New-York tribune., 1910-06-19


nopoly. In the unlikely event OF MT
Pierce faring here better IN the future
than he has In the past, It should go a
long WAYS toward saving bis face IN the
oiI world. Thus, it might aid him to re-
tain q seat In the councils of the STANDARD
Oil commensurate with the strength anu
influence which he welded In the past
Hitherto Mr. Pierce has always stood
well with the elder statesmen of the
Standard. That was when he was a win
ner. But In the economy and commercial
philosophy of the trust no provision IS
made. except on the outside of the organi-
zation. for the fighter who strives and
loses.
Mr.. Pierce has fought and lost in Mis-
souri, and Texas. The court records tell
the story of his rout. In Oklahoma the
die seems cast against him, too In Mex1-
CO he must win or get the better of Sfr
Weetman Pearson in the terms OF seI'le-
ment. Unless he does one or the other.
it does not require extraordinary pro-
nhetic powers to forecast that Mr.. Pierce
will find thumbs turned down when MS
case comes UP for judgment before the
tribunal at No. 26 Broadway. New York,
and that the voting power of 20 per cent
L
by the Standard Oil, will be invoked TO
s,1pplant him as head of the subsidiary
company.
The foregoing constitutes a succinct,
accurate and impartial resume of the po-
sitions in which the contestants in the
Mexican oil war find themselves when
this is being written. It is as correct as
can be penned by an independent observer
who is without access to the confidential
information possessed by the Pearson or
the Pierce interests Also, It embodies the
latest developments in the fight
Literature of the Fight.
Until now the real issues and facts have
been so beclouded, confused and d1stort-
ed as to place the outsider at a loss to OBJ
tain a. correct line on the situation. The
fight has not lacked a, copious literature.
But this has proceeded only from one
side In the beginning. the Waters PIERCE
Oil Company organized a press campaign,
and apparently regarded it as an in1por-
fant adjunct to their forces. press
agent was commissioned to travel in this
country and the United States and on the
Continent and arrange for the publication
of hundreds of columns Of matter redect-
ing favorably the monopolys views Of the
fight Some of the articles in question Wers
SO extreme that one of the leading news
papers of Mexico City refused 10 repro
duce them. even as pair advertising mat
ter The effect of this undignif1ed press
campaign has been abortive, as might
have been expected
No information has come from the
Pearson side. Say nothing and saw
wood" seems to have been the principle
which they elected to follow. The same
policy of reserve and reticence has been
pursued in connection with their act1v1ueS
in exploration, notably with respect 10
the Furbero fields. They did not deny
that they were counting on the Furbero
wells TO supply the Minatitlan refinery
with q share of its crude oil requirements
But when various delays ensued in con-
structing the pipe line from Furoero TO
tideWater, giving rise to stories that the
F,lrbero fields were barren and that Sir
weetman was thereby sorely embarrassed
TO find Mexican crude for the immense
refinery at Minatitfan, no explanations
were Forthcoming from the Pearson head
quarters Sir Weetnan himself. few
weeks ago. affirmed the taciturn policy Of
his organization when he said to the Lon
don correspondent Of 1.-The New York
the oil situation in Mexico: Il never talk
about my business. Talking is sign OF
weakness. Sufficient to say, we are III
this fight TO stay
Some Overestimates Made.
in much that has been written on the
subject of the Oil war, whether its source
was inspired or originated from CORE
spondents who were short on facts and
long on imagination. there was dispos1-
ton TO exaggerate the cost Of the fight and
TO overestimate the drain it caused upon
the financial resources OF both Mr.. Pierce
and Sir Weetnan. It Is safe to say that
neither has been impoverished. nor his
individual bank balance depleted to an
alarming extent through supplying tbs
sinews of war Aside from the contents
of the Waters-Pierce Oil Company's war
chest Mr. Pierce could pour S2,000oOo
gold annually into Mexico for a decade,
sink every penny Of It beyond recovery,
and still not exhaust the mammoth
profits which flowed into his Golfers dur
ing the thirty years that he subjected
Mexico To the demands of his monopoly
Sir Weetman, also, is abundantly fort-
fed with funds to meet any situation that
may be brought about by the present oil
war. although his fortune was acclrnuiat-
ed in enterprises dissirnilar to those that
have been the life work of Mr. Pierce.
This IS not implying that Mr.. Pierce has
stood by indiferently. and has compla-
Gently viewed the depletion of his war
chest. Indeed, he has been very frank N
proclaiming his dissatisfaction in being
confronted in Mexico with deficit, in
stead OF a yearly profit of s2,0o0.000 gold.
Mr.. Pierce is a business man, and such
untoward events as this are not compre-
hended within the tenets of good business.
But sums which to men of ordinary
wealth would seem gigantic bear little
relation TO the financial resources OF MT.
Pierce and Sir weetmau Pearson. OF the
two men. Mr.. Pierce must. of necessity
be the heavier loser, since a def1cit has
taken the place of his profits. his monopo-
ly is broken, and with It has gone so per
cent of the market which once was his
exclusively.
The Assets and Liabilities.
Probably 10 one but Sir Weetman Is
;n position to do more than guess at
the sum of his oil fpVestments In Mexico
But by no specious process OF reasoning
or juggling Of facts, can it truthfulIy De
made TO appear that his investments IN
Mexico assume the complexion OF loss
There arc assets to offset every doiiar
that Sir Weetman has invested here. They
include the MinatftIan refinery and the
other plants and physical property OIL
land, exclusive rights of exploration anu
development on millions OF acres of public
xxor,atn fer =. iou1 term NJ wears, etc.