Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-24
WOULD HAVEU. s.
FIX GAS STANDARD
Federal Trade Board Finds
Oil Trust Still in Con-
troll of Industry
COMPETITION is ABSENT
Bv a stor Correspondent
WASHINGTON, April

BD stor Correspondent
WASHINGTON, April "a
Fixing by congressional legislation of
standards OF gasoline Is among the import
ant remedial recommendations made by
the Federal Trade Board, which, after thor
ough investigation, finds that refining, pipe
line transportation and marketing Of gaso-
line in this country are still dominated by
the Standard Oil interests.
The report says that despite the dissolu-
tion of the Standard Oil by the United States
Supreme Court this domination has a funda-
mental bearing on the gasoline prices.
which. In the opinion Of the Investigators,
have been arbitrarily increased. Compe-
tition does not exist between the various
Standard Oil Companies because of inter
locking stock ownership though the hold
ing of majority of shares in the con-
stituent STANDARD oil Companies by iden-
tcal interests.
The findings apd evidence of the Federal
Trade Commission were transmitted to
the Attorney Genetal for his action. The
chief findings are:
That in majority OF marketing ter
ritories the Standard Oil Companies are
dominant.
That the several STANDARD Oil Com
panies have maintained a distribution
of territory in the marketing of gaso-
line and that no substantial competi-
| tion in the chief petroleum products
exists among the seAeral Standard oil
Companies.
That this absence OF competition is
due to community OF stock owner
| ship.
That the facts disclose such advances
| in prices of gasoline and such differ
| ences In price corresponding to stand
ard Oil marketing territories as are not
possible of explanation apart from the
| foregoing conditions.
The commission has not found con-
| elusive evidence of colluslon among the
J. various Standard Oil Companies in
violation of the dissolution decree.
| That the combination of pipe lines
with the other branches of the industry
| has tended to establish and perpetuate
| monopoly
| That gasoline has deteriorated in
quality. a variety of products heing sold
under that name.
| Recommendations of the commission
with a view to preventing or resnedying
| conditions include:
| Fixing by congressional Legislation
of standards for gasoline"
| law providing for the reope nnG
of antitrust cases on the application or
the Attorney General by bill of re-
view for the purpose of securing such
notifications Of DEGREES as new con-
ditions may require.
Abolition by legislation In certain
cases, of common stock ownership in
corporations which have been men,
bers of a combination dissolved under
the Sherman law.
Effective Limitation upon common
ownership of stock in potentially COM
petitive Corporations by withdrawing
the power of voting and control.
Legislation which, while recognizing
common ownership. would fix upon such
common owners the responsibility for
| tha antc pf arh nf fha
panies so owned which prevent COM
| petition.
Segregation of the ownership of the
pipe lines from the other branches of
the petroleum industry.
Federal collection of accurate sta
| tistics and Information regarding the
industry.
In detail, the commission urged that whei
1t finds, as in the case Of the gasoline in
dustry, an antitrust dissolution decree ha
not restored competitive conditions Con
} gress might amend the trade commission
! act so as to authorize and direct the At
! torney General to reopen the case for re
! view as to the efficacy of a dissolution de
cree. In such proceedings it is suggested
| that the commissions findings should b.
admissible evidence and that the court
} should have power to make new DEGREES t
insure competition.
Factors in Standard Oil domination cite
in the commissions report were:
Division Of gasoline marketing into eleve
, territorial divisions. at least nine of whic
,, are said to be dominated by various Stand
ard OIL companies
Stockholders of the several Standard o
! companies are, to a great degree the sam
individuals or interests. moro than half G
l the stock of the various companies bein
4 in the same hands. Moreover, the repoI
states that leading Standard Oil officer
o often hold considerable amounts of stoc
o in two or more companies.
Standard Oil refineries produced NOR
, than 60 per cent Of gasoline produced |
q 1915, sold about 65 per cent of the totf
p | marketed and held more than 10 per Ger
4 | of gasoline stocks.
a correspondence of the difference
!. prices Gin 1879" the commissions repol
= saws. with Standard marketing territorie
a | itself points to arbitrary price making. Bl
= the arbitrary character Of the inequalitie
: | in price is conclusively demonstrated by III
facts that as between most Of the terri
tories there were no such differences In d.
| mand and supply--and the margin betwee
, | cost and price was widely different in I'll
different territories"
Wholesale prices rose between 75 and
;, per cent in 1915, according to the con
. missions report and retail prices ais
! SCARED Only a part of the advance we
. declared due to increased demand ar
1 scarcity, the demand increasing 3S per Gel
5 In 1915 and the production but Z per Gel
less Very large profits were earned, {
Z shown by the books of the companies ar
: bv enhanced stock market value of c
securities.