The World-Struggle for OilL'Espagnol de la Tramerye, Pierre Paul Ernest
History
The World-Struggle for Oil
L'Espagnol de la Tramerye, Pierre Paul Ernest
Petroleum; Petroleum industry and trade; War -- Economic aspects
Deterding conducts his business like a soldier. He accepts or refuses
a proposition once and for all. It is often dangerous not to fall
in with his wishes. The _New Schibaïeff Petroleum Corporation_ has
had experience of this. Reconstituted in 1913, with a capital of
£1,150,000, it set itself against the will of Deterding. He fought, and
at the end of the struggle the £1 shares were worth 6-1/2d., at which
price the _Royal Dutch_ bought them up, at the same time condescending
to accept control of the company.
The establishment of close relations between the _Royal Dutch-Shell_
and the British Government was one of the most noticeable activities
of the oil-world. It has not been proved that the British Government
really controls the _Royal Dutch_, although well-informed people
believe it. If there has been any change in the direction of the _Royal
Dutch_, which, according to the constitution of the company, should
remain in Dutch hands, it must have been effected as a result of
agreements between the Dutch and British Governments, for the shares
of the _Royal Dutch_ were held by interests closely connected with the
Royal Family of the Netherlands. An alliance of this nature would have
great advantages. Besides, since the British Government has purchased
the control of the _Anglo-Persian_, Sir Marcus Samuel has made great
efforts to induce it to take an interest in the _Royal Dutch-Shell_
group. The _Royal Dutch_ has become more British than ever since 1922,
when it ceded the greater part of its share in the _Shell_ to the
purely British consortium directed by the bank of _Cull and Company_.
Deterding would find it difficult to do without the support of British
foreign policy. He knew this very well when he transferred his offices
from The Hague to London.
The most striking proof of the alliance between the British Government
and the _Royal Dutch_ is the course of events in India, where the oil
situation is peculiar. In 1905, in exchange for certain exclusive
rights and for a protective tariff granted by the State, the _Burmah
Oil Company_ consented to maintain a fixed price for kerosene. In
India, in an open market, kerosene would cost £25,000,000 sterling
instead of £11,000,000 annually. Such, at least, is the opinion of
Sir John Cargill, Chairman of the _Burmah Oil_. Before the War, there
was overproduction of kerosene in India; this surplus has since
been transformed into a veritable dearth. The _Royal Dutch_ supplied
the _Burmah Oil_ with the petroleum that was needed to satisfy the
Indian market. Thanks to Deterding, India will continue to get its oil
cheaper than other countries. Without his help there would have been a
considerable rise in price, and the _Burmah Oil_, in which the British
Admiralty is interested, would have been weakened, and would have
fallen into the hands of other companies.
Public-domain text, read in full here on John Shaqi.
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