New-York tribune., 1919-04-04
British Interests
Gain Control of
Mexican Eagle Oil
Royal Dutch-Shell Said to
Have the Backing Of Gov
ernment in Extending
Engli sh Oil Holdings

Royal Dutch-Shell Oil interests
have acquired control of the Mexican
Eagle Oil Company, Ltd, Lord Cowd-
ray property, with oil concessions in
five states in Mexico, according to a
cablegram received here yesterday at
the New York Offices of the latter CON
Germ.
Announcement of the closing of this
deal follows the receipt of news in
this country that the British govern
ment is fostering combination of
British oil interests and is consider
ing the creation of an oil ministry
to assist these interests in obtaining
concessions in foreign countries. The
chief purpose of this move. it is said,
is to insure fuel for the British navy
and merchant marine.
The Royal Dutch-Shell group, made
up of a considerable percentage of
British capitalists, is one of the
worlds largest oil combinations and
becomes still more powerful ANAL
gamation by the acquisition of the
Eagle oil concessions in Mexico. The
ports here, has been recently buying
the holdings of British citizens in the
Royal Dutch combine, which owns oil
properties in many parts of the world.
including districts in Oklahoma and
California.
The Mexican Eagle Oil Company,
capitalized at s60,000,000, was incor-
porated under Mexican laws in 1903
to operate the Cowdray concessions
n ich Ii0 in ~&L
of a straight line from Vera Cruz to
Puerto Angel on the Pacific Coast.
State concessions extend over the
whole of Vera Cruz, Tabasco, Chiapas,
San Luis Potosi and Tamaulipas.
There are also federal concessions in
the same states covering more than
100000 acres. The company operates
more than 1S0 miles of pipe lines, with
steel tankage for 100000 barrels, and
twentythree tank steamers.
During 1918 the company shipped
from Tuxpam and Tampico about l5.-
100000 barrels of oil in addition to
what was refined in its Mexican
ported at s2s,s57,12i Mexican gold.
Details of the puchase agreement
were not officially made known here,
but according to previous reports g.
100000 shares of Mexican Eagle Oil
will be acquired in the proportions of
60 per cent for Royal Dutch and 40
per cent for the Shell Transport Com
pany. 1t was also reported the Mex
lean Eagle Oil shares would be taken
over at $50 share, the total trans
action involving $75,000,000, of which
30,000,000 is to be provided by the
Shell company and $45,000,000 by the
Royal Dutch interests. 1t was be-
lieved the Shell company would raise
it's funds by a new issue of 1900, 900
shares on the basis of one new share
for each four now outstanding at $15
a share.
Practically all the stock of the Mex
lean Eagle Oil Company has been
gradually withdrawn from other mar
this country is estimated at 10000
shares.
WASHINGTON, April 3.-There has
been no official report to the State De-
partment of the transfer of Cowdray
oil interests in Mexico to the Royal
Dutch-Shell Company, nor of the pro-
posal of the British government to fos-
ter great oil combination to insure an
adequate output for the empires needs.
Officials said to-day that the Ameri-
can government would not be informed
officially of these developments, as it
seems that no political problems were
involved and the interest of the United
States would be indirect only. AS to
the Cowdray sale, it was pointed out
that it would mean only the transfer
of property rights from one British
concern to another.