Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-24
Walsh ntr0du Measure
to Prevent OH MONOPOLY
by Dissolved Companies
Bill Prohibiting Interlocking Ownership of Stock
in Concerns Separated Under Sherman
Law Placed Before Senate.

ton with Sinclair interests organized
the Sinclair Crude Oil Producing com
pany. in which the Standard Oil com
pany (Indiana) holds one-half interest
The Sinclair Crude oil Purchasing
company. which. up to the present time
has only operated in the M~ld-continent
oil field, purchases and stores crude
petroleum. and. according 10 the 1921
annual report Of II. +. Sinclair, chair
man of the board of directors. made
April -, 1922. this company had AT
that time $4,000, 600 barrels of crude
petroleum in storage. A large proper
ton Of this crude was purchased when
the price was low. According to cur.
rent reports. this latter company is
now planning to purchase and store
Wyoming crude, which it is planned
will be shipped through the proposed
new pipe lines of the Sinclair Pipe
Line company, which when built are
those of the Prairie Pipe Line company
(another Standard concern, in the
vicinity of Kansas City. Mo. Prior to
the acquisition of the Midwest Refining
company, by the Standard Oil company
Indiana). the Ohio Oil company
(Standardl was the largest producer in
that section. The Illinois Pipe Line
company owned the greatest pipe line
mileage. the Midwest Refining company
was the most important r%eflner. and
the Continental Oil company was the
chief marketer. These companies are
now all members of the Standard
group.
Buys Crude Cheaper
IS. At the present time the Midwest
Refining company and the Ohio Oil
company, the principal purchasers Of
crude petroleum, fix the price paid to
the consumer at about so cents per
barrel less than the price of similar
quality Mid-cOntinent crude. while. as
already stated, in the sale of its gaso-
line f. o. b. refinery the Midwest
charges a higher price for shipments
into Montana and n lower price for
sales destined for territories where it
must meet competition from the Mid
continent field. In other words. in the
purchase of crude and in sale of gas
oline. Standard interests take advan-
tage of the cost of rail transportation
to and from that section. The pro-
Queer of crude petroleum and the con-
sumner of gasoline are both at the
mercy of the Standard interests. The
crude supply and demand conditions
were such in Wyoming during 1921
that, had there been free competition.
the refinery prices of gasoline and
other products apparently would have
been as low as, or lower than, those
in the Mid-continent field.
-. While the inquiry proved that
prices of gasoline were higher in Mon
tana than in many other places. the
federal trade commission cannot effec-
tually remedv this situation. As al
ready pointed out. the fundamental
cause of the unsatisfactory situation in
Montana Is due to the monopolistic con-
troll of the petroleum industry of that
region by the Standard Oil companies.
This monopoly is made possible by the
terms of the Standard Oil dissolution
decree. Under that decree the differ
ent units of the Standard Oil group
are. for legal purposes. supposed TO be
strangers to each other: but there is.
as is generally known. an i~nterlocking
stock ownership in the different organi-
cations which has perpetrated the very
m~onopoistic control which the court
sought TO terminate. Today. the whole
country is divided into II gasoline
marketing territories in each Of which
a Standard company is the dominating
factor and in which there is no real
competitor DetWoeD the various stand
ard units. while in Wyoming the CON
templated entrance of Standa rd- Sinclair
interests promises TO increase the
m~onopolistic control of that industry.
The commission is of the opinion
that this situation cannot be effectually
remedled by existing laws and that ade-
quate relief can only be secured through
additional legislation. With a view of
remedylng the situation in Montana and
throughout the United States. the com
MISSION therefore reiterates n recon-
mendation previously made to congress-.
namely. Abolition. by legislation, Of
common stock ownership in rpo
tons which have been members of a
combination dissolved under the Sher-
man law. The'foregoing proposition is
stated IN a concise and general form
IN order TO show more clearly the fun
damental idea, but. in ~atcually framing
legislation. it would be necessary, of
course. ~ express this idea with great
care IN order TO prevent evasion Of the
intended prohibition. A suggested draft
IS appended to this report. The merit
OF this remedy is that it appears to Of
fe rthe only prompt and effective mean
hitherto suggested of terminating mo-
nopoiiStic control in cases like that
presented by the Standard Oil group.
"Respectfully.
NELSON b. GASKILL.
Chairman.
VICTOR MURDOCH.