Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-24
Special to The Tribune.

the mercy of the Standard Oil com
pany interests" as charged in a recent
report by the federal trade commits
sion. Senator T. j. Walsh Of Montana
has introduced q bill in the senate de.
aligned to prevent evasioDs of the fed
eral antitrust laws by prohibiting in
terlocking ownership Of stock in com
members Of combination dissolved IL
compliance with federal laws.
Standard Oil company subsidiaries
according to the commissions report
buy crude oil in the west at about 81
cents per barrel less than its competi-
tor. the Continent Oil company
The Standard subsidiaries also buy
and refine the crude product in the
western states. but in computing prices
t" consumers, base their charge on re
fined oil shipped from Tulsa or other
points in the mid continent oil fields
thus taking advantage of the trans
portation rates. it is charged by the
commission
The bill of Senator Walsh, framed
after the recommendations of the fed
eral trade commissions. apparently is
aimed at the Standard Oil company,
the Ohio Oil company, the Carter Ol
company. the Midwest Refining com
pany. the Illinois Pipe Line company,
the Utah Oil Refining company. the
United Oil company and the Contlnen-
tai Oil 1t also has to do with
the Sinclair Pipe Line company. in
which the Standard Oil company OF
Indiana has purchased a half interest
and whose entrance into the wyoming
area further tends to stifle free trade,
according to the report of the trade
commission.
The report of the federal commission
is az follows:
Drop In Gasoline Slow
ITO the president of the United
Etates senate and the speaker of the
:ouse of representatives. Washington,
:. c.
Dear Sirs:
The federal trade commission sub
1its to congress the following report
in the petroleum trade in Wyoming and
Montana. This report was prepared by
he commission in order to bring TO the
attention of congress a situation. de-
veloped in the usual course of admins
trative procedure. which appears to call
for legislative action:
Early in 1921 the prices of crude
petroleum were radically reduced in
all of the oil fields east of the Rocky
mountains. The prices of gasoline de
tlined somewhat tardily and unequally
in different sections of the country.
but as a rule, they were not decreased
in the same proportion as crude prices.
This situation gave rise TO complaints
bn the part o~fSconsumers, particularly
In the state of Montana. The condi-
tions in Montana. and adjoining states
were called to the attention of the fed
eral trade commission by the Montana
railway commission. The federal trade
commission made an inquiry into the
Montana situation and the principal
facts disclosed thereby were as, fol
'pws:
II. The prices of gasoline in Mon
tana and adjoining states were consid-
erably higher in 1927 than in states
nearer. the mid-continent oil field.
There were. at many points, wide mar
gins between the wholesale and retail
prices of gasoline. amounting in some
cases to from = to 10 cents per gallon.
These large margins were in all cases
obtained. by the smaller retailers. sell
ing petroleum products within the
state. The larg" marketing companies
selling petroleum products in interstate
commerce, on the other hand. maintain
a uniform margin Of , cents per gal
lon between their wholesale and retail
prices.
go Although during 1921 the prices
Of high grade crude petroleum were
much lower in Montana and Wyoming
than in any other states. the {. o. b.
refinery prices of gasoline and Kerosene
of the Midwest Refining company
(which produces more than 30 per cent
Of these products refined in the Rocky
mountain territory were much higher
than at m~id-cOntinent refineries.
No Price Combine
'3. The prices of the large ynarket-
ing companies, selling petroleum prod
ucts in interstate commerce. were usu-
ally identical at towns taking the same
freight rates. For these companies also
the prices at competing points were
generally the same. and price changes
were made by the different concerns
at practically the same time. No evil
dence was secured. however. indicating
a conspiracy between these companies
10 fix prices. As stated in a former
report. discussing the whole country:
Price initiative today seems to be
left generally to the Standard COM
panies and competition is apparently
more directed TO developing facilities
for getting business than in seeking 10
obtain it by underselling.'
~. The bulk of the gasoline sold
Dy inc marketing companies engaged IN
interstate commerce. in Montana. is
purchased from the Midwest Refining
company. {. q. b. refinpries. The Mid
west company bases its sales prices
upon prices at Tulsa. Okla, and
charges higher f. o. b. refinery prices
for gasoline sold in Montana and ad-
joining states, than for that sold in
territory nearer Tulsa.
.. The petroleum industry of Mon
tana and Of the entire Rocky noun
tain region is dominated by Standard
Oil interests. This monopoly was per
fected in 1920 and 1921. when the
Standard Oil company 0ndiana) obtain
ed control of the Midwest Refining
company. The acquisition of this COM
pany gave the Standard interests prac-
tically complete control of the produc-
ing. transporting tpipe linel. refining
and marketing branches Of the petro-
leum business of that entire section.
The more important Standard com
panies engaged in the various branches
of the petroleum industry in that re-
gion include: The Ohio Oil company.
the Carter Oil company. the Midwest
Refining company. and its subsidiaries
and affiliated companies. the kasoming
Oil company. the Illinois Pipe Line
mpa the Utah Oil Refining com
pany. the United Oil company, and the |
Continental Oil company. In addition
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