Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-05-13
Justice Agency
Wells Ru|ingo on
Iran Oil Pact
BY the Associated Press

The Justice Department has
refused, on security grounds. to
reveal to a House Judiciary sub
committee terms of an advisory
antitrust opinion covering an
eight company international oil
agreement to produce and market
Iranian oil.
The refusal was made despite
a published statement by Stand
ard Ooil Co. of New Jersey that
IAN opinion was rendered by the
Justice Department that partici-
patton in the proposed consor-
tium would not violate the United
States antitrust laws"
Stanley N. Barnes, assistant
Attorney General, told the COM
mittee yesterday that details OF
the Iranian oil agreement had
been classified restricted" by
the National Security Council,
and that he could not discuss 1t.
But Mr.. Barnes said he wanted
"to differ" with any statements
to the effect that immunity from
antitrust provisions had been
granted any oil company; also to
any statement that clearance
from prosecution might have
been granted any of the f1ve
participating United States
companies.
Cartel Suit Pending
Chairman Celler, Democrat,
of New York. told Mr.. Barnes
that the United States compa-
mics are all defendants in cartel
proceedings instituted in 1853
by the Government.
The cartel suit is still pending,
Mr.. Barnes acknowledged.
The statement that the JUS
tice Department had given adj
vance antitrust blessing to Unit
ed States members of the Ira
MAN oil combine was contained
in a pamphlet issued by Stand
ard Oil of New Jersey. 1t was
placed in the record by Mr.. Gel
Ter.
Mr.. Barnes told the commit
tee that he personally saw no
reason why the Justice Depart
ment opinion. signed Zy Attor-
ney General Brownell. could not
be made public aside from the
secrecy restrictions imposed by
the National Security Council.
Will Go To BrOwnell
In the absence of the agree
ment itself, he said, he could not
discuss its import or content.
and suggested that the commit
tee go directly to Mr.. Brownell.
This Mr.. Celler directed COM
mittee counsel to do.
Details of the Iran oil agree
ment we're ratified in October.
1854, by participating companies
under British holding COM
pany, Iranian Oil Participants,
Ltd.
The United States companies
are Standard Oil of New Jersey,
Standard Oil of California,
Socony-Vacuum Oil Co., Gulf Oil
and the Texas Co. Foreign par
Elephants are the Anglo-Iranian
Oil Co., the Royal Dutch-Shell
group and Compagnie Franchise
Des Petroles.
Called Biggest Cartel
According to the New Jersey
Standard document, Anglo-Ira-
MAN holds 40 per cent Of the
stock interest, Royal Dutch-Shell
IA per cent, the French company
6 per cent and each of the five
United States companies per
cent.
Prof. Louis B. Schwartz of the
University of Pennsylvania. a
member of the Attorney Gen
erals Committee on Antitrust
Law Revision. labeled the ira
MAN oil combine "the greatest
oil cartel the world has ever
seen"
Following Mr.. Barnes before
the House group, he asserted the
Justice Department had granted
extraordinary dispenSation"
from antitrust prosecution to
the United States companies
without regard to the public or
other competing United States
companies.
Mr.. Schwartz said the dis
pensation' apparently was
granted under national defense
policy.