Evening star., 1947-11-17
Senate Probers Send
Arabian Oil FINDINGS
To Clark for Action
By the Associoted Press

Declaring that more and cheaper
oil for Americans might be involved,
a congressional committee sent to
Attorney General Clark today its
findings on the Arabian oil connec-
tions of four United States COM
panies.
Chairman Brewster wrote Mr..
Clark that evidence assembled by
the Senate War Investigating Com
mittee indicates:
/. That the oil in question could
be laid down in New York Harbor
for approximately one-half the cur
rent price and might contribute very
materially to easing the growing
shortage of petroleum in the Eastern
United States
2. The expectation, however, is
that the oil probably will be con-
signed only to Europe and the Far
East to avoid cross-hauling with
present United States imports.
8. There is some doubt" whether
"the interest of the United States
in the handling of these oil reserves
and their possible impact on world
peace will receive primary consid-
Grafton"
Referred to Clark for Action.
Hence Senator Brewster said 1t
had been decided to refer the whole
subject to the Justice Department
for whatever exploration and &C
tion" Mr.. Clark might deem war
ranted to assure appropriate pro-
lection of American interests.
Senator Brewster was referring to
testimony developed by the COM
mittee at its recent inquiry into
whether the Navy was charged ex-
cessive prices for petroleum by the
Arabian American Oil Co. (Aramco)
This firm, which holds concession
rights to vast Arabian oil fields, is
owned jointly by the Texas Co.,
Standard OF California, Socony-
Vacuum and Standard of New Jer-
sey.
Antitrust Violation Denied.
During the hearings, Senator
Brewster raised the question of
whether there was any violation of
the antitrust laws in this Joint
ownership. Company officials said
there was not.
Senator Brewster told Mr.. Clark
that Coropy-VacI1lIp and STANDARD
of New Jersey acquired their in
terest in Aramco ''in March of this
year, coincidentally with the an
nouncement of the Truman doctrine
regarding Greece and Turkey with
its necessary implication of the ma
tional interests of the United States
being vitality involved in the Middle
East area. ."
The Senator said evidence "indi-
Gated that during the war, coinci-
dentally with very strong represen-
tations by certain American oil
companies concerned, S80,000,000 in
American lend-lease funds we're
made available to King Ibn Saud
of Saudi Arabia The King owns
the oil fields.
Senator Brewster added that
these contribution" appeared to
be a prime factor in preserving the
oil concessions at a time when it
was being threatened with possible
cancellation as result of conditions
then prevailing" j!
Cites Two Disclosures.
Mentioning the committees doubt"
as to whether United States inter-
ests will receive first consideration,
Senator Brewster said "the protes-
tations of the company representa-
tives that this operation was an
American enterprise, paying Ameri-
can taxes, had hollow ring when
it was disclosed that:
"On an investment of 100000
one of the subsidiaries, a Canadian
corporation, had made profits of
92,186, ,107.l1 in recent years on
which no taxes of any kind to any
government had ever been paid, and
another subsidiary, Bahaman cor
poration, on an investment of ST.
100000, had made profits of $25 5,337,-
67344 on which similarly no taxes
had ever been paid.
Aramco officials centended that
profits of the subsidiaries were
plowed back into the business. and
that when a dividend is paid to
stockholders the United States will
collect a sizeable tax.