OIL: An Answer

The Lamp, official organ of the Standard Oil Co. of New Jersey for its stockholders and employees, gave the Company's answer to the report of the Senate Committee on Manufactures made last March. That report charged that the Standard Oil Co. still exercised a monopoly and took huge profits, and predicted that the price of gasolene would rise to one dollar a gallon.

In reply The Lamp charges that the findings of the committee were inspired by political motives and that it set out to substantiate preconceived ideas rather than to learn the facts. In support of its contention The Lamp made the following assertions:

1) That there is intense competition between the Standard Oil Co. of New Jersey and other companies, including former members of the Standard Oil group.

2) That "outside" oil companies who controlled 10 or 15% of the business at the time of the dissolution of the old Standard Oil Co. (1911) now control 55 or 60% of the business.

3) That the investment in the petroleum industry during the interval has increased from $2,700,000,000 to $8,000,000,000.

4) That the Standard Oil Co. of New Jersey has over 60,000 stockholders.

5) That its profits during the past 21/2 years have averaged 3½c. on each dollar's worth of oil sold—or about one cent a gallon.

6) That its return on its investment during the past ten years has averaged 12.76%.

7) That its dividends during the past 21/2 years have averaged 2.83% on its net assets.

8) As for gasolene at one dollar a gallon it quoted Dr. Warren K. Lewis, head of the department of Chemical Engineering at Massachusetts Institute of Technology to show that motor fuel substitutes would supersede gasolene at that price.