In acquiring control of the _Compania Mexicana de Petroleo El Aguila_ (the true name of the _Eagle_) the _Shell_ had in view simply to ensure a sufficiency of liquid fuel for the British Navy. For the _Mexican Eagle_ will soon hold one of the first positions among the world's producers. Before long it will furnish, by itself alone, one-third of the Mexican production. The capital of the _Shell_ was increased in 1919 simply with the object of hastening the development of the oil-fields it controls. In view of the considerable increase in Britain's need of petroleum we may believe that patriotism was Lord Cowdray's motive also. However it may be, the negotiations were concluded in June 1919, and it was a master-stroke on the part of the _Royal Dutch-Shell_ group, for its position was greatly strengthened by this association, which increased its production of oil by 50 per cent. Moreover, the _Royal Dutch-Shell_ made a very successful deal, since the shares bought at £6 each are now worth double on account of the increase of capital at par in January 1920 and the new increase in January 1921 under the same conditions, that is, one new for two old shares at par. Since the _Mexican Eagle_ came under the control of the great Anglo-Dutch trust it has benefited by the incomparable selling power of the _Shell_: the great shipping companies, the Pirrie and the Furness-Withy groups, and the Argentine railways immediately concluded with it important contracts for the supply of oil. And this alliance brings the _Eagle_ practically unlimited financial resources. Financial Results of the Mexican Eagle for Eleven Years ------+----------------+--------------+--------------+-------- Year. | Gross Profits. | Net Profits. | Sinking Fund | Dividend. | | | and Reserves.| ------|----------------|--------------|--------------|-------- | $ | $ | $ |Per cent. 1911 | 1,974,000 | 874,000 | 194,000 | 8 1912 | 5,703,000 | 4,265,000 | 2,920,000 | 8 1913 | 10,488,000 | 8,166,000 | 3,551,000 | 8 1914 | 13,005,000 | 9,689,000 | 5,857,000 | 8 1915 | 14,676,000 | 11,215,000 | 6,562,000 | 8 1916 | 18,082,000 | 17,064,000 | 8,259,000 | 16 1917 | 20,521,000 | 12,948,000 | 6,922,000 | 20 1918 | 28,857,000 | 15,860,000 | 19,830,000 | 25 1919 | 36,868,000 | 29,508,000 | 11,050,000 | 45 1920 | 59,453,000 | 54,659,000 | 8,952,000 | 60 1921 | 81,982,000 | 69,083,000 | 34,879,000 | 30 ------+----------------+--------------+--------------+------- The balance-sheets of the _Mexican Eagle_ are expressed in Mexican gold dollars. The Mexican dollar, which, on the gold basis, is worth about half a dollar, was equivalent, at the rate of exchange of January 1, 1921, to:-- 8.50 francs. 2s. 9d. 0.495 dollar.