Monday, 4 January 2021


 In1941,Standard Oil of New Jersey was the largest petroleum corporation in the world. Its bank was Chase, its owners the Rockefellers. Its chairman,Walter C. Teagle, and its president,William S. Farish,matched Joseph J.Larkin's extensive connections with the Nazi government. Billionaire oil tycoon William Stamps Farish the 3rd, is the former U.S.Ambassador to Great Britain(appointed by George Bush Sr.),and the personal bookeeper of the Bush Family Blind Trust . Farrish also owns the Gasparilla Inn and Club on Boca Grande,Florida .Where the Bush family spends Christmas vacation every other year,with the Billionaire Rockefellers,Duponts,etc,etc.. You see the Farrish,DuPont,Rockefeller,and Bush Families are all inter-married. It Gets Better !

Walter C. Teagle

Sixfoot three inches tall, and weighingover two hundred and fifty pounds,Walter C. Teagle was so large a manthat it was said that when he stoodup from his seat on the subway,itwas to make room for two women. Hesmoked Havana cigars throughafamous amber holder. He spoke withmeasured deliberation, fixinghisfellow conversationalists with afrightening, unblinking, andpowerfulstare. 

Teaglecame from a prominentClevelandfamily just below the millionaire class.He early showed adominantwill, expressed in a thunderous voice, ahumorless intensity,and arugged disrespect for those who questionedhis judgment. He wasknownas a dominant presence at Cornell. Kept outof football by aninjury,he worked off his colossal energy in schooldebates, whichheinvariably won hands down. Entering the Standard Oilempire under thewing of John D. Rockefeller I, he rose rapidly throughhis HoratioAlgerconcern for work and his strong international sense:he drew manyforeigncountries and their leaders into the Standard Oilweb. Heweatheredscandal after scandal in which Standard stood chargedwithmonopolisticand other illegal practices.

Fromthe1920s on Teagle showed amarkedadmiration for Germany's enterprise inovercoming the destructiveterms of the Versailles Treaty. Hislumberingstride, booming tones, andclouds of cigar smoke became widely andaffectionately known in thecircles that helped support the rising Naziparty. He early establisheda friendship with the dour and stubbyHermann Schmitz of I.G.Farben,entertaining him frequently for lunch atthe Cloud Room in theChrysler Building, Teagle's favorite Manhattanhaunt of the late 1920sand the1930s. Teagle also was friendly with thepro-Nazi Sir HenriDeterding of Royal Dutch-Shell,who agreed with hisviews aboutcapitalist dominationof Europe and theultimate need todestroy Russia.

Teagle,Schmitz, and Deterding shared apassion for grouse shooting and gamehunting; they vied with eachotheras wing shots.  Teagle's love ofhunting deer and wild birds was toearn him the admiration ofReichsmarschall Hennann Goring.

Teaglewas close to Henry Ford. Hefirstmet him in the early 1900s when hewanted to make a deal for oilwith a new Detroit auto assembly shop.Hewalked into the shop, saw howmiserably rundown it was, anddecidedthat he would have difficultyincollecting for the gasolinecontract.But he took a chance on thethin,gaunt proprietor and wentahead. Manyyears later the two men metagainand formed a friendship.Ford lookedat him sharply and said, "We'vemetbefore." Teagleremembered at once."Sure," Teagle said, "I soldyouyour first gasolinecontract. You werestripping down a Wintonchassis."Ford replied, "Iwas. And I was sohard up, I didn't even ownthe goddamthing!"

Becauseof his commercial andpersonalassociation with Hermann Schmitz, and hisawareness that hemustprotect Standard's interest in Nazi Germany,Teagle made many visitstoBerlin and the Standard tanks and tank carsin Germany throughoutthe1930s. He became director of American I.G.Chemical Corp., thegiantchemicals firm that was a subsidiary of I.G.Farben. Heinvestedheavily in American I.G. and American I.G. investedheavilyinStandard. He sat on the I.G. board with Fraternity brothersEdselFordand William E. Weiss, chairman of Sterling Products.

Followingthe rise of Hitler topower,Teagle and Hermann Schmitz jointly gave aspecial assignment toIvy Lee,the notorious New York publicity man,whohad for some yearsworked for the Rockefellers.  They engaged Lee forthe specific purposeof economic espionage.  He was to supplyI.G.Farben, and through it theNazi government, with intelligence onthe American reaction to suchmatters as the German armamentprogram,Germany's treatment of theChurch, and the organization of theGestapo.He was also to keep theAmerican public bamboozled by paperingover the more evil aspects ofHitler's regime.For this, Lee was paidfirst $3,000 then $4,000annually, the money paid to him through theBank for InternationalSettlements in the name of I.G. Chemie. Thecontract was for obviousreasons kept oral and the money wastransferred in cash. No entries weremade in the books of the employingcompanies or in those of Ivy Leehimself. After a short period Lee'ssalary was increased to$25,000 peryear and he began distributinginflammatory Nazi propaganda in theUnited States on behalf ofI.G.Farben, including virulent attacks on theJews and the VersaillesTreaty.

In February 1938 theSecuritiesandExchange Commission held a meeting to investigate NaziownershipofAmerican I.G. through a Swiss subsidiary. The commissionersgrilledTeagle on the ownership of the Swiss company. He pretended thathe didnot know the owners were I.G. Farben and the Nazi government.Thecommissioners tried to make him admit that at least AmericanI.G.was"controlled by 'European' interests." Teagle replied dodgily,"Well,Ithink that would be a safe assumption." Asked who voted for himasaproxy  at Swiss meetings, again he asserted that he didn't know.Healso neglected to mention that Schmitz and the Nazi governmentownedthousands of shares in American I.G.

Teaglewas sufficiently embarrassed bythe hearing to resign from the AmericanI.G. board, but he retained hisconnections with the company. Heremained in partnership with Farbeninthe matter of tetraethyl lead,anadditive used in aviationgasoline.Goring's air force couldn't flywithout it. Only Standard, Du Pont, and General Motors had the rights to it.Teaglehelped to organize a sale ofthe precious substance toSchmitz, whoin1938 traveled to London and"borrowed" 500 tons from Ethyl, theBritishStandard subsidiary. Next year, Schmitz and his partnersreturned toLondon and obtained $15million worth. The result was thatHitler's airforce was rendered capable of bombing London, the city thathadprovided the supplies. Also, by supplying Japan with tetraethyl,Teaglehelped make it possible for the Japanese to wageWorld War II.

Therewas a further irony. TheBritishRoyal Air Force had to pay royalties toNazi Germany throughEthyl-Standard for the gasoline used to flyGoring's bombers that wereattacking London. The payments were held inGermany by Farben'sprivatebanks for Standard until the end of the war.

Following the embarrassment of the Securities and Exchange Commission hearing,Teagle took more and more ofa backseat and handed over his front office to his partner and closefriend, William Stamps Farish. Farishwassomewhatdifferent in character from Teagle. Tall, bald fromyouth,bespectacled,given to publishing homilies and pious patrioticarticlesin the pagesofAmerican Magazine, he had a reserved, almostscholarly manner thatbarely concealed a flaring temper and a fierceself-protectiveness thatmade him seem guilty in  controversies overStandard Oil when he was .He was so emotionally locked into thecompany that he was indivisiblefrom it. He never understood a rule ofpower: to keep calm and politewhen the opposition is angry andthreatening. He could not resiststriking back at anyone who criticizedhim, sometimes with a ratherfeeble attempt at physical violence. Heshared with Teagle a mania forsalmon fishing, dogtraining,bird-dogging, quail shooting,and fox hunts.Like Teagle, hedevoted asmuch as eighteen hours a day to officeaffairs, immensejourneys by ship and train, and board meetings thatsome times went oninto the small hours of the morning. Both had thecapacity of seniorexecutives to exhaust everyone but themselves withtheir certainties.They allowed little area for discussion and brookednothing saveapproval.

Farish, likeTeagle,was mesmerized byGermany and spent much time with HermannSchmitz.With Teagle'sapprovalhe staffed the Standard Oil tankers withNazi crews. When warbroke out in Europe, he ran into trouble withBritish Intelligence,which boarded some of his vessels outsideterritorial waters on theAtlantic andPacific seaboards and seized Naziagents who werepassengers. When the British began interrogating Nazicrews on theHitler-Standard connection, Farish fired the Germans enmasse andchanged the registration of the entire fleet to Panamanian toavoidBritish seizure or search. His vessels carried oil toTenerife intheCanary Islands,where they refueled and siphoned oil to Germantankersfor shipment to Hamburg. They also fueled U-boats even aftertheAmerican government declared such shipments morally indefensibleandwhile Roosevelt was fighting an undeclared war in theAtlantic.Standardtankers supplied the self-same submarines which latersank Americanships.  By a humorous twist of fate, one of the ships theU-boats sankwas the S.S. WalterTeagle.

Itwas important for the Nazis to convertthe oil in the Canaries toaviation gasoline for the Luftwaffe. Onceagain, Farish provedhelpful.As early as 1936 his associate HarryD.Collier of CaliforniaStandard had built units for conversion in theCanaries.Simultaneously, Teagle had built a refinery in Hamburg thatproduced15,000 tons of aviation gasoline for Goring every week.

Withwar in Europe, General Aniline andFilm, successor to American I.G.,stood in danger of being taken over bythe U.S. government. Teagle andFarish's friend, the Rockefellerassociate Sosthenes Behn of ITT, wasnarrowly stopped from buying thecorporation, thus rendering it"American" and not subject toseizure.Henry Morgenthau prevented thedeal. For once, The Fraternitywas frustrated.  Teagle and Farish couldnot buy GAP themselves, asitwould have too clearly betrayed theirassociation with the Nazis.

By1939, Americans were dangerously shortof rubber. The armed serviceswere hard put to complete wheels forplanes, tanks, and armored cars.At this time Standard Oil had madeadeal with Hitler whereby he wouldobtain certain kinds of Standardartificial rubber and America wouldget nothing. This deal continueduntil after Pearl Harbor.

Whenwar broke out, Frank A. Howard, oneof the more dynamic vice-presidentsof Standard (also on the boardofChase), flew to Europe with Farish'sauthorization. In London he heldan urgent meeting with U.S. AmbassadorJoseph P. Kennedy,whoallegedly wanted to negotiate a separate peace that would bringtheEuropean war to an immediate end. Kennedy enthusiasticallyapprovedHoward's meeting with Farben's representative Fritz Ringer. Themeetingwas set up inHolland. Howard flew to The Hague on September 22, 1939,supplied witha special Royal Air Force bomber for the occasion. 

Atthe Hague meeting, held in theStandard Oil offices, Howard and Ringertalked for many hours abouttheir plans for the future.  Ringer handedover a thick bundle of German patents that were locked into Standard agreements so that they would not be seized in wartime.Thetwomen drew up an agreement that specified they would remain inbusinesstogether, "whether or not the United States came into thewar." Anotherclause in the agreement known as the Hague Memorandumguaranteed thatthe moment war was over, I.G. Farben  would get backits patents. Howardreturned to London and Kennedy arranged for thepatents to be flown byAmerican diplomatic bag to Ambassador WilliamBullitt in Paris, whoforwarded them on by special courier to FarishinNew York.

As the warcontinued in Europe beforeAmerica's entry, Germany grew more and moredesperate for oil. Herdomestic supplies were minimal. But for manyyears Teagle and Farish hadexploited the resources of Romania,settingup extensive oil explorationin the Ploiesti fields and nettingmillions from Germany in theprocess.I.G. Farben financed the notoriousRomanian Iron Guard, afascistic military organization led by GeneralIon Antonescu. HermannSchmitz,through Antonescu and in league withStandard, held anexercising control over the oil fields. On March5, 1941, Goringarranged aspecial private performance of MadameButterfly by theAustrian State Opera at the Belvedere Palace in Viennain Antonescu'shonor.After the performance, Goring sat down for anurgentdiscussion with Antonescu on securing the use of the StandardOil fieldsif Germany and America should go to war. Antonescu conferredwithSchmitz and Standard executives in Bucharest. The result of themeetingwas that Goring paid $11 million in bonds for the use of theoil,whether or not Americacame into the war.

Farishnow proceeded to make another dealwith Goring. Hungary was second onlyto Romania as an oil source for theNazi war machine. Teagle hadstarted drilling there in 1934.

InJuly 1941, Farish and Frank Howardfiled an application with Treasuryfor a license to sell its Hungariansubsidiary to I.G. Farben.  Farbenwould, the application said, pay$5.5million in Swedish, Swiss, andLatin American currencies, $13.5 millionin gold to be delivered atLisbon, Portugal, and later shipped to theUnited States; and it wouldsupply a promissory note for $5million byI.G. "to be paid three monthsafter the war ended." This note was to besecured by the blocked assetsof General Aniline and Film in America.Treasury refused theapplication, whereupon Farish asked if the fullamount could be paid ingold at Lisbon. That suggestion also wasrejected.  Farish protestedbitterly.

The British blockaderan the length ofthe Americas upon the Atlantic seaboard, stoppingshipments to NaziGermany wherever possible. Given the problem, howcould Farish go onsupplying Goring and Hermann Schmitz with oil intime of war? He soonfound the solution. He sent large amounts ofpetroleum to Russia and thence by Trans-Siberian Railroad to Berlinlong after Roosevelt's moral embargo.He shipped to Vichy NorthAfrica. In May 1940,British authoritiescaptured a French tanker inU.S. territorial waters that was sailing toCasablanca with 16,000 tonsof Standard oil,allegedly for reshipment toHitler. Cordell Hulldemanded the British government yield up thetanker. Restricted bymaritime law, the British agreed.  The tankersailed on to Africa,followed by six more.

Farishfueled the Nazi-controlledL.A.T.I. airline from Rome to Rio viaMadrid, Lisbon, and Dakar. Theairline flew spies, patents, anddiamonds for foreign currency. OnlyStandard could make this  shipmentpossible. Only Standard had thehigh-octane gasoline that enabled thelumbering clippers to make the1,680-mile hop across the Atlantic.

A hard-working young man, William LaVarreofthe Department of Commerce, set about uncovering Standard's dealswiththis Nazi airline. He knew L.A.T.I. was the means by whichtheNazisevaded the British blockade. The airline was not subject toboarding andsearch. Spies traveled by L.A.T.I. between the UnitedStates, Germany,and Italy by way of Brazil.

Inaddition to spies, the planes flew,in1941, 2,365 kilos of bookscontaining Nazi propaganda, legal andillegal drugs addressed toSterling Products, Reichsbank money for theNational City Bank in NewYork, war time horror pictures prepared by Dr.Joseph Goebbels tofrighten Latin Americans out of a world conflict.There wereelectricalmaterials and gold and silver jewelry for saletoBrazil.American companies in South America shipped the Nazisthousandsof kilos of mica and platinum, which existed in quantity onlyinBrazil, and which were strategic war materials forGermany.Semiprecious stones were bought cheaply, shipped to Germany,cut inBelgium in slave camps,and shipped back to Brazil for sale.

Inorder to supply the airline, Farishchanged more of his vessels fromGerman to Panamanian registry. Now theywere granted immunity under thePanamanian flag by James V. Forrestal, Under Secretary of the Navy, vice-president of General Aniline and Film, and Fraternity member.ButU.S.Intelligence constantly checked on the members of theGestapo,theAbwehr, and the Farben spy network  N.W.7. who used theairline.Earlyin 1941, Adolf Berle of the State Department insistedthatCordell Hullstop these shipments. Hull talked to William Farish. Hetold him he wasgoing to apply export control to the shipments.

Farishwas forced to reach acompromise.He would supply L.A.T.I. and the otherNazi airline, Condor,through Standard's Brazilian subsidiary withpermission from theAmerican ambassador in Rio.  The ambassador gavepermission and theairlines continued to fly. It was not until justbefore Pearl Harborthat LaVarre and Berle real-ized what Farish wasdoing: By making thedeal through the Brazilian company, he was notsubject to blacklisting.Thus,the shipments continued until after PearlHarbor when the Braziliangovernment stepped in and closed down theairlines. Farish totallyignored his government's request to beloyal.Germany and money camefirst. 

OnMarch 31, 1941, Sumner Welles of theState Department stepped into thepicture with a detailed report onrefueling stations in Mexico andCentral and South America that weresuspected of furnishing oil toItalian or German merchant vessels now inport. Among those suspectedof fueling enemy ships were Standard Oil ofNew Jersey and California.There is no record of any action being takenon this matter.Hmm ?

On May 5, the U.S. Legation at Managua, Nicaragua, reported that Standard Oil subsidiaries were distributing Epoca,apublicationfilled with pro-Nazi propaganda. John J. Muccio, oftheU.S.Consulate,made an investigation and found that Standard wasdistributing thisinflammatory publication all over the world. By apeculiar irony, Nelson Rockefeller was at that moment in his post of Coordinator of Inter-American Affairs, seeking to insure the loyalty toUnited States interests of all of the governments of Latin America.Hmm ?

OnJuly 17, 1941, Nelson Rockefeller had joined with Dean Acheson,Morgenthau, Francis Biddle, and Secretary ofCommerce Jesse Jonestofulfill a presidential order to prepare what was known asthe ProclaimedList of enemy-associated corporations withwhich it wasillegal to tradein time of European war. Acheson was appointedchairman of theinterdepartmental committee in charge of the group ofCabinet members.Six months later, in a lengthy memorandum to MiloR.Perkins, executivedirector of the Economic Defense Board,onJanuary5, 1942, Acheson laiddown the conditions of theProclaimedList.Rockefeller's claimthathe was unfamiliar with the details of StandardOil practices onbehalfof the Axis before and after  Pearl Harbor is difficult tobelievegiven the fact that he himself sat on the Proclaimed List committee. 

Inhisofficial capacity, NelsonRockefeller was in the peculiar position ofhaving to ask the managersof his South American companies how manyGermans they employed, despitethe fact that his company and officialrecords both contained theinformation. He was one thing as coordinatorand quite something else asStandard Oil executive. In July1941,Standard, with hisknowledge,authorized the continuance of thelease of its headquarters inCaracas,Venezuela, from a Proclaimed Listnational, Gustav Zingg,because it would be legally very difficult toterminate the lease. TheCoordinatorof Inter-American Affairs, withbillions at his disposal,leased from aNazi collaborator for theduration because of a technicalissue of a leasing arrangement. Moresurprising still, a doctor who wasin constant touch with Nazis inCaracas, and was on a suspect list, was permitted to remain a memberofthe medical department of Standard Oil ofVenezuela. Hmm?

OnJuly15, 1941, Major Charles A.Burrowsof Military Intelligencereported tothe War Department thatStandard Oilwas shipping oil from Aruba in theDutch West Indies to Tenerife in theCanary  Islands. The reportcontinued:

[Standard]is...divertingabout 20 percent of this fuel oil to the present GermanGovernment.About six of the ships operating on this route are reputedto be mannedmainly by Nazi officers. Seamen have reported to theinformant that theyhave seen submarines in the immediate vicinity ofthe Canary Islands andhave learned that the submarines arerefuelingthere. The informant alsostated that the Standard Oil Companyhas not lost any ships to date bytorpedoing as have other Americancompanies whose ships operate to otherports.

OnJuly22, 1941, there was a meeting ofseveral Treasury officials withAcheson on the subject of oil shipmentsto Tangier, including those ofStandard Oil. Tangier was an open portthat was leaking supplies to theNazis. The meeting wasinconclusive.Among the subjects discussed wasthe possible sale byStandard Oil of its Berlin property. There was noreal pressure on thecorporation to dispose of that office. Hmm?

On October 28, 1941, Cordell Hull sent a peculiar letter to Treasury's Edward H. Foley, Jr., who was acting in Morgenthau's absenceon"vacation". Hull asked Foley whether "Standard OilCompany(NewJersey)may, through its subsidiaries in the other Americanrepublics,sell or deliver petroleum or petroleum products, to haveother dealingswith"persons whose names appeared on the blacklistofNazicollaborators! Incredibly, he even asked whether Standard Oilmight,through its subsidiary, Standard Oil of Brazil, sell petroleum toNaziCondor,largely from Aruba. The reply was almost assurprising.Foleysaid that such transactions fell under Executive Order8389 and "suchtransactions, irrespective of whether they are providedfor bycontract, should not be engaged in except as specificallyauthorizedbythe Secretary of Treasury under Executive Order 8389." WhatFoley was pointing out was that it would be quite possible totradewithNazi associates with Treasury's specific approval.  Hmm?

Thisarrangement did not change withPearl Harbor. Acting incollusion,Treasury and State continued to issuelicenses permittingStandard Oil and other corporations to trade withenemy collaboratorsin time of war. Traitors and War Profiteers !

Overthree weeks after Pearl Harbor, onDecember 31, 1941, Warren E.Hoaglandof Standard wrote to GreenH.Hackworth, legal advisor to the Departmentof State, asking whichforeign countries and their residents andcorporations should beconsidered as allies of the enemy. Inreply,Hackworth informed him thatthe Department  had "not issued alist of enemy or allied enemycountries." Hackworth's note, datedJanuary 6,1942, contains a touch ofunconscious  humor: "The Congressof the United States has, youdoubtless are  aware, declared that astate of war exists between thegovernments of Japan, Germany and Italyand the Government and peopleofthe United States." The letter goes onto refer Hoagland to thepresidential license dated December 13, 1941permitting transactionsprohibited by the Trading with the EnemyAct,provided such trading wasauthorized by the Treasury.

Immediately after Pearl Harbor, HaroldIckes,Secretary of the Interior and Petroleum Administrator andCoordinatorfor National Defense and War,began to close in on Farishbecause of hisdealings with Nazi Germany.Farish, who already had savage enemies in Morgenthau and Harry DexterWhite, had an even more formidable foe in Ickes.

Ickeswas popularly known as the OldCurmudgeon: an inspired if irritatinggadfly who was almost certainlythe most unpopular celebrity of his dayin America. A tense,dark,sharp-eyed, impatient man, he deliberatelyput his worst footforward one very possible occasion in the hope ofprovoking wide spreadfury and the maximum amount of publicity. Hebegan life with a hatred ofthe privileged: he was the second of sevenchildren of an impoverishedPennsylvania sharecropping family and spenthis childhood sweepinganddusting,  washing dishes, kneadingdough,basting beef, and flippingflapjacks.  He was pinch-hitnursemaid,woodchopper, fire builder, andchicken executioner. In 1890,working as a clerk in his uncle'sChicago drugstore, he was so sickenedby the rich with their coachmen,footmen,and high-stepping horses thathe mixed seidlitz powders so theywould explode in the faces of hatedwealthy customers. He became ajournalist,writing muckraker articles inChicago that helped runpolitical gangsout of town. He sharply attackedwhat he called the"turbulent,grasping, selfish men"personified byFarish and Teagle.  Hisgreatest moment was when Roosevelt offered himthe post of Secretary ofthe Interior with the words "Mr. Ickes, youand I have been speaking thesame language for the past twenty years. Ihave come to the conclusionthat the man I want is you."

Fiercelycommitted to Roosevelt, Ickesspent much of the war years with hislegs knotted together under abattle-scarred desk from his reportingdays,banging away at his ancienttypewriter and producing reams of rudeletters, newspaper columnsquibs,interoffice memoranda, and diaryentries savaging the trusts ledby the Rockefellers.  He wouldfrequently break off from watering orcross-pollinating his prizeddahlia collection to pick up a phone andshower the hated Secretary ofCommerce Jesse H. Jones or Walter C.Teaglewith a  blistering rain ofinvective. He became known as Roosevelt'sconscience. He maddenedRoosevelt by his refusal to compromise; his"cumbrous honesty" -- asHeywood Broun called it --which led him todisrupt the delicaterelationship Roosevelt had established with theStandard Oil leaders toturn them to his own uses.

Ickesconstantly complained toRoosevelt that Teagle and Farish wereprominent on various governmentboards including the War PetroleumBoard and that American car owners were forming gas lines while the Germans and Japanese had all the gas they needed. Roosevelt was furious.

OnJune22, 1941, Roosevelt sent Ickes arude and peremptory letter on thematter of his restricting oil. Hepinned his ears back once and for allby instructing him to release theshipments by arrangement with CordellHull. That same day Ickes wrote inhis diary (a statement that wascensored out of the publishedversion)that for two years now thePresident had broken promise afterpromise to him and that he had evenbegun to lie to him unashamedly. Headded that he had often wondered ifhe could not be of greater assistance to the people on the outside by telling the truth, rather than staying inside,helping to deceive. He was referring to the fact that Roosevelt and Hull were lying to the public about the extent of exports to belligerent powers.

Moreand more in 1941, Ickes was cut downby pressure from Standard Oil onthe State Department. In June, Stateset up a Caribbean divisionwithout even consulting him. This allowedshipments to Axis-influencedneutral countries from Standard and otherwells in Venezuela fortransshipment via the refineries in Aruba.

Three and a half weeks after PearlHarbor, Ickes really had his fingers chopped off. Without telling him,Roosevelt set up a committee under the Economic Warfare Council (later the Board of Economic Warfare), which was to handle all duties and responsibilities in the matter of exporting petroleum products.  To Ickes's horror, William S. Farish's right-hand man, Max Thornburg,wasappointed Foreign Petroleum Coordinator, with Farish and HarryD.Collieron the board. Thornburg, a smart executive, received $8,000ayear fromthe State Department for his job -- and $13,000 a year fromStandard.

Ickes was somaddened by this sign ofalleged corruption and collusion that hecalled Vice-PresidentHenryWallace at home on January 4, 1942,demanding to know why Wallace,as Economic Warfare Council chairman,could tolerate such anarrangement.Ickes charged Thornburg with beingambitious, notoverscrupulous,capable of being disloyal; he insisted toWallace that Thornburghadschemed for the appointment and evenpresented Roosevelt with the letterauthorizing his appointment,standing over the President while it wassigned. He said this indicated the degree of influence Standard had at the White House. Wallace did not reply.Hmm?

Throughoutthe early months of 1942,Ickeskept hammering away at Wallace to haveThornburg dismissed.Frustrated inhis efforts, he charged Wallace with"trampling on his enemies andbetraying his friends." His hatred forWallace matched his hatred forThornburg.  With his stubborn sense ofintegrity he simply did notunderstand that in order to win the war,Roosevelt and Wallace had toget into bed with the oil companies. 

Asa result of his needling, Ickes wasforbidden by Roosevelt and Wallaceto attend meetings held by Thornburgand Teagle to which agencies ofthe government involved in oil wereinvited. Ickes was under constantthreat from Roosevelt not to interferewith anything that happened. Hewas tempted to resign and indeed draftedhis resignation on severaloccasions but finally decided to dig in andfight theEstablishment.Through his spies he unraveled the fact that Secretary of Commerce Jesse Jones and Bill Farish were interlocked in business interests in Texas.And at last he found an ally who had the courage to confront the President and the pro-Standard chief in Washington head on: Thurman Arnold.

Arnoldwas a man after Ickes's ownheart.He was a grass-roots all-American whohad worked his way up tobecome head of the Antitrust Division of theDepartment of Justice. Aheavy-weight like Walter Teagle and Farish, hecould face these meneyeball-to-eyeball.Shock-haired, ruddy-cheeked,with immense shoulders,he would argue or laugh over a dirty joke withequal vehemence, spewingout a stream of witty, filthy words through aheavily chewed cigar. Hewas described as looking like a small-town storekeeper  and talkinglike a stormtrooper. He was a toughhomesteader, former mayor ofLaramie, Wyoming,and a cattle-countrylawyer of the old school. LikeIckes and Morgenthau, he hated the BigGuys. He was a bitter enemy ofcorruption.After only a few months inoffice he cleaned up the buildingindustry,bringing in 74  indictmentsagainst 985 defendants. He wasaccompanied everywhere by his beloveddog, Duffy Arnold. He was soboastful that at one White House banquet,he said to fellow trustbusterNorman Littell, "You know, I'm the mostfamous Arnold that ever lived.""How about Benedict?" Littell's wifequipped.

During the firstweeks after PearlHarbor, Arnold drove his 1930 La Salle automobilewith its shaky rearendthrough the streets of Washington to a series ofmeetings with Ickes atIckes's house. As a result of these meetingsArnold obtained permissionfrom the nervous and weak Attorney GeneralFrancis Biddle to hold ameeting with Farish in the matter of thesynthetic rubber restrictionsthat favored Germany still anddrastically inconvenienced Americanmotorists and  the Army, Navy, andAir Force. 

OnFebruary 27,1942, Arnold, withdocuments stuffed under his arms,followed by hisloyal team ofsecretaries and aides, strode into the lion's den of Standard at 30 Rockefeller Plaza.Justbehind him were Secretary of the Navy FranklinKnox and Secretaryof theArmy Henry L.Stimson. William S. Farish was there to greet them.In theboardroom Arnold sharply laid down his charges while the otherslookedhard at him. He spelled it out that he had the goods onStandard: thatby continuing to favor Hitler in rubber deals and patentarrangements, the Rockefellers, Teagle, and Farish had acted against the interests of the American government.Chewinghis cigar to pulp as he turned over the documents, Arnoldcoollysuggested a fine of  $1.5 million and a consent decree wherebyStandardwould turnover for the duration all the patents Frank Howardhad pickedup inHolland.

Farishrejectedthe proposal on the spot. He pointed out that Standard, whichwasfueling a high percentage of the Army, Navy, and Air Force, wasmakingit possible for America to "win" the war. Where would America bewithoutit? This was blackmail, and Arnold was forced into a defensiveposition.He conferred hastily with Stimson and Knox. The result wasthat he askedFarish to what Standard would agree. After all, there hadto be at leasta token punishment.Farishsaidwith icy contempt thathe would pay $50,000, to be divided equallyamongso long a list of executives and corporations that each wouldwind uppaying no more than $600. Arnold, Stimson, and Knox soonrealizedthey had no power to compare with that of Standard. They didmanage toreduce the number of defendants to ten.  Farish paid$1,000,or a quarterof one week's salary, for having betrayedAmerica.The Facts !

Standardunderwent a process of law inthe criminal courts of Newark, NewJersey. This was a technicality inorder to satisfy public opinion. Thecharges of criminal conspiracy withthe enemy were dropped in returnfor Standard releasing its patents andpaying the modest fine. Ickeswrote in his diary on April 5 that whenthe light was thrown on asituation like this,itmade it easier to understand why some of the great and powerful inthecountry were Nazi-minded and were confident of their ability togetalong with Hitler. After all, he added, they hadbeendoing business with Hitler right along. They understood eachother'slanguage and their aims were common. A complete exposure, headded,would have a very good effect on the United States.

Arnoldagreed. Although he had crumbledat the meeting at Rockefeller Plaza,hehad another recourse by which hecould drag Standard through the mud.He and Ickes had a sturdy ally in Harry S. Truman, an enemy of Jesse Jones. The Senator from Missouri was in charge of the Truman defense committee, dedicated to exposing treasonable arrangements.Withgreat enthusiasm Give 'em Hell Harry embarked on a series ofhearings inMarch 1942, in order to disclose the truth about Standard.Hmm? neverheard any of this before ? why ? Iran-Contra ?

OnMarch 26, Arnold appeared beforeTruman in an exceptionally buoyantmood in order to lay in front of thecommittee his specific chargesagainst the oil company. He had dug up agreat deal of dirt.  Heproduced documents showing that Standard andFarben in Germany hadliterally carved up the world markets, with oiland chemical monopoliesestablished all over the map. He flourishedpapers showing that Farishhad refused to send vital patentinformationto Canada becauseGermanyand Canada were at war. He showedhow Farish had flagrantlydisregarded Lend-Lease and good neighborpolicies in hisconnivance withHitler. Hezeroed in on the subject ofsynthetic rubber,pointing outthat it had been denied to the U.S. Navy,and that Farish and Howardhad deliberately sidetracked a Navyrepresentative from seeing theprocesses. He charged that cables showedStandard's arrangements withJapan that were to continue throughout anyconflict or break in trade. Leaving the Senate chamber on March 28, surrounded by lots of reporters and photographers, Truman was asked, "Is this treason?" He replied in the affirmative.

Farishcompletelylost his head. Instead of riding out the storm with coolindifferenceand waiting for his appearance before the committee, heheld pressconferences, fired off telegrams from Rockefeller Plaza tothePresident, issued lengthy and complicated statements on theradio,andtold The New York Times in a statement prepared by Teagle, whosat upall night to write it, that Arnold's charges had "not a shadowoffoundation." Appearing before the committee on March 31, he shoutedatTruman and Arnold that he repudiated everything saidaboutStandard"with indignation and resentment" and asserted that he hadnotin anyway been disloyal to the United States. He claimed that thedealwith I.G. Farben helped the United States since a number ofpatentswere no win America'spossession. He neglected to add that theonlyreason they were in America's  possession was that a criminalcourtjudge hadordered themto be. 

OnApril 2 a flushed and irritableThurman Arnold came to Ickes's officefrom a further hearing in whichFarish had repeated his denials, andtold him, "The Standard Oil guys have committed perjury.  Iknow it. I have reported it. Will they be indicted?" He already knew he answer:They would not be indicted.Arnoldwent on to denounce Secretary Jesse H. Jones to Ickes for complicitywith Standard in the whole matter. Just The Facts Mam.

Rooseveltwas very unhappy with thehearings. Publicly exposing Teagle and Farishwas not helping him usethem for America's purposes. He had had enoughof Arnold as the hearingsconcluded. He kicked him upstairs to theU.S.Court of Appeals. Ickeswrote in his diary on April 5 that Arnold had been more or less gagged.The War and Navy departments insured that Roosevelt suspended any further antitrust actions against the corporations for the duration.They couldn't (as the Rockefeller Plaza meeting had made clear) run an Army and Navy without Standard.Reality !

Teaglewas so aggravated and distressedbythe attacks of the Truman Committeeand Arnold that he sent Roosevelt aletter trying to explain hisposition and tendering his resignation aschief of the National WarLabor Board. On April 2, 1942, Roosevelt wroteto him, "My DearMr.Teagle: I have your letter of March 23rd aboutresigning from theNational War Labor Board. I hope you will not do soas your work on theBoard has been, and I know will prove to be, ofgreat service to thecountry. Your connection with the suit against theStandard Oil Companydoes not in my opinion (and I have discussed thiswith theAttorneyGeneral) afford a reason for your withdrawing from theBoard."But in September, Teagle, shattered by the further disclosuresof thesubsequent Bone Committee,againoffered his resignation and Roosevelt this time accepted it withthe carefully put together statement, "I do want you to know how muchIappreciate the long months of hard work which you have put in ...andthe sincere and very valuable contribution you have made to thewareffort."

Farishremainedon the War Petroleum Board. On April 3, 1942, Ickes calledRoosevelt inthe Oval Office. He protested against Farish's being inthat position,but Roosevelt instructed him not to ask Farish toresign. That same dayIckes called John D. Rockefeller II at homeinTarry town. DespiteRoosevelt's statement Ickes decided to risk hisjob and ask Rockefellerto dismiss Farish from the post on the theorythat Rockefeller wouldwant to clean his own nest and escape thedrastically unfavorablepublicity caused by the hearings.  He began bytelling Rockefeller thathe knew of the relationship between Standardand I.G.Farben. Rockefellerwas silent.Ickes went on, saying thatpublic opinion would force him totake action; that he was notrecommending that Rockefeller get rid ofFarish but telling him inadvance that an embarrassing situation mightdevelop with  furtherhearings that would force Farish to go.

Rockefellersaid that he had theutmost confidence in Farish and Teagle; that hebelieved in theirhonesty, their sincerity, and their patriotism.Rockefeller allegedthat he took no active part in the affairs ofStandard and knew nothingof what was going on, despite the existenceof Schroder,Rockefeller,Inc. He added that he was going to stand bythese two menunless further facts convinced him they were in thewrong. But he didnot expect to discover that they had been in thewrong. TheRockefellers,he said, always stood by  their friends;perhaps that wasthe reason why the Rockefellers had so many friends.

Ickessaid he didn't want to make snapjudgments, but in a situation likethis, where the administration wasconcerned, one had to pay someattention to public opinion. He addedthat he had the people toconsider, that the people be persuaded thatthe government was notcovering up or protecting any individual to thedetriment of the wareffort. Unfortunately, as Ickes very well knew,thatwas exactly whatthegovernment was doing.

Thefollowing day Truman came tolunchwith Ickes. Truman said that Ickesought to fire Farishimmediatelyfrom the War Petroleum Board. Ickesdidn't have the nerve totell Truman that the President had protectedFarish. Instead heblamed the newspapers for putting  an effectivelid on the stinking potwith the utmost celerity and dexterity. He toldTruman that he had never seen a better job of underplaying the news, except for the first stories that came off the presses. Headded that within his experience there had never been a more completejustification of the charge thatbigbusiness and advertisershadtremendous influence with the press. He added, in his diary for April 11, that there was no use in butting his head against a stone wall. 

Trumantold the Secretary of the Interiorhe was drastically against themonopolies. He condemned the dollar-a-year men who were featherbedding their own industries at thegovernment's expense. He promisedto do what he could with furtherinquiries.

Ickes was not content. He prodded Senator Homer T. Bone into the Patents Committee,whichbegan hearings in the Senate on May 1. Bone shared the feistinessofIckes, Arnold,and Truman when it came to the  question of Standard.OnMay 2,Arnold's keenest friend in the Antitrust, youngIrvingLipkowitz,shoveled up still more dirt:  He could prove thatStandardhad deliberately retarded production of  the vital war materialaceticacid in favor of the Nazis.  He charged Standard with being "I.G. Farben's Charlie McCarthy in the chemicals field."Lipkowitzwasfollowed by Senator Robert M. La Follette, Jr., who denouncedTeagle andFarish for issuing ''as despicable a piece of publicrelations work by agiant corporation as I have ever  seen." He wenton, "The Standardofficials not only did not have guts enough to comebefore thisCommittee today where they could  be sworn andcross-examined, but theyleft the officials who made their denialsanonymous." He said that Standard and Farish "adopted that age-old rule of debate, when you are weak on facts, give 'em hell.'"

OnMay 6, John R. Jacobs, Jr., of theAttorney General's department,testified that Standard had interferedwith the American explosives industry by blocking the use of a method of producing synthetic ammonia. As a result of its deals with Farben, the United States had been unable to get the use of this vital process even after PearlHarbor.Also,the United States had been restricted in techniques ofproducinghydrogen from natural gas and from obtaining paraflow, aproduct usedfor airplane lubrication at high altitudes.Jacobs produceda documentshowing that on September 1, 1939, the day Germany invadedPoland,Standard cabled Farben offering $20,000 for its 20 percentinterest ina Standard subsidiary handling the patents they sharedbetween them.Jacobs showed a Standard memo that read,"Of course what we have in mind is protecting this minority interest of I.G.inthe event of war between ourselves and Germany as it would certainlybevery undesirable to have this 20 percent Standard-I.G.pass to analienproperty custodian of the U.S. who might sell it to anunfriendlyinterest."

Jacobsrevealed thatit had been arrangedthat Farben in Germany should file applications inFrance and Englandfor various oil developments in Standard's nameduring the war. SenatorBone was so shocked by this disclosure that hecalled it "astounding"andsaid, "If the war does nothing else, it oughtto clean up a system likethis." On May 7, Farish hailed thecommittee with a furioustelegram. He denied that he had avoidedappearing and said that he hadsought to appear to clear the record buthad been refusedpermission. The telegram was several hundred wordslong and was socomplicated asto be virtually unreadable. As usual,Farish was simplytrying to confuse and bamboozle the committee, whichwas in factperfectly prepared to have him appear. It was quite obviousthat hepreferred to shelter behind intricate and expensive telegramsratherthan face the committee in person.

Thehearings resumed on August 7.Texasoil operator C. R. Starnes appearedto testify that Standard had blockedhim at every turn in his effortsto produce synthetic rubber after PearlHarbor. Farish firedoff another telegram to Bone, saying he was at aloss to understand whyBone permitted his committee to be used as asounding board for"reckless, unsupported accusations." He chargedStarnes with uttering"glaring falsehoods and misrepresentations,"  andhe flatly denied thathe had restricted Starnes in any way. Flying inthe face of Starnes'sevidence, he said that "like all Americans, whowant to get  on withthis war, we have hesitated to contribute in anyway to prolongedpublic controversy and name-calling.But the abuses ofdemocraticprocedures which occurred at yesterday'shearing must bepromptly andopenly branded for what they are, or we shall be in dangerof losingthe very things this nation is fighting for." He went on:

Themostslanderous statements of Mr. Starnes were torn from thepressrelease,and these mutilated copies were actually distributed tothepress in your committee room by your own committee counsel.Yourcounsel can hardly plead that he was unaware of the wild andscurrilousnature of the statements the witness was going to make.Thecircumstances of the witness's appearance are peculiar. Even thoughyoupersonally stated that he had appeared on his own initiative, it isasingular coincidence that the testimony of this man was presentedonthe identical mimeograph set-up as had been the testimony ofpreviouswitnesses presented under the committee's sponsorship.

These fulminations sat ill with Bone andwith Roosevelt's special rubber committee headed by the famous BernardBaruch,whichwas holding meetings on park benches in Lafayette Square feedingpigeonswhile it discussed the rubber crisis. Hatless and inshirtsleeves in theheat, the Baruch committee wrangled desperately inan effort to overcomethe rubber shortage.

On August 12, Richard J. Dearborn of the Rubber Reserve Co.,afederal agency, angrily denied Starnes's charges.However, since hewasaffiliated with Standard and with the Texas Company, his denialscouldscarcely be said to be objective. John R.Jacobs reappeared in anArmyprivate's uniform (he had been inducted the day before-HMM?) tobring upyet another disagreeable matter: Standard had also in league with Farben restricted production of methanol, awood alcohol that was sometimes used as motor fuel.

Finally,onAugust 20, the variouscomplications were ironed out and Farish andHoward turned up before thecommittee. Howard argued that Standard wasaiding the war effort withoils, synthetics, and other products nowused in fighting planes,tanks,cannon, and ships. He added that so faras Standard had learnedthrough examinations of oils, fuels, andrubber taken from Nazi planesthat had been shot down, Germany had "notmade extensive use" of theexchange information. He did not explain howhe had had access to planesthat had been shot down or how he had beenable to make suchdeterminations from mangled or exploded fuselages.Hmm?

CreekmoreFath, committee counsel,proddedFarish fiercely about supplyingaviation gasoline to the Nazi airlinesin Brazil. He snarled, "With the Lend-Lease program in action,were you following the United States or the Almighty dollar insupplying gasoline to the Lati Line?" 

"Iwas following the Almighty StateDepartment," Farish retorted. "Do youquestion the motives of the StateDepartment?"  Clashes between Fath,Farish, and Howard werefrequent.Farish was subjected to a gruelingcross-examination in whichFath frequently accused him of lying. Bonesnapped at Farish, "Are youfamiliar with court procedure in which theplaintiff is heard first?"

Farish snapped back, "Do you mean to compare this inquiry to a court proceeding?"

Bone added, "StandardOilmay be alarge outfit but it is not going to misinform theAmericanpeople while I remain alive. I'm fed up with outfits likeyoursintimating thatCongress is trying to ride them.  God knows we'renot.No one is bigenough to ride your outfit; you're the biggestcorruptcorporation in the world."

Theeffect of the inquiries on theTeagle  and Farish families wasultimately shattering. Farish's two sonswere in the Army Air Force andmust have been told often that Standardwas fueling the planes thatthey were combatting. Mrs. Teagle andMrs.Farish had to cope with thewomen's clubs. As forstockholders'meetings, they were uncomfortable tosay the least. Salesdropped and customers were angered. In desperationFarish's Big Board hired a top-flight public relations consultant, Earl Newsom, to improve the company's damaged image.JohnD.Rockefeller questioned Teagle and Farish on the matters,obviouslytrying to avoid direct entanglement by seeming not to knowthe detailsofthe German transactions. Press conferences were held inwhich Farishmade glowing announcements of the help that was beinggiven the wareffort. All of this failed to heal the trauma caused bythe severeordeal in Washington. Farish literally died in all exceptthe physicalsense during the Bone Committee hearings.Almost equallyshattered,Teagleseldom attended a board meeting again.He was so deeplywounded that hewould sleep for long hours and even showed a diminishedinterest inhunting. The corridors of RockefellerPlaza seldom heardhisheavy tread.Whatever he might pretend, Truman and Bone and ThunnanArnold hadjointly destroyed him.

OnNovember 29, Farish, after spendingThanksgiving with his family in NewYork, drove up to his hunting lodge,Dietrich Farms, near Millbrook,New York. He spent the daywalkingthrough the golden woods surroundingthe farm. Those who saw him noticedthat his brows were knitted inworry and that he looked pale. Shortlyafter two o 'clock that night,he felt very ill and a doctor came to thehouse.  At two thirty thefollowing morning he called out to his wife inan adjoining room thathe had a severe pain in his arm. A few minuteslater he was dead of aheart attack. The funeral took place at St. JamesEpiscopal Church inNew  York onMonday. Another service was held inHouston, where he wasburied.

Among the pallbearerswere Teagle and thenew chairman, Ralph W. Gallagher. Othersaccompanying the coffin wereGeneral Motors,  Alfred P. Sloan and theNational City Bank's president,William G. Brady, Jr. Frank Howard wasalso in attendance.Harold Ickes,whose diaries daily excoriated theStandard-Naziconnection, feltcompelled to deliver a hypocriticaltribute for the occasion. Inspiredmore by propriety than honesty, theOld Curmudgeon lied:

I feel a very real sense of loss in the death of Mr. Farish.Hewas a member, from the beginning, of our petroleum industrycommitteesand of the petroleum industry War Council. As such he gavethe fullestmeasure of "sincere, able and patriotic service" to themanifold programwhich has been necessary to mobilize oil, first fornational defense andthen for war. He did so even when the taking ofthese steps called for adisregard of normal competitive consideration.His place in thepetroleum war program will not be easily filled.(NoJail Time !)

Meanwhile, onAugust 8, 1942, Standardwas still busy. The company's West India OilCompany had shipped to theNazi-associated Cia Argentinia Comercial dePesqueria in Buenos AiresonTreasury licenses. The U.S. Embassy inArgentina and the StateDepartment authorized the transaction, alongwith members of thePetroleum Board in Washington who were alsoreceiving a salary fromStandard.

OnAugust24, John J. Muccio, FirstSecretary of the U.S. Embassy in Panama,wrote a letter to Cordell Hullheaded "Suspicious correspondence --possible Axis control of fuelpatent." The district postal censor hadintercepted a letter from MiguelBraun, a Costa Rican inventor, toFrank Howard and H. M. McLarin ofStandard, offering for sale a newlyinvented fuel known as Braunite thatBraun had developed.Braun wassecretary and treasurer of Chemnyco,I.G.Farben's blacklisted New Yorksubsidiary. The responding letter fromHoward expressed interest inpurchasing the patent and soon afterproceeded to negotiate for it. 

OnAugust 28, a commercial attache staffmember in Argentina permitted aStandard subsidiary to sell to anotherFarben subsidiary of BuenosAires despite the fact that the Argentinesubsidiary was blacklisted.

Inthe fall of 1942 it became clear thatGermany was already in desperateneed of oil. Because of severe weather,shipment of barges and tankcars was drastically restricted.In Africa,General Bernard Montgomeryhad smashed the Germans and Italians at ElAlamein. The Russians hadsucceeded in their offensive against the Naziarmies.

Switzerland proved more and more valuable as a neutral country.Onthe surface leaning in the direction of the Allies, that country wasinfact in a permanent state of equivocation,exchanging raw materialsinGermany for precision instruments and tools.Germany used Switzerland asa conduit for oil into France, which by mid- November was completely inGerman hands. It behooved all loyal Americancompanies to doeverythingin their power to stop the flow ofpetroleumfrom Romania andHungary through Switzerland for the trucks and armoredcars and tanks.But the crumbling regime of William Farishhad no such consideration for patriotism, any more than Edsel Fordhadwhen he approved the supply of trucks for that same enemy. 

InSwitzerland the headquarters staff ofStandard Oil was in constanttouch with Rockefeller Plaza. It was notchartered to separate itselfindependently since it was in neutralterritory. At the beginning ofNovember 1942, Henri Henggler and DavidDuvoisin, the Standard bossesin Berne, paid an urgent visit to Leland Harrison and  DanielReagan,respectively minister and commercial attacheof the UnitedStates. They asked permission to continue shipping Nazioil fromRomania, from the oil fields that Standard had sold (orleased)to theNazis. The oil wasto be carried by tank car through Switzerlandfor useby, among others,the German and Hungarian embassies.  HarrisonandReagan had been given a clear mandate by the State Department onJuly10, allowing them to license transactions between American concernsandenemy nationals based on the original Executive Order 8389permittingsuchtransactions. The procedure was that local members ofthediplomatic corps had to apply to both Dean Acheson and Morgenthauforthe issuing of such licenses.The meeting between HengglerandDuvoisin of Swiss Standard andHarrison and Reagan wasextremelycordial. While Harrison and Reagan promised to take the matterup inWashington, they suggested that Henggler and Duvoisin should dropinand see the Swiss political department to see what thelocalgovernment's attitude might be. The two Standard men went over tothegovernment offices, where they received a characteristicallySwissreply. The officials reminded their visitors that "We shallofcourse,gentlemen, have to take into consideration our local laws.  Article273of our Penal Code provides that anyone who sells to an alien withwhomhe is at war can be sentenced in this country to imprisonment."The officials told Henggler and  Duvoisin that they would proceed as follows.TheStandard men must agree not to reveal the names of theenemycompanies towhich they would be supplying products. Thus,Switzerlandwould be neatlylet off the hook.

Daniel Reagan wrote to Acheson on November 4, urging him to agree to the arrangement for the oil shipment.Hesaid that since the Swiss would not authorize the arrangementsthatinstructions for the shipments should come directly from NewYork.Reagan wrote:

Standardwantspermission to store and transport in Switzerland gasoline andfuel oilsimported for the use of the Nazi and HungarianLegations.Standard willunload at the Swiss railway station fromrailroads controlled by theAxis. American and British oil companiesare dependent upon the enemyfor petroleum supplies imported by theSwiss syndicate, Petrola. Toirritate the enemy by ordering Standard todiscontinue the serviceperformed for enemy legations might give theenemy a pretext forrefusing to permit oil of enemy origin to bedistributed by Americancompanies.* The U.S. Legation is heated by coalof enemy origin and thelegation's automobiles are propelled byenemygasoline. If Standarddiscontinues storing and transporting oiland gasoline for enemylegations, the latter can undoubtedly have thisservice performed byanon-American company. To compel theAmericanconcern to cease thesetransactions with enemy legations ...might result in reprisals againstStandard and other American andBritish oil companies. The legationaccordingly recommends thatStandard be licensed to continue thisoperation.

Reaganalso asked for Standard to begiven permission to pay a Nazi employeeof Standard a monthly paymentthrough a German-Swiss clearingaccount.Reagan went on to discussStandard's ownership of the Rhinebarge Esso4, which was presentlycommandeered  by Germany. DAPG, theGerman Standard subsidiary, hadcontinued after Pearl Harbor to payrental to U.S. Standard for thebarge.  Also, the Danube barges Pico Iand PicoII were supplyingI.G.Farben, Krupp, and other Nazi industrialpowers,and DAPG wassiphoning payments through to New York. Reaganasked if the paymentscouldcontinue.All while our fighting men weredying in combat , as wellas hundreds of thousands of civilians diedhorrible deaths .

Thematter of Jean Inglessi came up. Hewas an official of the Standard Oiloffice in Paris under the Nazioccupation. He was also on SwissStandard's board in Lausanne. Reagan urged that Inglessi be kept on.

Furthermore,Reaganurged State to approvethe matter of Standard railway tank carscarrying oil through OccupiedFrance to Switzerland. Several of thesehad been commandeered by theGerman army.  The cars were covered by Swiss war risk insurance.Standardwantedpermission to assist the Swiss authorities to obtainreimbursement fromthe Nazis because the tank cars had been bombed bythe British.  OnDecember 11, Minister Leland Harrison advised CordellHull and  heothers that the British Legation in Switzerland concurredwith therecommended arrangements.

OnDecember 26, 1941, John G. Winant,U.S.Ambassador to Britain, discussedthe matter with the Chancellor of theExchequer, Sir Kingsley Wood.Instead of stopping these transactions atonce, Winant and Wood decidedthat it would eventually be "preferable" if a Swiss companytransported oil for the enemy legations but thatthere was no objectionto the procedure continuing and that "It is bestnot to incur any riskof [offending the enemy] byraising this issue."The note continued, "Embassyconcurs with British view that onbalance there is no reason for takingaction which would at most be onlyminor irritant to Germans and whichmight complicate an alreadydifficult situation or lead to unfortunate consequences as regards to future operations of American and British oil companies."

Theembassy and the British agreed thatthe Nazi employee could be paideach month, that payment for the bargesshould be licensed, and thatJean Inglessi should be allowed to continuein office provided he didnot live in Occupied France. Also,the licenseshould be given to permitStandard to communicate with France, via the Chase Bank in Paris, to recover the tank cars or obtain war risk indemnity from the Germans, again through the Chase.

On December 29, Winant's office -- he was en route to Washington -- advised that all licenses should be granted as requested.

Thematter was handed over toMorgenthau,who under severe pressure fromState was compelled toauthorize almost all of the arrangements butdeferred decision on thebusiness of supplying the enemy consulateswith oil and allowingStandard to ship that oil.  However, he permittedthe shipments tocontinue until the Swiss company could efficientlytake over.

On January 28, 1943, Harrison protested the decision on shipment by repeating that "to provoke enemy unnecessarily [was] highly undesirable."Buthe did promise efforts would be made to have the Swiss companytransferthe services. Inglessi must surely be allowed to stay in officeeventhough, Harrison revealed,he was working for Standard inOccupiedFrance.

The result of all thiswas that Standardcontinued to fuel the enemy, and the enemy fueled theU.S. Legation andits automobiles, until at least mid-1943.

Othertransactions continued. On March5,1943, a license was grantedpermitting Standard in Brazil to pay anenemy corporation for specialapparatus. On March 22 an enemy agentonthe blacklist was licensed toreceive $3,668 by Standard for legalservices in Rio.  The licensing went on and on.On April21,1943, Duvoisin cabled  Zurich confirming the shipment of16.7 tons offuel to the Axis. The message was intercepted bycensorship and sent most urgently to all branches of intelligence but nothing was doneabout it. HMM?

OnJune 1, 1943, I.P. Stone ofThe Nation(who knew nothing of the aforementioned secretcorrespondences which were classified up to 1981)attendedtheStandard stockholders' luncheon at the Patrons of Husbandry HallinPlemington, New Jersey. He reported that in an early Americansetting,Ralph W. Gallagher, successor to Walter Teagle as chairman,sought toreply to the angry stockholders whoquestioned the I.G.Farbenassociation. Gallagher pulled two rabbits out of a hat: two meekyoungmen who had survived torpedoed Standard Oil tankers that had beensunk("by some miscalculation"). One Standard supporter asked the crowd how anyone could question the patriotismofa company that had given the lives of three hundred of its men inthewar against the submarine." At this point, Stone wrote,"yourcorrespondent was taken ill."

JamesW. Gerard, former ambassador toGermany, spoke in support of thecompany, saying that he had noknowledge of any such American-Germanrelations. Only a handful of thosepresent knew that he had leftGermany and his post there a decade beforeI.G. Farben was formed.

Asa grand finale to a meeting notablefor its black humor, Ralph W.Gallagher said unblushingly, "We never hadany cartel arrangement withI.G. Farben." At that moment The Nation'sreliable correspondent againfelt unwell.

Only eight days later, in a secret document dated June 9, 1943,C.P.Savourin of Standard Oil in Venezuela was authorized tocontinuetrading in oil with Gustav Zingg s * company and three otherProclaimedList corporations to the tune of a total of13,000 kilos amonth.

On June 15, Joseph Flack, American charge d'affaires in Caracas, sent to Hull an astonishing list of"sales made to Proclaimed List  nationals"! Such monthly lists weresent to Washington throughout the entire war.

StateDepartmentmemoranda in August 1943show trading was permitted between a Standardsubsidiary and fiveProclaimed List nationals in Caracas,Venezuela,that were shipping oilto Aruba for use in Spain.

Noneofthese transactions was evermadepublic. The details of them remainedburied in classified files for overforty years. However, it provedimpossible for Ralph Gallagher andWalter Teagle, who remained activebehind the scenes, to conceal thefact that shipments of oil continuedto fascist Spain throughoutWorldWar II, paid for by Franco funds thathad been unblocked by theZionist controlled Federal Reserve Bank while Loyalist funds were sent to Nazi Germany from the vaults of the Bank of England, the Bank of France, and the Bank for International Settlements.

The shipments to Spain indirectly assisted the Axis through Spanish transferences to Hamburg. At the same time, there were desperate shortages in the United States, long lines atthe gas stations, andeven petroleum rationing.WhileAmerican civilians and the armed services suffered alikefromrestrictions, more gasoline went to Spain than it did todomesticcustomers.

The whistle wasblown by U.S. AmbassadorCarlton J. H. Hayes in Madrid on February 26,1943, who made a statementthat "oil products available in this countryof Spain are considerablyhigher than the present per capitadistribution to the people of theAtlantic Seaboard of the UnitedStates." Asked by The NewYork Times howthis could be explained, aspokesman for CordellHulldeclared blandly that the oil came from the Caribbean and not fromtheUnited States and was hauled by Spanish tankers. The evasiveness of the response was typical. The spokesman also neglected to mention that shipments were going to Vichy and to French West Indian possessions under collaborative influence.

Hayesrevealed that the gasoline andpetroleum products equaled the fullcapacity of the Spanish tankerfleet. He neglected to add that much ofthat fleet proceeded regularlytoGermany and helped to fuelNazis,including their embassies andconsulates and militaryinstallations,tanks and armored cars as well asSpanish trooptransports on the Russian front, fighting against theSoviet Union,which was America's ally. 

Inaddition to oil, 25,000 tons ofsulphate of ammonia were shipped toSpain in 1943 along with 10,000tonsof cotton, despite Americanshortages in both commodities.

The economist Henry Waldman wrote to The New York Times on February 26, stating it accurately as it was: "Hereweare, a nation actually assisting an enemy in time of war, andnotonlythat, but stating through our Ambassador, that we stand readytocontinue and extend such help ... Spain is [an enemy] and yet weaidher."

Needledby this and othercriticisms,Sumner Welles announced on March 11 that"adequate guaranteeshave been furnished to satisfy the British andUnited States governmentsthat none of these quantities of oil willreach Germany or Germanterritory." He evidently chose not to revealthat such guarantees fromthe mouth of General Franco were useless.

The flow of oil continued. On January 22, 1944, Dean Acheson said that "Oilisallowedto go to Spain as part of the bargaining done with neutralcountries tokeep them from supplying the enemy with what he wants fromthem." This statement was made on an NBC broadcast entitled "The State Department Speaks."  He was  telling only half the story. Sound Familiar yet ?

Thefact that this was so was revealedwithin less than a week. Despiteopposition by Acheson, Harold Ickesoverruled everybody and went to seeRoosevelt. The result was that theUnited States suspended oilshipments to Spain. Ickes had accumulated adossier from his specialstaff of investigators. The dossier showedthatin fact oil was going toGermany, that German agents were operatingfreely on Spanish territory,and that Franco had just released400million pesetas of credit toGermany. This would insure the Germans aflow of all the oil it needed,plus unlimited supplies of wolfram,theore from whichtungsten, a hardsubstance capable of penetratingsteel,was made.

Of course, all of this was known to theUnited States State Department long before Ickes took drastic action.Nevertheless, nothing whatsoever was done about it.Fora brief period the truth emerged about Spain. Spanish shipsweresearched at sea,showing that oil, platinum, industrial diamonds,andliver extract,from which the Germans made a tonic for fliers,submarinecrews, andeven shock troops, were coming from Argentina andtheCaribbean on Spanish vessels, admitted through the British blockadebyAmerican licenses.

On January28, 1944, the Britishgovernment cut off oil, gasoline, and otherpetroleum products toSpain.Franco protested violently.  Dean Achesonremained sensibly silent.

Itwas a brief period of sanity. On May2,1944, after only three and ahalf months of suspension, the oil lobbywon a fight to restoreshipments and to allow limited wolfram exports toGermany as well.  Inorder to secure this important move, Cordell Hullarranged for GeneralFranco to expel Nazi agents from Spain, Tangier,andthe Spanish Zone ofNorth Africa. Although Franco more or less followedthese politerequests, he continued to harbor large numbers of Nazisshelteringunder diplomatic immunity. There was never any question ofbreaking offdiplomatic relations with Germany: 48,000 tons a month of American oil and 1,100 tons of wolfram began to flow back to the Nazis.

Acertain grim amusement could beextracted from an interview withR.T.Haslam, vice-president of Standard,on September 19, 1944, in TheNew York Times. Haslam said that "Germanyhas succeeded in producing afine gasoline, the equivalent of our own,but in limited quantities."The remark mark passed almost unnoticed.

OnJuly 13, 1944, Ralph W. Gallagher ofJersey Standard sued the U.S.government for having seized the syntheticrubber patents handed overto Frank Howard at The Hague. I.G. Farbenlawyer August von Knieriemflew in from Germany to testify againstStandard. Gallagher's face wasa picture when he saw Knieriem enter thecourtroom.  He knew Knieriemwould reveal much of the truth ofStandard's dealings with the Nazis.

OnNovember 7, 1945, Judge CharlesE.Wyzanski gave his verdict. He decidedthat the government had beenentitled to seize the patents. Gallagherappealed. On September 22,1947,Judge Charles Clark delivered the finalword on the subject. He said, "StandardOil can be considered anenemy national in view of its relationshipswith  I.G. Farben after theUnited States and Germanyhad become activeenemies." The appeal was denied. Sounding familiar ? Reality is stranger than fiction.

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