Perth Amboy evening news., 1923-08-30

WASHINGTON, Augl 30:-A step
has just been taken in Russian
American affairs which, according to
lsome of the most competent trade
observers, will go far toward OPEN
ling up Russia to development by
foreign enterprise. 1t is the grant
ing by the Russian Soviet Govern
ment to the Sinclair oil interests of
the United States of a concession for
working of the oil fields in the South
OF Russia. These oil fields are To-
Eeated in the territory between Baku
on the Caspian and Batun on the
Black Sea, a territory acknowledged
to be one of the richest fields in the
world.
! When the revolution came in Rus
sla the Soyiets took over all prop
critics by right of eminent domain
and have held them, operating them
to some extent, but, according to
many reports, wasting more of the
product than they have conserved
| This has been declared due to in
efficient management and unskilful
handling. The story is that the
| Soyiets have come to the conclusion
| that TO get the most out of this rich
region they must bring in foreign
skill in development and merchan-
dising.
When the revolution came the oil
interests of the whole world ase re-
ported to have entered into a sort
of taeit agreement to keep off the
Russian oil fields until the political
situation should become stabilized.
Early this year. il is alleged, the
Royal Dutch Shell group departei
| from this agreement and made a
deal with the Russians for the ham
/ ding of oil exports. American oil
men pricked up their ears at news
! of this development and delega-
ton. headed by Harry Sinclair and
| of which Kermit Roosevelt, son of
/ the former President, is reported
to have been a member, went to
Russia to see what the United States
could obtain.
This mission fell in line with one
of the policies strongly urged by
the late President Harding In
| formed that the time was not far
distant when native American oil
resources would near exhaustion,
Alr. Harding, backed by Secretary of
Commerce Hoover, himself a mining
engineer, strongly urged American
oil interests to begin explorations
Throughout the world in an effort
to bring future supplies of oil
under American control. The Sin
| clair concession is a start along this
line, but it is regarded here as even
more important in certain larger
aspects.
May Lead To Trade Activity
While there have been several
efforts mad0, some successful, to
renew trading with Russia there has
been practically little done In the
way of industrial development by
American capital. The Sinclair con-
cession seems to have broken the ice
in this respect and further activ-
tiles of tremendous Importance now
are expected to follow along.
One of the most interesting re-
lates to Russian iron ore. 1t is
known that not far beyond Moscow
lies deposit of iron ore of ex-
ceptional richness. 1t is reported
that this ore is so rich that in its
lneighborhood compasses are thrown
out of order, the magnetic attraction
of the rich deposit overcoming the
normal pull to the north. German
interests have been observing these
deposits for some time and would
like to get a firm hold on them.
However, 1t now is reported that
| the United States Steel Corporation
has entered the field and there may
! develop a bidding struggle for pos
session of this valuable iron field.
In view of the depreciation of
German assets it seems likely that
the United States Steel Corporation
can outbid any German steel trust
For this source of iron ore to come
into American possession is regard
ed as important in that possession
! by a European power of so valuable
a source of raw material for steel
making might prove a temptation to
enter a new armament race.
Now that the oil concession has
become an entering wedge in In
dustrial development negotiations
lit is expected that many such en-
terprises will follow Russia is
declared to be somewhat compar-
able to what the United States was
a century ago-that is vast terri
tory phenomenally rich in practical
ly every natural resource that makes
nation great. Gold is known to
exist in abundance; ninety per cent
of the worlds platinum supply is
in Russia; oil abounds; there are
anu..u.-....