Historical Documents - Office of the Historian

Letter from the Government of Danish West Indies, Saint Thomas, February 12th, 1913, to Ministry of Finance submitting application dated 5th instant from the West India Oil Company of New York for permission to establish a station for liquid fuel at Saint Thomas and for this purpose to lay down the necessary conduct pipes from the shore to deep water and to build the requisite quays and docks with appliances, inter alia oil tanks. The said company is apparently almost identical with the Standard Oil Company, their representative, H. A. Lockhart, being the most important merchant of Saint Thomas. Government requests authorization to grant permission applied for, on conditions nearly identical with those on which Anglo-Mexican Oil Company—under which name Mexican Eagle Oil Company now appears—will be allowed if it desires to carry on business here in pursuance of permission contained in Ministry’s cable of November 28th last.

Government is fully aware that the present arrangement whereby vessels must seek anchorage outside the area of the harbor and the roads only in case of distress, see Section 2 of regulations of March 5, 1908, for Saint Thomas Harbor, is narrowing the limits of the harbor, if the traffic should be increased to the degree expected. As may be remembered the western part of the hurricane hole in East Gregori Channel and the western part of Little Krum Bay in West Gregori Channel were mentioned by the Anglo-Mexican Oil Company as one of the places where it might desire to establish its plants; both these places are outside of harbor area.

By letter No. 254 of November 30th last you were informed that the permission granted had been drafted in such a manner that it only concerned the construction in Long Bay while at the same time the company’s representative had been informed that if satisfactory settlement with the owners of the coast along Long Bay should prove impossible we would be inclined to try to settle the matter in some other way. When on January 10th last we received an inquiry from the company as to whether the permission was to be understood in the manner that they were not allowed to use Little Krum Bay which they would prefer, we replied that the permission could not be regarded as being strictly confined to Long Bay but that the Governor would prefer to see the company established there, it being the only tract along the harbor abutting on the coast which might be obtained for purposes of the nature contemplated and that large constructions far from the harbor would entail heavy expense in the shape of police and custom supervision for which the West India Company would probably be responsible.

If the Ministry should authorize the Government to grant the West India Company the permission applied for, such permission would be given on the condition that the place where the company would establish their plants should be previously sanctioned by us and if the company should adopt a place outside the area of the harbor we would furthermore reserve to ourselves the right of [Page 669] charging the company with the expenses to which the State or municipality might be put in consequence thereof.

As to how the constructions thus made outside the harbor are to be finally arranged is a question to which the Government’s attention is already directed but about which no mention will be made until the question is brought into the foreground. At present we only beg to state that we would consider it the best solution that the Gregori and the two Gregori Channels be incorporated in the harbor under the control of the harbor authorities and that future harbor enlargements as far as practicable be constructed within the harbor area thus enlarged. We think it will be necessary to deepen the haulover, i. e., the channel between the harbor and the Gregori to such an extent that steam launches and lighters passing through this channel would be enabled to proceed from one part of the harbor to the other. We suppose that the expenses connected therewith may be defrayed out of the harbor fund. Finally we request the Ministry to state whether permission like the one formerly desired by the Anglo-Mexican Oil Company and now desired by the West India Oil Company may be granted by the local authorities—the Government or the harbor committee or both jointly—or whether the Ministry itself wants to decide upon this kind of application.

We beg to add that it is a matter of course that the Government is willing to support the West India Company in every way possible in so far as such support is compatible with the interests of the town and the harbor but it has often been very difficult because we are so rarely acquainted with the company’s plans. Up to the present time we have only received a scheme for contemplated improvements of Long Bay—enclosed in communication number 483 from the Ministry dated December 5th last—but we know nothing about the other improvements comprised in the abandoned concession which the company intend to carry through now. We take it for granted, however, that the company will deal in liquid fuel but it is not known to what extent. Nor do the Government know whether the company is still desirous of establishing and carrying on a wireless telegraph station. This fact has had the unfortunate consequence that we, on receiving from other quarters a provisional application for the establishment and carrying on of such station, have been unable to take further steps in this matter of such vital importance to the island nor have we been able to give the applicant an encouraging reply. Also some days ago we received an application from E. Svendsen to establish and carry on an electric plant and to supply the town with electric light. Applicant stated that he had spoken to the directors of the aforementioned company on the subject and that they had informed him that they did not intend to supply the town with electric light but beyond this information we do not know anything about the company’s attitude.

We are thus placed in a difficult position; we must either suffer applicant to wait for a reply during the time we apply to the company for information as to its future plans in the applicant’s line, which is somewhat difficult for us to do, if we believe that applicant concerned seems capable of carrying through his proposed plans, and if the said plans seem beneficial to the islands, or, if we grant applicant permission applied for, we may foil the company’s plan, inasmuch as a permission to execute some work is very likely in practice to have the effect of a monopoly although it has never been the intention to create any such monopoly.

Letters of March 19th, 1913, from Ministry of Finance to the West India Company. Ministry of Finance states that an application from the West India Oil Company of New York has been made to construct a station for liquid fuel in Saint Thomas. It says that Government of Danish West Indies would assist Danish West India Company in every way possible if this Government were sufficiently informed as to the future plans and prospects of the Danish company. Therefore the Ministry of Finance asks the Danish company whether it has any objection to make against the permission being granted to the West India Oil Company of New York.

Letter from the Government of Danish West Indies, Saint [omission] March 22nd, 1913, to Ministry of Finance stating that it, on application from Ejnar Svendsen, civil engineer of Roskilde, Denmark, for permission to establish and carry on an electric plant to supply the town with electric lights, has granted [Page 670] him said permission, the Committee for Buildings and Streets having previously sanctioned his application.

Letter from Ministry of Finance, Copenhagen, April 10, 1913, to the West India Company, Limited. Referring to communications in writing of 26th and 28th ultimo dealing with plans referred to in communication of February 12, 1913, which plans you regard as dangerous to the future prospects and objects of the company, we beg to state as follows: If you wish that the West India Oil Company of New York should not be granted permission applied for to establish oil tanks, we are willing for the present to meet such wish on your part but in that case we must request you to state by whom and in what manner it is thought desirable to establish the oil tanks. Also please inform us of your plans if any to establish wireless telegraphy in Saint Thomas.

Concerning the establishment of electric plant, we do not at present intend to grant such permission except to you—a single person including a joint stock company may be allowed to procure their own supply—and upon the whole no permission will be given for the establishment of works of this kind without consulting you. Furthermore it will be out of the question under the present circumstances to undertake enlargement of Saint Thomas Harbor or its district.

Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 4, 1917

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