THE TIMES, WEDNESDAY, MARCH 17, 1920

Shell Royal Dutch Group. COPY OF LETTER addressed to the President of the Board of Trade by Mr. H. W. A. Deterding, Managing Director of the SHELL ROYAL DUTCH GROUP.

ST. HELENS COURT, LONDON, E.C.
4th March, 1920.

The Rt. Honourable The President of the Board of Trade, Whitehall Gardens, London, S.W. I.

Sir., I have discussed with those of my colleagues of the Shell Royal Dutch Group who are now in London, the published report of the Sub-Committee on petrol prices, and we feel it our duty to place before you the facts as they are known to us.

On the main issue as to the controlling influence on the price in the United Kingdom of the f. o. b. price of petrol in New York we agree with the report. It is not, however, a fact that we, or any other concern, fix or control this price. In view of the general impression abroad as to the existence of a world-wide petrol ring, we desire to make the statement deliberately and emphatically that no such ring exists. No one is in a position to dictate any reduction to the thousands of oil producers in the United States who sell in the open market in which we buy. These producers try to get the best price they can secure in competition with one another, and -we have to pay this price for the very large quantities of American petrol necessary to satisfy the requirements of our clients over and above Eastern production. We cannot, as a matter of fact, buy petrol in the United States at less than £25 at Atlantic Ports instead of the £7 l0 0 suggested by the Committee.

It is unquestionable that the world demand for petrol, even at the present time, exceeds the supply, and the great shortage already existing in other European countries is evidence of this fact. We entirely agree with the Committee that every endeavour should be made to foster the production of power alcohol and other motor fuels of all kinds, both in the British Empire and throughout the world.

For the present, so far as we can judge, the only possible remedy for existing high prices is a drastic reduction in the consumption of petrol. This is our opinion, but we desire to state that our Group places itself unreservedly. at the disposal of the Governments of the chief European countries for consultation as to the position and the steps to be taken.

I am, Sir, Your obedient Servant,
(Sgd.) H. W. A. DETERDING.