Royal Dutch Withdraws

The Royal Dutch-Shell oil combine, greatest competitor of the Standard in the international petroleum field, owns oil properties all over the world. In 1919 the Anglo-Dutch group decided to invade the U. S. field in a large way and purchased 130,869 shares of the Union Oil Co., through its subsidiary, the Shell-Union, for about $21,000,000. This, however, constituted only 26% of Union's stock, and Sir Henri Deterding, head of Royal Dutch, resolved to obtain 51% to control the Company. But several large Union stockholders, alarmed at the foreign invasion, organized the Union Oil Associates of California and pledged themselves not to sell their stock to the foreign companies. Under these circumstances, Sir Henri found it impossible to carry out his plan and he has finally decided to sell out his Union Oil holdings, consisting of 235,565 shares, and employ the funds in the Russian oil fields. The Wall Street firm of Dillon, Read & Co. have purchased the Union shares, and except for a few small subsidiaries Royal Dutch has been prevented from gaining a foothold in the American oil fields. Incidentally, Sir Henri was reported to have sold his Union stock for about $10,000,000 more than he paid for it.

The bitterness of the fight waged by American oil interests against the Royal Dutch has arisen from the latter's opposition to the entry of U. S. companies into foreign fields which it controls.

Union Oil of California is one of the largest independent producers on the Pacific coast, and owns extensive acreage in California, Wyoming, Texas, Colorado, Utah, Mexico and Colombia, S. A.