Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 4, 1917
File No. 711.5914/149
Minister Egan to the Secretary of State
Copenhagen, August 31, 1916.
Sir: Referring to the Department’s telegraphic instruction No. 150 of August 18, 1916, and to the Legation’s telegram No. 329 of August 25, 1916, I have the honor to transmit herewith copies and translations of the four letters referred to in the letter of the Minister of Finance of April 16, 1913.
I have [etc.]
The Government for the Danish West Indian Islands
The Government begs to submit application dated 5th inst. from the West India Oil Company of New York for permission to establish a station for liquid fuel at St. 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 Government begs to state that the said company, as far as we know, is almost identical with the Standard Oil Company, and that their representative, Mr. H. A. Lockhart, is the most important merchant of this town.
The company, being known as a large and influential concern, it may be taken for granted that, if it should make our city its place of residence, it will draw much shipping trade to this town, in consequence of which we beg to request that we should be authorized to give the permission applied for, on conditions nearly identical with those on which the Anglo-Mexican Oil Company, under which name the Mexican Eagle Oil Company now appears, will be allowed, if it desires, to carry on business here in pursuance of permission contained in the Ministry’s cable of November 28 last.
If the Ministry of Finance might wish to comply with the said company’s request, viz.: to be informed by wire of the permission, if such will be given, we beg to add that a cable containing the word “Grant” will be understood in the manner that we (the Government) have been invested with authority in this respect.
The 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 Sec. 2 of regulations of March 5th 1908 for St, Thomas’ harbor, [Page 672] 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 Co. as places where it might desire to establish its plants; both these places are outside the harbor area.
By letter No. 254 of November 30th last you were informed that the permission given 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 a satisfactory settlement with the owners of the coast along “Long Bay” should prove impossible, we would be inclined to try to settle 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 Government 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 away from the harbor would entail heavy expenses in the shape of police and custom supervision for which the West Indian Co. would probably be responsible.
If the Ministry should authorize the Government to grant the West India Oil 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 should furthermore reserve to ourselves the right of 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 to the fore. At the 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 enlargments, 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 beg to request the Ministry to state whether a 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 applications.
In this connection, 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 now we have only received a scheme for the contemplated improvements of Long Bay—inclosed in communication No. 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 for granted, however, that the company will deal in liquid fuel, but it is not known to what extent. Nor does 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. We have also on another point been placed in a very difficult position on account of our lack of knowledge of the future plans of the company. Some days ago we received an application from a certain E. Svendsen, civil engineer, for permission to establish and carry on an electric plant, and to supply the town with electric light. Mr. Svendsen stated that he had spoken to the directors of the above-mentioned company about the matter, and that they had informed him [Page 673] 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 situation; we must either suffer the 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 it is somewhat difficult for us to do, if we believe that the applicant concerned seems capable of carrying through his proposed plans, and if the said plans seem beneficial for the islands, or, if we grant the applicant concerned the permission applied for, we may foil the company’s plan, inasmuch as a permission to execute some work is very likely in practise to have the effect of a monopoly, although it has never been the intention to create any such monopoly.
- L. C. Helweg-Larsen
- Will Jacobsen
[Untitled]
Copenhagen, March 19, 1913.
As will appear from the communication in writing of 12th inst. with various enclosures from the Government for the Danish West Indian Islands (No. 43a) an application from “West India Oil Company of New York” for permission to construct a station for liquid fuel etc. in St. Thomas has been lodged with the said Government.
The said Government has, on account of the above-mentioned application, found it opportune to express its willingness and its desire to support the West Indian Company in every way, provided it be compatible with the interests of the port and the town, in which connection the Government has stated that it is very insufficiently informed as to the future plans and prospects of your company. For the purpose of the above it has been thought desirable to place you in a position to set forth such plans as the aforesaid might give rise to.
You are requested to return the enclosures with your reply.
- N. Neergaard
- C. Dines Hansen
The Government for the Danish West Indian Islands
The Government begs to report that it, on application from Ejnar Svendsen, civil engineer, of Roskilde, for permission to establish and carry on an electric plant to supply the town with electric light, has granted Mr. Svendsen the said permission. The committee for buildings and streets had previously sanctioned his application.
Please find enclosed a copy of Mr. Svendsen’s application and his license.
- Helweg Larsen
- Will Jacobsen
[Untitled]
Copenhagen, April 10, 1913.
With reference to communications in writing of the 26th and 28th ult. from you in which various plans dealt with in a communication of February 12th from the Government of the Danish West Indian Islands regarding St. Thomas harbor, are treated more fully, which plans you regard as dangerous for the future prospects and objects of the company, we beg to state as follows:
If you wish that the company mentioned in the Government’s aforesaid letter, viz.: the West Indian Oil Company of New York, should not be granted the permission desired, viz.: 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.
[Page 674]At the same time it would be appreciated if you would make us acquainted with your plans, if any, regarding the establishment of wireless telegraphy at St. Thomas.
In so far as the establishment of an electric plant at St. Thomas is concerned, we beg to state that at present we do not intend to grant permission for the establishment of such works except to you—a single person (including a joint stock company) may be allowed to procure his or their own supply—and, upon the whole, permission will never be given for the establishment of any works of this kind unless you have had an opportunity of giving your opinion about same.
For the purpose of the above we beg to state, that it will be entirely out of the question, under present circumstances, to take steps tending to the enlargement of St. Thomas’ harbor or its district.
- N. Neergaard
- C. Dines Hansen
To the West India Company, Ltd.