JAS. H. OLIPHANT & CO. 
undistributed equity of subsidiaries) compared with $5.85 in 
1925, $4.56 in 1924, $4.68 in 1923 and $5.61 in 1922. This meant 
operating profits before taxes of $62,599,000 against a previous 
record of $61,378,000 in 1920. 
Prior to acquisition in 1925 of a dominating interest in the voting 
shares of Pan-American Petroleum Co. (the terms of the deal and 
actual relationship not entirely clear), Standard Oil of Indiana 
had for years been the largest domestic marketer and the second 
largest distributor of gasoline. This position had been built up 
through production in the mid-continent field, absorption of 
Midwest Refining Co. in 1920-21 with its domination of Rocky 
Mountain fields, ownership of a half interest in the Sinclair Pipe 
Line Co. and entire ownership of Dixie Oil Co.’s pipe line system 
carrying Wyoming, Oklahoma and Gulf Coast production to the 
great refineries at Whiting, Ind., Wood River, Ill., Kansas City, 
Mo., and Casper, Wyoming, and in 1922 acquisition of half interest 
in Sinclair Crude Oil Purchasing Co. holding large oil reserves. 
Its refineries handle 300,000 barrels of crude daily and with mar- 
keting facilities in ten states of the Mississippi Valley from 
Canada to the Gulf it does 20% of the gasoline business of the 
country. 
The Pan-American deal did not involve the California properties 
of that corporation but carried managerial control of 1,500,000- 
2,000,000 acres in Mexico with 150,000 daily production, with 
refinery capacity and pipe lines and the second largest tanker 
fleet flying the American flag. Later, control of Lago Petroleum 
Co. gave an interest in growing Venezuelan production. These 
1925-26 developments were to provide for Indiana’s future needs 
so far ahead as is necessary. Indiana’s slogan, ‘“We have the last 
drop of oil in the world,’’ seems backed up. 
Balance sheet showed ‘‘Investment in Other Companies’ at end 
of 1926 of $129,894,000 compared with nil in 1919. Indiana’s own 
property accounts were only $152,080,000, showing the big ex- 
pansion of corporate interest in allied and supplementary com- 
panies. The real contribution from these investments will come in 
future years. 
After stock dividends of 100% in 1922 and 150% in 1920, and a 
$9.50 cash dividend rate increased by $1 extra since March, 1926, 
Indiana’s surplus now totals almost 80% on its $25-par stock. 
With gasoline consumption increasing 149% a year, substantial 
earning power seems assured. While its inventory at the begin- 
ning of 1927 was the largest in its history, which in view of the 
downward trend of petroleum products prices since January 1 
was unfortunate, the company’s record holdings of $66,299,000 
1701