Evening star., 1924-02-05
REEDlS COUNSEL
;. IN VAST OIL SUIT.
Missourian Engaged ln I'M
portant Patent Liti-%
:, i. cation.
ny FREDERIC WILLIAM VILE.

ny FREDERIC WILLIAM VILE.
Democratic presidential candidates
opposed to the candidacy OF Senator
James A. Reed of Missouri and their
representatives in Washington, were
stirred into action during the week
end by q statement ISSUED by Senator
Reeds national campaign manager,
Edward A. Glenn Of ST. Louis. MI
Glenn asserted that "the democrats OF
Missouri, or OF no other state, can
afford to support man for the presi-
dency who Is connected with Ddheny
and the oil interests now under IN
quiry by the United States Senate
Anti-Reed democrats, particularly
those identified with William G. Nc
Adoo's cause, wonder If the Missouri
senator's manager, when he describ-
ed employment by oil interests as
fatal" to McAdoo, could have been
aware of Mr.. Reeds legal activities
in the oil industry. The facts in that
connection, this writer has reason to
believe. may be brought to public
attention before the present oil ex-
citement in Washington subsidies.
Counsel in Colossal Suit.
From the beginning Of his second
term in the Senate, Senator Reed has
been employed as special counsel by
the Universal Oil Products Company.
whose headquarters is Chicago. in in
fringement proceedings against the
Standard Oil Company of Indiana.
The litigation in question extends as
far back as 1916, the year Reed en-
tered the United States Senate.
The chief proprietor of the Uni
versal Oil Products Company is ].
Ogden Armour. the principal figure
IN the Armour packing interests and
poM board chhraS s1s se1aer of tne Reed sG
suit against the Standard Oil Com
pany of Indiana, asking damages ag-
gregating the colossal sum of be-
tween $600,000.000 and $1,000. 100000.
alleged. illegal use of a process for
cracking" crude oil and refining 1t
into commercial hy-products, es-
pecially the gasoline consumed In
gigantic quantities by motor vehicles.
The patent is known as the Dubbs
process after the inventor. Reeds
legal colleagues in Missouri told this
writer in that state last summer that
he was, engaged In the, greatest dam
age suit In American law history. II
he won 1t, as they were confident he
would 1t would mean the assessment
OF damages against the STANDARD Oil
Company that would reduce Judge
KenesaW NJ. Landis' celebrated $29,-
paltry insignificance. = The. size Of
Senator Reeds fee, in the event Of
victory, was estimated by his envious
confreres at anywhere from $250.050
1t might be twice or thrice either of
those figures. so staggering amounts
are involved in the case
Master I'm Chancery Named.
The suit originally was instituted
IN the federal court of Judge Arba S.
Van Valkenburgh in Kansas City.
After several years Of litigation
appointed Holmes Hall. an attorney
of Sedalia. Mo-, a special master in
chancery to hear the evidence. There
after Senator Reed toured the coun-
5ourn among the California oil fields,
taking dispositions on behalf of his
client. His opposing, counsel happens
to be r. r. Brewster. republican, of
Kansas City. whom Senator Reed de-
feated for the United States Senate
in 1929.
Last October five days were con-
sumed in hearing before Mr.. Hall,
the master in chancery. The out
standing point was a contract be-
tween the Texas Company and the
Standard Oil Company of Indiana and
the Standard Oil Company of New
Jersey, through which it was alleged
these three corporations had pooled
Dubbs cracking" process. Senator
Reed charged that the contract gave
the Standard Oil Company a virtual
monopoly of all the oil produced In
specified that companies using the re-
fining process must sell one-third of
the finished product of the Standard.
Senator Reeds contention was that
Pa, worked out the process, patented
1t and sold it to the Universal Oil
PRODUCTS Company. The Standard Oil
Company's defense was that the
invention of William N. Burton Of the
standard Oil Company of Indiana.
Armour Has Associates.
In addition to J. Ogden Armour of
Chicago, the principal interests be-
hind the Universal Oil Products Com
pany are those of Hiram J. Halle, a
Dunham. Chicago fnancier. The
Dubbs process. which this group
owns, is said to be recognized as the
most important factor in the oil re-
lining industry. Its domination by a
confer a dominating influence upon
the production Of oil products
throughout the world.
From quarters qualified to speak for
the universal company, the writer is
informed that it is about to proceed
against the Doheny, Sinclair and
other independent oil interests for
alleged infringement of the Dubbs
patents. These suits will involve
claims for still more hundreds Of
millions of dollars. and Senator
Reeds fellow lawyers throughout the
country are metaphorically licking
their chops in anticipation Of the vast
potential fees he will be entitled to
collect. Still another set of actions
has been instituted by the Universal
Oil Products Company against the
Union Oil Company Of California.
state to the writer that a successful
outcome Of Senator Reeds fight would
be greatly helpful to and in the interest
of Independent oil producers, as we'll as
OF the entire oil industry, whether large
or small. and on a uniform basis.''
Has Unlimfted Means.
The Universal Oh Products Company.
although claiming to be in position
1tghtfully to be the dominating factor
in oil refining, asserts that 1t owns no
interest in any refinery or in any OIL
producing property anywhere. The COM
pany Is said to be organized and oper-
ated solely for the development of the
cracking" process and, licensing it to
Universal people so far have spent
$4,000, 900 in development OF the Dubbs
process and in litigation. and proclaim
their readiness to come forward with
unlimited other means, in SO far as they
become necessary.
Senator Reeds brilliant capacity a. Q
''hghting lawyer" Is confidedtly relied
upon by the Oil Products Company to
achieve final victory and fabulous profits
in damages.
Copyright. 1sA.)