The Barre daily times. (Barre, Vt.) 1897-1959, 1917-04-24
HIGH GASOLINE
DUE TO MONOPOLY
Federal Trade Commission
Reported to the
Senate
ASK OIL TRUST CASE
BE REOPENED
No Conclusive Evidence of
Collision Was
Found

Washington. d. c., April A.-Domina
ton of the gasoline industry by Stand
mission reported to the Senate to-day
has been largely responsible for higl
gasoline prices of the last two years
i The report written after an exhaustive
investigation into the entire petroleum
industry, declares interlocking stock own
ership prevents any real competition
among the various Standard Oil eompan-
les and the commission recommends leg
islation TO permit reopening of the oil
trust case to obtain notifications OF the
supreme courts dissolution decree.
No conclusive evidence was found, it
is stated, that collision exists among the
Standard companies in violation of the
decree, but the commissions findings
have been transmitted to the attorney
general.
| Prices are declared to have been raised
arbitrarily, although natural causes con
tributed. Pronounced price inequalities
were found in different parts of the coun-
try.
The principal findings of the commits
sion are:
That in most marketing territories
the Standard companies are dominant.
That the Standard companies have
maintained distribution of territory in
marketing gasoline, and that no sub
stantial competition in the chief petro-
eum products exists among the Standard
companies.
That the absence Of competition is due
to community of stock ownership.
That the facts disclose advances in
prices OF gasoline and differences in
price corresponding to Standard market
ing territories, which could not be ex
planned except under the conditions
charged.
That the combination Of pipe lines
with other branches of the industry has
tended to establish and perpetuate mo
nopoly.
That there is no conclusive evidence of
collision among the Standard companies
in violation Of the dissolution decree.
recommendations.
The commission recommended these
measures as necessary to remedy condi |
tions:
A law providing for the reopening OF |
anti trust cases on the application of the !
attorney general by bill OF review for !
the purpose Of obtaining such moditica- |
tons OF DEGREES as are required by new |
conditions.
Legislation TO abolish in certain cases |
common stock ownership in corporations
formerly members of combinations dis
solved under the Sherman law.
Effective limitation of common owner
ship of stock in potentially competitive
by withdrawing the power
Of voting and control
Legislation, which while recognizing
common ownership, would fix upon such
common owners the responsibility for
the acts Of each Of the several subsidiary
which prevent competition.
Segregation OF ownership OF pipe lines
from the other branches of the petroleum
Congressional enactment to fix stand
.rds for gasoline.
Federal collection and publication OF
accurate statistics and information con
'erning the industry.
Conditions in the gasoline industry as
by the investigation are de-
Jared to be:
Gasoline marketing IS divided into II
territorial divisions, at least nine of
which are said to be under Standard Oil
domination.
Stockholders of the Standard compan-
es to great degree are the same in
liyiduals or interests, with more than
lalf of the stock of the various compan-
es in their hands.
Leading officers of the Standard com
'anies hold considerable stock in two or
more companies.
Standard Oil refineries produced more
han 60 per cent of the gasoline output
n 1915, sold about So per cent of the to-
al marketed and held more than 40 per
ent of gasoline stocks.
Correspondence of the different prices
a 1915 with standard marketing terri
ories," says the report, itself points
0 arbitrary price fixing. But the arbi-
rary character of the inequalities in
rice is conclusively demonstrated by the
acts that as between most of the terri
ories there were no such differences in
emand and supply and the
lsrgin between cost and price was wide
? different in the different territories"
Wholesale gasoline price rose between
and So per cent in 1915. says the re-
ort. Retail prices kept close behind
lem. The part increased demand and
,arcity of the product played in the in
ease is shown in figures giving the in
ease in demand IS per cent in 1915 and
le production per cent below the year
fore The Standard books show large
,rnings, says the report, as also was
-idenced by the enhanced stock market
ilue of Standard securities.