Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-04-24
SAY STANDARD
OIL FORCES UP
GASOLINE COST
Federal Trade Commission
Declares Big Organization
Dominates Trade.

w AS1Al18 tVlAS <ApAAA
of the gasoline industry by Standard
Oil interests, the Federal Trade COM
mission reported to the senate yester-
hay. has been largely responsible for
high gasoline PRICES Of the last two
years.
The report written after an exhaus-
tive investigation into the entire
petroleum industry. declares inter-
locking stock ownership prevents any
Standard Oil companies and the com
mission recommends legislation to
permit re-opening of the oil trust case
to obtain notifications of the SUI
preme courts dissolution decree.
Collision is Charged.
!. No conclusive evidence was found.
1t is stated, that collision exists
among the Standard companies in
violation of the decree, but the COM
missions findings have been transmit
ted to the attorney general.
Prices are declared to nave been
raised arbitrarily, although natural
causes contributed. Pronounced price
inequalities were found in different
parts of the country.
The principal findings Of the COM
mission are:
That In most marketing territories,
the Standard companies are dominant.
That the Standard companies have
maintained a distribution Of territory
in marketing gasoline II that no
substantial competition in the chief
pet1oleum products exist among the
Standard companies.
That the absence of competition Is
due to a community Of stock owner
ship.
That the. facts disclose advances in
prices of gasoline and difference in
price, corresponding to Standard mar
keting territories. which could not be
explained, except under the conditions
charged.
That the combination Of pipe lines
with other branches bf the industry
has tended to establish and perpetuate
monopoly.
That there is no conclusive evidence
Of collision among the Standard COM
panies in violation of the dissolution
decree.
Remedies Recommended.
The commission recommended
remedy conditions.
|. A law providing for the re-openine
of ANTITRUST cases on the application
OF the Encouragement by a 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 cor
porations formerly members of com.
binations dissolved under the Sher.
man law.
Effective Limitation Of common
Ownership of stock in p%otentially
competitive corporations by with.
drawing the power of voting and con.
troll.
Legislation. which while %recogniz.
ing common ownership would fix upor
such common owners the responsible
ity for the acts Of each Of the severa
competition.
Segregation Of ownership Of pfoe
lines from the other branches of the
petroleum industry.
Congressional enactment to fl
standards for gasoline.
Federal collection and publication
Of accurate statistics and Information
concerning the industry,
Conditions Revealed.
Conditions in the gasoline industry
as uncovered by the Investigation arr
declared to be:
Gasoline marketing is divided Int
nine of which are said to- be under
Standard OIL domination.
Stockholders Of the Standard com
panies to a great degree are the same
individuals or interests, with more
than half Of the stock Of the varioul
companies in their hands.
Leading officers Of the STANDARD
companies hold considerable in twt
or, moro companies.
Standard OIL refineries. produced
more than sixty per cent OF the gaso'
line output in 1915, sold about IS pei
cent Of the total marketed and helt
stocks.
Correspondence Of the diferen
prices in 1915 with Standard market
ink territories" says the report. sit
self points to arbitrary price fixing
But the arbitrary character Of the in,
equalities in price. is conclusivel!
demonstrated by tho facts that a. be
tween most OF the territories thor,
were no such differences in demand
and supply and the margin between
cost and price was widely different IL
u