The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-12-27
Standard Retains Pacific
oil Stock

WASHINGTON. Dec. oG.-Rcp,rts
current I'm New York that the fed
cral trade commission had served
notice on the Standard oil company
u California that II must dispose
OF It's holdings In the Pacific oil
company were denied today by Nell
son ~ Gaskill, chairman OF the COM
mission.
Since both companies are doing
business In the state OF California
and all the Standards products are
consumed I'm that state II was said
that the federal trade commission
had no authority ito make such "A
demand upon the Standard oil COM
pany of California In response to
| senate resolution. However. the fed
eral trade commission has investi-
gated and complied report upon
the Pacific coast petroleum indus
triet and general competitive con-
dltidns in California and the United
Staths.
"The members Of the Standard
OF group" the report states, 'are
the dominating factors i'm the petro-
leum business OF every section of the
country. The Standard companies
are relatively weaker In production
than any other branch OF the petro-
lcum business, yet In 1919 companies
that are now members OF the stand
ard oil group controlled 28ia per
cent OF the total production of the
entire country. Standard refineries
operating i'm 1919 consumed a. per
cent of the total quantity OF crude
petroleum refined In the United
states. They owned about 6S per
cent Of the trunk pipelines, while
Standard marketing companies are
he dominating factors in the do
nestle and export trade OF the
country.
standard Companies tIN Prices.
lin most OF the standard mh'ket-
ing areas east of the Rocky Noun
tains. as Ia California. Standard
crude petroleum purchasing COM
panies and standard marketing
companies usually take the lead In
announcing price changes, while the
other companies follow"
The largest foreign corporation
with oil interests In the country, ac-
cording to the commissions report
| Is the Royal Dutch shell group that
| controls 10 per cent of the worlds
| total production, and with the ellml-
nation Of total production in THIS
country from ,lhe figures, about ~
per cent Of The remainder of the
worlds output
Production Of this group in the
United states, the commission re-
ports, . about per cent Of this
{ | CouutrNs output, hut III California
should be acquired by the new
merger its control OF crude petro-
lcum In the United states would he
increased to . per cent, exclusive OF
that produced under contracts held
by the Union Of California
Results of tho Investigation by the
federal trade commission into the
affairs Of the Pacific on company
are reported as follows:
Upon information that the stan
dard OIL company OF California had
acquired, or was acquiring. an M
terest I'm the Pacific OH company
inquiry was made 10y the commission
OF the Standard as To the truth ni
this report, to which inquiry n. Il,
| Kingshury, president OF tho com
| pany. replied in part as follows;
| "'With the knowledge thar the
control OF the Pacific oil company
was sought by foreign interests,
which if effected would have un-
doubtedly resulted in the loss of this
oil TO us, we deemed II important
to further the maintenance OF an
American ownership OF 'his com
lhnN. We also KNEW lidA AN'S'
same foreign interests which operate
In California we're also negotiating
for an interest in an impo'tlnt CALI
fornia oil company with which they
are In competition, These negotil-
tions have since been contaminated.
Gets Interest In Pacific Company.
In view OF this Situation, the
Standard oil company california;
entered upon the acquisition or =
minority interest of the paciClc OIL
company stock and nov owns less
than 90 per cent Of that stock
"Mr Kingsbury's statement that
control OF the Pacific OIL companS
was sought by foreign interests re-
ferred 10 the Royal Dutch Shell
group"
Inquiry by the commission from
General Avery D. Andrews, repre-.
sentative of the Royal Dutch Sh"li
group. brought the reply that he