The Washington times., 1922-06-27
AIDED
BRITAIN IN j. {.
::0|L PLOT GRAB
Details of Plan Whereby Eng
~ land Sought Petroleum
Control Barred.
BY EDWIN ]. CLAPP.


yesterday l told the first part OF
tue story OF the move made by the
New York directors OF the Union
On Company, of Delaware. to sup
rRess q Federal Trade Commission
investigation of the realiZations of
tie Delaware company and the
Dptch Shell interests in Septem-
Der, 1921.
sDuring that month Senator King,
Of Utah, introduced into the Senate
aeresollftion calling on the Federal
Trade Commission to make this in
vestigation at the very moment
when some .of the Delaware company
directors were in London planning
t6 enter a merger with the Shell
people and so deliver to foreign con-
trol the Delaware company's large
htldings OF stock in the Union Oil
Company of California. a $50 600, 900
corporation and one of our largest
producers.
AS soon as Kings resolution was
psfbIished, the Delaware Company's
directors sent their vice president,
". n. Allen, to Washington to
smother the resolution in committee.
Yesterday 1 told of the detailed re-
p0rt which Allen on September II
made to Charles n. Sabin, president
Of the Guaranty Trust Company and
aEUnion Oil, of Delaware. director.
describing Aliens conference at
Washington with their friend. Sena-
tor Boise Penrose. then Republican
boss OF the Senate.
Aice President Allen remained in
Washington to get reply from Mr..
Sabin and the other Delaware COM
pany directors. While waiting. he
made a further report on the situa-
1ipn to David NJ. Goodrich, of the
Goodrich LoCkhart Company, pro
nioters, who were engineering the
Shell-Union merger. Goodrich was
in this country. Lockhart was over
iIf London with other directors Of
the Union Oil, of>4elaware.
Allen laid emphasis upon the op-
pbsition he found in Washington
AGAINST foreign control of American
or resources because of their vital
importance to the nation in wal
time. However, Allen explained that
he did not believe anything fatal
to- the London transactions could
be extracted from him by the
Federal Trade Commission. even if
he were called before them. He
EXPLAINED that he really did not
know enough about the London ne
RotiationS TO be able to make a
statement that would be really
dangerous to the cause Of the
merger.
4 pom receipt OF these advices
from Allen, the Union Oil of Della
ware directors met and agreed to
PenrOse's method of handling the
situation in Washington, and so
nu1ified Allen. And then on Oc.
tober 4. Goodrich Cabled to Lock
hart in London, narrating the
events that had occurred in Wash
ington, including Senator Penrose' 3
advice, and saying that he himself,
C. II. Sabin, William II. Allen. and
SAM Pryor all agreed in the wis
dom Of Penrose's method Of hand
ling this matter. At the end Of
the cable Goodrich added that
Dutch Shell representatives in
Washington were watching develop
ments.
This cable apparently served to
hasten the action OF the Union Oil
directors in London closing the
deal. Four days later, on October s,
they cabled back to LoCkhart and
told of the tentative agreement
which they had reached with the
Dutch Shell people.
That agreement provided for the
formation of a consolidated com
pany whose stock was to he dl-
vided. % per cent to the Delaware
Company. 72 per cent to the Royal
Dutch, now headed by a British
bWonet. The consolidation was tc
include the properties of the Dutch
Shell interest in the United States
as we'll as the principal properties
OF the Union Oil OF Delaware. and