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
After 1870, there was no free competition in petroleum in France. The
industry fell into the hands of the great firms which, sheltered behind
the customs barriers established by the National Assembly at Versailles
immediately after the Commune, formed a cartel enjoying a veritable
monopoly, and apportioning the different regions of France. These
ten firms did not compete. They fixed their prices in agreement and
shared among themselves the quantities to be sold. It would have been
impossible for an eleventh to establish itself in France without their
consent. In the original cartel of 1885 there were only three members;
round these the other existing refineries grouped themselves in 1893.
Thus the Cartel of Ten was formed:--
_Fenaille et Despeaux._
_Désmarais frères._
_Fils de A. Deutsch._
_Compagnie Industrielle des Pétroles._
_Raffinerie du Midi._
_Société Lille-Bonnières et Colombes_ (_L.B.C._).
_Paix et Cie._
_G. Lesieur et ses fils._
_Compagnie Générale des Pétroles._
_Raffinerie de Pétrole du Nord._
These were the ten firms which, protected by the ridiculously high
customs tariff fixed on July 8, 1871, had monopolized for their own
profit the sale of the petroleum brought in by the then all-powerful
_Standard_. With a total capital not exceeding 100 million francs,
_they made for the ten of them a profit of 50 million francs a
year_.[39] Thus, France paid more for her oil than any other country
in Europe. Protected by its agreement with the trusts by which it
guaranteed them the monopoly of its supplies, the cartel did not exert
itself. We had only 400 tank-wagons, 54 ill-organized depots, and 17
refineries. The process of refining in France has never employed more
than 300 to 400 men, of whom just over a third were specialists.[40]
Their fleet of tankers in 1914 comprised only 14 small boats of 3,000
to 6,000 tons, of which only three sailed under the French flag. The
others were under the British flag "in order to profit by the less
burdensome shipping regulations." It was a veritable humiliation for
France, when, at the beginning of the War, she had to beg Great Britain
to be good enough to return them. Britain had requisitioned them. If
the two countries had not been allied, France would have been disarmed
from the very first day! Eight of these ships were sunk during the War,
and when the cartel was asked to build new ones it refused, "so as not
to give offence" to the great trusts.
Public-domain text, read in full here on John Shaqi.
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