Evening star. [volume], May 12, 1946, Page A-25, Image 25

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
As a matter of Public Interest
v.IOME HIGHLIGHTS FROM THE
ANNUAL REPORT OF STANDARD OIL (N. J.)
Because Standard Oil Company (New Jersey) with its affiliated companies is one. of the nation's
large, enterprises, its operations may be of interest not only to shareholders and employees, but to
others as Well. The following facts, selected from the. Company's Annual Report, just published,
provide a good summary of the Report and cover the. developments of greatest public interest.
EUGENE HOLMAN FIANK W. ABRAMS
PRESIDENT CHAIRMAN Of THE BOARD
End Of During World War II Jersey and its
affiliates were called upon to a greater extent than any other
company to fuel the armed forces of the country. They were
the largest producers of 100 octane gasoline in the world. They
produced, in Government-owned plants which they operated,
as much synthetic toluene as all the rest of the world com
bined. They were among the largest producers of the raw
materials of synthetic rubber.
Reconversion Reconversion was carried out
smoothly and quickly. It was possible, with relatively few
difficulties, to change over from an^intricate pattern of manu
facture and transportation designed for a nation at war to an
equally complex pattern fitted to a nation at peace, and to
begin supplying, upon short notice, civilian demand for un
rationed gasoline and many other products.
Oil Production World-Wide production of crude
oil by consolidated companies was 995,000 barrels per day,
an increase of 8 percent over 1944. During 1945 the domestic
crude production of Jersey affiliates represented 9 percent of
the oil produced in the United States, and their world-wide
production amounted to 13.5 percent of the oil produced
throughout the world.
He«tiing T
domestic and , 6 9ni0un* of cnide
1)119,900 h reSeries 0f proce«sed in th
, U0 barrels Per f1o es of affiliated tbe
cent over 1944 Cn , * represented an i C°mpa^es-^
cent *». crud;run <o d°°>Mtic wwT'"of s per
Tra„SB iB the Unitad IZ13 PW'
ansPorfaH0tl r,
“H#> tortB VJOv 9" °m th* outbreafc 0f h
ated “mpttfe, were f' 6 ‘anie« owned by ,, i0stfli««>
* -»*
ava been partially 'S'°n- or branding. The ' ^Kvn by
fUrther to the fleet-e ! * ^ P,“» are und ^
• 6ets capaa.ty_ “» UPd« »ay to add
Marke«no
fa* activities were i ery'V',ere. throughout «.
and •’hen these « feguJated by gov 8 War' »«rfcet.
mai c°mPetitive
activity. World-wide sales of refined products in 1945 were at
the rate of 1,193,000 barrels per day, an increase of 4 percent
over 1944. Of this amount 694,000 barrels per day were sold
in the United States dolnestic market.
Research Until the end of hostilities Jersey research
was almost entirely on war work of highest importance. Im
mediate postwar research budgets will be approximately
50 percent above prewar budgets as part of a program to
carry over into a peace-time world research begun for war,
and to continue scientific inquiries on petroleum as a raw
material for many products.
®**®P^®Y®® Relations Jersey and affiliates con
tinued to enjoy excellent labor-management relations. When
the war ended, Jersey’s domestic petroleum affiliates proposed
upward adjustment in wages and salaries of 15 percent. This
was accepted by all employee bargaining agencies involved.
By March 1, 1946, an additional 3 percent had been negoti
ated and accepted. One of the best evidences of the satis
factory employee relationships in Jersey is the fact that 95
percent of the domestic employees who have been released
from the armed forces have returned to the Company.
More than 79 percent of eligible domestic employees are
now buying term life insurance under the Group Insurance
Program for a total coverage of $160,241,800.
Employees participating in the Thrift Plan contributed
last year $15,019,011, which was supplemented by Company
contributions of $18,921,235.
Earnings Consolidated net' earnings in 1945 amounted
to $154,156,196, equivalent to $5.64 per share. For 1944 the
consolidated net earnings were equivalent to $5.69 per share.
During the year the Company paid dividends totaling $2.50
per share.
Statement of Principles in order to make as
clear as possible the Company’s outlook in today’s changing
world, the Board of Directors has prefaced this year’s Annual
Report with a special Statement of Principles. This expresses,
for our stockholders and for anyone else interested, b^asic
viewpoints and policies of the Company.
[Copies of the full report are available on request. Address *1
Room 1626, 30 Rockefeller Plaza, New York 20, N. Y. J
STANDARD OIL COMPANY (NEW JERSEY)
AND AFFILIATED COMPANIES
iUffitfifWtiriifiifc ukw'
widinino ownership op JERSEY is shown by the
fact that the number of shareholder accounts
has increased from 5,816 in 1912 to 160,025 aa
of December 31, 1945.
WAGES AND DIVIDENDS
1108,000 Employees Shared
ttHiiii *314,042,000
160,000 Owners
Shared *68,334,000
IACH FIGURE REPRESENTS 6,750 PERSONS, and the bars
represent the amounts of income each group
received from Jersey in 1945. The sum of
$314,042,000 was paid to employees of the Com
pany and affiliates in wages, salaries and benefits.
Dividends amounted to $68,334,000.
r
THIS SHOWS THI PROPORTION OF NET PROFIT made
by Jersey and affiliates out of total income in 1945.
It shows also the proportion paid to shareholders
in dividends and that left in the business to meet
future capital expenditures, etc. All the rest of the
income was required to pay wages, purchase
materials and meet other operating costs.
INVESTMENT §
PER EMPLOYEE 1
IN PROPERTY, I
PLANT AND |
EQUIPMENT I
_ j
FOB iach imployee on the payroil, Jersey and
ita consolidated companies have invested $22,600
in property, plant, and equipment. The gross
value of capital investments in lands, refineries,
pipe lines, tankers and other properties necessary
to provide 108,000 jobe was $2,441,942,488 at the
•Qd Of IMS.