Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-04-24
TRUST BLAMED
FOR HIGH PRICES
Standard Oil Company Flay-
ed by Federal Trade
Commission
BY Associated Press

Washington, April "a. = Domina-
ton of the gasoline industry by
Standard Oil interests. the Federal
Trade Commission reported to the
Senate to-day, has been largely re-
sponsible for high gasoline prices of
the last two years.
The report written after an eX-
haustive investigation into the entire
petroleum industry, declares inter-
locking stock ownership prevents any
real competition among the various
Standard Oil companies and the
commission recommends legislation
to permit reopening of the oil trust
case to obtain notifications of the
Supreme Courts dissolution decree.
No conclusive evidence was found,
1t is stated that collusion exists
among the standard companies in
violation of the decree, but the COM
missions findings have been trans
mitted to the Attorney General.
Prices are declared to have been
raised arbitrarily. although natural
causes contributed. Pronounced price
parts of the country.
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No Competition
The principal findings of the COM
mission are:
That in most arketing territories
the Standard companies are domi-
nant.
That the Standard companies have
maintained a distribution of terri
tory in marketing gasoline, and that
no substantial competition in the
chief petroleum products exists
among the Standard companies.
That the absence of competition is
due to community of stock owner
ship.
That the facts disclose advances in
prices of gasoline and differences
in price, corresponding to Standard
marketing territories, which could
not be explained except under the
conditions charged.
Pcrpetuate Monopoly
Phat the combination of pipe lines
with other branches of the industry
has tended to establish and perpetu-
ate monopoly.
That there is no conclusive evil
dence of collusion among the Stand
ard companies in violation of the dis
solution decree.
The commission recommended
these measures as necessary to rem
edy conditions:
A law providing for the reopening
of antitrust cases on the application
of the Attorney General by bill of
review for the purpose of obtaining
such notifications of DEGREES as are
required by new conditions.
Legislation to abolish in certain
cases common stock ownership in
corporations formerly members of
com binations dissolved under the
Sherman law.
Effective limitation of common
ownership of stock in potentially
competitive corporations by with
drawing the power of voting and
control.
Would Fix Standards
Legislation, which while recogniz-
ing common ownership would fix
upon such common owners the re-
sponsibility for the acts of each of
the several subsidiary companies
which prevent competition.
Segregation of ownership of pipe
lines from the other branches of the
petroleum industry.
Congressional enactment to fix
standards for gasoline.
Federal collection and publication
of accurate statistics and informa-
ton concerning the industry.
Wholesale gasoline price rose be-
tween IS and 85 per cent in 1915,
says the report. Retail prices kept
close behind them. The part in
| creased demand and scarcity of the
product played in the increase is
shown in figures giving the increase
in demand 3S per cent in 1915 and
the production seven per cent below
the year before. The standard books
show large earnings, says the report,
as also was evidenced by the en-
hanced stock market value of Stand
ard securities.