STUDIES IN SECURITIES
cash, Government securities, and investments provide a splendid
position through this adverse oil situation. With 60-70 level held
for four years, the price of the stock affords over 5% income return.
Standard Oil of Indiana stock is an investment equity having
interesting speculative possibilities in this gasoline motor age.
Standard Oil Co. of New Jersey
When in 1911 the Standard Oil Co. of New Jersey by court de-
cree was stripped of thirty-three subsidiaries, it was left with a
domestic marketing territory reduced to half a dozen Atlantic Sea-
board states, but retained control of several producing and re-
fining companies destined to enjoy rapid expansion, and suffered
little interference with its foreign trade.
Today, the parent company, believed to be an ‘‘empty shell’ in
1911, is the largest and most powerful unit in the petroleum busi-
ness. In 1926 it had a crude refining run of exceeding 385,000
barrels daily. Crude oil production was 61,839,000 barrels, of
which 34,344,000 were in United States (by Carter Oil Co., Stand-
ard Oil Co. of Louisiana, Humble Oil & Refining Co., Hope Con-
struction & Refining Co., and Bast Ohio Producing & Refining Co.,
in the states of Oklahoma, Kansas, Wyoming, Arkansas, Texas,
Pennsylvania, West Virginia and Ohio) and 27,495,000 barrels
through affiliations in Peru, Colombia, Mexico, Rumania, Poland,
Canada, Dutch East Indies, Venezuela, Bolivia and Argentine.
Over 850,000 tonnage of tankers and 2,422 miles of pipe lines were
operated, 3,045,000 barrels of casinghead and natural gas gaso-
line was produced, and 102,540 million cubic feet of gas was sold.
Widespread marketing system includes Atlantic Seaboard states
from New Jersey to the Carolinas and southwestern states through
subsidiaries, as well as Canada and numerous foreign countries.
The company accounts for 50% of our petroleum export business.
In short, Standard Oil of New Jersey is a thoroughly integrated
world-wide oil company.
Against its great properties (total assets exceed $1,541,000,000)
capitalization now consists of $120,000,000 debenture bonds (re-
cently issued in connection with retirement of $200,000,000 pre-
ferred stock) and $603,630,475 common stock consisting of 24,145,-
218 shares, $25 par value.
In 1919-20 $200,000,000 from sale of preferred stock went into
the property, in 1920 par value of common was reduced to $25
from $100, and in 1922 a 400% stock dividend was declared. The
last two steps meant a twenty for ome split-up.
[711
