The sun., 1919-03-29
GREAT BRITAIN TO GO
INTO OIL BUSINESS
Government Will Back Bic
Combine With Fields All
Over Empire.
LEARNED LESSON IN WAR
Control Of Royal Dutch-Shell
Company Is One Of the
Plans Under Way.
LEARNED LESSON IN WAR
BY fhs associated Press.

BY ths Associated Press.
LONDON, March 10 Correspondence.
The British Government Is going into |
the oil business. Fronting by the costly
experience o: the war, when Il was conf
PEELED to send enormous sums into other |
countries in payment for petroleum and |
petroleum products. It has adopted a |
clearly defined oil policy, and Is already |
credited with financially backing what |
Is expected here TO develop into the |
most powerful oil producing. refining |
ana Transporting enterprise in the his |
tory OF the industry.
Stories concerning the Governments |
policy have been in circulation on a |
number of occa sions and recently were |
revived by reports that the Royal Dutch |
Shell oil interests were about to take |
control OF the Mexican Eagle Oil Com |
pany. an important member of the Lord
Cowdray group.
Tho Governments first important
move. II was stated by authorities here,
will be the creation of q permanent
Ministry. the machinery for which exists
IN the petroleum department, which
looked after the empires oil Interests
during the war and which il still an ac
tive institution. This machinery will be
charged with the task OF acting aS petro-
.SuIt auNlbot lOf Oil III
Guiding the army, and what is more i'm
portant, the navy; II will have control
over concessions for the development Of
possible oil territory within the empire,
ard will advise and assist British COM
psnies or individuals IN obtaining con-
aessious and leases in foreign countries
as we'll as help them to conduct their
oil business in countries outside the
empire.
British Must BE In Control.
The Importance Of the Ministry will
be better understood when It Is realized
tina. large part OF the undeveloped oil
territory Of the world lies under British
dominion and, according to British law.
the capital of every oil company operat-
Ing in British territory must be not less
than 60 per cent. British owned. and all
the control must be in the hands of Brit
ish citizens
The next move in the development OF
this policy, II is asserted. Is the comolna-
ton under the protection of the Govern
lnent of the most important oil COM
panles operating in British and neutral
countries, II they are wholly or partly
British owned. These include such con-
Germs as the Royal Dutch. the Shell and
the Lord Cowdray interests.
It recently became known that the
British Government was buying the
holdings Of British citizens in the Royal
Dutch, the ownership of which was then
conceded to be so per cent. Dutch and
30 per cent. British. Accompanying
these statements were equally Interest
ing stories concerning the Shell Trans
port and Trading Company's securities,
whose ownership was closely allied to
that of the Royal Dutch.
This Royal Dutch Shell group corr
trolls immense production in many
lands, including many properties in the
Oklahoma, Kansas, Texas. California
and Wyoming fields and has foreign
department which makes note OF all
that is going on in the oil world.
Directorates Are InterlOcked.
Interlocking directorates give it
commanding place In such companies
as the Burmah Oil Company and the
Anglo Persian oil Company. The British
Government is the largest stakeholder IN
the last named company. while the
INSTRUMENTATION Company, an
important subsidiary of the Royal Dutch
shell interests, has selling contract
with the Anglo Persian company. which
Nings all these interests close together
Ut Is generally accepted In London
that the British Government Is not alto
eether satisfied with its 40 per cent. In
terest In the Royal Dutch ana would
Ike 10 have a more important financial
mace in the corporation. This sent'
ment. IL is said, is seconded by the most
important Dutch stockholders. who fee
they would enjoy added safety for their
investment II the financial and military
power OF the Imperial Government Was
back of their enterprise.
The Pearson oil interests, that Is th'
Lord Cbwdray companies, also are per
haps the most powerful OF all the Brttisi
companies. Being first OF all pioneerl
and developers of wildcat territory, the.
we're compelled by force OF circum
stances to enter the refining transport
ing and marketing fields Recent re
norts have been that the Pearson in
telests were DESTROYS OF getting out o
the business. and we'll Informed persons
IN view of the Governments petroleum
polic,., look to 1t as a logical purchaser.
Extent OF Cowdray Interests.
The Cowdray interests include impor
tant holdings In Mexico, where they haV
developed a large producing neid AM
brought II to a high state OF efficiency
i;lclrding possession OF the necessary re
Greries and ships for the manufactur
and TRANSPORTATION of their products
They also have concessions which CIV
Them the oil control Of Trinidad and tn
best. part OF Algeria, while the wildca'
ing now going on IA England uhde
their direction for the Government wi
give them a commanding place In tn
british Isles II oil 10 discovered here
They have always employed America
biologists and drillers In their opera
lions, and have taken advantage OF tn
experience gained by Americans froI
the early days of the oil discoveries
PENNSYLVANIA. Even now The operation
in England are being largely carried o
by Americans.
OF the undeveloped territory 10 whic
the British Government Is said TO b
looking none is more important tina
that which Is known as the Persian hel'
Here the Angio-Persisn OIL Compan
has a concession OF 500. 900 square mile
on which a number of wells have bee
drilled and which already has an ar
nual production of 10000 barrels
Mesopotamia May Produce OIL.
Biologists are Of the opinion that tn
reld extends into Mesopotamla. whei
British influence IL already so firm
esta blished as to make deveiopmei
there only matter of detail. 9th
sections Of Turkey are said TO be e
country" while the Egyptian field. d
veloped during the war. Is considers
"A