The Standard still has the preponderance in the United States, where the Shell only appeared in 1900, but it is far from controlling 86 per cent. of the output, as it did at the height of its power in 1911. It has been much too negligent about extra-American oil deposits.
In 1890 a representative of the Standard Oil was in Java, studying the oil situation in the Far East. He urged the Standard to establish itself there before any competitor appeared. Hypnotized by the American market, it refused.
In a similar way it came into Rumania too late, and controls only 10 per cent. of the total output, while the Royal Dutch controls 31 per cent. In Mexico the Standard also met with the competition of the Royal Dutch, which, in combination with British interests, takes 40 per cent. of the production. In Russia its rôle is insignificant.
This state of affairs has been brought about by the errors of judgment of the directors of the Trust. The power of the Standard Oil has diminished, and it no longer exercises a really effective control except within the United States. Even this control the Royal Dutch is striving to filch from it. The latter has just formed a new trust, uniting the companies hitherto independent: the Doheny group and the British Pearson syndicate, the Associated Oil, the Oklahoma Producing and the Oil Union of Oklahoma, with six or eight other undertakings which have been successfully conducted during the last few years. The Shell is trying to bring in the Mexican Petroleum Company of Delaware,[12] a sister company to the Eagle and the greatest producer in Mexico, which has up to now remained faithful to the Standard Oil. That is why it bought up large quantities of Mexican Petroleum stock in May 1919 on the New York Exchange. If it succeeds the Standard will see its remaining share in Mexico yet further diminished.
This new Trust has the financial support of the Morgans. It is particularly directed against the Standard Oil.
These facts are very little known in France. The Royal Dutch is about to launch a new attack on the Standard, or to acquire an interest in a Trust destined to combat it, which will perhaps end by grouping under its ægis all Rockefeller's competitors.
The Pearson syndicate, under Lord Cowdray, has joined the Royal Dutch. Now, Mr. Doheny himself is coming in too.
The great oil International develops continuously. Where will it end? Already the Standard Oil produces no more than 17 per cent. of the oil of the United States—it is true that it has always disdained the extraction of petroleum—but it refines only 49 per cent., which is a much more serious matter.
Rapid Increase in the Activities of the Royal Dutch
Production
1910 1,600,000 tons
1913 7,000,000 tons
1920 15,000,000 tons
Net Profits
1907 13,000,000 florins
1915 29,000,000 florins
1920 130,000,000 florins
Dividends
1907 27-3/4 per cent.
1915 49 per cent.
Authorized Capital
1890 1,300,000 florins
1902 7,500,000 florins
1910 50,000,000 florins
1911 100,000,000 florins
1916 150,000,000 florins
1918 230,000,000 florins
1919 400,000,000 florins
1921 600,000,000 florins