1912 36 francs
1918 83 francs
1919 126 francs
1920 398 francs
And they rose to 712 francs in 1919 and 738 francs in 1920! Since then they have depreciated considerably, as have all oil securities. Skilful man[oe]uvres on a large scale provoked a panic among holders of Mexican shares, which made it possible to buy them at a low price, and led to important operations on the Stock Exchanges, beginning in December 1921 in New York.
In June 1919 Deterding offered Lord Cowdray £6 a share; he accepted. The Shell Transport took one million, the Royal Dutch a million and a half.
If Pearson consented to get rid of the controlling interest which he had in the vast undertaking founded by his genius and perseverance, it was by reason of the enormous sums which had to be found before the immense resources contained in the oil-bearing properties of the Mexican Eagle could be turned to account. It can only handle 111,000 barrels a day, whereas, since the discovery of the oil-fields of Zacamixtle and Naranjos, its production could be increased, if it were desired, to 700,000 barrels a day, that is, about 110 million litres or 110,000 tons a day. In order that non-specialists may understand the importance of such a yield, we may say that one gallon contains 4.546 litres, one barrel (36 gallons) contains 163.655 litres, and that six barrels represent one ton. The Eagle's first well, which gave, to begin with, 100,000 barrels a day, thus yielded a daily production of 16,000,000 litres or 16,000 tons of oil. And it continued to yield large quantities—diminishing progressively, be it understood—until November 1919, when it was invaded by salt water.
The Shell intends to spend several millions within the next five years in order to triple the output of the Eagle. Very shortly the development of its installations will allow of its refining 140,000 barrels daily, and it is clear that, some time hence, the enormous figure of 200,000 barrels daily will be reached, that is, 5 million barrels a month against the present 2-1/2 million. The Shell's engineers will not push its exploitation to the maximum possible, for they wish to make the Eagle last half a century.
In acquiring control of the Compania Mexicana de Petroleo El Aguila (the true name of the Eagle) the Shell had in view simply to ensure a sufficiency of liquid fuel for the British Navy. For the Mexican Eagle will soon hold one of the first positions among the world's producers. Before long it will furnish, by itself alone, one-third of the Mexican production. The capital of the Shell was increased in 1919 simply with the object of hastening the development of the oil-fields it controls. In view of the considerable increase in Britain's need of petroleum we may believe that patriotism was Lord Cowdray's motive also. However it may be, the negotiations were concluded in June 1919, and it was a master-stroke on the part of the Royal Dutch-Shell group, for its position was greatly strengthened by this association, which increased its production of oil by 50 per cent. Moreover, the Royal Dutch-Shell made a very successful deal, since the shares bought at £6 each are now worth double on account of the increase of capital at par in January 1920 and the new increase in January 1921 under the same conditions, that is, one new for two old shares at par. Since the Mexican Eagle came under the control of the great Anglo-Dutch trust it has benefited by the incomparable selling power of the Shell: the great shipping companies, the Pirrie and the Furness-Withy groups, and the Argentine railways immediately concluded with it important contracts for the supply of oil. And this alliance brings the Eagle practically unlimited financial resources.
Financial Results of the Mexican Eagle for Eleven Years
| Year. | Gross Profits. | Net Profits. | Sinking Fund and Reserves. | Dividend. |
| $ | $ | $ | Per cent. | |
| 1911 | 1,974,000 | 874,000 | 194,000 | 8 |
| 1912 | 5,703,000 | 4,265,000 | 2,920,000 | 8 |
| 1913 | 10,488,000 | 8,166,000 | 3,551,000 | 8 |
| 1914 | 13,005,000 | 9,689,000 | 5,857,000 | 8 |
| 1915 | 14,676,000 | 11,215,000 | 6,562,000 | 8 |
| 1916 | 18,082,000 | 17,064,000 | 8,259,000 | 16 |
| 1917 | 20,521,000 | 12,948,000 | 6,922,000 | 20 |
| 1918 | 28,857,000 | 15,860,000 | 19,830,000 | 25 |
| 1919 | 36,868,000 | 29,508,000 | 11,050,000 | 45 |
| 1920 | 59,453,000 | 54,659,000 | 8,952,000 | 60 |
| 1921 | 81,982,000 | 69,083,000 | 34,879,000 | 30 |
The balance-sheets of the Mexican Eagle are expressed in Mexican gold dollars. The Mexican dollar, which, on the gold basis, is worth about half a dollar, was equivalent, at the rate of exchange of January 1, 1921, to:—
8.50 francs.
2s. 9d.
0.495 dollar.