Evening star., 1952-08-23
u. ). Sues 40iI Firms
For S67 Million for
ECA 0vercharges
Says American Toxpoyer
Paid for High Prices to
Foreign Aid Motions
BY the Associcfed Press


NEW YORK, Aug. 23.-Four
major American oil companies and
six subsidiaries are being sued for
SGT million by the Government,
which says it-and the American
taxpayer-were overcharged on
foreign aid oil shipments to Eu-
rope.
In the latest step in joint con-
gressional- administration war on
an alleged international oil car
tells, three separate civil suits were
filed here yesterday in Federal
Court.
Attorny General James p. Nc
Granery. in Washington, described
the suits as "a test of whether
the defendants. having control
over the supply of Middle East
crude oil shipped to countries par
ticipating in the foreign aid pro-
gram. can block the efforts of the
Government agencies to protest
Government funds committed to
European recovery and defense" I"
Action Covers Years.
The suits cover Middle Eastern
oil deliveries by the firms to
Marshall Plan countries in Eu-
rope between May, 1949, and
May, 1852.
Mr.. McGranery accused the
major companies of fouting Fed
eral laws by using their subsid-
iaries to maintain a two-price
system-charging the responsible
Government agencies more than
other customers.
He said the companies violated
Federal laws designed to hold
crude oil prices at reasonable lev
els while the free world rearms.
Financing of Middle Eastern
oil for European countries by the
Mutual Security Administration
was stopped in June after the oil
firms repeatedly refused to make
refunds on purchases made dur
ing the three years covered in
the suits. MSA and it's predeces-
Sor, the Economic Cooperation
Administration. are the agencies
involved.
Companies Listed.
Companies named in the three
suits and damages asked of them
are:
Standard Oil Co. of New Jersey
and its wholly owned subsidiary, :,
ESQ Export Co.. both of New
York-a total Of $31, 1868.
Standard Oil Co. of California,
of San Francisco, and the Texas
Co. of New York and their
jointly owned subsidiaries: Bah
rein Petroleum Co., Ltd. a Cana
dian corporation; California Texas
Oil Co., Ltd; Caltex Oceanic, Ltd, i,
and Mid-East Crude Sales Co.,
all incorporated in the Bahamas
Islands, but with home Offices in
New York-$21 ,427, ,722.
Socony-Vacuum Oil Co., Inc,
of New York, and its wholly
owned subsidiary. the Socony-
Vacuum Overseas Supply Co., Inc.
of Fort Lee, N. J.-$14.118,498.
Suit Asks Interest.
The Government also asked for
''Such additional sums as may be
due for alleged overcharges" after
May, 1852. plus interest and costs.
ESQ, in statement last night,
said all its export sales have al
ways been at competitive prices.
These prices are well known and
have not been questioned or pro-
tested by any of the countries or
lcustomers involved"
The Texas Co., in another state
ment last night, reiterated that it
has not been a party to any inter-
national oil cartel or price-fixing
arrangement.
Yesterdays litigation here came
just the day after the MSA in
Washington made public a report
accusing the four major defend
ants and the Gulf Oil Co. Of
price discrimination on a world
wide scale" and Of heaping IAN
undue burden on the Amer
ican taxpayer" for the firms
profit.