Evening star., 1942-08-03
Standard Oil Gave Up
Rights 10 Nazi Firm,
Senators Are Told
BiddIe Aide Reveals
How Chemical Potents
Were Surrendered
Ey the Associated Press,

Ey the Associated Press.
Patrick A. Gibson, special as
sistant to the Attorney General
told the Senate Patents Com
mittee today that the Standard
Oil Co. of New Jersey, before the
war, had surrendered it's free
dom Of action in the chemical in
dustry into the hands of the
largest industrial corporation in
Germany"
His statement came as he began to
trace the patent pooling arrange
ments between Standard and l. G
Farbenindustrie of Frankfort Am
Main, through which, he said:
I'm substance, Standard agreed
to refrain from going into any
chemical business in the future ex-
cept as a Junior partner of I. G
and I. G's domination and control.
In turn. I. G.. agreed to remove itself
from and stay out of the oil industry
except in Germany.
;s"Scarcely even sincerity he told
he committee, can attach to the re-
Gently publicized argument that this
remuneration of liberty of action in
the chemical industry by Standard
was only natural for an oil company
since as early as 1928, almost two
years prior to the execution Of this
agreement, an official of Standard
wrote:
1.-The petroleum industry is rap
Idly becoming a chemical industry
and has, af course, available to it
the largest supply of raw material,
both in its natural gas and crude
oil. Looking to the future, it is evil
dent that the manufacturing and
marketing interest of the large re-
fining companies will clash with the
large chemical companies
Forced Into Industry.
"Now that Standard has been
driven into the chemical field by the
absolute compulsion of the war
itself" Mr.. Gibson added, 1T adver-
tises and takes credit for the fact
that larger amounts of petroleum
are being processed into chemical
products for vital war needs"
Under one agreement, Mr., Glib
son said, STANDARD incurred the
obligation to give I. g. the right to
require that Standards butyl rub
Der development be brought into
Jasco "a corporation formed by
Standard and the Germna concern)
and its licensing and exploitation
there controlled by I. G."
He said that Standard established
a plan in the United States by
which l8 major American oil COM
panies received the right to hydro
genation licenses and added:
The plan adopted spread in this
country the use restrictions of l. G.
agreements to cover the future
operations Of all these companies,
and prevent development of hydro
genation for chemical purposes by
the oil industry"
Hydrogenation constitutes the sub
lection Of hydrocarbons to heat and
pressure in the presence of free
hydrogean, and through the process
crude oil and coal can be converted
into gasoline q r,-
Mr.. Gibson said that development
Of the hydrogenation had resulted
N modern methods for producing
high octane gasoline, toluol for TINT
and butadiene for synthetic rubber.
Picture Of System.
Here he said at one point, "is
a running picture OF the compre-
hensive worldwide system created
for hydrogenation. 1t brought to-
gether all then feasible methods OF
synthetic oil products. 1t saved
the worldwide development of the
technique in the chemical industry
for I. G. Farben. ." It gave
Standard and I. G. the permanent
royalty advantage in American de-
developments in the field. 1t gave
to Standard and Shell the worlds
developments for their use and con-
trol outside the United States and
Germany, subject to world wide
royalty interest OF I. G."
Mr.. Gibson said that a recent con-
sent decree adjudged the American
hydrogenation plan unlawful, and
enjoined its further execution, with
the result that the hydrogenation
patents for both oil and chemical
purposes were made available.
He posed four questions for the
Committees consideration:
4. Whether compulsory licensing
Of patents and reasonable royalty
rates should be generally required.
2. Whether there should be pub
lie registration of licensing agree
nents such as the hydrogenation
plan.
8. Whether use" restrictions
should not be specifically regulated
4. Whether contracts requiring
tross-license of future contracts
should be regulated or limited