Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-31
World Battle for Oil Again Intense

group the other. 1t relates to q clever coup
on the part OF the former companies and a
bitter threat of reprisal on the part Of the lat
ter-all in the international game Of getting
the upper hand in procuring and selling oil, the
life blood OF the world.
Some time ago the Soviet naphtha trust. con-
trolling the oil production OF Soviet Russia
seemed on the point Of entering into agree
ment with the Royal Dutch.Shell group the
powerful British and Dutch interests and the
Standard Oil Co. OF New Jersey, whereby the
latter two companies were to obtain conces
sions enabling them to get at some of Russia's
vast oil resources. In the midst Of the negotia
tions Sir Henri Deterding, managing director
OF the Royal Dutch-Shell group, broken off the
conferences and left in considerable Of huff.
announcing with some heat that long the
government of Russia did not recognize private
rights and long the holders OF Russian
concessions conflscated during the war were
not compensated for their losses, it was not to
the best interest Of humanity and trade honesty
to deal with such a government.
** " II
The Standard Oil Co. Of New Jersey contin-
ued dickering with the Russian group, but
finally ceased its efforts. The Standard Oil Co.
OF New Jersey placed in the position OF
attacking the Mexican government on the one
hand, for not recognizing the rights Of individ
uas, but, on the other hand, was trying to deal
with the Russian Soviet, whose principles are
directly opposed to such recognition and which
has put into effect confscations far more dras.
tic than those complained Of in Mexico At
the same time, it could not the risk Of
differing its friendly ally, the Royal Dutch.
She'll group. by continuing toward an agree
ment with Russia.
In the meantime however, the Standard Oil
Co Of New York and the Vacuum Oil Co. heard
an opportunity knocking and opened the door.
Both companies negotiated several sales agree
ments with the Soviet naphtha trust which in
vOlved no consideration of private rights, nor
did they necessarily involve any theories Of
government They dealt with the purchase of
SOVIET oil alone, without regard to concessions
on Russian oil land. In other words, the New
York company and the Vacuum company
agreed to market, through their far-ffung facili.
ties. portion Of Soviet Russias oil produc-
ton, and thereby they stepped in and did what
the Royal DutchShell group and the Standard
Oil Co. of New Jersey set out to do in the first
place, but demurred on the grounds of CONNER
cial ethics. AS result, the Standard Oil Co.
OF New York and the Vacuum Oil Co. put one
over on the Standard Oil Co. OF New Jersey
and the Dutch-Shell group. and the latter COM
panies are sore about it. Last week Sir Henri
issued a bitter denunciation of the New York
and Vacuum companies policy and threatened
to bring about reprisals
Unkind critics Of the Dutch Shell group and
the Standard Co. of New Jersey maintain that
this soreness results not much from an
alleged breach OF commercial ethics from
the fact that the two companies had hoped to
delay contamination of an agreement with
Soviet Russia until Russia, hard put to realize
terms. The coup on the part of the Standard
Oil OF New York and the Vacuum Co. has left
them without an entering wedge in Russia,
and rival companies take the plum.