New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-21
ECUADOR OIL TO BRITISH
American and Dutch Bidders
Fail to Get Concession.
PAPER DENOUNCES PACT
A Greater Atrocity Has Never
Been Perpetrated Against Re.
public, Says Ell Guante.
From The Tribune Correspondent J


Guayaquil Sept 2. - Lord Murray OF
Elibank. formerly chief whip OF the Lib
eral party. who resigned from Parliament
TO become a partner in Lord Cowdray's
firm Of s. Pearson g. Son. Ltd. has Just
obtained very valuable oil and mineral
concession from Ecuador. which has par
ucularly pleased Lord Cowdray because
It was secured in competition with both
Dutch and American bidders. The secret
history OF the concession has not been
published, but IL would evidently be
highly interesting, both on account OF tho
remarkably cheap price at which II was
obtained and on account OF the antago-
nism OF the Ecuadorisns on the known
facts.
FL Guante," a Guayaquil newspaper. for
example. describes IL as "a monstrous con-
cession" and says: The whole transac-
ton appears 70 US Ike huge joke OF
very bad quality indeed. perpetrated by
the government for the sole amusement
and benefit Of the English capitalist"
The life OF the concession is forty years.
while all that Lord Murray has agreed 10
DO in return Is TO spend $4,000 in ten
years in exploitation. "El Guante" thus
fixes the extent Of the territory turned
over 10 Lord Cowdray and his friends
The company which is represented by
this fortunate Briton may take posses
sion by means OF an ingeniously con-
trived series Of appropriations. not only
OF such lands as may be declared 20 con-
tain petroleum or hydrocarbons. but OF
whatever other lands he may fancy, his
rights embracing the five provinces OF
the l!ttoral as far as the Sierra. and even
further into the interior as far as the
eastern coasts
But for the fact that the transaction
occupies folio upon folio IN the official
register it certainly would seem nothing
but Joke that Lord Murray for invest
ing $500 600 in his own business should be
rewarded by the exclusive rights 70 all
the mineral oils and hydrocarbons he
may be able 10 extract from Ecuador IN
order 10 sell them abroad. And that's
all there is about Il!
One would suppose II was a question
OF little wine shop or a grocery, instead
OF being an undertaking affecting the well
being OF the state. The concessionaire
takes all. He pays no tax. no customs dues,
nothing whatever except the wretched
pttance OF $1,000 placed on deposit"
The lands involved IN the concession
are all national property, and provision
Is made that the ooncessionaire shall
have free access to them, as well as the
undisputed right TO use them IN any way
he deems proper for the development Of
his enterprises. In addition TO this he
has the right TO appropriate on terms
and conditions 10 be laid down by an
engineer selected by the government and
the concessionaire Jointly any lands. es-
tate or properties privately owned In any
part OF the republic. And as though that
were not enough the concessiona!re has
the right 10 take over into his own own
ershlp and develop for his benefit any oil
wells lands. mines or mineral deposits
owned by the government. but which are
not for the moment being worked by the
government
II requires two hundred pages Of the
Official record 10 spread the full terms OF
the concession. but "El Guante" lie con-
siderably more brief about II. II says;
TN substance It hands over 10 foreigner
free from any compensation whatever and
almost Internationally the whole OF tho
petroleum fields. The sole obligation
which Lord Murray takes on himself 10
that Of circulating IN the country sum
Of $4,000 in ten years in prospecting for
and working petroleum and hydrocarbons
substances. That is absolutely all
THE dissolved Grandville Dunno con-
cesslon was subject at least to the mining
law. II recognized the rights OF third
parties and offered TO construct a railway
and piers and 10 provide haroor and
accommodation at Santa Elena LORD
Murray. however. offers nothing he
binds himself to nothing except TO spend
100000 IN procuring business transac-
ton for his own benefit. or for tho oene'
1T Of his colleagues"