Germany May Seize Standard's System.

New York Times 100 years ago today, October 20, 1912:
Oil Trust Must Agree to a Settlement, Says Dr. Schwarz, Who Led the Campaign.
ITS METHODS INTOLERABLE
Government Has Contracts with Independent American Producers in Case Monopoly Bill Is Passed.
Special Cable to The New York Times.
    BERLIN, Oct. 19.— "The German Government's determination to crush the Standard Oil monopoly in the Fatherland was brought about solely by the trust's merciless fight on the oil dealers of this country," said Dr. Paul Schwarz, editor of Petroleum, the official organ of the German oil trade, in an interview with The New York Times correspondent. Dr. Schwarz may be described as a pioneer in the movement, which finally ended in the Government's decision to establish a State monopoly. For years he carried on a crusade designed to arouse public opinion against the Standard's competitive methods. He has frequently been consulted by the Government as to the best way and means of fighting the Standard, and undertook a mission to the United States in 1910 for the purpose of acquainting himself with the situation there.
    "The cries of distress, which for months have been sent up by our oil trade," said Dr. Schwarz, "could no longer be ignored. It was not a question of the price of oil. There was no complaint from consumers on that score.
    "The reason the Government has been moved to take the drastic action of establishing a monopoly is that the Standard is throttling the life out of thousands of German citizens, who are deprived of the possibility of longer conducting an independent, self-respecting business in their own trade. They find themselves reduced to economic serfdom. Men who once had prosperous little oil businesses of their own have now the alternative of becoming drivers of the oil wagons owned by the Standard. They are asked to come down from the rank of business men to the level of peddlers. "This is the state of affairs to which the Standard's highly organized campaign has reduced our oil trade. Their so-called can business has been developed to a point where they reach practically every individual consumer at his own threshold.
    "By a system of speeding up the local representatives through its offers of premiums, the Standard has spread its nets so thoroughly that no competition can any longer stand against it.

Made The Empire Its Claim.
    "The Standard has taken the map of Germany and staked the entire empire out as its own particular claim. No hamlet is too small to merit the octopus's attention. The result has inevitably been the destruction of the small dealer.
    "Although itself the classic land of organization, Germany is not accustomed to such methods in the pursuit of business. This sort of Americanization is offensive to our ethical susceptibilities, quite apart from the economic ruin it brings to thousands.
    "Our people and Government have for years been bombarded from all quarters for remedial measures. It had no longer any recourse but to proceed by the furthest-reaching means at its command to rid the country of a system, which was eating the heart economic body.
    " It is by no means certain that the Government's bill for the establishment of a monopoly will be passed by the Reichstag. Important members of the Roman Catholic Centre and the out of an important section of our Social Democratic Parties are opposed to it. These two parties together comprise a majority of Parliament, and it would lie in their power to compass the bill's defeat.
    "But the agitation, which has finally brought the monopoly project into tangible form, will, at least, have had the effect of calling national attention to the evil which it is desired to suppress. Whatever happens, it is certain that the Standard in the future will proceed less relentlessly in its greedy campaign lor unlimited conquest."
    At present, according to Dr. Schwarz, Germany's petroleum requirements amount roundly to 1,000,000 tons a year. About 800,000 tons are imported from America, mostly of Standard origin. The rest comes from Russia, Rumania, and Galicia.
    "It is figured," said Dr. Schwarz. "that the American independents might be able to supply 250,000 tons alone, and that under pressure an increased exportation from Russia, Rumania, and Galicia might eventually be able to supply with 10 per cent. of the balance, assuming that the Standard was left entirely out of consideration. That, however, is exactly what is not intended. The Standard can continue as before to be a seller of oil in the German market, but only through a chartered company, on which alone the right to traffic is to be conferred.
    "It is hoped that an amicable arrangement will be made with the Standard not only for the purpose of obtaining supplies, but also for the acquisition of their magnificent distributing plant.

Must Yield or Forfeit Property.

    "If matters should reach a point where the Standard would refuse to agree to an amicable settlement the Government would have the right of expropriation, and would undoubtedly exercise this right as a last resort. "Nobody is impressed by the Standard's reported threat to invoke the diplomatic support of the United States Government to ward off the German State monopoly. Our Government's position is that no discrimination against American trade or American oil, as such, is intended or can possibly take place.
    "Our complaint is simply against the outrageous tactics which the Standard has introduced into the German business world. To stamp out those practices has become a plain Government duty. We are approaching the task in what seems to our authorities the sanest and plainest method."
    When asked what the effect on the price of petroleum would eventually be, Dr. Schwarz: said:
    "The price limit will undoubtedly be fixed by the Government. It is expected eventually, though perhaps not at first, to be able to sell at about the price now prevailing, but the interests of the consumer are not the principal thing at stake. The main objective is to put an end to the demoralization in business tactics which the Standard has introduced."