New-York tribune., 1922-08-10
Io,llltry Zoned.
o. Oil,
lo,1nsei Admits
I WeIcll Tells Senate In
: ressigators Former Units
i Corporation Are Not
Il Co m p etition n "
First Testimony
Isis. However, Conditions,
Not Group, Fix Prices of
Auto Fuel spontaneously

Auto Fuel spontaneously
~,s Tr,s.rs's washington Bureau
mwssHINGToN, m Aug. s.--Before the
subcommittee Investigating
80. ~ If gasoline. Robert L. Welch,
80 80; for the Petroleum Institute,
..,,s,.s to-day that the Standard Oil
s..ssssies rad the country divided so
- !. Is gasoline is eeoncerne3.
4, Welch made this statement
..s.r 81 the questioning of Gilbert E.
i. counsel for the committee. When
~ ~ before sne subcommittee earlier
!. - tAs week, Mr.. welch went on record
!. saying that conditions We're quite
= :. .ontrarv" to those described by the
- 81 the Federal Trade Commis-
s.;sn This report holds that the
s,,rssrd group has the territory
divided among group Of companies
s.,s together by interlocking stock
" xrsrshio. To-day. when questioned
= Il
. Mr. Roe, as we'll as by Chairman
Sary, Mr.. welch said he had not
Dsnlly understood the question put to
him earlier in the hearing and he ad-
mjtted the division of territory existed.
"In my judgment he said, replying
n Mr. Rec, there is q division of
territory among the Standard Com
yanies, so far as gasoline is con-
eefnia."
try was divided and he said that the
former constituent companies of the
Standard group which existed prior to
tae dissolution decree of the Supreme
Court are not in competition in
handling gasoline.
~Iu general, taking the country as
vhole" said Dir. Welch, these former
constituent elements are not invading
iseseh others territory in the sale of
gasoline"
eThen they do not compete with each
other in a given territory" asked
Senator McNary.
aIn the sale of gasoline, l would say
a6" replied the witness.
Compete With Independents
Mr. Welch said there were in the
Standard group ten subsidiaries and
the Standard Oil Company of New
Jersey He referred to the Standard
Oil Company of Indiana and other we'll
Known constituents of the Standard Oil
group.
The witness insisted, however, there
vas competition with the Independents.
This led Senator McNary to ask
This led Senator McNary to ask, mas,
much as there were no independents in
some OF the territory, whether in GER
tain parts of the United States there
Vas no o.competition at all.
y know of no such places" said Mr..
I Welch. "There may be isolated spots"
Senator McNary grilled the witness
sharply as to why the prices Of gaso-
line should move up and down among
numerous companies synchronously
snd whether there was not a gentle
mans agreement among them. The
witness denied such an agreement and
s.ihssted such Simultaneous changes
we're all due to likeness in "funda-
mental economic conditions" He in
sisted the decline in gasoline prices in
recent weeks was due to "the uniform
decline in costs and competition based
thereon"
1T is the result of combined judg-
ment, but not an understanding" in
sisted the witness.
no Mr.. Roe quizzed the witness about
testimony ne gave before the Federal
Trade Commission several years ago as
tsansel for the Western Oil Jobbers'
association. At that time, he said, the
loabers followed the market of the
Standard Oil Company. He also said at
the time that "the Standard is in con-
uoi Of the tank wagon market"
Different Conditions Exist
Senator McNary pressed the witness
to know whether that was true. The
WITNESS said it was true when he said
y. ne started to give a long recital
o. difficulties he encountered as coun>
sci for the Western Oil Jobbers Sena-
sOf acNary sharply told him to come
70 the point. The witness then said
elherent conditions obtained to-day
from those existing VIXEN he testified
pelote the trade commission
{ Questioned by Senator Smith and
easfs about fluctuations in crude oil
ss.slces' Mr., Welch dwe1t at length or
,s sae law OF supply and demand" and
INSISTED INSISTED that this governed the prices,
raane nsoner than the action of group Of
great buying companies.
r,co oonn u. Clark, Of Cheyenne, Wyo,,
.he Midwest Refining COMPANY. was
I, .ae next witness. He did not complete
.an,s.testlmony ~ and will be heard further
,haat Inc subcommittee may take swing
..T3 sooGt the oil fields for the purpose Of
s sa.Aihg with crude oil producers be-
.I ,GFe the Investigation is over. This
H's; mas been suggested, but whether
i.,n Is carried out will depend on the
'eaglh. OF the 2eSsion of Conoress