The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-01
IN DEFENCE or STANDARD OIL.
NO ONE COMPANY GOULD FIGHT
COMPETITION ABROAD.
Head Of Foreign Department Says
Other Countries Permit and Even En-
courage Combinations OF Capital
England cited as the ChIpf Example.

hN
The Standard Oil Company in a state
ment issued yesterday over the signature
OF William H. Libby Of its foreign
department, maintains that the form of
its corporate organization is necessary if
it is TO hold its large foreign trade.
Mr.. Libby holds that the company il
obliged to compete with combinations Of
oil producers in every other country and
cites many examples of such combinations.
1T is only by combination, he insists, that
American oil producers can compete in
foreign markets and he insists that the
business of American oil producers will be
crippled abroad in the event Of the success
OF the Governments proceedings to dis
solve the company. The statement, which
is in the form OF a letter 10 the editor, fol-
lows:
h Standard OIL Statement.
Concurren tly with attempts Of the Gov
to dlslnte CRATE the corporate or
Rani2ation and industrial equipment of the
Standard Oil Company and other com-
panies, and thus to paralzye their great
AZ home and abroad, it ia both
intel and pertinent 10 note the policy
and progress OF their most formidable
foreign rivals.
The desirability, the nece ssity almost
of the concentration of brains and capital
has been recognized, without exception, in
all important petroleum producing coun-
tries Of the world, and not only have cor
p%orations and holding companies IN the
general lines of the Standard organization
and other similar American organizations
been created, but several of these have
become inte irrational in their scope.
The Royal Dutch Company Of The Hague
and the Shell Transport and Trading Com
pany OF London, two exceptionally power
full and ably administe red corporations,
have recently made public announcement
OF their amalgamation, one of the principal
motives being to control the extensive pro-
ducing and refining petroleum industry
OF the Dutch Indies, and thus to further
tortify their natural advantages Of cheap
labor and geographical location In COM
peting for the vast petroleum
OF the Oriental countries. containing more
than two-thirds Of the worlds population.
In Germany a holding company has re-
Gently been created under the auspices Of
the most powerful banks in the empire
for the purpose OF dominating the sale OF
both Russian and Rumanian products,
not only in Germany itself, but in other
European markets. The said holding COM
pany unites various important petroleum
corporations heretofore in competition.
The Aslatic Company organized under
the unfettered conditions attending the
corporation laws Of Great Britain COM
prises three Of the leading industrial cor
pcTations Of England, France and Hollan
respectively, with the avowed mission of
controlling the distribution of Russian and
Dutch Indies petroleum in the Oriental
ma rkets.
In Galicia a prominent industrial con-
Germ allied with a powerful Austro-Hun-
garian bank has practically com bined
about 90 per cent. OF the entire production
and refining, with the avOwed motive of
rescuing the Galician industry from a period
of ~semi-demora ~lization kindred 10 such
periods in the history of the American in
dustry prior to the extended orga MIA ton
OF the Standard Oil Company and to domi-
nate Redistribution OF Galician petroleum
products in the various export markets OF
Europe.
In Great Britain efforts indicating ulti-
mate fruition have been long under way
toward the fusion of heretofore rival cor
porations, the aim being to dominate the
distribution of Russian and Rumani8n pc
troleum in Great Britain. Such fusions
are in no wise incompatible with the So
called Companies Acts of Great Britain,
which are apparently designed TO encour-
age the utmost freedom Of individual OF
corporate action so long as annual state
ments are made and annual taxes paid.
The essence Of the English law apparently
is that everybody has a right TO form a COM
bination, and that everybody else has an
equal right 10 combine against such COM
bination. This absolute liberty of COM
merCial action il assumed to be the best
natural corrective Of temporary abuses,
and apparently crystalizes the wisdom OF
the most experienced commercial nation in
history,
Not onl the extensive and prolific oil
fields of Burma. but also the privileges of
refining the out put thereof, are under the
control of A single corporation owned in
Glasgow which is protected and sustained
by the governments OF India and Burma.
This single corporation has free access
TO the markets OF India, with its population
of 80, OOO, 600, while the petroleum products
OF other countries are subjected to an i'm
portant import duty.
The distribution Of Illuminating oil in the
domestic markets of Russia is EFF al
most exclusively by a combination of the
great producing and refining interests of
that country.
The amalgamation cited (created and
administered by some OF the best industrial
brains and most prominent capitalists Of
EuropeD so far from receiving the opposition
of governments, press or communities, so
far from being regarded "conspiracies in
restraint of trade" or as ingenious subter-
fuges of a trade autocracy, are regarded
abroad as being in the natural pathway of
legitimate, economic and progressive com
merce, and are especially commended when
the motive il emphasized of eliminating
the American product from the competitive
markets. Against this array of formidable
elements and innumerable other opposing
factors the Standard Oil Company is fight
ing in the world markets for the continued
supremacy Of American petroleum, This
commercial battle could not be successfully
waged minus the comprehensive orgsuiza-
ton and equipment, at home and abroad,
which the Standard Oil Company has created
at such enormous expenditure, and through
such unremitting effort.
The successful mainte nance of the SUI
premacy of American petroleum in the COM
petitive markets abroad must carry the
penalty of a constant commercial battle,
in the outcome of which not only the Stand
ard Oil Company itself is concerned but
also the entire producing industry OF the
United States, the great labor classes and a
host of avocations directly or indirectly
dependent upon its ramiied operations.
The valuation of It's exports constitutes
trade balance of the nation.
In the prosecution OF its a aggressive in
dustrial policy the Standard Oil Company
believes itself TO be fairly entitled TO the
encouragement that other Governments are
giving To similar usine interests.
For these reasons it would seem as II il
was most important to the general business
interests Of the country, as well as its oil
interests, that the organization of the
Standard Oil Company, which enables il to
pursue and enlarge the worlds markets for
American products, should be sustained
rather than crippled or destroyed, for il is
my deliberate conviction that the volume OF
Auartcan uptrOleum diSfrihuta5 in the