New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-14
Standard Oil, by Big Deal,
Gains FarreaChing Rights
of Development.
NO LOAN INCLUDED
IN THE AGREEMENT
Concession Granted for Oil, Mine
and Railroad WorkzChance
for American Bankers.


nrmng the announcement OF a partner
ship agreement between that corporation
and the Chinese government which pro-
vides for the development Of oil districts
in Northern China, said Yesterday that
the result OF the negotiations was great
victory for American business interests
over those OF Japan. The victory for
Standard Oil he considered the more com
plete because no loan is involved.
Preliminary arrangements included
loan OF ti5,0o1.c0 10 the Chinese govern
ment. but that feature was dropped from
the final plans. The terms agreed upon
are considered unique in the history OF
concessions granted to big commercial
enterprises and provide that China is 70
furnish LANDS for development in the
provinces Of Chilli and Shen-Si. the
natural resources Of which the Standard
oil Company is TO develop. In return
FOR these concessions the latter IS 10
share with the Chinese government all
the profits from its operations, the lion
portion going TO the company. While the
partnership agreement refers specifically
10 the two provinces named, it is under
stood that should the operations there
prove unsatisfactory. the scope OF the
agreement will be enlarged
"Our agreement with China will lead
10 tremendous expansion OF business IN
that country" said Mr. Bemis Yesterday
The concessions are not only for oil,
but include the development OF mines and
railroads. We propose to spend between
100000 and 100000 in development
work. which will he under way in three
weeks. The machinery necessary in
drilling for oil has already been shipped.
THE Standard Oil Company was the
first development company 10 so 10
China We have the most profound con-
fdence in its people. and have there now
more than s20n,o. 900 invested in the oil
business. We have twenty steamers ply
ing across the Pacific, carrying between
100000 and 100000 barrels OF oil z year.
So successful have been our relations
with The Chinese that We have lost only
sSi tsels a tael is worth about % cents
in our money since 1873. when We first
began 40 do business direct with the
Chinese merchants
Mr. Bemis pointed out that now is an
advantageous time for American bankers
10 step in and lend money 70 China. He
severely criticised the State Department
for its attitude i'm not supporting the loan
proposed by the six power group n bank
ers, which failed or completion through
the withdrawal of the American partici-
pants last spring
China needs money and needs II
badly" Mr.. Bem.s added. Germany will
not agree TO a loan unless China agrees
10 buy German goods exclusively. This is
great opportunity for American bankers
10 put money into China
To facilitate the work Of the Standard
OIL Company in opening Up its new devel-
opment the Chinese government will set
aside funds which will depend upon the
needs as encountered. The government
also agrees to furnish. such facilities as
railroads. pipe lines and other features
upon which oil exploitation is dependent.
Bankers believe that the funds needed
by China TO develop her natural resources
will be furnished by The establishment OF
branches OF American banks. Secretary OF
State Bryan. who was chief speaker at
the recent dinner of the American Asiatlc
Association. advocated the establishment
of branch banks abroad under the new
currency system.
Willard D. Straight. president OF that
association. who also represented the
American group Of bankers in the nego-
tiations for the sl25.00OoO0 loan by the
siX-power group. commended the Stand
ard oil Company for its enterprise. He
said:
The conclusion Of this contract should
be a source Of the greatest satisfaction 10
all Americans who are now interested, or
later hope TO become interested, in the
China trade. and its principal significance
is due to the fact that it is a straight
business proposition and not coupled with
any loan. AS calculated TO develop
China's resources and in that way 20
stabilize general conditions. as we'll as TO
increase the revenues OF the government
however this transaction should. by
creating added security, increase China :
borrowing power.
THE Secretary OF State. in his address
before the American Aslalc Association.
said that American citizens abroad would
be protected and that the American
government desired 10 assist In the eX-
tension OF our foreign trade. These as
surances have apparently been gatisfac-
tory 10 the Standard Oil Company. whose
action should afford decided encourage
ment to American interests contemplate
ing investments in the Far East.
The railway contract reported 10 have
been signed by the Banque Industrielle de
Chine Is an entirely different matter.
American manufacturers cannot hope 10
sell their materials for the construction Of
Chinese railways until American money
can be secured for the construction of the
roads This in turn depends upon the will
ingness Of the public TO purchase Chinese
securities. and if tie conclusion or the
Standard oil contract be followed by sat
isfactory arrangements with American
contractors for the Red Cross conservancy
scheme il is 10 be hoped that We viii ulti-
mately he able 10 take our share in the