Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-01
GERMAN OIL FIELDS
MAY YIELD MONEY
TOPAY WAR DEBTS
American Operators Are
Preparing to Develop Indus
try on Large Scale.
CRISIS IN PREPARATIONS
SITUATION APPROACHES
Question of Payments Expected to
Reach Head Before
Summer.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, January Q1.-Sidney n.
keoughan, Denver oil nagnate, Who
successfully built the Continental OH
Co. from the ground up in a few years
and sold 1t to j. p. Morgan & Co. for
about $93,000,000, few weeks ago was
discussing the oil industry in general
ana the european oil industry in par
ticular. Mr.. Keoughan said:
Germany has oil; so have other
countries in Europe beside Russia and
Rumanla. Oil men have known 1t for
some time. The big question is-havO
the Germans got oil pools large enough
TO exploit on big scale, similar to
those huge developments in Oklahoma,
California and Texas? If they have,
I'm going to work again. If they have
not. III continue to take it easy"
The announcement from Germany
that Mr.. Keoughan had been elected
president of the North European Oil
Co., which, in cooperation with the
Hope Engineering Corporation of New
York, has acquired controlling inter-
est in over 100000 acres of pros
pective oil land in the German Prov
inces OF Gutenberg, Brunswick and
Mecklenburg. This seems to indicate
that, in the opinion of Mr. Keoughan,
Germany has big oil pools and he is
going to lend hand in their develop
ment.
Mr.. Keoughan, who, at the time he
sold out his vast American oil inter.
ests two years ago, had the reputation
Of having drilled more successful wells
in the United States than any other
oil man, had this to say yesterday in
referring again to Germany's oil pros
poets.
THE geographical structure revealed
by all oil and gas drillers in the North
German plain compares favorably with
the United States areas, in which
have completed over 1000 wells in the
last 80 years"
Germany may yet pay her reparations
out of her DILL That is, If successful
American oil operators continue to in
terest themselves in a big way in that
country's oil development.
Mr.. Keoughan will start drilling OPP
erations Immediately.
Railroads and OIL Interests.
Is a major fight between oil men and
the railroads. in the making?
Some weeks ago, the association Of
railway executives suggested that pipe
lines should be divorced entirely from
oil companies. Oil executive have taken
up the battle, and the committee of the
American Petroleum Institute announces
that it proposes to fight any pipe line
proposal, any time, anywhere.
Well known names appear among the
list of oil executives back Of this move.
The list includes Henry M. Dawes,
president of the Pure Oil Co.; Henry
L. Doherty of Cities Service, r. c.
Holmes of Texas Co., Frank Phillips Of
Phillips Petroleum, E. B. Reeser, prest-
dent of the Barnsdall Corporation; e. G.
Schubert, president of the Standard Oh
Co. of Indiana; w. G. Sicily, president
of the Sicily Oil Co.; Walter G. Teagle,
president of the Standard Oil Co. Of
New Jersey; L. p. st. Clair, president
Of the Union Oil Co. of Los Angeles,
and F. A. Leovy, chairman of the Gulf
companies of Pittsburgh.
w. r. Boyd, jr., executive vice presi-
dent of thu American Petroleum Insti-
tute, says that the proposal which the
railroad executives ask Is in its essence
nothing more or less than an effort to
strange by regulation the transporta-
ton OF petroleum products and natural
gas by pipe lines and that pipe lines
at present are merely Incidents Of the
Oil companys business"
But read over the list of oil mag
mates againl No such names could be
secured for a minor fight. It shows
how important the oil industry holds
its pipe line activities.
The pipe line is the most important
factor in the control of the oil in
dustry.
Preparations Payments.
Great Britain will receive from the
allied debt payments and German rep
arations $166,750,000 for the fiscal
year 1931-32. She will pay to the
United States slightly less-$164, 320, 900.
This is the first year that England
has had chance to have a breathing
Spell-that is, when the total amount
at least equal to the amount they will
pay to the United Statesl
Fine-n Germany doesn't stumble
on her reparationS payments.
This matter will come to a head
crisis this Spring or early
Summer. Strenuous efforts are being
made right now to maintain the status
quo in europe until Fall. at least.
Germany has made no announcement
and Is attempting, by strenuous cut
ting OF all her government expenses, to
meet her reparation payments and hsr
budget.
No serious student believes reparation
payments will continue for long. Just
when the crisis date will be reached no
one knows. But that the crisis will be
reached this Summer, is the opinion in
wei INFORMED I1nanc1al circles.
Loading charges" are being watched
carefully these days by investment trust
investors.
These are the expenses which the
sponsors-the financial hackers of in
vestment trusts-charge for their serv-
ices in putting things together and for
continuing to supervise their invest
mentS.
Many investment trusts in the 1929
boom days were charging as high as 20
to IL per cent for such services. The
average was around per cent.
A new investment trust, known as the
Mutual Depositors' Corporation, which
is sponsored by some well known houses
i'll New York, Chicago and st. Louis,
has a loading charge of but 51s per
cent. Most students consider this not
unreasonable.
Investment trusts generally revealed
more of the inside of their portfolios in
their 1880 reports than ever before. It's
a good sign. The next step should be
supervision of trusts by State banking
authorities. In many cases, bank and
investment trusts are very closely allied.
Copyright, 1881, by the North American
Newspaper Aliiance)