Meyer & Deterding

Warring companies, like warring nations, proclaim slogans, announce positions from which they will never, never recede. Last winter, when the Royal Dutch Shell Oil Co. (60% Dutch, 40% British) declared war on the Standard Oil Co. of N. Y., both contestants stated their cases promptly and publicly. For Dutch Shell, Sir Henri Wilhelm August Deterding shouted "stolen oil" across the ocean to N. Y. The retort was immediate: "The Standard Oil Co. of N. Y. . . . will carry out all contracts into which it has entered, and will not be swerved ... by desperate and destructive measures."

These were the battle cries with which two mighty producers went to war over the Indian market. Standard Oil had bought Soviet Oil, was shipping it direct from Russia to Calcutta, Bombay, Madras. Dutch Shell charged the oil was "stolen" by the Soviet from its pre-Revolutionary owners, including Dutch Shell itself. Determined to keep Russian stolen oil from India, it began a price-cutting war which made Indian gasoline-users chuckle with joy. They were the victors in a contest which was costing Standard Oil something like $4,000,000 annually, costing Dutch Shell perhaps three times as much.

Last week, the Indian market was reported "stabilized." The war was declared at an end. Observers recalled that Chairman Herbert L. Pratt of the Standard Oil of N. Y. had been a recent European tourist, had probably met Sir Henri and patched a peace. Also, the peace follows quickly on the election of Charles F. Meyer to the presidency of Standard of N. Y. Meyer and Deterding had strangely parallel careers, East & West (TIME, April 30).

It seemed reasonable to suppose that Chairman Pratt & President Meyer had offered some concessions and suggested others. For example: 1) withdrawal of Dutch Shell objections to Russian oil in India, together with an end of the price war, and, 2) a promise by Standard Oil to press the Soviets to pay Dutch Shell and other owners for their seized and confiscated property. If that were accomplished, observers noted, Russian oil would no longer be "stolen." Standard Oil no longer would be an international fence in the eyes of Sir Henri. And Standard Oil would "carry out contracts," would not be "swerved by destructive measures."

To many this appeared as peace without victory. Standard Oil and Dutch Shell face each other in nearly every oil-producing country in the world, in the fields of Mexico and Central America, in Argentina, Venezuela, Peru, Persia, the Dutch East Indies, in the U. S. itself.* The Shell Union Corp., American subsidiary of Dutch Shell, has assets listed at $348,129,212, itself produces more oil than the great enemy of its parent company. The war goes on, though quietly. Major battles, with all war correspondents on hand, are perhaps ended.

*A recent contract signed by Dutch Shell and the New England Oil Co. presages a Dutch Shell invasion of New England, highly competitive territory of Standard Oil of N. Y.