South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-04-14
MAY PROSECUTE ON
RISE OF GASOLINE
Department of Justice COnSid-
erS Whether More LegiSIa-
ton Will be Needed.

W ASH NJ 1ONs Aprl 14.-ENl-
dence relating 10 the rise in gaso-
line is being considered by the de-
partment of justice with view, II
is understood TO determine il prose-
cutions can be brought under the
law as 1t sands or whether additional
legislation will be required
Atty. Gen. Gregory declined Thurs
day TO give the senate the informa-
ton sought in the Kenyon resolution
regarding the results Of an inVestiga-
ton OF the working OF the supreme
courts Standard Oil decree ON the
ground that to do SO would be in
compatible with the house interests.
This development and the reappear-
ance of Charles Il. Morrison OF Chi
cago in connection with the case
strengthened the belief in some
quarters that the department has
not finished it's investigation and
gave rise 10 the report that depart
ment officials had requested Mr.
Morrison to look into the gasoline
| situation with a move 20 further
prosecutions. Mr. Morrison is thor
Oughly familiar with the Standard
Oil litigation and aided the depart
ment in the prosecution of the dissO-
luton suit
Doubt Present Laws.
IL is understood department Off
4 Gals are in doubt as to whether
/ prosecutions under the present law
/ could be successfully carried out in
view OF the dissolution decree. What
is regarded as a fundamental defect
\ in the decree is the provision which
permitted the original owners OF the
/ oil trust 70 retain ownership of the
various companies into which the
combine was split up. New legisla-
| ton to correct this situation may be
/ sought.
The Investigation conducted By the
| department in cooperation with the
4 federal trade commission has dis
\ closed a wide variation in prices in
\ the east and middle west Whether
\ "a discriminatory scale Of prices was
maintained. under which 1t would be
impossible for gasoline to flow freely
from the mid-cOntinent field OF pro-
/ duction into the middle west has
i been under investigation. In some
I places IT is said the line Of demarca-
\ tion in price was sharply drawn not
\ ably on the Ohio river on the
north bank of the river, the investi-
cation is said TO disclose, prices were
+ two cents per gallon higher at one
/ time than on the south side. a mile
\ or so away
Big Variance I'm Prices.
Variance in prices between New
York and Chicago is said TO have
been as much as five and one half
/ cents a gallon at one time. while in
\ New England, New York and parts
\ Of Pennsylvania the rate was appre-
I Gladly higher than in the middle
west
The dissolution decree. IL is under
| stood is viewed by officials as a
\ failure i'm certain respects. one Of
+ the chief OF which is that the great
+ transportation system OF pipe lines
/ constructed by the combine is left
/ i'm the hands OF it's original owners
and is operated. legally, under re-
4 strictions which make IL unavailable
as common carrier 10 small indie
pendent producers. This. is is be-
+ Heved. has swept from the field Of
I competition numerous small wells
whose aggregate output is consider
able
Whether the dissolution decree has
prevented the so-called Standard oil
subsidiaries from districting the
/ United States among themselves.
! thereby avoiding competition with
+ one another. likewise has been in
I vestigated. The situation is said 70
/ disclose that there Is no real com
I petition today among the various
1 companies that went 20 make up the
oil trust The question that has
arisen in this connection lately is
whether the decree permits this state
! ~ % ffasre