This piece began in KTB #153.

In the US, gasoline had been more than $2 per gallon in some areas. In Germany, gas had cost about 2 Marks per liter, a liter is a little more than a quart, a Mark is equal to about 50 cents, making gas in Germany equal to about $4/gal. Who is responsible?

Obviously, the big oil companies are trying to maximize their profits - but this is not the first time. Who can remember the so-called 'Arab Oil Embargo' of 1973? I remember it well, because I was Inventory Control Director at the corporate level of a major petrochemical company and I can assure you, there was no shortage of feedstock or petroleum at all. This contrived shortage allowed the company to raise their prices by 500% on both their industrial chemicals and the consumer products, including a nationally known brand of automotive anti-freeze. These products all use feedstock coming from petroleum and it was never in short supply.

Who gave us WWII? It was the 'Seven Sisters" in part. The 'Seven Sisters' were the world's petroleum companies, of which Standard Oil was the largest. The Chief Executive Officer of Shell Oil was so pro-Nazi that the British Government had to force him out in order to get fuel for their own military. In an interview in LIFE Magazine in 1940, the Chief Executive Officer of Texaco (Thorkold Reiber) stated that if any German U-boat Skipper saw a Texaco tanker helping the Allies, he had Reiber's permission to sink the Texaco tanker. But perhaps the one that made the most profit out of these world events was Standard Oil, today known as Exxon. When the German Luftwaffe bombed England during the Battle of Britain, they got fuel from Standard Oil. When the RAF went up to protect their homeland, they got their fuel from Standard, When the Japanese attacked Pearl Harbor, they had fuel from Standard Oil in their tanks. CHARLES HIGHAM (35-1984) put all this in his book Trading with the Enemy but there is more -- and it is in the records of the United States Senate! What you read in this piece comes directly from the testimony of Hearings before a Special Committee investigating the National Defense Program during the 77th Congress, pursuant to Senate Resolution #71 in 1942.

The Committee met at 10:38am pursuant to adjournment on Friday, March 27 in Room 318, Senate Office Building with Senator James M. Mead presiding.

Acting Chairman Mead: (interposing) “We are not singling you out because you had a Wolf who got into the W.P.B. He may be a very fine man.”

Senator Connally: “The implication was that he was just wearing wolf’s clothing.” (laughter)

Acting Chairman Mead: “But was a sheep at heart.”

Mr. Farish: “Yes, and we resent the implication, Senator. I would like to make this statement for the benefit of the record right here. In my opinion, this war that we are fighting is a war of production. It is a war that can be won only by industry and labor working together. It is perfectly obvious to any thinking man that this Government cannot make a major effort in this war without the benefit of the help of the technical organization and brains in industry. That is why they are in Government. That is why there are dollar-a-year men in Washington. They simply would be stalemated in their efforts to carry on the war without these men. I want to say to you that if you want to lose this war, send them from Washington, take them away; your production will fall down and your war effort will fall down.

EDITOR NOTE - is there a thinly veiled threat here?

Mr. Farish: (continuing) “I want to say to you that they are volunteers just as much as anybody is volunteering in this war and it doesn’t come to my mind that they should be criticized for their volunteering and for their war efforts. The only way you can do it otherwise gentlemen, is to enlist, if you please, everyone - take away private rights of every citizen of the United States and put them in the Army or the Navy - with with Senators, Congressmen and everybody else going into the war effort. That is the only way you are going to get along without volunteer men from industry helping to fight the war in this preparedness effort.”

Acting Chairman Mead: “We haven’t any objection to the volunteer men of industry coming in to help the war effort. There may be a division of opinion as to where their allegiance is in some instances, and there may be a difference of opinion as to the salary that they are to be paid by the Government. But some instances this committee found in the very beginning of its hearings that they were not as interested in expanding production and in bringing competition into production as they should have been.”

Mr. Farish: “I am not going to query that. I am only dealing with the principle.”

Acting Chairman Mead: “All right, you may proceed.”

Mr. Farish: “Next; offer to buy Hungarian properties. In the latter part of 1940 we received inquiries originating with I.G. regarding the possibility of purchasing MAORT, our subsidiary engaged in producing crude oil in Hungary. In July 1941, a representative of Standard discussed the matter with a representative of I.G. in Rio de Janeiro. The final offer by I.G. was $24 million in gold to be delivered to us at Lisbon. And I offer this for the record. We kept in close contact with the State Department throughout the negotiations, fully informing it of all developments. On July 30, 1941, application was made to the Treasury Department to consummate this deal, but was denied. On August 19, 1941, the matter was referred to the Economic Defense Board with the knowledge and approval of the Treasury Department. In a memorandum accompanying the letter of reference to the Economic Defense Board, we pointed out that in our opinion, sale of the Hungarian property would be desirable because, with the German domination over Hungary, the property would be taken by Germany if and when needed regardless of ownership; that if Germany should need Hungarian oil, the fields would be produced uneconomically, thus quickly destroying their value; and that even should the war end fairly soon, the Hungarian property probably could not be operated profitably to the American stockholders. We stated that we would not consider under any circumstances anything which might be inimical to the interests of the United States. But our view was that the United States would be the gainer to the extent of whatever we might be able to realize from the Germans for this property. We assumed $24 million in gold brought to the United States would be a gain rather than a loss.”

Mr. Fulton: “Is that French gold?”

Mr. Farish: “It was going to be paid by the Germans. I don’t know whose gold it was.”

Mr. Fulton: “I asked that question because in connection with certain matters that I studied some time ago, I didn’t believe Germany had that much gold.”

Mr. Farish: “Of course, I can’t answer that, Mr. Fulton. It was offered to us at Lisbon, and we had no way of knowing whose gold it was.”

EDITOR NOTE - Accepting $24 million in gold, not knowing or even caring whose gold it was - sounds fishy.

Senator Connally: “Gold is gold, no matter who it belongs to.”

Mr. Farish: “So our Treasury seems to think, sir. We buy it from anybody and everybody.”

Mr. Fulton: “There might be some question as to the title of that gold, though, I assume.”

Senator Connally: “We will have to subpoena Hitler and find out about that.”

Mr. Farish: “Probably. On September 22, 1941, we were advised that our application to the Economic Defense Board was not approved. This ended the matter. We lost the sale, and the Government of the United States lost the $24 million in gold. Next, the French hydrogenation; prior to the outbreak of the European war………….”

Senator Burton: (interposing) “Mr. Farish, excuse me, but before leaving that Hungarian property matter, what has happened to those Hungarian properties now?”

Much as Mr. Farish, President of Standard Oil (New Jersey) tried to change the topic away from the proposed sale of the Hungarian oil field to the German Government, the Senators keep bringing him back to the question of Standard Oil wanting to sell their oil fields to the German Government -- and seeming not to care which country’s treasury had been plundered, just so that Standard Oil got their $24 million in gold.

Back in 1941, $24 million was a huge sum of money, probably several billion in today’s money. Today, petrochemical plants cost hundreds of millions of dollars to build. Perhaps this will give the reader some idea of the stakes Standard was playing for.

Mr. Farish, backed by Mr. Howard, appears to be alternating between being sarcastic to the Senators, or sometimes being very conciliatory, as the mood appears to be blowing.