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judgment was not something they wouldn't say was in the welfare of the United States.
Senator KEFAUVER. According to the 1956 issue of Lamp magazine, here, apparently, is what Standard Oil wants done in situations of this kind :
It would be helpful, for instance, if the United States Government were to issue, in conjunction with expressions of support for self-determination and freedom from foreign domination, a firm, unequivocal public statement somewhat in the following vein :
“Any government which by unilateral action abrogates any agreement made by that government may expect the United States, either singly, in conjunction with other countries, or through the United Nations, to take such economic measures and abrogate any agreements with the offending nations as the United States may see that the circumstances warrant."
That is your position?
Senator KEFAUVER. And that represents the policy of Standard Oil of New Jersey
Mr. RATHBONE. What that says, Senator Kefauver, is this: That at the time that this was written, there was a very great uncertainty with respect to what our Government's policy was in the Middle East problems, and there had not come out any sort of a definite policy.
It was our view and the view of many other people that a clearer cut knowledge on the part not only of the United States citizens, but the citizens of all the rest of the world, and most particularly in that area of the world, would be very helpful so that they would know what our thinking was.
Now, as Mr. Coleman has said, when we operate in a foreign land, we have to do it under a contract with a sovereign government, because the mineral rights in almost every other country in the world belong to the government and not to the private citizen. We have no option except to formulate a contract with the government.
If the government, the foreign government, does not regard that contract as being the sort of a document that we are accustomed to looking at as contracts in this country, and that means a contract is a document that you can rely on as being something binding upon both parties, I fail to see how we can possibly carry on operations anywhere in the world where we have to work with those types of contracts.
That statement was a statement that we felt would be very helpful, and I still think it would be very helpful. I subscribe to what that says, if our Government would make clear what its views are with respect to the sanctity of contracts made by American investors with foreign governments.
Senator KEFAUVER. Of course, such economic measures, abrogating any agreements with the offending nations—anyway, I want to get your attitude and your position, and I find in the Lamp a very interesting and illuminating doctrine that you publish.
Mr. RATHBONE. I subscribe to the paragraph, sir that you have read.
Senator KEFAUVER. Then we know your position.
Senator OʻMAHONEY. Is there anything else you want to say, Mr. Rathbone? Your statement is in the record. It has not been summarized. It has not been read.
Mr. RATHBONE. I presume, sir, that I will think immediately of some things I would like to have said, but, at the moment, no.
Senator OʻMAHONEY. We are very generous people on this committee. If you want to come back again, we will invite you.
Mr. RATHBONE. Are we invited back tomorrow or not?
Senator O'MAHONEY. We are under some obligation to the Gulf Oil Co., because we invited the Gulf people to come tomorrow, and I feel that we are under that obligation, but, if you are staying over, we would love to crowd you in somewhere.
Mr. RATHBONE. I am not staying over unless I am requested to by you, sir.
Senator O'MAHONEY. Suppose you take this matter under consideration and we will bring you back again after a few more days. We want to give Aramco a chance, now that it has been mentioned here.
Mr. RATHBONE. I would much prefer if I could do that sooner rather than later, because I have to make a trip abroad next week, which I would like very much to make.
Senator O'MAHONEY. We will be very glad to accommodate you.
Mr. RATHBONE. I would like to make clear, sir, at the moment, beyond the information which we have been asked to put in the record and particularly the statement which Senator Wiley asked for, I have nothing further to present to you.
Senator O'MAHONEY. Are you satisfied you have had an opportunity to express your views?
Mr. RATHBONE. Completely, yes, sir.
Senator OʻMAHONEY. Very good. Then the committee will now stand in recess until 10:30 tomorrow morning.
(Whereupon, at 6:35 p. m., the subcommittees stood in recess until 10:30 a. m., Thursday, March 7, 1957.)
EMERGENCY OIL LIFT PROGRAM AND
RELATED OIL PROBLEMS
THURSDAY, MARCH 7, 1957
UNITED STATES SENATE,
OF THE COMMITTEE ON THE JUDICIARY, AND
SUBCOMMITTEE ON PUBLIC LANDS OF THE
Washington, D.O. The subcommittees met, pursuant to recess, at 10:35 a. m., in room 457 Senate Office Building, Senator Joseph C. O'Mahoney presiding.
Present: Senators Kefauver (chairman), O'Mahoney (presiding), Wiley, and Dirksen, of the Subcommittee on Antitrust and Monopoly of the Committee on the Judiciary.
Senators O'Mahoney (chairman of the Subcommittee on Public Lands), and Carroll, of the Subcommittee on Public Lands of the Committee on Interior and Insular Affairs.
Committee and subcommittee staff members present: Donald P. McHugh, cocounsel, Antitrust; James De Maras, Jr., research consultant Public Lands; Gareth Neville, assistant counsel, Antitrust; W. B. Watson Snyder, consultant, Antitrust; Peter Chumbris, counsel for minority, Antitrust; Carlile Bolton-Smith, counsel to Senator Wiley, Louis Rosenman, attorney, Antitrust; Paul Banner, economist, Antitrust.
Also present: Robert Murphy, professional staff member, Senate Interstate and Foreign Commerce Committee; and Stewart French, chief counsel, Senate Committee on Interior and Insular Affairs.
Senator O’MAHONEY. The committee will be in order.
Mr. McHugh. There are four witnesses from Gulf Oil Co.—Mr. Whiteford, president, Mr. R. O. Rhoades, senior vice president, Mr. C. J. Guzzo, vice president, and Mr. Ray McGranahan, vice president.
I think Mr. Whiteford has a prepared statement to give. I think all four witnesses could come to the table together for questioning.
Senator O’MAHONEY. Please do so, gentlemen.
Senator O'MAHONEY. You may proceed. If you prefer to make the statement without interruption, that will be the order of the day. If you are willing to have questions asked as you go along, that could be the order of the day.
Mr. WHITEFORD. Senator, I think it may save your time and be helpful to youI don't have a long statement-if I could read the statement and then, when the questions are asked, there will be, I know, a number of questions that I can't answer as well as some of my
leagues, and I think it would save your time and probably make a clearer picture if that is agreeable.
Senator O'MAHONEY. Very well, you may proceed.
STATEMENT OF W. K. WHITEFORD, PRESIDENT, GULF OIL CORP.,
PITTSBURGH, PA.; ACCOMPANIED BY R. O. RHOADES; C. J. GUZZO; RAY MCGRANAHAN; W. B. EDWARDS; AND F. L. SCOFFIELD
Mr. WHITEFORD. My name is W. K. Whiteford. I am president of Gulf Oil Corp. I welcome the opportunity to appear before you and comment on many issues and reply to statements which tend unfairly to discredit the oil industry in the eyes of the American public. I believe Gulf's policies as concern our contributions to the program for shipment of oil to Europe since the Suez Canal crisis, the pricing of crude oil and products, and imports are all on a sound footing.
The Middle East Emergency Committee functions at the express request of the Government. Congress enacted the statute which permits continuance of the petroleum industry voluntary agreement relating to foreign petroleum supply in the public interest as contributing to the national defense. The Attorney General reviewed and approved both the amended voluntary agreement and the plan of action for the organization of MEEC. The Middle East Emergency Committee, acting within the limits set by the Government, can only develop facts and make recommendations for the Government's use. Action by member companies is carried out only after the Government has approved schedules for the same. Government representatives watch in the everyday operations of this committee and they have every opportunity to be intimately acquainted with all of its proceedings.
Frankly, we would prefer not to be a participant in either the voluntary agreement or MEEC, but in view of the Government's request for cooperation we feel it is a duty and we cannot rightfully refuse. At the same time, we do not believe the sort of criticism that has been leveled at Gulf and other companies for so doing is justified in any degree.
Gulf has made and will continue to make arrangements for substantial shipments of oil to Europe. Out of our domestic inventories alone, we made available during the last quarter of 1956 an average of 67,400 barrels daily, totaling 6,250,000 barrels of crude and finished products for Europe. Of this total, 98.5 percent was crude and only 1.5 percent was finished products.
In the last few weeks our refinery runs have beeen reduced 60,000 barrels daily, which has been or will be made available for shipment to Europe. For the month of January we made available out of domestic supplies an average of 68,000 barrels daily, totaling 2,103,000 barrels of crude and finished product for Europe.
In addition, we have cooperated with MEÈC in making arrangements with other oil companies whereby transportation saving in tanker time has been accomplished through rearrangement and substitution of ships and sources of crude, both domestic and foreign, making possible shorter hauls to Western Europe, resulting in an overall increase in crude availability. I will give you some examples of what we have done.