standard vacuum oil company
following the take - over in 1933 of the standard oil company (new jersey) (later exxon) by atlantic union oil company, the eastern hemisphere interests of standard oil company (new jersey) were merged with socony - vacuum oil company (later mobil) to create standard - vacuum oil company (stanvac) .
the commissioner of income - tax... vs standard vacuum oil company on 26 october, 1965
1934: socony - vacuum corp. changes its name to socony - vacuum oil co. , inc .
1933: socony - vacuum and standard of new jersey merge their far east facilities and interests into a 50 - 50 venture called standard - vacuum oil co. , or stanvac
1931: socony acquires all the assets of vacuum oil co. and changes its name to socony - vacuum corp .
mobil' s predecessor company, vacuum oil, first opened its melbourne branch in february 1895 .
1889: ohio oil company purchased by j. d. rockefeller subsequently consolidated into the standard oil trust
lakshmipathi (dr. t. n .) vs standard vacuum oil company, ltd... . on 5 may, 1961
with magnolia as a full - fledged subsidiary, socony continued its growth by merging with vacuum oil company of rochester, new york, in 1931 to form the socony - vacuum oil company, inc. the standard oil company of ohio had acquired majority interest in vacuum oil in 1879, and it was yet another strong company to emerge from the 1911 breakup. organized in 1866, vacuum oil produced the first petroleum - based lubricants for horse - drawn carriages and, later, for steam engines. notably, vacuum oil introduced the mobil brand, which socony - vacuum continued to use .
1879: standard oil co. , headed by john d. rockefeller, purchases a three - quarter interest in vacuum
the exxonmobil historical collection consists of records, subject files, photographs, artifacts and multimedia materials related to exxon mobil corporation and its predecessors and subsidiaries including standard oil company, standard oil company of new york, standard oil company (new jersey), and humble oil corporation .
overview of the first oil pipeline (1879), which attempted to compete with standard oil company and trust .
1930: vacuum acquires wadhams oil corp. , and the white star refining co .
socony vacuum oil company... .... . $ 97, 715, 701 standard oil company (new jersey)... .... . $ 46, 767, 397
…an oil - producing unit of the standard oil trust, which at that time owned refineries and distribution networks but no producing oil wells. as part of standard oil, the south penn oil company, headquartered in oil city, pennsylvania, expanded to become the largest oil producer in the appalachian region. it became…
just as socony expanded into the southwest, standard oil (new jersey), too, sought to take advantage of new opportunities in the region and entered texas soon after socony, acquiring humble oil & refining company in 1919. standard oil continued to build its interest in humble throughout the first half of the century. by 1958, standard oil owned nearly 98% of humble. the next year standard oil and humble consolidated their u. s. operations. by the end of 1960, humble had absorbed esso standard (standard' s domestic operating company), carter oil company, enjay chemical company, oklahoma oil company and other standard oil affiliates, resulting in a more streamlined and efficient company .
not to be outdone, the company rebounded by forming the standard oil interests, consisting of about 20 holding companies. in 1899, taking advantage of a new jersey law allowing a single corporation to own stock in other companies, standard oil company of new jersey became the holding company for the standard oil interests .
…nationwide standard oil trust (see standard oil company and trust). in its early years its chief operations were marketing oil and related products, primarily in the rocky mountain area and in california. in 1913, two years after the u. s. supreme court dissolved the standard oil combine, the company was again…
1929: vacuum acquires the lubrite refining co. , a refining and marketing company based in st. louis
a decade later, vacuum introduced
ethyl
, australia' s first super grade motor spirit. around the same time in the us, vacuum' s parent company, vacuum oil inc, merged with the standard oil company of new york to form socony vacuum, which subsequently became socony mobil and ultimately, mobil. socony mobil introduced the flying red horse (pegasus) logo which first appeared in australia in 1939 and became one of australia' s best recognised corporate symbols .
this series contains charters, legal opinions, agreements and other documents detailing the formation and growth of the standard oil company and the standard oil trust. of particular interest are certified copies of the standard oil company charter of 1870, standard oil solicitor s. c. t. dodd' s legal opinions on the feasibility of creating the trust (1881) and an abstract of the trust agreement .
…and philanthropist, founder of the standard oil company, which dominated the oil industry and was the first great u. s. business trust. …
1888: standard oil of new jersey establishes anglo - american oil co. (predecessor of esso petroleum co .) to market oil in the british isles
as the merger provided increased stability in the domestic market, socony - vacuum set its sights on its foreign resources and joined with standard oil (new jersey) to form the standard - vacuum oil company, or stanvac, in 1933. this 50 / 50 venture operated in nearly 50 countries, from africa to the south pacific, until the assets were divided in 1962 .
in 1959, standard oil (new jersey) discovered oil in libya, setting off a decade of major discoveries in the middle east. standard oil established itself as a global chemical producer in 1965, following the formation of mobil chemical company in 1960 .
in 1911, after dissolution of the standard oil empire, eight companies retained “standard oil” in their names, but by the late 20th century the name had almost passed into history. in 1931
1928: standard oil of new jersey acquires interest in turkish (now iraq) petroleum co .
both companies weathered the breakup well. provisions of the 1911 dissolution agreement assigned marketing for new york state and new england to standard oil company of new york (socony) and allowed socony to maintain its extensive overseas operations. standard oil (new jersey) maintained marketing in the mid - atlantic region and gained control of standard oil company of louisiana (southern marketing), carter oil company (production), imperial oil company (canadian operations) and gilbert & barker manufacturing (service station equipment) .
part 7: exxon corporation: series ii. publications and series iii. history of standard oil company (new jersey) research files
standard oil company (later exxon) and socony - vacuum oil company (later mobil) became part owners in 1948 to help provide market outlets and capital investment for the immense hydrocarbon reserves of saudi arabia. aramco’s headquarters moved from san francisco to new york as part of the change in ownership .
in 1903, wilbur and orville wright used jersey standard fuel and mobiloil (vacuum) lubricants for their historic first flight at kitty hawk, north carolina .
…the standard oil trust (see standard oil company and trust), which in 1899 became the holding company for all companies previously grouped in the trust. in 1911 the u. s. supreme court ordered it to divest itself of 33 of its american subsidiaries. meanwhile, the new jersey company had become, in…
1924: ashland refining company of ashland, ky. , founded as a refining arm of swiss oil company of lexington
1981: kuwait oil company purchases the santa fe international corp. , of california
as early as 1869, vacuum oil used a stylized red gargoyle to advertise petroleum - based lubricants for horse - drawn carriages and steam engines .
1956: all of j. paul getty' s oil holdings organized under getty oil
this series includes agreements, bills of sale and other material documenting the standard oil company' s, the standard oil trust' s and their affiliates' acquisition of refineries, land, stock and property from companies in ohio, pennsylvania, new york and other states. also included are standard oil and its subsidiaries' agreements forming exclusive relationships with pipeline and refining companies .
the former standard oil building, lower manhattan, new york city, constructed in 1921–28 atop an original building of 1884–85; designed by thomas hastings. it was the headquarters of the standard oil trust and successor companies until 1956 .
in 1952, jersey standard introduced uniflo motor oil, the first multigrade motor oil for both summer and winter use. in 1974, mobil introduced the first synthetic motor oil – mobil 1™. today, mobil 1 is the world’s leading synthetic motor oil brand
1972: bp sells 33% of abu dhabi main areas ltd. to japanese oil company
in 1933, saudi arabia signed a now historic concession agreement giving standard oil of california (socal) permission to explore its country for oil. socal’s wholly owned subsidiary, the california arabian standard oil company (casoc) with headquarters in san francisco, was assigned the task. to support this effort, the texas company (later texaco) acquired half of casoc in 1936, and in 1944, the enterprise was renamed the arabian american oil company, or aramco .
companies that were engaged in producing, refining, and marketing oil were combined in the standard oil trust, created by the standard oil trust agreement signed by nine trustees, including rockefeller. by the agreement, companies could be purchased, created, dissolved, merged, or divided; eventually, the trustees governed some 40 corporations, of which 14 were wholly owned. founded in 1882, standard oil of new jersey was one component of the trust; by design the standard oil trust embraced a maze of legal structures, which made its workings virtually
first proposed in 1928, the merger of standard oil co. of new york with vacuum oil co. of new york was consummated last week by an overwhelming vote of the companies' stockholders. the law' s delays had held up the merger. only last month did the government give up its attempt to prevent this union of two oldtime standard oil units (time, june 15). socony has $ 720, 305, 000 assets, earned $ 40, 246, 000 last year; vacuum has $ 240, 545, 000 assets, earned $ 20, 393, 000 last year. united, they form a company which ranks third (after shell and new jersey standard) ...
a year earlier, however, the ohio attorney general had begun legal proceedings to order all ohio companies affiliated with standard oil to separate and begin operating independently. other states soon followed, with charges that standard oil continued to violate anti - trust laws. in may 1911, after years of legal proceedings, the united states supreme court declared standard oil company of new jersey an
unreasonable
monopoly and ordered it to dissolve, resulting in 34 distinct and separate companies .
3. the assessee company is a non - resident. it was incorporated in the state of delaware in the united states of america with the object of taking over the assets of two companies - socony vacuum oil company and standard oil company (new jersey). the capital of the assessee company was $ 10, 000, 000 divided into 100, 000 shares of the value of $ 100 each. on the date of acquisition the book values of the assets of two companies as recorded in their books of account were :
the re - organized standard oil company of new jersey and standard oil company of new york emerged as two of the strongest companies. (the former would become exxon; the latter mobil .) throughout the 20th century, both companies continued to grow and forge individual identities. this growth meant strengthening its industry alliances, merging with other companies, developing new technologies and diversifying its holdings .
the collection is organized in four subgroups: standard oil company, mobil corporation, exxon corporation and exxon mobil corporation. due to size, the finding aid has been divided into several separate pages .
as motor vehicles became more popular in australia, vacuum expanded its operations. in 1924 vacuum opened its first bulk petroleum products terminal at pulpit point in sydney and took delivery of its first imported bulk oil products cargo, a 1. 5 million gallon shipment carried from the united states by the tanker
ht harper
.
socony - vacuum reorganized in 1955 to become the socony mobil oil company, inc. further consolidation occurred in 1959, when magnolia petroleum company, as well as general petroleum corporation (a california - based affiliate) and mobil producing company (a socony mobil subsidiary) began operating as the mobil oil company, a wholly owned subsidiary of socony mobil. a decade later, with increased brand recognition for mobil products, socony mobil opted to once again change its name, this time becoming simply the mobil oil corporation .
other companies that once were part of the trust include atlantic richfield company, buckeye pipe line company (ohio), chesebrough - pond’s inc. , pennzoil company, and union tank car company (new jersey) .
1947: consortium of phillips, ashland, signal oil and gas, j. s. abercrombie, sunray mid - continent oil co. , globe oil and refining co. , and pauley petroleum inc formed to bid on neutral zone concession; consortium is named american independent oil company [ aminoil ]
1970: french petroleum company of canada founded. the company is renamed total petroleum (north america) later that year
1928: royal dutch / shell, anglo - persian, cfp, exxon, mobil, atlantic richfield, gulf oil corporation, standard oil of indiana [ amoco ], and participations and explorations corp. , establish a joint venture called the near east development company; the near east development company signs
red lines agreement
binding participating companies to cooperate with turkish petroleum company in any ventures in turkey, the levant, iraq and arabian peninsula (atlantic, gulf, and standard eventually sell their shares to other participants )
1954: consortium of oil companies, including british petroleum, jersey, socony, texaco and socal, gulf, royal dutch / shell group, iricon agency ltd. , richfield oil corp. , signal oil and gas, aminoil, sohio, getty, atlantic oil, tidewater oil, san jacinto petroleum corp. , and cfp form the iranian oil participants ltd. (iop). iop then negotiates agreement with iranian government and for oil production in iran
the flying red horse was first used by vacuum oil in south africa in 1911. in 1931, when vacuum merged with socony, the red pegasus – a symbol of speed and power – was adopted as its u. s. trademark. in 1968, mobil adopted new - look pegasus service stations. the red pegasus remains among the most recognized corporate symbols in american petroleum history .
1959: magnolia petroleum and general petroleum merged with other domestic subsidiaries into socony mobil oil company; two major operating divisions created within the company: mobil oil co. for the u. s. and canada, and mobil international oil co. for the rest of the world (except the areas in which stanvac had interests )
this series is comprised of two versions of the unpublished history of standard oil (1908 and circa 1911) by w. f. taylor, an extensive history of the organization, and a brief homage to the company by elbert hubbard .
oil was a basic source of conflict between the united states and japan. this book examines the role played by the standard - vacuum oil company in the crisis that led to pearl harbor .
stanvac
was the largest american supplier of oil to japan and represented the single largest american direct investment in asia before the war. in the context of stanvac' s relations with various governments, the author examines the ways in which united states petroleum policy was formulated and the arrangements by which japan sought to increase its oil reserves. he provides new insight into the impact of the financial freeze of july 1941, the origins of the pacific war, and the complexities of oil diplomacy .
1954: consortium of oil companies, including british petroleum, exxon, socony, texas oil, socal, gulf, royal dutch / shell group, and cfp form the iranian oil participants ltd. (iop) and negotiate agreement with iranian government and for oil production in iran
although consolidation did advance the large - scale production and distribution of oil products, many critics believed that the resulting concentration of economic power was becoming excessive. in 1906 the u. s. government brought suit against standard oil company (new jersey) under the sherman antitrust act of 1890; in 1911 the new jersey company was ordered to divest itself of its major holdings—33 companies in all .
1966: socony mobil oil co. changes name to mobil oil corporation. mobil oil co. becomes the north american division; mobil international becomes the international division, with coordinating responsibility for mobil petroleum co. inc .
1903: shell and dutch company n. v. koninklijke nederlandsche maatschappij tot explotatie van petroleum - bronnen in nederlandsch - indië form the asiatic petroleum company
1928: pacific western oil corporation incorporated as a holding company for edward l. doherty and family which subsequently came under the control of j. paul getty
a big challenge to the oil industry came in 1973 with the arab oil embargo, with countries disrupting production, causing oil supplies to diminish and prices to soar. this event forced exxon and mobil to increase exploration and production in other parts of the world, including the north sea, the gulf of mexico, africa and asia. as a result of the energy crisis, mobil began seriously diversifying its holdings, acquiring marcor, the parent company of retailer montgomery ward and container corporation of america, producer of paperboard packaging. later, in 1976, mobil corporation formed as a holding company for marcor and mobil oil corporation, which included the company' s oil and gas operations and mobil chemical company .
with the merger of exxon and mobil in 1999, the newly formed exxon mobil corporation brought together a shared history that dates back over 120 years to their origins as part of the standard oil family of companies .
1980s: amoco sharjah oil company, sharjah, u. a. e. , in partnership with uea, produces natural gas and natural gas liquids in sharjah
1918: anglo - persian oil purchases british petroleum from british government, which in turn had seized the company form deutsche bank during w. w. i .
1998: texaco and shell oil form downstream alliance in the western u. s .
1956: acquisition of r. j. brown company of st. louis .
this series contains statistics, inventories, ledgers, correspondence and product information documenting various aspects of the company' s operations, notably its refineries and pipelines. of particular interest is the
eleventh census of the united states statistics of manufactures
( 1890) that includes production, labor and tax data for the company. lists and abstracts of industry competitors are also included. in addition, the general cipher code manual (1905) illustrates the lengths standard oil representatives were required to go to protect proprietary information. letters from standard oil' s far east agent, william h. libby, offers insight into the japanese petroleum market .
1954: consortium of oil companies, including british petroleum, exxon, socony, texaco and socal, gulf, royal dutch / shell group, and cfp form the iranian oil participants ltd. (iop) and negotiate agreement with iranian government and for oil production in iran
mobil announced its return to producing lubricating oils in australia in 1973, commencing construction of a lubricating oil refinery alongside the existing adelaide fuels product refinery. the lubricating oil refinery opened in 1976 .
in 1958, jersey standard offered free road maps to customers as part of its happy motoring campaign. the maps featured ‘happy’ the oil drop man – an advertising character that was first introduced by esso’s danish company during world war ii. today, thousands of exxon and mobil customers use our online fuel finder to help them on their journeys .
are you interested in becoming a supplier for company saudi aramco? register with asc today .
in 1952, aramco’s headquarters – including many officers and executive staff – moved to dhahran, saudi arabia, and in 1980, the saudi government completed its gradual buyout of aramco’s assets. in 1988, the successor company was established as the saudi arabian oil company (saudi aramco) .
to join as a partner in the venture. by 1870 the firm of rockefeller, andrews, and flagler was operating the largest refineries in cleveland, and these and related facilities became the property of the new standard oil company, incorporated in ohio in 1870. by 1880, through elimination of competitors, mergers with other firms, and use of favourable railroad rebates, it controlled the refining of 90 to 95 percent of all oil produced in the united states .
. all assets and interests formerly grouped in the trust were transferred to the new jersey company .
1939: ipc establishes abu dhabi petroleum company ltd. (adpc) to hold abu dhabi concession
the company’s origins date to 1863, when rockefeller joined maurice b. clark and samuel andrews in a
…and his associates organized the standard oil trust under the laws of ohio. a trust was a new type of industrial organization, in which the voting rights of a controlling number of shares of competing firms were entrusted to a small group of men, or trustees, who thus were able…
1981: conoco becomes a wholly owned subsidiary of by e. i. du pont de nemours & company
the standard oil company' s headquarters were at 26 broadway in new york city. this series traces the ownership of the primary and adjacent properties (1790 - 1890). it is comprised of deeds, titles, wills, agreements, legal opinions, land surveys, a tax history search, and utility bills connected with 26 broadway. an 1884 abstract of the title outlines the history of the broadway property .
1998: arco sells majority interest in arco chemical company and divests its coal assets in the u. s .
1950: frontier oil refining of buffalo, n. y. , and national refining of cleveland, ohio, join ashland
on november 30, 1999 the australian assets of esso were merged with those of mobil as part of the global merger of exxon corporation and mobil oil corporation and today mobil is part of the world' s premier petroleum and petrochemical company .
1998: bp announces merger with amoco, new company will operate under the name bp amoco p. l. c .
1994: occidental petroleum corp. completes acquisition of placid oil co. , which was founded in 1936 by h. l. hunt
1956: after resigning as a geologist with phillips petroleum co. , t. boone pickens forms development and production company called petroleum exploration
this section is intended solely for the use of employees of aramco services company, ts affiliates and project managment teams in north america .
1998: total announces details of its development plans for iran' s giant south pars gas field in coordination with the national iranian oil co .
foundation and governance documents, legal agreements, correspondence and memoranda, publications, financial reports, press releases, speeches, news clippings, histories, advertising and graphics material, posters, ledgers and record books, drawings and blueprints, photographs, moving images, sound recordings, and artifacts and memorabilia document the activities and functions of four major corporate entities - standard oil company, mobil corporation, exxon corporation and exxon mobil corporation - and their predecessors and subsidiaries (1790 - 2004, bulk 1880s - 1990s) .
1959: joint shell / esso exploration company called n. v. nederlandse aardolie maatschappij (nam) discovers gas fields in groningen in the netherlands
as a company with such a close association with the tiger, esso, together with its parent company, exxonmobil, was instrumental in the establishment of the save the tiger fund in 1995. today, exxonmobil contributes $ 1 million a year to help conserve asia' s remaining wild tigers .
mid - 1980s: royal dutch / shell buys remaining 31% of shell oil u. s. a. (the remainder that it did not yet own )
both of these famous pilots used mobil oil in their historic cross atlantic flights. lindberg in the spirit of st. louis in 1927, and earhart in friendship in 1928 .
the discovery of vast reserves of crude oil and gas in bass strait in the early 1960' s changed the australian refining industry dramatically, as most companies changed to processing the locally produced oil instead of importing their raw materials. in 1970 further expansion and modification of the altona refinery was completed, making it possible for bass strait crude to be processed .
therefore in order to determine the capital of the company for the purpose of this act you have got to take the paid - up share capital of the company, then you have to add to it the reserves and you have to add only those reserve which have been subjected to taxation
, and at p. 265 :
the collection originally served the corporation as a resource to fulfill business needs. as a result, it is an incomplete record. the collection succeeds, however, in providing insight into the early activities of the standard oil company and charting the growth of exxon and mobil' s core business activities, namely the exploration, production, refining and marketing of petroleum products, and the industry' s development and societal impact throughout the 20th century. in addition, the collection contains diverse material that can support research on related topics such as advertising and brand identity, management and corporate culture, the environment, architecture, graphic design, and philanthropy .
30. the following table prepared from the balance sheets and filed on behalf of the assessee company, (correctness of which has been accepted), clearly supports the view .
in october 1946, mobil began constructing the altona refinery near melbourne. the refinery commenced operations in june 1949, initially making lubricating oil and bitumen from imported crude oil. in 1955, a multi - million dollar expansion program came on stream extending the refinery' s product range into motor vehicle fuels and, in 1956, it produced australia' s first locally made aviation gasoline .
this series consists of nine letters that john d. rockefeller wrote to standard oil president henry c. folger, jr. most of the letters are brief and refer to previous communications, though of note is a longer letter of may 3 that reflects part of rockefeller' s business philosophy as he expressed hopes for permanent success by giving the public the best quality goods at the most reasonable prices. he wrote that he would rather make a lower profit on his investment than have competitors take their customers .
1993: arco' s u. s. oil and gas business restructured and divided into four business units—arco permian, arco western energy, arco long beach, inc. , and vastar resources, inc .
21. it is true that the court in that case was dealing with a case of a banking company. but the characteristics noted are not peculiar to accounts of a banking company: they are applicable with appropriate variations to accounts of all companies, and different nomenclatures are used in the accounts to designate the residue on hand as
surplus
,
undivided profits
, or
earned surplus
.
1998: arco subsidiary (western midway co .) and a unit of mobil corporation reaches agreement to exchange oil and gas properties in california' s san joaquin valley and the gulf of mexico; the california properties owned by western midway go to mobil, while mobil oil and gas properties in the gulf go to western midway. upon completion of the exchange, western midway will be sold to vastar resources inc. (82. 2% owned by arco )
the companies' first major expansion was in the southwest. with oil discovered in corsicana, texas, as early as 1894, this was a logical region for exploration. texas - based magnolia petroleum company experienced rapid growth during the 1910s and quickly caught socony' s attention, resulting in substantial stock acquisitions. by 1925, magnolia' s stock was exchanged for socony stock, and socony' s texas properties were transferred to the newly incorporated magnolia .
in late 1990, mobil purchased esso australia' s refining and marketing operations. this gave mobil 100 per cent ownership of petroleum refineries (australia) pty ltd, the company that operated both the altona and adelaide refineries .
the company maintained a number of aramco offices in los angeles, tulsa, chicago and washington, d. c. , to carry out various recruiting, purchasing, shipping and other functions in support of the operations in saudi arabia .
3. so much of the premium realised by a company from the issue of any of its shares as it retained in the business shall be regarded as forming part of its paid - up capital for the purposes of rule 2 .
12. when shares are issued to the public at a premium, ordinarily premium at a uniform rate would be charged from all applicants for shares. but that is not because the law contains any prohibition against charging differential premiums. the right of a company to charge varying premiums in respect of blocks of shares having the same rights issued under different resolutions is not denied, and on principle there is no objection to the charging of varying rates of premium for shares issued under a single resolution, if all the parties concerned agree. the amount or value which a person intending to be a shareholder may pay in excess of the par value for acquiring the shares of a company depends upon the contract between the company and such a person .
a reserve in the sense in which it is used in rule 2 can only mean profits earned by a company and not distributed as dividends to the shareholders but kept back by the directors for any purpose to which it may be put in future
.
in 1958, mobil unveiled plans to build an oil refinery at port stanvac, south of adelaide and operations began in 1963. at the same time, mobil announced the construction of a major petrochemical plant near the altona refinery that produced its first products for sale in june 1961 .
26. the court was dealing in that case with the accounts of an indian company, the balance sheet of which was prepared according to the provisions of the indian companies act, 1913. regulation 99 of the 1st sch. table a, required that reserves must be set apart before the directors recommended any dividend, but out of the profits of the company no amount was set apart towards reserves before the directors recommended payment of dividend to the shareholders. the identity of the amount remaining on hand at the foot of the profit & loss account was not preserved .
2. (1) whether the company is one to which rule 3 of schedule i applies, its capital shall be the sum of the amounts of its paid - up share capital and of its reserves in so far as they have not been allowed in computing the profits of the company for the purposes of the indian income - tax act, 1922 (xi of 1922), diminished by the cost to it of its investments or other property the income from which in not includible in the profits, so far as that cost exceeds any debt for money borrowed by it .
in 1938, the world’s first commercial production of alkylate at a humble oil plant in texas made possible the manufacturing of iso - octane as a blending agent. in 1976, mobil invented a process for converting methanol into high - octane gasoline. today, all north american gasoline contains octane and gasoline grades are based on
19. the explanation to r. 2 has no relevance in the present case. the difference between the assets received by the company and the par value of the shares issued cannot be called a book asset
brought into existence by creating or increasing (by re - valuation or otherwise )
. the assets received by the assessee company are real and tangible assets. it is only for accountancy purposes that a part of the value of the assets is allocated to the par value of the shares and the balance to the
capital surplus bought in
account. the high court was therefore right in holding that the account
capital surplus bought in
in the balance sheet represents premium realised from the issue of its shares within the meaning of r. 3, or in the alternative represents reserves not allowed in computing the profits of the company for the purpose of the indian income - tax act, 1922 .
two essential characteristics must be present before the assessee can avail himself of the benefit of the rule, namely, that the amount should not have been allowed in computing the profits of the company for the purposes of indian income - tax act and that it should be a reserve as contemplated by the rule .
the directors had no power to distribute the sum as dividend. they could only recommended, as indeed they did, and it was upto the shareholders of the company to accept that recommendation in which case alone the distribution could take place. the recommendation was accepted and the dividend was actually distributed. it is, therefore, not correct to say that the amount was kept back. the nature of the amount which was nothing more than the undistributed profits of the company, remained unaltered. thus the profits lying unutilized are not specifically set apart for any purpose on the crucial date did not constitute reserves within the meaning of schedule ii, rule 2 (1) .
the 1980s and 1990s marked a period of relative prosperity for exxon and mobil, with increased oil supplies and reduced prices. this period also saw the introduction of new marketing techniques, such as exxon' s tiger market convenience stores and mobil' s speedpass technology. by 1999, exxon and mobil were poised to merge and become the world' s largest energy corporation .
14. under the companies act, 1913, shares of a class already issued could be issued by a company at a discount, subject only to the conditions prescribed by s. 105a. but the act made no provision relating to the issue of shares at a premium. the matter was one governed by contract between the company and the intending acquirer of shares. in the companies act 1 of 1956, certain restrictions are imposed upon the application of premiums received on issue of shares by s. 78. shares could therefore be issued at a premium under the act of 1913 and that appears to be recognised by the terms of s. 78 (3) of the companies act of 1956 .
6. the provisions of the business profits tax act, 1947, which have a bearing on the questions raised in the reference to the high court may first be summarised. by s. 4 of the act in respect of any business to which the act applies, business profits tax is charged, levied and paid on the taxable profits during any accounting period at the rates specified in the act. the expression
taxable profits
is defined in s. 2 (17) as the amount by which the profits during a chargeable accounting period exceed the abatement in respect of that period .
abatement
is defined in s. 2 (1) (insofar as it is material) as meaning, in respect of any chargeable accounting period ending on or before the 31st day of march, 1947 a sum which bears to a sum equal to (a) in the case of a company, not being a company deemed for the purposes of s. 9 to be a firm, six per cent. of the capital of the company on the first day of the said period computed in accordance with sch. ii, or one lakh of rupees, whichever is greater, and (b) in respect of any chargeable accounting period beginning after the 31st day of march, 1947, such sum as may be fixed by the annual finance act. schedule ii prescribes rules for the computation
of the capital of a company for purposes of business profits tax
. the material clauses are 2 (1) and 3 :
11. under the companies act, 1913, shares could be issued for cash or against transfer of property, and it is not claimed that under the statute law in the state of delaware a different rule prevailed at the time when the assessee company took over the assets of the transferor companies. the indian companies act also places no restriction upon a company issuing shares for a consideration which exceeds the par value of the shares, and there is no evidence on the record that in the state of delaware there is such a restriction. a share is not a sum of money: it represents an interest measured by a sum of money and made up of diverse rights contained in the contract evidenced by the articles of association of the company. in the absence of any restriction in the law of delaware against the issue of shares otherwise than for cash, when shares are issued for consideration other than cash the value of the assets transferred in excess of the par value of shares issued would be regarded as premium for purposes of our system of law. no serious argument has been advanced before us on behalf of the commissioner controverting this part of the case .
in 1997 a major modernisation project was completed at the altona refinery with mobil spending $ 250 million to replace the old thermofor catalytic cracker (tcc) with a modern unit known as a fluidised catalytic cracker (fcc), representing the latest in refinery technology. the fcc significantly improved efficiency by allowing the refinery to process a larger range of crude oil, making it a more competitive purchaser on the international market .
18. rule 2 does not expressly say that the reserve admissible in the computation of capital should be one built out of profits, and this court did not suggest that the rule contained such an implication. observations made by chagla, c. j. in century spinning & manufacturing company' s case (20 i. t. r. 260 .) at p. 264 :
1998: shell oil co. , texaco inc. and saudi aramco initiate joint venture combining their eastern u. s. refining and marketing assets under the name motiva enterprises llc, paralleling a joint venture launched by shell and texaco under the name equilon enterprises llc for their midwest, southwest and west coast downstream assets; shell to own 35% of houston - based motiva, while texaco and aramco will each own 32. 5 %
( 1) whether on the facts found the tribunal was right in holding that the sum of $ 117, 000, 000 appearing in the balance sheet of the assessee company under the head
capital paid in surplus
and constituting the excess of the book value of the assets over the face value of the shares represented premium realised from the issue of the shares as contemplated by rule 3 of schedule ii of the business profits tax, 1947 .
it is common ground that respondent 1 company, though under, a single management, has two premises called the kasimode terminal and the royapuram terminal which are treated as
factory
within the meaning of the factories act, 1948, while the head office or territory office does not come under the factories act, and it could be more properly treated as a commercial establishment' as defined in section 2 (3) of the act. the petitioner' s contract with the company was marked before the assistant commissioner, as ex. a1, and i was given an opportunity of perusing it. under the contract, the petitioner was required to visit kasimode and royapuram terminals and the territory office daily, starting from the kasimode terminal at 9 a. m. and devote adequate time to each of these places to give adequate time to each of these places, to give adequate and necessary medical attention to all members of the staff requiring attention .
32. the high court was therefore right in holding that the
earned surplus
represented reserves. the method in which the accounts are maintained in the light of the accountancy practice clearly indicates that at the end of the year, there have been specific appropriations in the account, and the conditions which this court regarded as essential in the century spinning & manufacturing company' s case ([ 1954 ] s. c. r. 203 .) for constituting the fund into reserve are fulfilled .
5. the income - tax officer disallowed the claim of the assessee company for inclusion of the accounts
capital paid in surplus
and
earned surplus
in the computation of taxable capital under sch. ii r. 2 (1) of the business profits tax act, and the appellate assistant commissioner agreed with him. but the income - tax appellate tribunal held that the difference between the value of the assets taken over and the value of stock and serial bonds issued by the assessee company was premium realized from the issue of its shares and retained in the business within the meaning of r. 3 of sch. ii and was in any event reserve not allowed in computing profits within the meaning of r. 2 (1). the tribunal also held that the amount entered in the account
earned surplus
was reserve liable to be taken into account is assessing business profits tax. in a reference under s. 19 of the business profits tax act, the high court agreed with the view of the tribunal on the three questions referred for its opinion .
there is a difference between the system of accounting of banking companies in india and the united states: .... . in india at the end of a year of account the unallocated profit or loss is carried forward to the account of the next year, and such unallocated amount gets merged in the account of that year. in the system of accounting in the u. s. a. each year' s account is self - contained and nothing is carried forward. if after allocating the profits to diverse heads mentioned above any balance remains, it is carried to the
undivided profits
which become part of the capital fund. if in any year as a result of the allocation there is a loss the accumulated undivided profits of the previous years are drawn upon and if that fund is exhausted the banking company draws upon the surplus. in its every nature the undivided profits are accumulation of amounts of residue on hand at the end of year of successive periods of accounting and these amounts are by the prevailing accounting practice and the treasury directions regarded as a part of the capital fund of the banking company .
he has also got to
attend to accident oases occurring while present at the terminals .
in other cases of accidents it might be necessary for the petitioner to visit the injured persons either at the hospital or at their home for investigation and report. in such oases he would be given visiting fee. there is also a clause that, if, for any reason, the petitioner could not attend the territory office or terminals for any period, such as during illness, absence from madras, etc. , the petitioner should arrange for a qualified doctor to attend in his place. there is a separate fee for kasimode, royapuram and the territory office amounting to rs. 350 in all. subsequently this was increased. the petitioner was also required to examine candidates for employment in the territory office or terminals with a lee of rs. 5 per candidate, payable by the candidate himself. there is a final clause that under the agreement the petitioner would not be considered as an employee of the company and that the fees stated above will cover all the services rendered by him. he was not entitled to any other remuneration or benefits, such as company' s annuity and insurance plan. the agreement concluded with a clause that the agreement was terminable with two months' notice at the instance of either party .
31. the table disclosed that the balance of
earned surplus
at the end of the year did not merge into the account of the subsequent year. it represented a specific account into which were added the net profits of the year and appropriations were made out of it and the balance was regarded as
earned surplus
at the end of the year. this account was specifically allocated for utilisation for the purpose of business year after year. it was an account in which the net profits less the appropriations were added, and the account was intended for application in extending the business of the assessee company. the amounts entered in the account' earned surplus
cannot therefore be regarded as mere unallocated profits at the end of the accounting year .
4. an examination of the above contract shows clearly that the petitioner was engaged as a medical officer for attending on the employees of the company in its three establishments, dally, at a prescribed time, and for which he was paid a fee in the shape of a retainer. with the passage of time some additional duties were given to him but they were all duties connected with the work of a consulting medical officer for which he was engaged on the above contract. the important thing to notice is that he could, at his discretion, engage another medical officer to attend to the same duties in his absence. this is a clear pointer to his status being more than of a consulting physician who was being paid a retainer fee, rather than that of a paid employee .
25. it was pointed out that under the indian companies act, 1913, the directors are enjoined to attach to every balance sheet a report with respect to the state of the company' s affairs and the amount, if any, which they recommend to be paid by way of dividend and the amount, if any, which they purpose to carry to the reserve fund, general reserve or reserve account. it was also pointed out that s. 132 of the indian companies act refers to the contents of the balance sheet to be drawn up in the form marked' f' in sch. iii, and to regulation 99 of the 1st sch. table a, and observed that any sum out of the profits which is to be carried into a reserve must be set aside before the directors recommend any dividend. the court observed:
the standard vacuum oil company was a joint venture by standard oil of new jersey , and mobil oil to make and market products in the far east . around world war i , the market in the far east was too large to leave unattended , but still small . thus these two american oil companies started standard vacuum oil as a joint venture . 
the standard vacuum oil company was a joint venture by standard oil of new jersey, and mobil oil to make and market products in the far east. around world war i, the market in the far east was too large to leave unattended, but still small. thus these two american oil companies started standard vacuum oil as a joint venture.
the standard vacuum oil company was a joint venture by standard oil of new jersey, and mobil oil to make and market products in the far east. around world war i, the market in the far east was too large to leave unattended, but still small. thus these two american oil companies started standard vacuum oil as a joint venture.