The Washington times., 1922-06-28
BRITISH DUPED
|. j. s. AGENTS IN
HUGE OIL GRAB
Pennsylvania Politician and
Psnross Ally Let Down After
Errand Was Done.
BY EDWIN ). CLAPP.

BY EDWIN j. CLArr.
Yesterday and the day before !
told the inside story of the merger OF
properties Of the Union OIL Comeany
OF Delaware into a company CONTROL.
ed by the Dutch Shelf interests Of
London, in October. 1921. while the
American directors Of the Delaware
company quietly worked In wash.
ington to suppress Federai Iraae
Commission Investigation OF the mer-
ger, as demanded in resolution
which Senator King. OF utan' nao
introduced In the Senate.
caIiied the Sheii.Union Corporation,
also of Delawafe. Dutch Shell inter.
ests have 72 per cent OF the Few
corporations stock.
Certain events during the forma-
ton of Shell.Union indicates how
cavalierly the foreign interests treat
their American agents when they are
done with them. -.
On December % last w. II. Afien.
vice president of the Delaware com.
pany. who had worked with Senator
Penrose at washington TO smother
1.-THE Federal trade commission inves-
tiEation, wrote to Sir Henri Deterd-
ling. head OF the Dutch Shell inter.
ests. Allen gives him advice as to
the organixation Of the new com.
pany. - Allen is obviously candidate
for president Of the new company.
He, recommended that its executives
should include: ,
"At Ieest sach a rSmbsr II Amer,
icaas Of recognised stamd.ng aud
ability as to cAdrocfertss .nS % S
|tkrosoK, and 20 relieve 'tf Of embav.
russynent incidsNt TO tts chordetert<a-
tion a. a purely foret0n conoerw.
He suggested q board Of directors
Of the same sterling American
character who would have influence
with the Government.
,as sTa; Gn.,ss ss'rsSss sssss. q GO "a: ssssis~:s
ssooested to comprtse the eoord of
directors Of the nso ecmpSmy Pre-.
ciudes any other thought than fhGf
,nay also be satd thot IN our suooes-
tioH as to personnel the necesstfy for
friendly tMT1ueNcs totth the Govern
mont hos not been overlooked"
SubtIely Recommended Himself.
This last sentence IL doubtless q
delicate reference to Aliens relations
with Senator Boies Penrose. Allen
was not a practical oil man. He was
q former Pennsylvania politician and
intimate Of Penrose. which may cx-
plain his job AZ president OF the
Delaware company.
Mr. Allsn never got the presidency
The best the Dutch Shell people
would offer him was position on
| the Shell Union board OF directors
and on it's executive committee.
Allen, of course. could not live on q
directors fee and felt Sitter for his
treatment. Apparently, when SIR
Henri is through with his Washing
ton agents, he lets them fall. and
fall hard.
Meanwhile. down IN Washington.
Senator Benrose had been even bet.
ter than his word. He did his friends
of the Delaware company the favor
OF chloroforming the King resolution
in the Senate Commerce Committee.
and there II has slept until this day.
| Undisturbed by any Federal In.
vestigation, the Delaware company
directors in London completed the
merger deal with the Dutch Shell
people, and Dutch Shell got control
Of the Delaware company's 26.17 per
cent Of the Union Oil Company Of
California.
Stockholders Fooled Move.
It might have got the whole Cali
fornia property, so far a. any in
terest or protection by the United
States Government 10 concerned. But
the Union OIL Of California stock.
| holders themselves met the threat by
action of their own. On October II
q circular was sent to the company's
stockholders, containing q plan for
the formation OF a California stock
holding company to hold q majority
Of the Union OH Of California shares
The circular read in part:
! you hdue doubtless been tmformed
s iosss ss'' Of t"f3 5pss sse"t od cent
California hos been acquired dNd is
now being heId by one single cor
porcte o,opershtp ,toreten to CaHtor-
present situation 70 the fact tkat no
one knoDs fror, day TO day Uho may
tsrn up 40 the o,orer Of this large
concentrsted block Of stock We do
cSf s s. .ss1 poss Sf 81 nay nay ss' ss' .Ms MSs
condition 70 tntoierdbie."
King After Facts Again.
| ING ohch-OHlOT IneTHeT mas Deen
completed It's name is the Shell
Union Corporation. also incorporated
In Delaware, that kindly foster moth.
er of suspicious children. OF the TO-
100000 authorized shares. 5000, 900
have been issued. Shell Union has a
firm foothold in this country. But
II has not acquired the Union Oil OF
California. which is the first thing
II went after.
What Shell Union has done since
II was balked of its California prey,
, and what II has laid the lines for
doing in the future-these are mat
ters which the investigation Of the
Federal Trade Commission should re-
veal.
Senator King of Utah has reintro.
duced, in different wording his rsso.
luton calling for an investigation Of
foreign holdings in our oil proper.
ties, and will press for Its Immediate
consideration, -..,-.. e.,
Red Cross Gives Budget.
Tentative budget figures for the
year beginning July were set at
yesterdays meeting Of the execu.
tive committees OF the American