POSSIBLE PETROL WAR

Hokitika Guardian, 12 September 1927, Page 4

POSSIBLE PETROL WAR

NEW YORK. July 28. An oil wav in Europe between rival Standard Oil Companies now threatens to range over the question of buying supplies from Soviet R.usia. Mr Walter CJ. To agio president of the Standard Oil Company of Now Jersey, is now on his way to London .where lie wi" confer with c ' : - Heny Retarding, head of the Royal Dutch-Shell interests. The understanding here is that the conference will he occupied with the diseu.sion of retaliatory measures against companies using Rusian products. As there is no likelihood of Russian oil products ever being used by the Standard Oil Company of New York or hv the Vacuum Oil Company in tlio United States, the “war” if it should ever develop, will he waged in fields which hitherto have been recognised as spheres of interest in Europe and elsewhere of those two companies. It is against that possibility that the Standard Oil Company of New Jeresy and the Vacuum Company are now arraying their forces. Thus far the most powerful stockholders of the rival companies have' kept out of the quarrel. These stockholders are- the Rockfellers, who are interested in all the companies.

The belief here is that the Rockefellers will not permit the differences betwceen their different companies to reach the point of open warfare. The Vacuum Company in. a public statement, defends its policies from the attack made upon them by the Standard Oil Coy., of New Jersey, it declares that the view that if i j v/reng

to purchase from -the Government of Russia goods wrongfully confiscated from its subjects, if universally adopted would prohibit all exports from Russia. It asks if it is more unrighteous to buy from Russia than to sell to Russia and proceeds to state that purchases from Russia will continue so long as supplies are available, on proper terms and of proper quality, for markets for which Russia is indisputably the natural and economic source. It points out that the Vacuum Company and the Standard Oil Company, of New York, were the only- American oil interests having vested ownership in the Russian petroleum industry. It is therefore directly interested in the question of compensation for confiscated properties. It expects to negotiate for compensation, but docs not believe in involving tho question of compensation with that of either buying or selling Russian, products.