Studies in securities

Bibliographic data

Monograph

Identifikator:: 1757542078

URN:: urn:nbn:de:zbw-retromon-134903

Document type:: Monograph

Title:: Studies in securities

Edition:: Revised

Place of publication:: New York

Publisher:: Jas. J. Oliphant & Co.

Year of publication:: 1927

Scope:: 81 S.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Standard Oil Co. of Indiana

Collection:: Economics Books

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

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