New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-02
Standard Oil
Abandons the
German Market
Sells Controlling Interest in
Subsidiary to Teutonic
Capitalists

Ownership OF the Deutsche-Ameri-
kanische Petroleum Gesellschaft, for
years the principal subsidiary in Ger
many of the Standard Oil Company Of
New Jersey, has passed into the hands
Of German capitalists through the sale
Of the controlling stock interest. Many
millions Of dollars we're involved in the
transfer, IS the German subsidiary
was one Of the most important and
best organized of the numerous inter
national branches of the New Jersey
company.
In the local oil trade much interest
is manifested in the action Of the
Standard. It is pointed out that the
change of control Of the German sub
sidiary indicates, TO all intents and
purposes, the evacuation of the Ger
man field by the Standard Oil inter
ests, which for long period were
practically supreme there. Germany
was the Standards biggest foreign
market for kerosene before the war.
Gets Funds Out of Germany
While details Of the transaction
have been withheld, it is understood
that the property was turned over TO
the Germans before the United States
entered the war against Germany. and
that the disposal of the Rockefeller
holdings was dictated by the apparent
certainty that this country would
sooner or later join the Allies. II is
reported that the Standard has with
drawn all its banking funds from Ger
many. How this has been accomplished.
i'm view of the German governments war
policy toward the transfer of money
out of the empire, is not known.
The Observation-Disclosures Gesell-
schaft. before it was taken over by
the Germans, had capital stock out
standing amounting to 30,00O,0O0
marks, or. at the normal rate OF eX-
change. approximately S7.500.000. Of
this. 100000 marks. or all the stock
carrying voting rights, was owned by
the Standard Of New Jersey. It is this
stock which has been disposed of. The
remaining 21.O00000 marks was held
in Germany and elsewhere. In 1914
the company paid dividends approx
mating % per cent, and in 1915 the
rate was around 20 per cent.
Takes Over Tankers
Before the war the German company
owned a huge fleet of tankers, all
under German registry. Through the
amendment Of the shipping laws of
the United States. passed after the
outbreak Of hostilities, the tankers
were all transferred to American regis
try and were directly acquired by the
Standard of New Jersey, which now
owns and operates them.
II is reported that Heinrich Riede-
mann represents the German interests
which have come into control of the
Deutsche Gesellschaft. and that the
disposal was an absolute and uncondi
tional one. there being no understand
ing by which the shares shall be trans
ferred back to the Standard after the
war.
Earnings of the former German sub
sidiary arc said to have fallen off in
recent months, owing to the difficulties
encountered in getting supplies of
petroleum. After the American mar
kets were shut Off, it is reported that
the Rumanian and Galician fields of
Europe were drawn Oh but that the
destruction OF the producing properties
in Rumania following the entrance of
that country into the war hit the COM
pany hard.