The sun., 1919-10-15
HOT U. S. NOTE SENT
BRITAIN ON TANKERSI
Seizure Of $2O,OOO,OOO Worth
of Oil Ships Said to Flout
Armistice Terms.
PLOT is SUSPECTED HERE
Iondon's Design to Control
Worlds Petroleum Hinted as
+; at Bottom of Scheme.
sp.cial pespetcA to Tnr sun.


WASHINGTON. Oct. 14.-What prom
ised to be a serious complication arising
out Of the peace treaty and the arinls-
tice terms developed to-day with the
transmission by the state Department
to Great Britain OF a message couched
in warm language protesting the seizure
by the Naval Armistice Commission un-
der British direction of about dozen
American owned tankers and their aiio-
cation to British. French and Belgian
ossnership. The ships are valued at more
than s2o,0O0,00o.
The tankers were owned by German
corporation, but that corporation was In
turn owned exclusively in the United
States. The American character of Its
vessels and property had already been
recognized by the British Admiralty
and explicitly provided for in the arms
tice terms and the Versailles peace
treaty. ...
The protest arose out Of the arbitrary
action of the British chairman OF the
Naval Armistice Commission. Admiral
Browning, in revoking the exemption.
The informal message will. 1t was hoped
tonight, forestall any foreclosure OF the
proceedings
The ships are the property of a Ger
man corporation which is owned. lock.
stock and barrel, by the Standard Oil
Company of New Jersey. Through this
corporation the Standard Oil conducted
all its large and successful business In
Germany and on the Continent before
the war. The tankers are part of fleet
Of almost twoscore which the company
operated all over the world.
From time to time through the war
those of the vessels which had informed
In foreign ports all over the world in
1914 when they flew the German flag,
were permitted to be shifted to Ameri-
can registry and to proceed to sea. I'm
der the American flag many played a
powerful part in supplying the fuel oil
without which the British navy has ad-
mitted it would have been helpless
One Of the vessels, flying the flag OF
her German registry, was captured early
In 1914 by British warship and was
taken into Bermuda. There a prize
court adjudged her prize. But on the
protest of the Standard Oil Company and
upon that company's showing that II
owned absolutely the company which
owned the ship, the Lords Of the Admi
rally returned the vessel to the actua
owners in the United States
1T is understood IN Washington tina
the holding up Of the transfer OF the
German passenger vessels to the British
lines Is not unconhected with the case
of the tankers. officials familiar with
the status of the Leviathan, Imperatol
and the other big passenger carrier,
which the Cunard and other British line
were all ready to take over last month
insist that the claim of the United States
Is valid, irrespective Of anythinh else
and say that they will continue undel
American operation. In diplomatic circles
however, the holding up on the pre-
yiously announced transfer is regarded
as but a shrewd call on the part o
Uncle Sam
1t Is learned that the owners OF thu
vessels have put the most vigorous rep
reservations up to Shipping Board ant
State Department officials. They hav
stated It to be their views that tn
whole transaction is but part OF tn
British effort to dominate the oil situa
ton and to further this dominance b!
the conversion of the maritime resource
of the only rival to Royal Dutch Shel
and Persian oil companies, in which tn
British Government itself is share
holder.
AS the United States is still withou
mower to place effective representative
on the irterallied commissions, the Stat
Department and Shipping Board hav
made the issue one between the Unite'
States and Great Britain az the latte
holds the dominant position In thes
boards.
Men familiar with the transaction her
tonight pointed out that neither Franc
nor Belgium Is interested in oil to a
extent that would make their operation
OF tankers of particular interest o
profit