New-York tribune., 1921-03-14
Senator's Find
Americans Own
Colombian Oil
Government Report Shows
Extensive Holdings; Fact
To Be Utilized to JUS
tify Opposition to Treaty
Selfish Interest Charged
Pittsburgh Concern. Later
Merged With Standard,
Controls Big Concession
tam The Tribune's Washington B.rsou


WASHINGTON, March 13.-Senate
unnonents Of the ratification of the
colombian treaty to-day discovered q
government report made several
months ago. showing that American oil
interests are heavily interested In
colombia. 1t is the purpose of the
onoosition to make use of the report
when the treaty comes up in the Sem
ate at the opening of the extra session
20 show that part, at least, of the
rressure for ratification is ceming
rom oil interests.
The report was published last fall
by the latin-America division of the
Bureau o. Foreign and Domestic Com
merce 1t attracted little notice then,
but under the conditions which have
arisen with respect 20 the treaty. it is
on the road to becoming much I'D
document.
l. is shown by the report that the
greatest concessions held in the Colom-
han oil fields arc those of the Tropical
OIL Company, which holds the De
Mares concession in Santander del Sur
IN the Colorado River The other is
ihe famous Barco concession held by
me Carib Syndicate, Ltd, locate d
near the headwaters of the Catatumbo
River. extending TO the Venezuelan
border Tnc report says:
The Tropical OIL Company, con-
trolled by the Benedum- Trees Treat
Crawford interests, of Pittsburgh, was
II
Recently il merged with the Interna-
subsidiary of the Standard Oil Com
nauy of New Jersey The plans of the
merger call for the organization Of a
Yew International Petroleum Company
fLtdl. under the laws of Canada 1t
IS claimed that the merger will be of
advantage to both companies, as the
lnterns.ioua is q producing, refining
and marketing organization and the
Tro7f-l producing company with no
sdequate facilities for istribution.
Three British Concerns Taken Over
The International Petroleum Com
uauy was incorporated in Canada in
1914 and acquired control of three
British corporations. the London and
Pacific Petroleum Company Ltd and
re Lagunitos Oil Company LTD. -
both producers, and the West Coast
Oil Fuel Company Ltd, marketing
concern. Ii operates in Peru with a
ssfnery and shipping port at Talara.
The Tropical Oil Company acquired
.he lands OF tho De Mares Concession
The area j. estimated to be between
100000 and 3o00,G00 acres. The com
psny has exclusive rights to the prod
acts OF tho subsoi and to the use OF
any government lands in Colombia for
purpose. of laying pipe lines and the
privilege TO condemn or pay and arbi-
trate for private property FOR this pur-
pose, Probably Sl,00o,000 has been
spent in Development. The problem OF
the company is principally one Of trans
portstiou # Is 100 miles TO tidcwateY
on the Caribbean coast through heavy
tropical Jungle 4 pipe line from the
wells to the Caribbean coast, including
pumping stations, tank storage and
leading facilities, VIII cost between
S50O0,0oo and $50. 900 900. In view OF
'he merger of this company with the
>'andari Cil interests, it IL assume
ilat the derelo opmont operations OF
tins property Viii 20 forward on +
.arge scale
The Barco concession occupies The
entlre northern part of the department
of Santander del Nortc and is situate
directly opposite the proven oil fields
NJ the Maracaibo region OF Venezuela
Tho concession contains about 800, ,00C
acres. Many seepages and springs Of
nigh grade oil occur throughout the
lroperty. Prom ono such spring Gen
eral Barco has dipped from fifteen tc
twenty barrel, of nigh grade oil PEI
DAY and ran it through = crude rein
cry which he constructed OF the prop
cfty.
asphalt and Coal Included
FMS concession Was taken over b
the tarb Syndicate. Ltd. (Americanl J
hn l9il This company WAS incorpo-
rated IN New Work in 1918. The conces-
ION carrie the privilege Of the ex
poitaton Of asphalt and coal. Th'
government Is 20 receive 10 per cent o
INC gross production and retains GER
am other measures Of control. Th'
'arib Syndicate now has % per cen
interest in THE Colon Development
ompany a subsidiary Of the Roya
s9ltch, which has 100000 acres il
onezuela
After considerable exploration worl
on the Barco property. the Carib Syndi
vac transferred three-fourths Of it.
interest therein 20 the Colombian Pc
No'cum Company (thc Doherty inter
S's OF Plttsburgh). This company i!
~ 40 the Development work on royal
y pass and already has commenced
"s'' on tho bank OF the Rio del Ore
approximately 800 Yards from the hi,
Neu Ct the Colon Development Com
Psny IN Venezuela. Drilling machinery
or several ueNs ,e bo;pcr ;c,,,r+ ~