The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-05-21

lltlus.
Difficulty OF Problem.
However, any company which tries
TO do business In Russia has to face
first OF all the question OF private
property or rather the fact Of its
abolition under the soviet govern
mcnt. This condition has affected
more or less every attempt to nego-
tate with the present authorities at
Moscow. The British government
has taken a clear stand on this mat
ter,
For on February 81, 1921, in re-
sponse to question In the house
Of commons, Bonar Law stated with
reference to reported negotiations
by the soviet government offering
oil concessions in certain districts
In Russia to British concerns, that
so far as they applied to lands all
ready held by British interests these
negotiations could not be counte-
nanced by his majestys govern
ment.' MIR. Lloyd George Is more
recently reported as saying that he
would not approve private agree
ments by British concerns relating
TO oil lands in Russia which had
been previously In the possession Of
other British interests. This was in
line with an earlier judicial decision
in a British court which held in the
case Of goods belonging to a British
company which had been seized by
tho soviet and which later had been
sold by them to another British COM
pany In England, that these goods
still belonged to tho original own
ers. However, in other cases or In
the event that seizure of such prop
crty by the soviet government is rec
ognized as the act of a dc 1ure gov
eminent, II might be difficult TO re-
cover either property or compensa-
tion. Hence the genuine alarm
which exists among certain invest
ors holding claims in Russian oil
fields.
on the other hand, oil property Is
more easily dealt with on u leasehold
system than any other. For this
reason It Is the first sort of prop
crty that the soviet representatives
have offered for concessions. own
ership IL not essential and n lease
from the government which pro-
vided for sufficient and proper di-
vision of output or profits could be
utilized by any investors of capital.
There would OF course remain the
important matter of administration
and control of labor; but If the soviet
rulers modified their strict regula-
tions on this subject there would at
least be less difficulty in oil proper
ties than in others. This aspect OF
the matter does not take into consid
Grafton other private claimants to
the property or lease in case an
earlier purchase or concession had
been recorded. II the soviet rule
were overthrown the new government
might reverse the entire policy.
Under such circumstances a lease
hold concession from the soviet gov.
ernment, even under the most IA
vorable terms, might become prac-
tically a gamble on the stability OF
Lenin's government.
For the United States the entire
oil question is increasingly impor-
tant as the prospect OF restored oil
production in Russia may grow
brighter. The Baku district alone is
supposed to be the richest In the
world today. AS American produc.
ton may increase and as consump.
ton maintains it's high level the in.
crease OF Russian production will
materially tend to give to Russia ar
even higher relative percentage OF
world production. Hitherto Russian
oil has been largely in the hands oi
| other foreign investors. 1t Is open
therefore, to American interests tc
decide to run the risks in Russia OF
10 turn TO other foreign fields for
future oil supplies. In view of the
| possible exhaustion of our own re.
sources the present situation marks
an important stage, perhaps a turn
ing point, in the world struggle for
oil. Here, therefore, is a business
problem which in the nature of the
case is fundamentally affected by
political factors and tendencies.