New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-25
Trade Commission Send,
Result of Investigation
to Congress
Asks Law to Reopen
Anti Trust Case,
Pipe Lines Tend to Pc.
petuate Monopoly; M
Real Competition
lFrom The Tribune Bur-u,


Washington, April 24-D..,
that the Standard Oil interest, =,
stantially dominate the gasOl.n, -.
try-rehning, pipe line trsn.uor,,,s.
and market-and that this Ia. ~.
largely responsible fOr the hirs 49,
lene prices Of the last two wear,
Federal Trade Commission tran,,,,,
its report on its investigation in. q
price Of gasolene to Congress tod,
The commission at the same tin, -.
mitted its finding to the Attorn,y G.,
eral "for appropriate action
The investigation Of the pstrul,v,
industry by the commission ,hos, A.,
a decreasing supply Of light ,rvS,,
coupled with increasing foreign s,S a.
nestle demands, explains pr. u .,
advance in gasOlene prices dunn, M,
but that part OF the advance, in s,r,,,.
sections, at least, vas ufns,su,,
and to certain extent. due y All.
fetal conditions. During 1915, ny, IA.
report. unusually large stocks Of ervs.
bought at low prices, were s,cunv.
lated, thus Withholding great su,ut
ties from the market and tending II
advance prices Of crude oil. Na c,r|
was the advance in gasolsne ures
greater than was required By tie al
vance in cost. OUT also the prices v,.I
advanced with inequalities as be,vscI
and coinciding with the territore, !,
cupied by the various Standard cor
panIes.
Dssplte dissolution Of the so-e,ll.
"Oil Trust" by the United States So
preme Court. the commission esnclsda
that STANDARD Oil domination has Ia.
Fundamental bearing" upon ri,ols.,
prices, declared TO have been artiinnly
increased.
No Real Competition
In an exhaustive report Of rs invss
tigation the commission declares tia.
real competition does not exist b.,w.e
the various Standard Oil companies "
cause of interlocking stock ssneuif
through the holding Of majority y
shares in the constituent STANDARD cor.
panies by identical Interests.
Legislation to meet these conditions
is recommended by the ecmmissioa.
The principal findings Of the cor
mission are:
That in a majority Of msrkellngT
ritories the Standard companies al
dominant.
THAT the several STANDARD comp
MES have maintained a distributor
territory in the marketing OF g,soln,
and that no substantial competition
the chief petroleum products szis
among the several Standard eoupiniu
That this absence Of competition
due to a community OF stock oshe
ship.
That the facts disclose such .
vances in prices OF gasolene inc 81
differences in price corresponding
Standard marketing territories As
not possible Of explanation spaH i've
NE foregoing conditions
THE commission has not found ts'
elusive evidence Of collusion among VI
various Standard companies 10 WV
ton of the dissolution decree "a
THAT the combination OF ~ Hle
with the other branches o. hs
dustry has tended to estaolIsa na -
petuate monopoly.
THAT gasolere has deteri'ns
quality. a variety Of produces VIZ
sold under that name.
What Board ReeOmmen''
Recommendations Of the eonrn'.'
with a view TO preventing o. W."
ing conditions" include: .,,,
"a law providing for the rsGps
OF antitrust cases on tne sppIW N
of the Attorney General oy ,s,a
review for the purpose OF sseul's 80
notifications Of DEGREES as N.Y.
tions may require. !. ,,s !
AOOllllOH ~ 10 .-<hf
cases Of common stock osh a.
corporations which have otes
hers of a combination dlssO""
der the Sherman law. ,.--s
effective Limitation upon NJ
ownership Of stock in potsns..ssIS, 10
petitive corporations BY 49,. 49,
the power Of voting and e.: sohs ,s,,,.s
Legislation which, wnll l',a A. =
ing common ownership, woul ...s,,s
such common owners the 's' n. y
ity for the acts OF eaen V,s;eh :,
eral companies so owned "h'
vent competition. ,.,ski,
Segregation OF the o., bn,.ss
the pipe lines from the o,nsf
of the petroleum INDUSTRY I,gi,
Fixing. by Congresslonn,h.,
ton, of standards for gas0''"