New-York tribune., 1921-01-03
Standard Gains
Complete Hold
OF Of'WyoningOil
Federal Trade Board Saws
MonOpolistic Conditions
Prevail Throughout the
Rocky Mountain Section
LOng-TermC Contracts Held
Indiana Corporation Buys
Controlling Interest in
the Midwest Refining Co.

Tro" IHe 4rtourcS WdShfnQtor Bureau
WASHINGTON, Jan. 2.-Concentra-
tion of control of the production of
crude petroleum in the Wyoming oil
fields has resulted in rnonopolistic con-
ditions throughout the entire Rocky
Mountain section, says the report OF
the inquiry by the Federal Trade Com
mission, which will be submitted to
Congress tomorrow. The report is
signed by Commissioner Huston Thomp-
son.
Possible future competition has been
practically eliminated by the Midwest
Refining Company and Standard Com
panies, which control the greater pro-
portion Of the crude petroleum pro-
duction in Wyoming through contracts
which run until 1884, says the report,
which also points out that the Standard
Oil Company of Indiana has purchased
2o3,053 shares OF Midwest stock, giving
it entire control of the field
Two Standard-controlled companies
also operate practically all of the pipe
line mileage and transport nearly all of
the. crude petroleum marketed in Wy
oming. They are the Midwest Refining
Company and the Illinois Pipe Line
Company.
"The attention of the commission wa
drawn to the situation in Wyoming by
complaint regarding certain alleged
unsatisfactory conditions in connec-
ton with the production and sale of
crude petroleum marketed under GER
tain contracts in the Salt Creek, Wyom-
ing field" reads the report. ut soon
became evident that there were mo-
nopolistic conditions in the production,
pipeline transportation, refining and
o1oc L.
and its products throughout the entire
Rocky Mountain section.
Longtime Contracts Obtained
There is greater concentration in
the control of the production of crude
petroleum in the Wyoming oil fields
than in any oother field in the United
States. The Midwest Refining inter-
ests which, according to admissions Of
representatives, of both the Standard
Oil Company Qndiana) and Of the Mid
west Refining Company are now fer all
practical purposes under the control
of the Standard Oil Company (Indiana)
which, together with other Standard
Oil companies, now controls the bulk
of the crude petroleum produced in
Wyoming. This control on the part of
the Midwest interests has been largely
acquired through longtime contracts
which expire January l, 1884. The Ohio
Oil Company, Standard Oil company,
has the largest owned production in
the state, and in addition to this con-
troll cons derable quantities through
working agreements. During the pc
riod 1917 to 1919 the Midwest interests
controlled from 65 to about SO per
cent OF the states productions; the ad-
nitted Standard interests controlled
from 27 to % per cent; together these
two interests controlled from ,bout 90
TO OF per cent Of the total prou @tion.
''The question naturally aris. .s, how
can any Independent refining company
become a factor in this section and
what possible opportunity is there for !
future competition?
Yearly Earnings Average 25.7 Per Cent
"The earnings of the Midwest Refin-
ing Company reflect it's position in the !
petroleum industry of Wyoming; the
rate of such earnings in the oil bust
ness. as shown by the companys rec
ords. increased from "a per cent per
cent in 1919, with an average for the /
six-year period Of 257 per cent.
"While control Of the Midwest
Refining Company has not been |
admitted prior to 1920, Standard
interests have been alleged to
have been in control particular
identified with the Imperial Oil Com
pany: Limited, of Canada, a subsidiary
Of the STANDARD Oil Company New |
Jersey, bought 10000 shares, or
ab9ut 25 per cent, of the stock of the
Midwest Refining Company. The rea-
son given for selling this stock was to
bring into the management of the Mid
west Refining Company strong and ex-
perienccd oil men, whose ability, expe- |
rience and influence IL; the oil world |
would y,o strengthen the position Of the !
Midwest Refining Company in it's terri
tory and other territory and it was
stated that these men were TO be put
IN control Of the affairs of the com. /
pany.'
"Soon after this voting trust was
Evans and R. E. Jones as the trustees
John Evans and R. E. Jones have both
bee: been connected with financial institu-
tions, while H. 8. Osler, the third trus-
tee, was, in 1919. one Of the counsel
Of the Imperial Oil Company, Limited,
which is a subsidiary of the Standard
oii Company New Jersey)"