The Washington herald., 1921-03-14
CRITICS CHARGE !.
COLOMBIAN PACT
BENEFITS OIL men

Sendte OppOitciiIS VI titc
Treaty Quote Federal Re-
port on Concessions.
When the Senate resumes consid-
Grafton of the 25.ooo.ooo Colombian
treaty. several Senators will make
a determined effort to block its
ratification because of charges that
selfish interests would beneht pri-
marily under it's terms.
Senator Borah is among the MEM
bers who have been led to believe.
II is said, that powerful American
oil companies, including the Stan
dard Oil and Sinclair interests,
stand to benefit from any placation
of Colombia resulting from the pay
ment of s25.00o.0o0 by the United
States to the South American re-
public, which once moved to annui
their oil concessions therein.
Concessions ut Stake.
Some of the concessions" said
Senator Borah. "are absolutely con-
tingent on the ratification of this
treaty and the payment of $25,000,-
900. In granting the concessions.
President Suarez told the conces-
sionaries that unless the United
States made this payment his gov
ernment would fall and his success
sor would revoke the concessions.
The men who got concessions on
such terms are simply gambling
with s25,000,00o Of the American
peoples money to further private
ends.
At one time Senator Fall, now
Secretary Of the Interior, proposed
what was known as the. petroleum
amendment" to the treaty, under
which Colombia would have agreed
not to nullify the American oil and
mining holdings in that country.
This move followed the promulga-
tion of the Colombian decree ma
tionalizing the oil lands. Later a
subcommittee of the Foreign Rela-
tions Committee headed by Senator
Fall reported against the inclusion
of the amendment on the ground
that the Colombian decree had been
invalidated by the Colombian su-
preme court.
Government Report Quoted.
Senators fighting the treaty gave
out today the following extracts
from a government report listing
the American and other Gil interests
in Colombia.
"The Tropical Oil Company. con-
trolled by the OBSERVATION-DISCLOSURES
Crawford interests OF Pittsburgh,
was Incorporated in Delaware June
5, 1916. Recently it merges with the
international Petroleum Company.
Ltd. a subsidiary CT the Standard
Oil Company of New Jersey. The
plans of the merger call for the
organization of a new International
Petroleum Company, Ltd. under the
laws of Canada. 1t is claimed the
merger will be of advantage to both
companies, as the International is a
producing. refining and marketing
organisation and the Tropical a pro-
ducing company with no adequate
facilities for distribution.
The International Petroleum
Company was Incorporated in Can
ada in 1914 and acquired control OF
three British corporations. the Lon
don and Pacific Petroleum Company
Ltd, and the La Gunitos Oil Com
pany, Ltd, both producers. and the
West Coast Oil Fuel Company, Ltd,
a marketing concern. 1t operates In
Peru. with a refinery and shipping
port at Talara.
Millions Of Acres.
The Tropical Oil Company ac-
quired the lands Of the De Mares
concession. The area Is estimated
to be between 100000 and 3,ooo,-
900 acres. The company has ex-
elusive rights to the products OF
the subsoil and to the use of any
government lands in Colombia for
purposes of laying pipe lines and
the privilege to condemn or pay and
arbitrate for private property for
this. purpose. Probably $1,000, 900
has been spent in development.
The problem Of the company is
principally one of transportation.
1t Is 400 miles to tidewater on the
Caribbean Coast through heavy trop-
icai jungle. A pipe line from the
wells 20 the Caribbean Coast, in
cluding pumping stations. tank stor-
age and loading facilities, will cost
between s15.0oo,0 900 and SO. 200. 900.
In view Of the merger of this COM
pany with the Standard Oil inter-
ests, it is assumed that development
operations on this property will go
forward on a large scale.
The Barco concession occupies
the entire northern part of the de-
artment Of Santander Del Norte
and Is situated directly opposite the
proven oil fields Of the Maracaibo
region of Venezuela The conces-
sion contains about 100000 acr es.
Many seepages and springs OF high
grade oil occur throughout the prop
erty. From one such spring Gen.
Barco has dipped from fifteen to
twenty barrels Of high grade oil per
day and run IL through a crude
refinery which he constructed ON the
property.
Obtained by Anerieana
This concession was taken over
by the Garth Syndicate. Eta.
(American). in 1917. This COM
pany was incorporated in New York
CONTINUED on pxon rrx