The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1928-11-02
Imbeyialists
Fight for Oil IN
Latin America
By OUTPOST


states of Colombia and Venezuela.
Very little about them gets into
the news columes of the newspapers.
You will scarcely ever hear them
in political talk. would
lay heavy bet that quite a number
of senators couldn't spot either of
them on the map first shot.
But if you get hold of the oil
papers, or if you look at the city
pages of the ordinary papers, or if
you go where men talk Of oil and
oil shares, you will hear both of
them talked of quite a lot.
A Rich Land.
For both of them are rich in oil
or in lands which are believed to be
oiI4bearing. Venezuela in particu-
lar. Her oil lands are estimated at
$1,000 square miles. Her output is
going up by leaps and bounds. Ten
years ago it was only a efw hun
dred thousand barrels a year. Five
years ago it was four million. Now
it is over fifty million. Venezuela
will soon rank third latter the U. S.
A. and the U. S. S. r. among the
oil-producing countries of the world.
Colombia, as an oil-producer, lags
far behind Venezuela, with an out
put of only some 100000 barrels.
But that 100000 barrels compares
with 100000 only couple of years
ago; with 100000 couple of years
before. Development in Colombia is
going forward with rush, since
STANDARD" acquired big con-
cessions there a dozen years ago
began seriously to exploit them.
4
First Class Fight.
WHERE there is oil there is
w trouble. And since both in Ven
ezuela and in Colombia the big Eng
lish companies and the big Ameri-
can companies are rivals, there are
all the elements of a first class
fight, involving not only the COM
panies but the governments.
So afr it has all been very quiet
and discreet and diplomatic. Every
now and then a growl makes itself
heard. The Americans will COM
plain openly of British intrigues. Or
an English oil magnate will indig-
nantly declare that the Americans
are taking up an attitude based
on the principles of the Monroe doc
trine-namely America orr the
Americans, and the whole world for
them.'"
But these outbursts of indiscreet
ill-temper are rare. For the most
part the war goes on unseen by the
general public. Quiet men with big
check books, men who are on the
closest terms with their countries
diplomatic representatives, visit Bo-
gotta and Caracas and talk persu-
asively to men in high positions.
Local politicians show sudden and
enthusiastic interest. Strings are
pulled and counter-pulled. Pressure
encounters pressure. Check book
meets check book. Concessions are
granted and cancelled-or curious
obstacles prevent their working.
A Revolutionary"
Take, for example, the great
Barco concession in Colombia. Barco
was general who put down "rev-
olution" twenty years ago. He got
q million odd acres of jungle as re-
ward for services rendered. Said
jungle proved to be oil land. Barco
sold out to a syndicate in which
Shell was heavily interested. But
the Colombian courts soon decided
that the syndicate's title was in
valid. The Venezuelan government
(the concession is on the frontier)
refused to allow a pipeline through
it's territory.
The concession was pretty well
valueless. Then Harry Doherty,
who was also interested, arranged
for the sale of the majority holding
in the syndicate to the Gulf inter-
ests. "Gulf," let me explain, is an
other name for the oil-interests of
the Mellon family. Mr.. Mellon, you
will remember, is secretary of the
United States Treasury.
Thfe Melons got control; and
within a efw months the magic hap
pened. The Venezuelan government
was delighted to allow a pipeline
to be made. The Colombian govern
ment gave assurances that at the
first opportunity the supreme court
would reverse it's decision.
Then the British got busy and
the Colombia government repealed
the Barco concession. But Melons
Kellogg interviewed and we are wait
ing.
South American Magic.
That is how magic works in South
America. But it works both ways.
And that is where the prospect of
trouble lies. American diplomacy
and British diplomacy are waging
a quiet war in that unnoticed but
fabulously wealthy corner of the
world.
And at any moment the war may
become anything but quiet. Already
there are signs that the American
oil lords may seek to enlist public
opinion" on their side.
The cry NAV 90 I'm that the Rrit