11 1/2% of the World

11 1/2% of the World

Two stanch believers in the committee as an administrative form are Standard Oil Co. (New Jersey) and the Union of Soviet Socialist Republics. In operating efficiency the two show considerable variation. Dating back to the days when the late John Davison Rockefeller met almost daily with his partners to chart the devious course of the old Oil Trust, Standard's devotion to committees is even carried into executive functions. Standard's president is chief executive officer but there is also an active, working chairman. For a long time this executive team has been President Walter Clark Teagle and Chairman William Stamps Farish. Last week at Standard's annual meeting in Elizabeth, N. J., President Teagle announced that he and Chairman Farish had switched jobs.

Explaining that he had remained president much longer than he originally intended when he was elected 20 years ago, Mr. Teagle said he had carried the responsibility of chief executive officer long enough. Now he wanted more freedom for special work--meaning more time for first-hand study of the oil business.

"Mr. Teagle's relinquishment of the presidency means no change in policy," Mr. Farish told the stockholders. "We worked together for many years and I am pleased to be able to say in all sincerity that there has never developed any serious difference of opinion between us. . . . On principles, we have always agreed."

The general impression has been that Mr. Farish is much older than Mr. Teagle. Mr. Teagle is 59, Mr. Parish 56. Mississippi-born, a graduate of the University of Mississippi (Class of 1900), a short-time Mississippi lawyer (in Oxford), Mr. Farish joined the oil rush to Texas after the discovery of the famed Spindletop field at the Century's turn. Working as a roustabout, he saved his pennies, kept an eye peeled for big money. He went into partnership with Robert Lee Blaffer and out of their small beginnings grew Humble Oil Co., the mighty company which Standard now controls. Mr. Parish's official residence is still Houston, though he lives most of the time on Park Avenue, Manhattan. He likes to shoot quail in Thomasville, Ga., where he owns a big preserve jointly with Mr. Teagle.' A powerful six-footer with a Texas drawl, Oilman Farish was made a Standard director in 1927, chairman in 1933.

Before his stockholders gave him a rising vote of thanks last week, Mr. Teagle gave his stockholders a valedictory thumbnail sketch of Standard's growth during his administration. Having already reported 1936 profits of $97,000,000, Mr. Teagle noted: "The basis of our business is crude oil. In the year preceding my election our interests produced 9,658,000 bbl. In the year for which you have just had a report our production was 206,356,000 bbl. In 1916 our share of the total world production was less than 2%. Last year it was 11 1/2%. In 1916 our total refinery runs, both domestic and foreign, were 46,827,000 bbl. Last year the comparable figure was 271,096,000--an increase of about six times over the amount refined 20 years ago."

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