Daily capital journal. (Salem, Oregon) 1903-1919, 1917-04-24
STANDARD OIL HAS
FULL CONTROL OF
GASOLINE INNUSTRY
Holds 70 Per Cent Of All
Stocks, Shuts Out
Competition
ITS PIPE LINES GIVE 1T
PERPETUAL MONOPOLY
Gasoline Has DeteriOrated,
While Company Makes
Enormous Profits

Washington, April 24-That Standard
Oil interests substantially dominate the
gasoline industry was the finding of
the federal trade commission, transmit
ted in its report to the senate today.
Refining, pipe line transportation
and marketing of the finished product.
the commission declares, are controlled
by the coil octopus. ("
Real competition does not exist be-
tween the various Standard Oil com
panies because Of interlocking stoc,S
ownership through majority share hold
ings by identical interests. the rcport
says. Despite the dissolution Of the So
called coil trust' BY the supreme
court the commission has concluded
that Standard Oil domination has a
fundamental bearing on gasoline
prices, declared to have been arbitrarily
increased.
Legislation to meet the conditions Is
strongly recommended by the commits
sion. With this in view all evidence
and findings have also been transmit
ted to the attorney general for action.
Standard Oil refineries produced more
than go per cent of the gasoline pro-
duced In 1915, sold about G5 per cent Of
that marketed and held more than 10
per cent of all gasoline stocks Whole
sale prices rose rs per cent in 1915, the
report says, and retail prices also soar
ed Demand increased 3s per cent and
production nearly as much, showing that
the advance in price was only partiallf
due to increased demand. The books
Of the company show enormous profits
were earned.
Commissions Findings.
The principal findings Of the commits
sion are:
"That Standard Oil companies doini-
nate a majority Of marketing territor-
les.
"That no Substantial competition ex-
lists among the several Standard com
panies.
"That the absence Of competition is
due to community of stock ownership
"I'hat such advances in prices and
such difference in price corresponding
to Standard market cannot be explained
apart from the foregoing conditions.
"Ihat the combination of pipe lines
with other branches of the industry has
tended to establish perpetual mon
oply.
"That gasoline has deteriorated in
quality, a variety of products being
sold under that name, =
Asks Congress to Act.
Recommendations Of the commission
made with view of preventing or
remedying the conditions, include tho
abolition, by legislation in certain cases
Of common stock ownership in corpora
tions which have been members of a
combination dissolved under the Sher-
man law, the segregation Of pipe line
ownership from other branches Of the
petroleum industry and the fixing by
congressional legislation of gasoline
standards
The commission cites as a factor in
Standard Oil domination, the fact that
more than half of the stock in the va
rious companies is owned by the same
individual or interests. 1t is also claim
ed that nine Of the IL territorial di-
visions of the gasoline market ara
dominated by the various Standard
companies. The investigation reported
to the senate today has been made by
the federal trade commission under reso-
luiions of Senators Gore and Owen, OF
Oklahoma.