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.

This is from the report dated Tuesday, 31 March 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.

This piece began in KTB #153. In last month’s KTB, it appeared as if Standard Oil thought they were going to get ‘something for nothing’. Let’s see.

Mr. Fulton: “You would prefer to go through with a $24 million transaction without having it submitted for income tax advice?”

Mr. Farish: “Yes, sir; because we thought we were getting something for nothing. Our properties are gone, anyway.”

Mr. Fulton: “Are they, necessarily?”

Mr. Farish: “It looks like it. They won’t be worth anything when we get them back, if we ever get them back.”

Mr. Fulton: “Why wouldn’t they be worth anything?”

Mr. Farish: “They would be dissipated. These oil fields would be dissipated and ruined.”

Mr. Fulton: “You have no faith then, in the United States being able to assist its citizens in recovering their properties that are unlawfully taken?”

Mr. Farish: "No, the point I am taking Mr. Fulton, is that these are producing oil fields, and if this war lasts several years, these oil fields will be dissipated & the properties will be of little value.”

Mr. Fulton: “You have a claim against the Hungarian Government which you consider would be of little value?”

Mr. Farish: “That is correct, sir.”

Mr. Fulton: “But did you not submit this to lawyers for tax purposes?”

Mr. Farish: “I don’t know how thoroughly it was studied for tax purposes or not. All I know, from my point of view, is that the $24 million represented a good bit more than the cost of the properties, and therefore we would have had a gain and we would have had to pay taxes.”

EDITOR NOTE – Amazing that the President of Standard Oil (New Jersey) would appear before the United States Senate to discuss this critical situation of their trying to sell their Hungarian oil fields to the Hitler Government – and he didn’t know if Standard had even asked their tax attorneys to look it over?

Acting Chairman Mead: “In view of the fact, Mr. Farish, that you take issue with the Treasury Department and contend that they made an unwise decision, the Committee will ask them for their side of the controversy.”

Mr. Farish: “All right, sir.”

Acting Chairman Mead: “Any further questions?”

Mr. Farish: “Senator, may I state my contention was that the decision was unwise for us. I don’t know how wise it was from a Treasury point of view.”

Acting Chairman Mead: “Of course, you left the impression a moment ago that it was an unwise decision on their part.”

Mr. Farish: “I didn’t mean to…..”

Acting Chairman Mead (interposing): “I think the record…...”

Mr. Farish: “…..leave that impression. The point I am trying to make is that up to that time these arrangements had been approved. In our case they were not approved.”

Acting Chairman Mead: “I was just answering your first thoughts, not your afterthoughts.”

Mr. Farish: “I meant no reflection.”

Acting Chairman Mead: “All right.”

Acting Chairman Mead (again): “In view of the fact that we have an important calendar on this afternoon, the Committee will adjourn until tomorrow, to meet in this room at 10:30, and we will have to advise Mr. Jones that his appearance will be put off until Thursday.”

Wow! If this doesn’t sound like some old-fashioned snake-oil peddler……….. Well, we’ll have more on this another time.