Evening star., 1915-12-28
Federal Trade Commission to
Locate Responsibility for
Increase in Price.
EFFORT MADE TOLOCATE
MIDDLE MAN" IN BUSINESS
Sweeping Investigation Proposed,
Possibly Supplemented by Con-
gressional Inquiry.

The federal trade commission,
with its sweeping power and Ell
lectivc organization. is "Soln"
alter the high cost OF gasoline,
with d view to locating the re-
>ponsibilitv ior the increase in
price and determining the lustif-
cation for the advance.
! In fact, preparations for the in
quirv have been under way Tor
several weeks, and a staff OF in
vestigators is already at work.
To promote the efficiency OF the
inquiry and obtain facts before
MANY avenues OF information
might be closed. the work is being
prosecuted with unusual secrecy.
and the members OF the commits
sion refuse to give details OF their
operations.
| The continued rise in the price of
ga soline proba bly, viii be made the SUBJ
| ject of an inquiry to determine whether
there has been any violation of the
| Sherman antitrust act.
No formal complaints have reached
Washington so far. Attorneys Of the
| Department of Justice connected with
ianti-trust prosecutions express the
| view that an inVesti cation can and
/ may be begun on the departments own
initiative.
Congressional Inquiry Possible.
/. 1t is practically certain that con-
gressional investiga tion Of the sub
| ject will be proposed as soon as the ma
| tional legislators reassemble after the
| holidays but it was said today the soft
pedal may be put on the inquiry If 1t
bids fair to interfere with the more
far-reaching and practical work Of the
/ federal trade commission.
The commission has all the power
which any committee of Congress
might seek to invest itself with, and,
moreover, it is explained, has the bene-
fit of technical and expert assistance
Furthermore. it can infiict punishment
for any violation of law that might be
found and adopt remedial measures.
Two Forms of Investigation.
While details of the proposed inquiry,
as stated, are lacking. it is said that
! the investigation has taken two forms
at this time.
First-To ascertain the truthfulness
of charges that in places where there
is active competition between the large
oil companies prices are normal, and
that in otner sections. where there is
no competition, the price is fixed upon
the basis of .'all the traffic bear
Second-Io ascertain whether there
ic 4rtrt pa of da
alleged in some quarters as excuse for
hoisting the price.
Fortunately, it is said, the geological
survey keeps pretty good tab upon pro-
duction and will be able to present fig
uIes of the actual quantity of oil pro-
dUced
Interest of congressman in oil-pro-
ducing regions is likely to be aroused,
it is said. to develop whether the own
ers of oil properties are getting their
lproportionate share of the increased
price of their refined product sold at
retail
One prime object, it is said of the
investigation will be to smoke out the
middleman, who may be getting an
undue profit at the expense Of the con-
| sumner and sacrifice of the original pro-
ducer.
+ Estimate of Production.
| The geological survey will publish
| about January l its estimate of the
| production of crude petroleum for 1915,
and it is understood that this will show
| an increase over 1914. The production
| for 1914 exceeded that of 1913.
| The last bulletin of the survey on
oil production was issued last sum-
mec, based on the production for the
| first half of 1915. In the light of that
bulletin the Increased price of gasoline
| can be considered a commentary. The
| bulletin closed with this statement:
'"The persistent flood of low priced
| but relatively high grade. Oil from the
! Oklahoma fields prevented any per-
manent advances. though temporary
| fluctuations were noted in the market
| for grade of petroleum from other re-
| gions durin gthe half year in review.
| and the period closed with fairly
steady demand on the basis of s1.35 for
| Pennsylvania grade, the market
standard. The corresponding period
| in 1914 recorded a notably unstable
and declining market. prices of Penn
| sylvania grade decreasing in the period
from $3.50 to s1.75 per barrel"
| The bulletin further said: 'The guam
| tity of petroleum produced in the
United States during the first half of
! the year 1915 is conservatively esti-
/ mated by J. d. Northrop of the United
| States geological survey at 145,000,000
| barrels. His apportionment among the
| majo fields is as follows:
| Barrels.
Appalachian NEUTRALITY-SUSPICIOUS.. II .3O0, 600
/ Lima Indiana ACKNOWLEDGEMENTS. SOC, 900
| Illinois OBSERVATION-DISCLOSURES 5000. 900
/ Kansas and Oklahoma .............. IS, 900. 900
4 Northern Texas +............ 3.5Ub, 900
Northwest Louisiana ...-............ 1,tOO. 900
| Gulf coast Observation-Disclosures. 7,5OO,OCO
Wyoming 1,5OO. 900
/ California a, 7O0,OO0
Miscellaneous ACKNOWLEDGEMENTS. 100000
| Total Observation-Disclosures. $4,000. 900
Placed in Field Storage.
| This quantity. which includes a con-
| siderable amount of oil placed in field