Abstract

The Squeeze on Mexico

The article discusses the purchase of oil into the U.S. army and navy. It states that on September 5 the U.S. Navy Department opened bids on a half-million barrels of fuel oil. The highest bid was 89 cents a barrel. The Navy Department chose to buy the oil from the highest bidder, Standard Oil Co. Standard Oil can prove that it was justified in charging the navy 89 cents a barrel at a time when it was selling fuel oil to private companies at 80 and 85 cents a barrel. More important than the question of Standard's patriotism and the Navy Department's business acumen is the light these facts, disclosed in the article for the first time, throw on American relations with Mexico. Harry Sinclair's Consolidated Oil Co. and Eastern States Petroleum made the other bids. Both were offering Mexican oil. The Navy Department rejected their bids because it did not wish to buy Mexican oil and in doing so it joined in the boycott by which Standard Oil has been putting the squeeze on Mexico.