852.6363/86
The Ambassador in Spain (Hammond) to
the Secretary of State
Madrid, November 16,
1927.
[Received December 5.]
No. 622
Sir: I have the honor to report that according
to information which I have received from the Director of the Standard
Oil Company of New Jersey in Madrid an inspector, representing the
Petroleum Monopoly, was installed in the offices of Babel and Nervion,
the Standard Oil Company subsidiary in Spain, on November 7th.
When the inspector presented himself in the company’s offices he handed
to the Director two orders of the Government which set forth his powers
and authorized him to make a full investigation of the company’s
business. I am transmitting herewith an English translation of the
orders in question, which have been given me by Mr. Brewster, the
Director of the Standard Oil Company.
In view of the dictatorial powers of the Government and the fact that
normal recourse of justice is ruled out by the Royal Decrees putting
into effect the Petroleum Monopoly, Mr. Brewster did not
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feel that he could refuse to admit the
inspector delegated by the Spanish Government, and he informs me that so
far the inspector’s activities have been confined to studying the
situation of the company’s supplies of petroleum products and making
complete lists of physical property, such as various industrial plants,
tanks, tankcars, etc. Another inspector supplied with the same powers
has been placed in the offices of the Shell Company and is, I
understand, taking similar action.
This arbitrary exercise of power by the Government has naturally added to
the ill feeling of the companies, particularly as they feel that they
have never been given a fair opportunity to make a fair and direct
presentation of their case to the Spanish Government.
I have [etc.]
[Enclosure 1]
Translation of Communication From the Director General of the General Bureau of the
Stamp, Match and Explosives Tax, and Representation of the
State in the Tobacco Renting Company, to the President of the Board of the Compañia
Arrendataria del Monopolio de Petroleos S.
A.
Excellent Sir: Under today’s date the
following Royal Order has been published by the Ministry of Finance:
“Illustrious Sir: In order to insure the fulfillment of the
ends aimed at by the Monopoly of importation, distribution
and sale of petroleum and its derivatives, and to attend,
with the necessary care demanded by the circumstances, to
the preparation of the new régime to be implanted on January
1st next, it is indispensable that from this moment
intervention should be made in the interested companies,
without hindrance to the latter in their present business,
which they may continue to follow freely until the 31st of
December of this year, in their own way and for their own
account.
To this end,
H. M. the King has been pleased to dispose the following:
- 1.
- Through the persons nominated by this Ministry,
immediate intervention will be made in the companies
dedicated to the importation, distribution and sale
of those products covered by the Monopoly created by
the Royal Decree Law of June 28th last.
- 2.
- The inspectors will perform their duties
indistinctly [sic] in any of
the above mentioned companies, it being left to the
Monopoly Renting Company to decide which firm or
firms be inspected by each inspector, and if the
latter should work in the central office of the firm
inspected or in any one or more of its installations
for the storing of the products in question, or of
its organizations for the distribution and sale of
same.
- 3.
- The functions of the inspectors will comprise the
following ends:
- a) The exact
knowledge of stocks of all monopolized products,
for which purpose they must be furnished with all
antecedents of information and checking which said
inspectors may deem necessary. Not only must they
know the actual stocks in general, but also full
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details
regarding the way in which they are distributed
throughout the country at a given moment, and the
successive variations which these stocks may
suffer on account of the sales effected.
- b) The exact
knowledge of the importations contracted for in
relation to purchases made, of the freight
contracts made with loading ports and ports of
destination, dates of loading and unloading, and
specifications giving the characteristics of said
products in the usual way, as also prices and
conditions of payment.
- c) Detailed
inventories of all the fixed and movable material
constituting the fixed assets of each company with
regard to storage, handling, packages, land and
marine transport, distribution round the coast,
pumps, and regarding the packages especially their
situation in such a way as to simplify, in the
opinion of the inspector, their seizure at an
opportune moment when the Monopoly Company has to
take over all the elements of the business.
- d) Data relative to
the office staff, as also to the technical and
laboring staffs which is working with each of the
inspected companies, with information as to each
individual’s length of service, salary, as also
the relation which each one’s work has to the
other’s.
- e) Distributing
system, giving exact outline of the zone of
influence of each company which may not have
extended its organization throughout the
country.
- 4.
- The inspection must be carried out with all
rapidity and extension necessary in order to arrive
at a rapid and exact knowledge of all the points
above-mentioned, to which end the inspector may
request and verify the proofs which he may consider
necessary in the presence of the Director
responsible for each firm.
- 5.
- Besides the inspector who will carry out his
functions in the main or head office of each firm,
this Ministry can nominate another person or persons
to inspect installations in branches of the same
firms already inspected in their central
offices.
- 6.
- The inspected firms may continue freely their
present business for their own account until the
last day of December of this year, and in the period
between now and then they will come to an agreement
with the Monopoly Company, through the inspector,
regarding the formula for the change of regime,
reciprocating all the necessary facilities for the
respecting of those interests which have to cease in
the business and those of the public which the
Monopoly has to serve from the 1st of January
next.
- 7.
- An inspection will also be made of those firms
whether importing of [or?]
otherwise, dedicating themselves to the distillation
of or obtaining of petroleum products, or merely to
the distribution of same.
- 8.
- It will however be possible to proceed to the
seizure of inspected firms before January 1st next
if requested and in accord with the Monopoly Company
and approved by the State representation, without
prejudice to the expropriatory procedure to be made
in accord with the Royal Decrees of June 28th and
October 17th last.
- In the event of agreed seizure, this will be dealt
with in accordance with the conditions agreed upon
by the firm in question and the Monopoly Company
after obtaining the approval of the State
representation. If the seizure should be made by the
State then the
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procedure will be as dictated by
the Government without prejudice to the subsequent
negotiations for expropriation.
Which I inform you by Royal Order for your guidance.”
Which I transmit to you for your information and corresponding
effects.
Madrid, 3rd November
1927.
Director General
Andrés Amado
[Enclosure 2]
Translation of Communication From the Director General of the General Bureau of the
Stamp, Match and Explosives Tax, and Representation of the
State in the Tobacco Renting Company, to the President of the Board of the Compañia
Arrendataria del Monopolio de Petroleos S.
A.
Excellent Sir: By Royal Order from the
Ministry of Finance, dated the 3rd instant, I am informed as
follows:—
“Excellent Sir:—In accord with the advices of the Royal Order
of today:
H. M. the King has been pleased to nominate Don Santiago
Amigo Puis, Don José Elorriaga Amallobieta, Don Miguel de
Lis Primo, Don José Maluquer Nicolau, Don José María
Permanyer Catalá, Don Laureano Pujol Denis, Don Luis Ribas
Pujol, Don Pedro Ribera Arazusta, Don German Sanchez Marin,
Don Ricardo Toll Masoliver, Don Santiago Verdaguer Comes and
Don Manuel Alonso Sañudo, to exercise the function of
inspector in the firms at present dedicated to the
importation, distribution and sale of those products covered
by the Monopoly created by Royal Decree-Law of June 28th
last.
By Royal Order I inform you, for your guidance and effect.
[”]
The Lord keep you many years.
Madrid, 3rd of November
1927.
Director General
Andrés
Amado
