The Daily News. THURSDAY, APRIL 16, 1914. A PETROLEUM WAR.

Taranaki Daily News, Volume LVI, Issue 271, 16 April 1914, Page 4

The Daily News. THURSDAY, APRIL 16, 1914. A PETROLEUM WAR.

A very unique triangular contest that has arisen is deserving of notice because of the light it throws on the importance attached to the obtaining of supplies of petroleum at a reasonable price. Tho parties to the contention are ihe Government of Germany, the Standard Oil Company and the Government <-!' the United States; and the dispute arose in the ' n: I'liiKaiser's* Ministers are promoting a Bill in the Reichstag the object of which is to create a Government monopoly in the supply of petroleum. The Bill lias reached the committee stage, but is not expected to become law during the present session. It is proposed under this measure that the State shall acquire all the properties of the Standard Oil Company's Gorman branch, more especially its elaborate distribution system, at an "equitable" price, though it would seem that this price is to be fixed by the State, and the American corporation would either have to take it or leave it. In any case, the proposed law will make it illegal for the Standard Oil Company or any of its affiliations to sell illuminating oil in the German market. As the illuminating oil trade is by far the most profitable portion of the Standard Oil Company's business in Germany, this prohibition would practically mean the driving of the Company out of the country. The members of the Reichstag are not unanimous in supporting the proposal. Tho main argument in support of the Bill is! that the Standard Company's monopoly menaces the entire eoonoinic life of the community; but to this \ho Social Democrats and a feW others retort that a State monopoly would probably prove more oppressive than that of the American corporation. A more cogent reason against driving the Standard people out of the country is the probability of reprisals which might make it impossible for the German army and navy to obtain necessary supplies of oil fuel in time of war. At present petroleum is not produced in any part of the German Empire, and in the possible event of Germany being at war with Russia and Britain, she would have to rely' upon America for oil supply. As if this dilemma were not puzzling enough to Germany, a new factor has suddenly entered jnto the case—the United States Government, The Germans appear to have assumed that the Americans would make no effort on behalf of the Standard Oil Company; but, whatever enmity there may be between the American people and the Rockefeller monopoly, the position is entirely changed when a third party interferes, and the interloper (as in the case of a quarrel between man and wifef is likely to have both parties combine against him. It is reported that the United States Government is not disposed to leave the Standard Oil Company to tho tender mercies of the Germans, It is held at Washington that the proposed German method of buying out the Sta»dnrrf Oil Company is of. a purely confiscatory character, and as such is a violation of the trading lights of American citizens. It is a very pretty quarrel as it stands. It may be recalled that the late Mr. Seddon at one time talked of something like a Government monopoly of the petroleum business in New Zealand; but, for some reason or other, the idea [never took practical shape. The development of the oil resources of the Dominion was doubtless felt to be the best method of meeting the Standard's monopoly. The report that large petroleum deposits have been dis«overed in German New Guinea may have a modifying effect on the policy of the Kaiser's Ministers; but perhaps the prospect of a vigorous protest from Washington will prove to be a more powerful deterrent | and one that will effectually kill fh e suggested State monopoly. '