The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-25
STANDARD OIL AGAIN
FACES U. S. INQUIRY
Service Board Asks Investiga-
tiOn Of the Varying Rates
Charged for Gas OIL.
Scale Said by Hayward to
Range From 3 Cents a Gal
lon to 1876 Cents.

The Public Service Commis ssion decided
yesterday to appeal to Attorney-General
Gregory for an investigation OF the prices
Charged for gas oil by the standard OIL
Company In this particular section of the
country. The commission has begun to
realize through the bearings held In a
number Of cases where the price 10 be
charged consumers OF gas was in ques-
tion that different companies are able 70
obtain different rates from the Standard
OIL Company.
Particular attention was concentrated
on this matter during the progress of the
hearings In wha; is known as the Kings
County Lighting Company case. Com
missioner Hayward testified before the
Thompson committee that there was no
such thing as market price for gas
oil. The rates seemed to vary accord
ing to the company with which the
standard was dealing. They ranged
from as low as 3 cents a gallon to the
a.515 cents a gallon which was charged
the Kings County Lighting Company on
u long term contract. The good faith
OF this contract was questioned by Com
missioner Hayward. II was through his
recognition of the contract as of good
idlAu Nlltt 'OfUins sslDNcr W llliafns was
criticised by the Thompson committee.
Mt only Will the commission call upon
the Attorney-General to look into this
matter, but next Thursday 1t will begin
an Investigation of its own with par
ucular reference to the price of gas oil
charged the gas compan!e within tho
jurisdiction OF the commission A mo-
ton to this effect was introduced at the
meeting yesterday by Commissioner
Williams II was adopted unanimously.
Tie oil situation. which has aroused
much suspicion among those who watch
the determination OF gas rates closely.
mas been complicated by the announce
ment Of the Kings County Lighting Com
pany that the price OF gas oil which Il
Is compelled to pay is steadily rising and
IL already approaching the prohibitlve
stage. This Is said TO be due to the
heavy demand for yasoiene. which is a
Refinement OF the same kind of crude oil
from Uaicn gas oil liz made. IL Is said
that the standard Oil Company finds it
more remunoraiive to make g.lsolcne and
that the only way to obtain gas oil Is
to lsy. use price demanded.
Commissioner Hayward has said that
he cannoi understand why certain COM
pan!es should get a fair price quoted to
them FOR Eas oil while the Kings county
company has TO pay a much higher urice.
When the commission had decided yes
terday to begin an Investigation Com
missioner Hayward said:
IL would like to move that tn. sccre-
tary OF the commission be instructed to
communicate with the Attoruey-ieneral
Of the United States directing his at
tention 10 the facts brought out IN the
recent rate cases showing what seems
10 be a Discrimination In the price OF
gas oil 20 the different gas companies
within our jurisdiction. and giving him
possession OF all the facts that have
been made public. II the standard on
Company is going to fix prices for gas
! N the First district of New York we
would better know IL so we will not
De wasting lot Of time holding hear
ings."
Commissioner Williams seconded the
motion and Il was carried unanimously
/ Commissioner Hayward said after the
meeting that the apparent discrimination
! In oil prices against some concerns and
preferential prices for others appealed 70
him as IA violation of the Sherman anti.
! trust law.