The Washington herald., 1920-07-01
Cities Service Co. 5 Produce
ton Great as Entire Out
put Of British Empire.
INCLUDES SUBSIDIARIES
Americans Doing Share IN
Getting Control Of Euro
pean Oil Sources.

New York, June 2s.-The conn
parative standing of Great Rritair
and the United States in the oil in z
dustry was put into an interesttne
light yesterday by F. w. lie Porin. :
security sales manager for Henry
Il. Doherty & Co.. in commeptine 2
on the recent statement of Sir
James Cadman. advisor to the Britt
ISM government on oil questiona
that Great Britain produces AZ pet
cent or the worlds entire oil OUT
put. Mr.. lie Porin pointed out thats
single American company alone.
the Cities Service Company. through
Its subsidiaries. produces as Iaree
2 share of the worlds total as tbsI
entire British output. which as ae.
ured by the English authority I'M
Guided oil obtained from sources
under control of Great Britain OF
British interests in foreign coun-
tries. including the oil from the
wells in Persia
MI. LIE Porin returned. a few days
ago from a trip of investigation
wnlch covered Great Britain
france, Belgium. Norway, Swedens
Germany and other European couns
tries, and came into intimate con.
ana una0Cl2L.
men conversant with the European
financial and industrial situation
particularly as affecting oil securis /,
ties and the market for oil.
There is at present very keeu
interest In oil securities in Europe.
whether II be in England. Holland. I.
Belgium or France" said Mr.. De
Porin. 1T is the one thing in which
there Is the widest speculation. re.
strained. of course. by the stringent"
government regulations which ara
the rule over there. In the SUBJ
stantial London papers, as for in-
stance. the Times. the Mail. or thu
Express. all the financial news now
seems TO run toward what oil ID
doing. 1t may be worthy of mote
TN this connection. as showing the,
favor in which American oil securfS
ties are held in Europe, that where
as about so per cent of the total
amount of American securities held
by Europeans before the war waa
sold by their holders. this was no6
true in anything like the same pro-
portion of securities of the Cities
Service Company.
One of the things that impressed
me in my association with Euro-
pean bankers and fnanciers was
the great scramble that was going
on to extend loans to some of the
newer nations of Europe which are
dependent upon the foreign capital
for exploitation of their resources.
The bankers everywhere are after
concessions in Czecho- -Slovakia.
Jugo-Slavia, Livonia, Esthonia, etc.
They are retaining engineers and
carrying on Investigations of min
eraf resources. oil and the like, ana
making loans at stiff interest rates.
taking valuable concessions on the
side which they intend to exploit.
Americans are doing their share.
particularly when il comes to get
ting control of European sources
of oil. Thus. for instance, the Ru-
manian and Calician fields are COM,
ing under control of a new group
of American. English and Belgian
interests in connection with a loan
which this group is negotiating
while no one knows exactiy
what is taking place with regard to,
Russia. IL is interesting to note that ,
the Russian oil fields are reported
to have played a significant pare
in krassin's negotiations with thu
British government -,
The chief interest in oil securiS
ties in England. Holland and Bela7
gium. is, of course, in the securiS
ties of their own companies. Thusls
The Dutch, for instance, are doina
what they can in the way of pros1
pecting for oil in their East Indian
possessions, particularly in view Of
their oil needs in the matter of inS
creasing their shipping resources
as they are giving much attentio1
to development of trade with their
island possessions in the East.
There is keen recognition in Eu@
rope of the world shortage of oil.
Paying 90 cents a gallon for gaso<
line-that is the English gallon.
which is slightly larger than the
American-the European has adapt1
ed himself to acceptance of a situa%
tion that does not appear to prom+
Use relief in The way of additional
supply except as increased transt
portation can be provided for im-.
ports of American oil products.
The fuel question is a critical
one. In Scandinavia. for instance.
where the people are greatly inter%
ested in the development OF their
new merchant marine in competiS
ton with Great Britain, they are
hampered by inability TO secure the
coal they need for their ships.
Germany is unable to furnish
coal, England's production is com-
paratively low, Welsh miners pro-
ducing only one-half as much per-
man as the American miner. The
French are using absolutely all the
new coal they have obtained in
Lorraine and the Ruhr Basin. The
effect, of course. is to emphasize
the Importance of furthering the
use of oil fuel. In the shipping in
dustry while the. older vessels be-
cause of the cost of necessary cons
version in structure continue TO be
largely dependent on coal. the new
..A..alA hoinr hnllt are inYa hlY