New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-16
GERMAN PLAN To GUST
S. 0. MEETS OPPOSITION
Banks Connected with Oil
Trusts Interests Decline to
Enter New Syndicate.
MANY FLAWS IN SCHEME
European Supply Of Crude
Product Believed To Be I'm
reliable-Active Fight
Impending.

Berlin, Oct l6-The German govern
ment's measure against the Standard OH
| Company is meeting with opposition In I'M
.portant German financial circles The
| Dresdner Bank. the Disconto-Gesellschaf
and the Bleichroeder Bank have declined
TO enter the banking syndicate which has
been formed 10 father the proposed COM
pany, which includes the Deutsche Men
/ delssohn Company, the Handels-Ges'D-
schaft, the Bank FOR Handel und Indus
! trie, the Comnerz und Disconto Bank, the
/ National Bank and three other Berlin
banks, all OF which the German govern
ment has invited generally to join as soon
as the bill has passed the Federal Council
and the Reichstag
The three refusing banks are connected
with the German Earth OIL Company,
which recently came to terms with Tte
Standard Oil Company. after ruinons
war. They profess grave doubts as 10
whether the scheme proposed by the gov
eminent can be worked against the oppo-
sition OF the Standard oil Company. They
say that Russia, Rumania and Galicia do
not offer supply Of oil which can be de-
pended upon, and they are doubtful
whether producers In those countries
would venture to make a contract run
ming any length OF time. They are also
uncertain whether the so-called Ameri-
can independent producers, on whom the
government is counting for a considerable
supply OF OIL, are really independent Their
oil. they say, in any case cannot be Sc
Ff,1,t,, of
tank steamers, as II must first be trans
ported TO the coast The representatives
OF these three banks intimate that II
would be much better to endeavor TO
reach an arrangement with the Standard
OIL Company rather than to start a war,
as proposed by the German government
Protest from Hamburg.
The Standard OIL Company itself issues
protest from its Hamburg headquarters
stating that the government has gone
ahead without making the slightest effort
TO enter into negotiations with the Stani-
ard OIL Company regarding the bill.
The Impression Is widespread that the
Standard on Company will fight rather
than surrender tamely. and will endeavor.
with q good chance OF success to close
all the sources Of oil supply by the usual
means.
The securities OF the competitive whole
sale OF producing companies rose to-day
to 10 points.
Under the governments plan the Ger
man National Oil Company Is to have a
capital OF from SIS, 900 to $50 O00, 0oD, with
a small bond issue. The capital is to be
used largely for the acquisition OF three
wholesale oil organizations in Germany,
comprising the Deutsche Banks German
Petroleum Company, which handles Rus
sian and Rumanian oils: the Olex Com
pany, which is the selling agency for tho
Austrian producers, and the Standard OIL
Company's German-American Petroleum
Company. II is understood that the first
two Of these concerns will sell readily, as
they are In a hopeless position against the
operations OF the Standard OIL Company
The shares OF the new company are 10
be very widely distributed among German
banks In order 10 prevent the control from
falling into the hands OF the two lead
Ing banks whose interests It is thought
would later. perhaps, lie more In high
prices than profits.
S. o. Has No Friends.
The public and the press have received
the announcement of the new company
with mixed feelings. The Standard Oh
Company has no friends here, but con-
seryatlve people fear that the govern
ment plan unduly favors high dnance and
will burden the consumers.
Even commercial organs like the Der
liner Tageblatt" insist that the bill must
be most carefully drawn and the govern
ment given the clearest veto rights 50 as
to prevent price manipulation.
According 10 high government Of
fetal, In an interview tonight. The Ger
man government would not be surprised
II the petroleum bill were to arouse con-
siderable antagonism in the United States,
owing to the possibility OF American pride
being stirred when its trade is attacked
abroad.
II is intended to apply the proceeds OF
the monopoly to pensions for veterans. and
the age limit for old age pensions will be
reduced from seventy to sixty-five years.
The opposition OF the three banks 10 the
project is considered unimportant. Fur
Their details OF the measure will not be
published until the bill leaves the Bundles