The Birmingham age-herald., 1923-02-12
Although Foreign Companies Hold Prominent Place in Ex-
 plotting Resources of U. S., Other Nations Discriminate Against Firms of This Nation
CHIEF OFFENDERS ARE NAMED BY COMMISSION
Crude Petroleum of America Being Quickly Depleted to Meet Requirements of Crow ing Domestic Consump- ton and Foreign Trade

WASHINGTON, Feb. H. While foreign corporations are among the largest of those engaged in exploiting the petroleum re- sources of the United States, and are now engaged in efforts to ex- tend their holdings M this country, American oil companies are subject to discrimination that prevents any activity on foreign soil, according to report submitted to the Sen ate by the federal trade commission in response to resolution calling for information as to foreign own- ership in the American petroleum industry.
 The report, made public today describes the organization, devel- opment and present status of the Royal Dutch Shell group in the United States, with special refer ence to it absorption of the Union Oil company of Delaware. It also touches on the present ownership and control of the Union Oil com pany of California and discusses discrimination by foreign govern ments against the citizens of the United States in the acquisition and development of oil lands.
 Huge Foreign Company
 The Royal Dutch shell group, ac- cording to the report, is a combina- tion of the Royal Dutch company, of The Netherlands, and the Shell Tran sport and Trading company of Lon- don. with worldwide oil interests. in cluding. numerous refineries, large fleet of tank ships. aggregatine 1,144 900 tons, and producing oil wells in many lands, which in 1921 pro- duced about Il per cent of the world output.
 In February 1922. it consummateo a merger of the principle properties and investments of the Union oil company of Delaware. with it's prin- ciple American subsidiaries.
 
 named the Shell, Union Oil corpora tion and now controls about 240,95G acres of oil lands in the United States, which produce about 3.5. per cent of the total American output The corporation also owns 752 miles of trunk pipe line and controls five refineries in the United States, be- sides many tank cars and a large amount of distributing equipment.
 Holding Company Formed
 At the time of the merger, the Union Oil company of Delaware owned about 26 per cent of the capital stock of the Union Oil compa- ny of California, which was taken over by the Shell Union Oil corpora tion. When this was done stock holders of the Union Oil company o1 California holding about 55 per cent of the stock, formed a holding com pany, the report stated, for the pur- pose of preventing the Royal Dutcf Shell group from getting control o1 the California company.
 "The most important instances o1 discrimination by foreign government against citizens of this county" says the report "are the exclusive privi- leges of the governments of Great Britian and the Netherlands in re. spect to the oil fields of India ano the Dutch East Indies, and the 1922 San Reno agreement of Great Britiar and France covering the undevelopeo oil fields of Mesopotamia and of the British and French colonies"
 The San Reno agreement provides that the governments of France anc Great Britian should lend aid to each other in acquiring rights tt O1 nies of each corntry and certain rights of exploration and exploitation of oil lands in colonies of the other country.
 Discrimination Charged
 The report also cities several case where foreign governments have ex cluded American oil companies iron acquisition of oil properties, notably the order in council of the Britisl government in 1884, which is still il effect, providing that mo trust o corporation could with Pierpont Nor gan or J. D. Rockefeller, or an, company belonging thereto, be per mltted any facilities or interest il the oil fields of Burma This orde ir effect, it is declared, excluded al aliens from such acquisitions.
 Denial of reciprocity of treatmen to citizens of this country" continue the report. appear to exist with re spect to the petroleum industry O Australia, British Borneo, certail African colonies. British Honduras British Guiana and Trinidad; Franc and French possessions; Italy -.- The Netherlands and its dependen cies."
 It also is stated that "the suppl, of crude petroleum of this countr,
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