sold throughout Roumania, the Balkan States and other points in the Near East, as well as throughout Germany and Austria. The growth of the company's physical operations is set forth as follows: The company's financial statement for 1914 shows not profits of 9.847,591 lei for the Refinery Department and 5,- 119,889 lei for the Producing Department, making total n«f profits of 14,967,480 lel or francs, from which the dlrectori »;eclared a dividend of 40 per cent, or 10,000,000 lei, equlva- lei^t to $2,000,000. The balance carried forward was 4,967,479 lei, M^hich, with the surplus of 304,794 lei remaining after the stock dividend, gave the company a surplus of 5,272,274 lel at the outset of the current year. From 1915 profits a divi- dent of 25 per cent, was declared. It appears that in spite of the Balkan wars the company enjoyed a most profitable year in 1913, while the 1914 report states that the yield and export of the company's product* had experienced a considerable advance. Business was very remunerative until the outbreak of the general European war and the closing of the Dardanelles, whieh caused a sudden cessation of the company's activities. Following the invasion of Roumania by the armies of the Central Powers, the company's properties were destroyed as a measure of military necessity by the representatives of the Allied military powers, and the company has lodged claims for compensation. American Petroleum Company — Capital 7,850,000 florini ($3,155,700) is the principal marketing subsidiary in the Netherlands. It also operates in portions of Western Ger- many and Belgium. It has several subsidiaries. It has a fleet of seven tank ships. Society pour 1© vent© de perol© ci-devant H. Rieth & Ci© — (Company for the sale of petroleum, formerly H. Rieth A Company), is the company's principal marketing concern in Belgium and Luxemburg. It has several sub-companies. Dansk© Petroleums Aktieselskab — (Danish Petroleum Com- pany) is the marketing subsidiary of the company in Den- mark. Societa Italo-Americana pel P©trolio — (Italian- American Petroleum Company), capital $1,000,000, is the marketing subsidiary in Italy, where an extensive business is conducted. The company has large storage installations and operates a plant for manufacturing cans. It also operates a fleet of three tank ships. Romana-Americana Company Production Refinery Consumption Refinery Production. . . 1914 (Tons) 420,531 384,550 382,480 1913 (Tons) 333,228 301,596 299,462 1912 (Tons) 206.147 233,050 225,737 112 Standard Oil Company — New York STANDARD OIL COMPANY (New York) Incorporated in 1882 under the laws of New York. Capital Stock — $75,000,000; par value, $100. The capital stock was originally $5,000,000, having- been increased to $7,000,000 in 1892 and to $15,000,000 in 1903. On June 5, 1913, the stockholders ratified the proposal to increase the capital to 75,000,000 by a 400 per cent, stock dividend, which was distributed on June 30th. Dividends — Prior to dissolution dividends were reported 70 per cent, in 1903 and 10 per cent, in 1906. Since dissolution dividends have been declared payable as follows: 1918- — Jun 15 3% $2,250,000 1915- — Sep 15 2% $1,500,000 Marl5 3% 2,250,000 2,250,000 Jun 15 2% 1,500,000 1917- —Dec 15 3% Mar 15 2% 1,500,000 Sep 15 3% 2,250,000 2,250,000 1914- —Dec 15 2% 1,500,000 1,500,000 Jun 15 3% Sep 15 2% Maris 2% 1,500,000 1,500,000 Jun 15 2% 1,500,000 1916- —Dec 15 2% Maris 2% 1,500,000 Sep 15 2% 1,500,000 1913- —Jun 30 400% Stk. Div. Jun 15 2% 1,500,000 Jun 16 6% 900,000 Marl5 2% 1,500,000 1912- —Jun 6 6% 900,000 1915- —Dec 15 2% 1,500,000 1911- —Dec 15 20% 3,000,000 Total Dividends since the $35,550,000 Business — Although operating several refineries, the com- pany's principal business has been the marketing of petro- leum products in the domestic and foreign trade and in con- nection with the latter the operation of an extensive fleet. With the acquisition in 1918 of a 45 per cent, interest in the Magnolia Petroleum Company, the company added oil pro- duction to its activities and brought its refining output up to a level with its marketing resources. Properties — The company has extensive and modern retir> eries located as follows: New York Harbor; Pratt Works, Brooklyn; Devoe Works. Long Island City; Sone and Fleming Works, Long Island City. ' Combined ca'pacity, 20,000 barrels dally. Buffalo, N. Y., Atlas Refinery; daily capacity, 2,000 barrels The Pratt Works is the largest wax plant in this country and since the outbreak of the war, additions have been made because of the greatly increased export demand for paraffine products. The company also operates at Oswego, N. Y., a large factory f'*ir making "shocks" for the can and casing depart- ment of Its own and other companies. In connection with the Devoe Works, a large canning and casing factory is operated. In North Tenth Street, Long Island City, the company ha« an extensive cooperage and shipping department and a large paint manufactory. An extensive ship building and repair yard is maintained In Long Island City, under the name of the "Empire Yard." The company has erected at Tientsin, China, a candle fac- tory which is equipped with 32 candle making machines, and has a daily capacity of 400,000 candles. The company completed before the war a large storage station and distribution plant at the Pireaus, the port of Athens, Greece. A can factory is part of the installation. The company owns the building at No. 26 Broadway and a $1,500,000 plot at No. 50 Broadway, running through to New street, on which an Arcade building was erected during 1915. The company also owns other property in New York City and state, and has extensive holdings throughout New England, and also in China. standard Oil Company — New York 113 The main distributing stations for its uiarkeLiiig organiza- tions are ai UorfLon and East Boston, Aiass. ; I'urtland and Rockland, Maine; Providence and East Providence, R. 1. , Bridgeport, Harilord and Wilson's Point, Conn.; All>any and Buffalo, N. V. Al all these points the conipaDy oans real estate. An adjurun to tne company's extensive marketing organ- ization is its fleet of oil-carrying ships and barges. In It* financial siawintin tor 1912, marine equipment was carried at $4,000,000, uuf during 1913, $3,000,000 additional was expended for the construction of five new steanjships and two- barges. The marine transportation business of the com - pany has become so large that it was decided to conduct 11 under a subsidiary corporation, the Standard Transportation Company, which is described hereinafter. Rei^ent Acqii'^Biticns — In March, 191S, the company an- nounced an acquisition of a 45 per cent, interest in the Mag- nolia Petroleum Company, one of the largest producing and refining companies in the Mid-Continent ancl Gulf Coast regions. The Magnolia Company, which had an authorized, capital of $30,000,000 with $22,000,000 outstanding, increased its authorized capital on January, 1918, to $60,000,000 and issued 100. per cent, subscription rights at par, thus bringing its outstanding paid up capital to $44,000,000. The Standard Oil Company of New York purchased enough' stocks and "rights" from the John D. Archbold estate and from Henry C. Fogler to bring its holding in the new capitalization up to -lr> per cent. Under the by-laws of the Magnolia Petro- leum Company any of its stock, held by or for a corporation, is non-voting but participates in dividends and other benefits. Through its purchase. Standard Oil Company of New York obtains an interest in a daily production of around 45,000 barrels in Texas, Oklahoma and Kansas, a pipe line system running from the Kansas fields to the Gulf Coast, refinery plants at Beaum^ont, Corsicana and Fort Worth, Texas, with a combined daily capacity of 50,000 barrels. On December 31, 1917, Magnolia Petroleum Company had net assets of $82,156,024, compared with net assets o-f $29,- 581,311 at the close of the previous year. Following the announcement of the company's acquisition of a 45 per ctnt. interest in the Magnolia Petroleum Com- pany, the Federal Trade Commission lodged a complaint against it alleging a possible violation of the Clayton Act in that the purchase might tend to lessen competition and create a monopoly. The company will answer that as it had no producing properties and insufficient refining facilities to meet its marketing needs, the purpose was solely to round out its organization and place it on a footing with other large oil corporations. The combined companies will control around six per cent, of the refining capacity of the country and about five per cent, of the producing output. The Standard Oil Company of New York purposes to erect a targe plant at East Providence, R. I., for refining crude petroleum and for facilitating the distribution of its products throughout New England Territory. In applying recently for a building permit from the town of East Pro^^idence. the company's representative stated that a complete refining plant would be built for the manufacture of gasolene, kero- sene and fuel oil and in addition, lubricants, wax products and coke would be produced on a large scale. In addition the company purposes erecting a large can and case factory and a shipyard for building and repairing its vessels. The plans call for the erecting of a 600 foot sea wall of solid concrete masonry, projecting for 50 0 feet into Narragansett Bay. 114 Standard Oil Company — New York These improvements hav§ been undertaken because of the g-rowing importance of the New England market for fuel oil and other petroleum products. The dissolution found the company entrenched «olIdly ai the paramount selling organization in the wealthiest and moit thickly settled portion of the country — its territory embracing New York State and the New England States. Every portion of this territory is easily accessible by economic water routes, Is the most intensively developed manufacturing section of the country and represents the highest per capita consump- tion of gasolene for automobile and motor boat purposes. These conditions are reflected in the company's large market- ing profits. Residents of New York and the New England States are familiar with the company's aggressive sales campaign on "Socony" products. The wisdom of this is apparent from the fact that there are 500,000 motor driven vehicles in this territory, with an average consuming capacity of 1.000,000 gallons of gasolene a day. In the recent report of the Federal Trade Commission, It was stated that while Standard refineries generally sold 65 per cent, of the gasolene consumed, Standard Oil Company of New York had 70 per cent, of the gasolene sales in its terri- tory. Since the dissolution, the company has made some experi- ments in production, mainly in regions adjacent to its great foreign markets. For two years its drilling crews conducted an active development campaign in North China, without achieving success. The company also had valuable conces- sions in Turkey and Palestine, where development has been interrupted by the war. The interruption of the company's development project in China has not interfered in anyway with the company's large marketing interests throughout the Chinese Empire, where it is the dominant marketing concern. Fourteen years ago the company began an aggressive cam- paign to introduce its products in the Chinese Empire. Rapid progress was made through the introduction of a simple kerosene lamp, given away at first and later sold at cost. By the use of this Mei Foo (Good Luck) lamp, the Chinese silk workers were able to extend their working day, which form- erly had been constricted to the daylight hours. Two million of these lamps are now sold annually in China, while the consumption of kerosene has risen from 13,500,000 gallons in 1903 to 120,000,000 gallons annually. Even with this consump- tion, only the surface of the country's consuming capacity has been scratched as there are 400,000,000 persons to edu- cate up to the use of illuminating oil. The company has been for some years the dominant oil marketing agency throughout the Orient. The company's financial statement for 1917 compares as follows: 1917 1916 Changes Total Earnings After Operating Expense, Depreciation and Sundry Reserves $39,376,043 $36,638,494 +$2,737,549 9,375,371 -f 9,375,371 8,250,000 6,000,000 -f 2,250,000 Less Federal Taxes. Dividends Balance to Surplus.. $21,750,672 $30,638,494 —$8,887,822 standard Oil Company — New York 115 Balance Sheet Real Estate, Plant, Ves- sels, etc Deferred Assets Merchandise Inventory. Cash and Current Assets U. S. Liberty Bonds 1917 7,279,723 265,631 61,684,852 60,014,527 1916 $61,825,470 297,485 64,861,907 41,677,904 Changes + $5,472,253 — 31,854 — 3,177,055 + 18,336,623 15,075,000 + 15,075,000 Total Assets $204,337,733 $168,662,766 -^$35,674,967 Liabilities : Capital Stock $75,000,000 $75,000,000 Surplus 90,386,246 68,635,573 +$21,750,673 Reserve for Insurance & Bad Debts 3,108,541 2,437,051 + 671,490 Res. for Federal Taxes. 9,375,372 + 9,375,372 Current Liabilities 26,467,574 22,590,142 -f- 3,877,432 Total Liabilities $204,337,733 $168,662,766 +$35,674,967 Earnings after depreciation and sundry reserves were equivalent to $52.50 a share, from which $12.50 a share was reserved for Federal Taxes, leaving- net earnings of $40 a share, compared with $48.85 in 1916 with no deduction for war taxes. The showing is exceedingly creditable in view of the interruption to the company's large Oriental trade throuffh scarcity of shipping and the diversion of the activities of its fleet to Government purposes. Plant investment was increased practically $5,500,000 after depreciation and working capital expanded from $83,949,669 to $100,931,433, of which $39,246,581 represented net cash assets after reserving $9,375,372 for Federal taxes. At the close of the previous year net cash assets were $19,087,762. The book value of the stock 'increased during the year to $220.51. The company's growth in earning power and earning facil- ities since the dissolution is shown in the following table: Plant Book Year Earnings Kate Account Surplus Value 1917. . . *$39,376,043 52.5% $67,297,723 $90,386,246 $220.51 1916. . 36,638,495 48.8% 65,825,470 68,635,573 191.51 1915 . . 15,761,663 21.0% 45,811,270 26,463,254 135.28 1914. . 7,735,919 10.3% 37,126,607 15,471,958 120.63 1913. . 16,212,985 21.6% 40,314,370 tl4,252,424 119.00 1912. . 15,185,211 10.1% 29,470,698 59,386,338 495.90 ^Before deducting $9,375,371 War Tax. tAfter declaring a 400 per cent, stock dividend. Net assets after reserving War Taxes, were $165,386,246 on December 31, 1917, compared with $53,740,359 on December 31, 1911, showing a growth of more than 200 per cent, since the dissolution. The company's volume of earning power has increased proportionally. The company's conservative dividend policy has resulted in the accumulation of an enormous reserve of cash assets which enabled it to purchase the minority interest in the Magnolia Petroleum Company. If the Federal Trade Commission fails in its endeavor to block the sale, the company's earning power will be still further enhanced. In amy event, it is now earning its dividend of 12 per cent, more than three times over and consequently is piling up valuable equities for its shareholders. 116 Standard Oil Company — New York Officers — President — H. C. Fogler. Vice-President — H. L. Pratt. Vice-President — W. R. King. Secretary — R. C. Veit. Assistant Secretary — A. T. Doremus. Treasurer — H. H. Stein. Directors — H. C. Fogler, H. L. Pratt, W. R. K'ng. R. C. Vert, C. M. Higg-ins, C. F. Meyer, H. E. Cole, Martin Carey and L. I. Thomas. Transfer <)sfi<'e — No. 26 Broadway. Annual Meeting — Last Thursday in May. STANDAKI) TRANSPORTATION ( O. Standarti Oil Company. New York, announced in Julv. 191. '». the incorporation in Delaware of the Standard Trant^- portation Company; capital $15,000,000, par $100, to taki» over the marine transportation business of the company. In .addition to the company's original fleet of nine tankships of 25,469 gross tonnage and eleven coasting tank barges of 26,443 gross tonnage, there ^vere. constructed since 1915 eight tank- ships, of an estimated total of 63,000 tons, four of which are of a special type of 10,250 tons each, built for the Far East service. The "Standard Arrow," the first of this class, was launched May 15, 1916, The "Royal Arrow" was launched in September, 1916, and the "Sylvan Arrow" and "Broad Arrow" were launched during 1917. The charter of the Standard Transportation Company is a very broad one, permitting the new company to build, pur- chase, own, equip, navigate and operate ships, boats, bartres and tenders: to carry on the business of ship owners, ship brokers and managers of shipping property; to obtain from the Government of the United States or any other govern ment the, registry, license or enrollment of ships, vessels and boats and to erect, equip and operate all kinds of works and buildings, control or superintend wharves and warehouses' where ships, stores, petroleum or other works are located. An officer of the company authorizes the statement that the stock of the Sta.ndard Transportation Coiripany. excepting as to qualifying shares, will be held by the parent company and not distributed as a stock dividend. Convenience in transacting business under a distinct cor- poration and the growing magnitude and importance of the marine transportation activities of the Standard Oil Com- pany. New York, are the reasons stated for the formation of the new corporation. Lloyd's Register for 1916-1917 gives the following vessels entered under Standard Transportation Company ownership: Vessel Gross Tonnage Vessel Gross Tonnage Acme 7,445 Socony 3,664 Astral 8,100 Standard Arrow 10,250 Brilliant 2,487 Vesta 3,663 Comet 2,487 Eagle 6,200 Eocene . 2,217 Tiger 6,200 Perfection 2,309 Sylvan Arrow 10,250 Radiant 2,487 Broad Arrow 10.250 Ravo 3,664 • Royal Arrow 10,250 01,023 12 Miscellaneous Vessels knowm as Standard Transpor- tation Company Nos. 57 to 94 27,594 ')ther Miscellaneous Vessels 2,385 Total Tons' in Operation 121,002 standard Oil Company — Ohio 117 In addition to the above the company operates a large number of tugs and barges in New York Harbor and on inland New England waterways. The officers of the new corporation are: R. C. Veit, presi- dent; H. E. Cole, vice-president; H, H. Stein,' secretary and treasurer. The officers are also directors and in addition, O. L. Halenback and G. D. Ale. The company maintains offices at 26 Broadway. STANDARD OIL COMPANY (Ohio) The Standard Oil Company of Ohio was incorporated tn 11870 under the laws of Ohio. In 1882; the entire capita] Stock was owned by parties to the trust agreement. The company purchased the properties of the American Lubricating Oil Company In 1888. Capital Stock — $7,000,000; par value, $100. The capital stock was $3,500,000. On May 25, 1916, the stockholders authorized an increase by a 100 per cent, stock dividend, Which was d istributed on July 31, 1916. Dividends — Since the dissolution, dividends have' been paiid" as follo^^'s : ' 1918- — Jul 1 4% $280,000 1915— Oct 1 6% $210,066 Apr 1 4% 280,000 Jul 1 6% 210,066 Jan 1 4% 280,000 Apr 1 6% 210,000 1917- —Oct 1 4% 280,000 Jan 1 6% 210,006 Jul 1 4% 280,000 1914 — Oct 1 6% 210,000 Apr 1 4% 280,000 Jul 1 6% 210,000 Jan 1 4% 280,000 Apr 1 6% 210,066 1916- —Oct 2 3 % % 262,500 1913-^Dec 22 5% 175,006 Jul : n 100% Stk. Div. Sep 30 5% 175,000 175,000 Jul 1 6 % 210,000 Jun 19 5% Apr 1 6% 210,000 Mar 31 5% 175,000 Jan 1 6% 210,000 1912 — Dec 15 5% 175,000 Total Dividends since the Dissolution $5,197,500 Properties — The company owns the Cleveland Refining Works at Cleveland, Ohio. This refinery, on which $1,000,000 were expended for improvements in 1911, has been doubled in capacity since that time. The company put more than $2,000,000 into plant extension during 1915 and exi^ended an- other million dollars during 1917 installing Burton stills in order to increase its gasolene output. The company controls 60 per cent, of the gasolene business in the State of Ohio, and the demand for this product has increased so far beyond the company's manufacturing capac- ity that it purchased in 1915, according to the Federal Trade Commission's report, 38,000,000 gallons from Standard of Indiana, and 1,800,000 gallons from Cosden & Company and other Mid-Continent refineries. The company's refinery capacity for other by-producis la 4,500 barrels a day, and Its parafflne works are among the best in the country. The company also conducts a marketing business throughout Ohio and since the dissolution has in- creased Its marketing stations from 100 to 350. 118 Standard Oil Company — Ohio The company's financial statement for 1917 compares as follows : Assets: 1917 1916 Changes Plant $10,722,419 $8,350,329 +$2,372,090 Merchandise 5,399,001 2,833,932 + 2,565,069 Cash 419,002 373,832 + 45,170 Accounts Receivable and Other Investments.. . . 4^12,418 3,234,112 + 978,306 Res. for Plant Extensions 1,144,626 — 1,144,626 Total Assets $20,752,842 $15,936,832 +$4,816,010 Liabilities: Capital Stock $7,000,000 $7,000,000 ' Accounts Payable 1,755,745 902,048 + $893,697 Depreciation Account 2,419,728 1,995,394 + 3,537,978 Surplus 9,577,368 6,039,390 + 3,537,978 Total Liabilities $20,752,842 $15,936,832 +$4,816,010 Note: — No deduction has been made for Federal taxes pay- able in 1918. Federal income and excess profits tax for 1917, payable in 1918, is estimated at $1,427,057. A comparison of the company's balance sheets, indicates net earnings before taxes for 1917 of $4,657,970, equal to 66.54 per cent, on its $7,000,000 capital stock, and, after deducting $1,427,057 for war taxes, the indicated earnings were at the rate of 46.15 per cent., against 53.6 per cent, in 1916 and about 61 per cent, in 1915 on $3,500,000 capital stock out- standing in that year. Surplus increased $3,537,978 during the year, after paying $1,120,000 in dividends. Plant account increased $2,372,000 during the year, after writing off $424,334 for depreciation. The company's w^orking capital amounted to $8,274,876 at the close of 1917, compared with $4,439,829 on December 31, 1916. The book value of the stock was $216.42 a share on December 31, 1917, after allowing $20.39 a share for War Taxes. The company has furnished no balance sheet prior to 1915, but from the Federal Trade Commission's report and the company's announcement of its 1912 surplus for income tax purposes, it is possible to make the following analysis of its development since the dissolution: Year Earnings Rate Plant Surplus Bk. Yal. 1917 *$4,657,970 66.54% $10,722,419 t$B,150,311 $216.42 1916 3,751,936 53.59% 8,350,329 6,039,390 186.28 1915 2,135,000 ^61.00% 6,163,880 6,749,954 292.85 1912 4,040,345 215.43 ♦Before deducting $1,427,057 war taxes. tAfter reserving war taxes. lOn $3,500,000 capital. The table shows the great increase in the company's earn- ing power through its reinvestment of surplus profits in plant expansion. During the three years 1913, 1914 and 1915 sur- plus increased $2,709,609, after payment of $2,380,000 in divi- dends, indicating total earnings for the three years of $5,- 089,609 or average yearly earnings of $1,696,536 for the period. Compared with 1917 earnings of $4,657,970 from the operat- ing of expanded plant facilities, the indicated growth in earning power is 175 per cent. Net assets of $15,150,311 on December 31, 1917, against net assets of $7,540,345 on De- cember 31, 1912, show that the company's invested capital has doubled in the last five years. Officers — President — A. P. Coombe. Vice-President — W. H. Foster. Swan and Finch Company 119 Treasurer — M. G. Vilas. Secretary — J. M. Robertson. Directors — A. P. Coombe, W. H. Foster, M. G. Vilas, C. G, Taplin, and B. A. Matthews. Transfer Office — East Ohio Gas Bldg., Cleveland, Ohio. Annual Meeting — Second Monday in February. SWAN AND FINCH COMPANY The Swan and Finch Company was incorporated in 1891 under the laws of New York, taking over a business that had been established in 1853. Capital Stock — The authorized capital stock is $2,000,000. Par value $100, of which approximately $1,450,©©0 will be out- standing. The original capital of $100,000 was increased to $500,000 by a vote of the stockholders on May 7, 1912, and subscription rights were extended the shareholders. Gn May 1, 1916, the stockholders voted to increase the capital to $1,000,000 and shareholders again enjoyed the rijrht to sub- scribe to the new stock at par, pro rata to their holdinrs. On May 1, 1918, the shareholders again voted to increase the authorized capital to $2,000,000 and the management an- nounced that subscription rights at par to the extent ©1 50 per cent, would be extended up to August 1 to stock of record May 15. Dividends — Since the dissolution, dividends have been paid as follows: 1918 — May 1 21/^ % ^24,250 1917 — November 1 2^!% 24,250 1913— March 31 5 % 25,000 Total dividends since dissolution.. $73,500 Properties — The business of the company consists of com- pounding and marketing lubricating oils, greases, etc., for use in motor vehicles and manufacturing plants. It also controls a large percentage of the fish oil business pf the country, and deals in vegetable oils, as well as conducts a large export business in refined petroleum products of various kinds. . The company was among the first to study aeroplane engine lubrication and the resultant product "Aerul" is al- ready an established trade brand. The company has been supplying one of the allied governments' requirements for aeroplane lubricants for a year past. In announcing the proposed capital increase, President Henry D. Fletcher made the following statement: "It is a pleasure to be able to report that the operations of your company for the year 1917 were more profitable than for the years 1915 or 1916, and that the sales for 1917 were double those of 1915. It might be interesting to compare the operations for the year 1917 with the results of the last few years. For the year 1913 the company reported a net loss of $34,557.13 and for the year 1914 a net loss of $89,635.04. Your present Board of Directors was elected at the annual meeting in February, 1915, and thereafter a thorough reorganization of the company's affairs was undertaken. Progress was made during 1915, with the result that the operations for the year showed a profit of $27,554.94; in 1916 further progress was made and a profit of $63,062.29 was the result. It, however, became necessary, because of the increasing business in the fall of 1915, to borrow from the banks, and the indebtedness of this character at the end of 1915 amounted to $325,000. In the spring of 1916 your officers recommended an increase of $500,000 in the capital stock of the company, and this increase was subsequently offered to the stockholders of the company at par. In view of the fact that the company had reported 120 Swan and Finch Company ^(>-'^-^<-^ 1 1 I ^ » "i " ^ ' llu <-xiLCi s 1 ^ s i-^bup of ne^^ stock Wcis .sv^iiu xN lull u:;u;;-lui, and your pros -dent, therefore, per- son.^ i\ UMdeiwio ^ ^ ^ - t ol s.v)fk a^ULoul fbar^t The company doculod that it would retain stock of the par value of .'f30,000 unissued, for the purpose of future sales to its eniploN cb, and < j*^ i d u% stock, th^iefo-p, at tre end of 1M6 \% as S97J ^ >(i \ luSI nulm^ this mc^ea'-e m ^yorking capital of $47o,!i( 0 -ird the profit for the year 191G of er $G0,0')0 ]>Cw(iiit i > ^ai v '.::,ain to ])oriou from the hank ng mh^Uo.-n a id « ^ '< ms at the end vt lOlu aggre- gated $300, Uj/. "During- tli. y-.-ir l!]L7 your managers found it possible to sed ih ^ 1 ) t >rs and the plant rn^c* t i b^' th'^ pre- ceding njancs^-m^nt for the pioductK^i -f '-h rd and f^-itd- izer. This plant h.u ho - ^ ( <^ — 'itnu>u, ' s Since us ]) ^ ^ . ha\ e ijee i neco^- sar> toin\t ' < i oai. ng 'c^L-pne-u in oid'T t(i \u.:r.y ^iic ci vj-;; ( »rv . i La ' even assuming- the fifel-^ii:^ ■ > <' J 'NCI U Hoerned to \ our present oihcers tha.t sucn a i! ;i di i J i i 1 I'.ivesiraent was noL to be considered for a moment ;ind .m\v h;ivo therefore been attempting- tor tne last three yu'irs rn sell the entire plant. An OT)portuniLy offered in the spring- of 1917, and althoug-h the sak^ rvs-alted in a book los'. to \()i comi)an> of .''^ 121,919 25, ne\ ertheloos, we 1)^- r ih t h ^ I M Iv I M , ^ ( , 1 congi-aiulEiie themsehes that tho t:omi)aiiy is now r;d {)t this dram on its resources and energies, and that the salo^ was effected before the opening of the season of 1917. which was more disastrous to Ivienhaden fisheries in the north than even the unprofitable years im- mediately preceding-. "During 1917 the net profit from operations was $203,468.93. Against th:s was charged the loss of $121,919.25 on the sale of the fishing plant and steamers. The net profits, there- fore, for the year w^ere $?l,rj49.68. During the year 1917 the increase in cash resources, due to the sale of the fishing plant, and the accumulated profits, aggregated over $350,000. Notw^ithstanding this fact it became necessary to again bor- row^ from the banks and the condensed balance sheet, certi- fied un^er date of March 28, 1918, by our auditonj, The Audit Company of New York, shows that on December 31, 1917, your company v/as indebted cn this account to the extent of $450,000. The reason for these borrowings is indicated by a comparison of the inventories of 1916 and 1917. In the year 1916 the inventory totalled $1,148,461.44 and in 1917 $1,- 586,706.41. The indebtedness to the banks was still further increased in January, 1918, to $500, COO. This matter has received most serious consideration from your Board rf Directors, particularly in view^ of the fact that the prices of merciiandlse handled by your company are stiii advancing and the board feels it to be essential that the stock of your company be further increased in order to meet the present and future needs of your company. They therefore recommend that the stock of the company be increased from $1,000,000 to $2,000,000. Some time ago application was made to the Ca,pital Issues Committee of the Federal Reserve Board at Washington for leave to issue new stock and after the usual investigation by the Committee, your company received on March 11, 1918, a letter of approval. "At the present time, therefore, it is planned to issue only $500,000 of new stock in accordance with the Federal Reserve Board's permission, but the increase to $2,000,000 is deemed to be essential for the development of the company's busi- ness. "The right to subs-^ri^e t- " ^ <■ ---'^^ wM '-^e given to all holders, both of whole or fractional shares, to the amount of 50 per ce.ii. of -r.-.v p. esv York City, now maintaining offices at 165 Broadway and a warehouse at 157 Maiden Lane. Dthi'tTN— IM'esirient — Henry Fletcher. \^ice-President and Treasurer — John T. Lee. Secretary — G. E. Brown. TrEinsfer Office — No. 165 Broadway, New York City. Annual Meeting: — April 15th. 122 Union Tank Line Company UNION TANK LINE COMPANY The Union Tank Line Company was Incorporated (n 1891 under the laws of New Jersey. At the time of the organiz- ation, the company purchased from Standard of Ohio all of its tank cars. Capital Stock — The capital stock Is $12.(ion.On(i. Par value, $i\00. $7,500,000 5% Equipment Trust Gold Notes, dated August 1, 1917, and maturing- in installments of $1,500,000 semi-annually beginning August 1, 191 S. Notes secured by a deed of trust on about 4,7 50 new standard steel tank cars valued at about $13,500,000. Dividends — Since the dissolution, dividends have been paid as follows: 1915 — ?.Iar25 212 ^^ $300,000 1915 — Sep 25 21/2% $300,000 1917— Sep 25 2 1/2-0 300,000 Mar 2 5 21/2% 300^,000 .A[ar25 2 14 So 300,000 1914 — Sep 25 21/2% 300,000 1916 — Sep 25 2 1/2 7r 300,000 Mar 2 5 21/2% 300,000 Mar 2 5 2 1/2 7c 300,000 Total Dividends since the dissolution $2,700,000 Properties and Business — The company owns about 18,000 tank cars which it leases to users and handlers of petroleum and its products. At the time of the dissolution the company had 12,000 cars, 4,000 of which were of obsolete type. These the company has disposed of for what the material would bring, as fast as new cars could be manufactured and delivered to it. The company's orders for equipment in the last five years can be illustrated as follows: 1912 1,000 cars 1915 1,000 cars 1913 No orders 1916 4,250 cars 1914 2,100 cars 1917 2,200 cars Of the cars ordered during 1916, only 2,000 were delivered, leaving the company 2,850 to be delivered on January 1st, 1918. "With the funds provided by the issue of Equipment Trust Notes, the company intends to raise its equipment to 25,000 cars, but is delaying the placing of additional orders owing to the scarcity and high cost of materials. The present equipment of the company conforms to th« rigid specifications of the Interstate Commerce Commission and the Master Car Builders' Association. The cars are of three types namely. 6.500. 8,000 and 10.000 gallons capacity. Charges for the rental of the company's cars are based on capacities, and, as increased during 1917, are as follows: Capacity Initial Charge Daily Rental 6,500 Gallons $3.42 $1.14 8,000 Gallons 4.20 1.40 10,0^0 Gallons 5.25 1.75 The shipper pays the company the initial charge and there- after the daily rental while the car is under load. In addi- tion, the company receives from the railroads, three-quarters of a cent a mile, loaded and empty, for the use of its cars. The railroads in turn receive from the shipper the regular tariff charges for the transportation of oil. An examiner for the Interstate Commerce Commission in May, 1918, recom- mended that this mileage allowance paid by the railroads be ra.ised from three-quarters of a cent to one cent a mile. Union Tank Line Company 123 The company's position in the oil industry is shown by the following table: Tank Car 0>vnership 1913 Nov. 1,'15 Feb. 1/18 Owned by Railroads 6/241 11,419 12,217 Union Tank Line 13,050 13,778 18,270 Other Oil Companies 5,410 19,011 39,027 Union Tank Line Company's financial statement for the year ended December 31, 1917, compares with the previous year as follows: 1917 1916 Changes Net Earnings *Ji;3,709,516 $2,081,766 -f$l,627,750 Dividends . 600,000 600,000 Surplus for Year $3,109,516 $1,481,766 +$1,627,750 Previous Surplus 2,354,262 872,496 + 1,481,766 Total Surplus $5,463,778 $2,354,262 +$3,109,516 *The Federal Income and Excess Profits Tax to be paid by the company on its 1917 earnings amount to $859,918. Comparative Balance Sheets As*et*: 1917 1916 Changes Tank Car Equipment. . . $23,624,482 $18,365,132 + $5,259,350 Less Depreciation 5,584,979 4,878,307 -j- 706,672 Balance $18,039,504 $13,486,825 + $4,552,679 Real Estate 10,395 12,095 — 1,700 Shop Investment 137,417 134,439 + 2,978 Material 640,795 469,069 + 171,726 Office Furniture 21,022 16,424 -f 4,598 Cash 706,067 42,099 + 663,968 Accounts Receivable... 1,970,617 598,791 -f 1.371,826 Car Trust Fund 6,518,916 + 6,518,916 Total Assets $28,044,733 $14,759,741 +$13,284,992 Liabilities: Capital Stock $12,000,000 $12,000,000 Car Trust Notes 7,500,000 + $7,500,000 Accounts Payable 3,080,955 405,479 + 2,675,476 Surplus 5,463,778 2,354,262 + 3,109,516 Total Liabilities $28,044,733 $14,759,741 +$13,284,993 Net profits before deduction of Federal taxes amounted to $3,709,516, equivalent to 30.91 per cent., on the company's capital stock. After deducting war taxes, earnings were equal to 23.74 -per cent, compared with 17.34 per cent, in 1916 and 8.89 per cent, in 191,5, in w^hich years there were no war taxes. This growth in earning power reflects the company's heavy Investment in additional tank cars and replacements to its equipment, and also the advances in rates w^hich were put into effect last year to offset the increasing cost of materials. Since the dissolution, the company's record of earnings has been as follows: Year Earnings Rate Book Value 1917 *$3,709,516 30.91% t$138.36 1916 2,081,766 17.34% 119.61 1915 1,067,958 8.89% 107.25 1914 687,200 5.72% 103.37 1913 1,203,229 10.03% 102.64 1912 1,305.772 10.88% 92.62 ^Before deducting $859,918 war taxes, t After deducting war taxes. 124 Vacuum Oil Company This increase of nearly 200 per cent, in earning power is the result of the heavy additions to equipment the com- pany has been making-. On December 31, 1906, net assets were $2,645,135, which compares with net assets of $16,603,860 on December 31, 1917. Utti<-ert* — President — Henry E. Felton. Vice-President — W. A. Barstow. Vice-President — Edward C. Sicardi. Treasurer — Elmo L. Gridley. Secretary — E. F. Cook. Directors — The above mentioned officers In addition to: Thomas Beag-hen, Jr., and Abram E. Smith. Main Office — 21 West Fortieth Street, New York City. Transfer Office — Equitable Trust Company. Annual Meeting: — Second Wednesday in February, Jersey City, New Jersey. VACUUM OIL COMPANY The Vacuum Oil Company was incorporated In 1866 under the laws of New York. Capital Stock — $15,000,000; par value, $100. The capital was orig-inally $25,000, but it was increased to $2,500,000 in 1903, and from that amount to $15,000,000 on February 29, 1912, by vote of the stockholders at a meeting held on that date. In addition to the capital stock outstanding, there were 12,000.000 Bonds on Dec. 31, 1911, which have been retired. Dividends — Since the dissolution dividends have been paid 450,000 450,000 450,000 450,000 450,000 Subs, at Par Total Dividends since the Dissolution $7,050,000 Properties — The company owns a refinery at Olean, N. Y., producing- lubricating- and illuminating oils and gasolene, and has recently constructed a $5,000,000 refining and shipping plant on the Delaware River below Camden, N. J. It also has plants at Rochester, N. Y., and Bayonne, N. J., for the manufacture of high grade lubricating oils; a few pipe lines, and is interested in refineries and lubricating oil works oper- ated by foreign companies in which it has stock ownership. The new plant of the company at Bramwell Point, near Paulsboro, N. J., which commenced operation during the sum- mer of 1917, covers a plot of 675 acres, with a water frontage on the Delaware River of one and a quarter miles. A con- crete bulkhead, 1,200 feet in length, will allow ample docking space for the company's tankships. There are three and one- third miles of railroad tracking on the property and an eight-inch pipe line has been laid under the Delaware River, connecting with the main trunk line of the Eureka Pipe Line Company at Essington, Pa. The buildings now practically completed are: Boiler House & Power Plant Tank and Boiler Shop Three Still Houses Machine Shop Wax Plant Pipe Shop Fire Pump Houses Carpenter Shop Storehouse Pattern Storage House as follows: — 1918— May 15 5% $750,000 1914- -Oct 31 3% 1917— Oct 29 3% 450,000 May 15 3% May 12 5% 750,000 1913- —Oct 31 3% 1916— Oct 31 3% 450,000 May 15 3% May 15 5% 750,000 1912- —Oct 15 3% 1915- -Oct 30 3% 450,000 Aug 16 3% May 15 5% 750,000 Jun 1 500% Vacuum Oil Company 125 In addition there will be a tank farm for crude oil supplies and the usual rundown tanks and storage tanks for refined oils. The company is also building" an acid recovery plant and is installing a new sewage treating plant, so that sewage discharged into the Delaware River will be free from con- taminating acids and wastage. During 1917, the company purchased a tank farm at Olean, N. Y., with 66 storage tanks, totaling more than 2,230,000 barrels of steel storage capacity. The tank farms of the company at Olean now cover 424 acres, on which are 95 tanks, making it the largest tank farm east of the Mid-Continent. These storage facilities will enable the company to operate its Olean refinery at capacity at all times. Marine Department — Owing to the company's extensive export business, and its inability to obtain adequate ocean transportation, it was obliged to operate its own vessels. Ac- cordingly the company purchased a cargo vessel during 1915 and contracted for three additional cargo boats and three tankships. The "Paulsboro," one of the largest tankshipa afloat, and the "Bramwell Point," the first American com- mercial motor ship, were added to the company's fleet in 1916. During 1917, the cargo vessel Olean was placed in com- mission, the Vacuum was topedoed and the Rochester, a cargo vessel, was sold. For 1918, the company has an additional tankship and ocean-going barge under construction. The following vessels are registered under Vacuum Oil Company's ownership: Thi- rnmpany does an extensive export business, and main- tains selling organizations in all parts of the world for the purpose of marketing its products. The foreign con- nections of Vacuum Oil Company are as follows: Vacuum Oil Company, Bombay, for India, Burmah and Ceylon; Vacu- um Oil Company, Buenos Ayres, for Argentine and South American: Vacuum Oil Company, Cairo, for Egypt and terri- tO'ry; Vacuum Oil Company, Copenhagen, for Denmark and Norway; Vacuum Oil Company, Helsingfors, for Finland; Vacuum Oil Company, Hong Kong, for Hong Kong, Philippine Islands, Straits Settlements and Dutch East Indies; Vacuum Oil Company, Kobe, for Japan and Korea; Vacuum Oil Com- pany, Lisbon, for Portugal, Canary Islands and Morocco; Vacuum Oil Company, Shanghai, for China and East Siberia; Vacuum Oil Company, R. T., for Austro-Hungary, Greece, Balkan States and Turkey; Vacuum Oil Company of South Africa, Ltd., for all South Africa and Mauritius; Vacuum Oil Company, S. A. I,, for Italy; Deutsche Vacuum Oil Com- pany, for Germany; Vacuum Oil Company, Ltd., for England; Vacuum Oil Company, Prop.. Ltd., for all Australia and New Zealand; Russian Vacuum Oil Company, Ltd., for Russia and West Siberia; Vacuum Oil Company, S. A. P., for Franc*, Belgium, Holland. Spain, Switzerland and Algiers; Vacuum Oil Company, A. B., for Sweden. Vessel Bramwell Point .. Constable Hook . . Gargoyle . Paulsboro Olean Emily S. Baymore Gross Tonnage 3,250 1,861 4,433 6,945 2,750 256 19,495 12G Vacuum Oil Company Vacuum Oil Company's financial statement for 1917 com- pares as follows: — 1917 1916 1915 Net Profits $12,149,677 $9,386,768 $6,986,294 Less : — Insurance Reserve . . . 207,359 164,831 124,381 War Taxes 2,617,922 Bal. for Dividends. $9,324,396 $9,221,937 $6,861,913 After reserving $17.45 a share for War Taxes, earnings for 1917 were at the rate of $62.16 a share, compared with $61.47 a share in 1916 and $45.00 in 1915 when there w^ere no war taxes. Comparative Balance Sheets Assets: 1917 1916 Change Real Estate, Plant and Equipm't (Less Dep.) $12,776,636 $10,171,581 +$2,605,055 Stocks of Foreign Vac- uum Oil Companies. 19,234,821 14,243,325 + 4,991,496 Other Investments 40.881 14,533 -f- 26,348 Government Securities (used for guarantee deposits) 15,923 15,923 Mechandise & Material 18,194,883 13,718,262 + 4,476,421 Accounts Receivable: From Foreign Vacuum Oil Companies 11,974,389 12,794,691 — 820,302 From Others 8,224,936 5,740,211 + 2,484,725 $20,199,325 $18,534,902 + $1,664,423 Cash and Securities $5,703,189 841,619 + 4,861,570 Total Assets $76,165,658 $57,540,148 +$18,625,510 L,iabilities: Capital Stock $15,000,000 $15,000,000 Accounts Payable: Due Foreign Vacuum Oil Companies 8,619,997 3,110,844 + $5,509,153 Sv^drv Accts. & Bills Payable 8,899,449 6,926,803 + 1,972,646 $17,519,446 $10,037,647 + $7,481,799 Branch Office Reserves. 194,034 + 194,034 Insurance Reserve 699,316 491,958 + 207,358 Income Tax and Excess Pvo^ts Reserve 2.617.923 + 2,617,923 Surplus 40,134.939 32,010,543 + 8,124,396 Total Liabilities.. $76,165,858 $57,540,148 +$18,625,510 The company's official statement accompanying its bal- ance sheet 's as follows — : "After charging off $207,358.92 for Insurance Reserve, and setting aside $2,617,922.37 for Income and Excess Profit taxes, the profits for the year amount to $9,324,396.31. "The new refinerv on the Delaware River, near Pauls- boro, N. J., construction of. which was begun in 1916. was practically completed during the year, the total cost, in- cluding some unfinished items being approximately $5,500,000. The first crude was run in June, and by the end of the year reasonably full operation was possible, and the plant is now a productive factor in the company's operations. Washlngrton Oil Company 127 "During the year tr.r S.S. "Olean," a substantial cargo vessel, was completed aiid added to the company's fleet. The cargo vtssel "Vacuum" was lost from torpedo attack, and the carg-o vessel "Rochester" sold. At present the company has in course of construction an additional tank steamer and an ocea,n-going barge. "Outlay for new construction, added to the high cost of stocks, material and operation, excessive ocean freights and other unavoidable cash demands, have made it advisabl-e to cons^'rve earnings so that the company's progress could con- tinue unhampered." Owing to the necessity of setting aside $2,617,922 for War Taxes, the company's working capital shows only a slight increase during the year. The book value of the stock in- creased, however, to $367.56 a share. The company's development since the dissolution, is shown as follows: — Plant Book Investment Surplus Value 5^12,776,636 t$40,134,939 $367.56 10,171,581 32,010,543 313.40 4,816,904 23,988,606 259,99 4,139,791 18,326,693 222.17 3,501,108 17,151,049 214.07 3,138,907 14,67''>.275 191.16 2,106,554 $11,981,113 179,20 *Before deducting $2,611,111 for War Taxes. Surplus and Book Value stated as after deducting War Taxes. i'Does not include earnings of foreign Vacuum Oil Companies. JOn capitalization of $2,500,000. The result of the company's modest dividend policy is re- flected in the continuous growth of its Plant Account and Net Investment. In the past six years plant and equipment have increased by $10,670,082 after depreciation, while net assets have grown $40,653,826, an average of $6,775,672 or 45 per cent, on the outstanding capital yearly. Officers — President — Edw^ard Prizer. Vice-President — George P Whaley. Vice-President — Charles E. Bedford. Secretary — We,ndell M. Smith. Assistant Secretary — Charles E. Arnott. Treasurer and Asst. Secretary — Herbert Bakf*r I>irectors— Walter M. McGee, R. W. Everest, Edward Prizer, George P. W^haley, Charles E. Bedford, Charles E. Arnott, Charles E. Moser and Herbert Baker. Main Office — 61 Broadway, New York. Transfer Office — Room 617, No. 61 Broadway, New York. Annual Meeting: — Last week in February. Net Profits Rate 1917. . *J^11,942,318 79,61% 1916 . . 9,221.937 61.47% 1915. . 6,861,913 45.60% 1914. . t2, 075,644 13.17% 1913. . 4,832,929 32.32% 1912. . 4,159,006 27.72 7^ 1911. . 2,938,036 $117.5 % WASHINGTON OIL COMPANY The WasVifne'ton Oil Company was incorporated In IRJ??. under the laws of Pennsylvania Capital Stock — The capital s*ock is $100,000. Par value $10. Dividends — Since the dissolution, dividends have been paid as follows: 1917 — Dec 20 40% $40,000 1914 — Dec 31 30% $30,000 1916 — Dec 20 40% 40,000 1913 — Dec 1 40% 40,000 1915 — No Dividends Feb 20 40% 40,000 Total Dividends since the dissolution $190,000 128 Washington Oil Company Properties — This is a crude oil producing cuinpany operai- ing in one of the old Pennsylvania oil helds. Ai ihe close oi 1913, the company had 4,897 acres of leaseholds, 350 acres oil rights, 250 acres land in fee, 1 acre on i oyalty. 14H oil wells and 2 gas wells. The company also owns an interest in the Taylorstown Natural Gas Company. The financial statement of the company for 1917 compares with the previous year as follows: 1917 1916 Change Net Profits $52,384 $32,985 +ii;i9,399 Dividends 40,000 40,000 Balance to Surplus $12,384 *$7,015 +$19,399 Balance Sheet as of December 31 Assets: 1917 1916 Change Producing Plant $69,501 $73,772 —$4,271 Stock in Other Companies 19,550 18,186 + 1,364 Material and Merchandise 39,334 29,132 -[-10,202 Cash 30,712 25,798 + 4,914 Account Receivable 2,228 206 + 2,022 Total Assets $161,325 $147,094 +14,231 Liabilities: Capital Stock $100,000 $100,000 Accounts r-ayable 3,079 1,232 + $1,847 Surplus 58,246 45,862 + 12,384 Total Liabilities $161,325 $147,094 +$14,231 Net prolits at the close o^ 1917 were equal to 52.38% on the $100,000 capital stock outstanding compared with 32.98% in 1916. Book value at the close of 1917 was $15.82 a share compared with $14.59 a share December 31, 1916. OttirerM — President — J. I. Buchanan. Vice-President — Douglas Buchanan. Secretary and Treasurer — J. C. Burford. Dire<'t<)rs — The above-mentioned officers and in addition: George L.. Craig, D. Gregg McGee, M. D. Shields, G. C. Jolly. TranKfVr Ottl«'«» — .^23 Fourth Avpnue. Plttsbursh. Pn Annual Meeting — Wednesday following first Tuesday in April. MM 2 0 Wire Service We give special attention to out-of-town customers and invite telegrapliic orders and inquiries at our expense. Statistical Service We liave associated with us some of the ieading oil-news gatherers of the country and are, therefore, capable of keeping our clients in close touch with devel- opments affecting their Interests. CARL H. PFORZHEIMER & CO. NEW YORK CITY 25 BROAD STREET TELEPHONES 4ae0-1>2-3.4 BROAD We Are at All Times Prepared to Buy, Sell or Quote all Listed or Unlisted Securities CARL H. PFORZHEIM ER & CO.f 25 BROAD STREET NEW YORK CITY TELEPHONES 4860-1-2-3>4 BROAD