World War

Facts: The Standard Oil Co. of New York declared war on the Royal Dutch Shell Oil Interests, British controlled colossus of foreign oil production.

Standard Oil issued a statement to the press, strange move for this close mouthed group. Saying:

1) Shell has inaugurated a price-cutting war in India which will cost them $12,750,000, will cost Standard $4,000,000.

2) Shell is agitating for tariff restrictions in India which will virtually oust Standard from the great Indian market.

3) Shell invites war because Standard of N. Y. buys oil from Russia. Russian oil on the Indian market competes closely with Rumanian oil shipped there by Shell. Shell refuses to buy Russian oil on moral grounds, saying that the Soviet Government's confiscation of oil properties in Russia was thievery. Placards have been posted in Shell offices: "We do not sell stolen oil."

4) This attitude is shameless hypocrisy. Standard has proof that Shell did everything in its power for seven months in 1926 to obtain a monopoly for the sale of Russian oil. Shell failed. Shell invited all oil interests to refrain from selling Russian oil. Standard of N. Y. refused.

5) Standard of N. Y. sees no reason for cutting its own throat by rejecting Russian oil, the U. S. State Department has approved trade with Russia. Standard of N. Y., having no Rumanian oil rights, must buy Russian oil to maintain its position in the Eastern market. Standard will fight Shell.

Significance. Billions of dollars are concerned; an international trade rivalry as bitter as any clash of armies. Usually the great oil powers respect each other's prices, markets, territories. Shell is rival of Standard of N. Y. and the powerful Standard of New Jersey (a separate concern whose attitude in the controversy is not yet clear) for oil control of the world. The price war may foreshadow a far reaching, dangerous disagreement with jealous, potent British commercial interests.