New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-14
u. s. Acts to End
STAND ard Oils
.GriponCasoline
Federal Trade Board Offers
Law 70 Forbid All Inter-
locking Stock Ownership
in Dissolved Combines
Finds Virtual Monopoly
Entire Country Divided Into
ii Zones, Dominated by
One Marketing Company

Fro-i The Tribsnes Washingfon Ba-sau
WASHINGTON. July i3.--Draft OF
law 70 break the interfering stock
owncrship by means Of which. the
Federal Trade Commission charges.
the Standard oil Company maintains
monopoly Of the eountry's petroleum
trade vas submitted 20 the President
and Congress to-day b. the commits
sion in connection with a report on
the oil business In Wyoming and Mon
tann. In lis report the commission
points out that the Standard OIL mar
keting companies dominate the situa.
ION rot only IN Wyoming and Mon
.ana bat all over the United States.
md declares that the Supreme Courts
dissolution decree is defeated By Gin
terloeking stock ownership" which has
Yerpetuated "monopolistic control"
After declaring that the oil trade 10
Wyoming and Montana is practically
incnopolized by Standard oil interests;
shat in other parts Of the country. as
well as IN the Rocky Mountain region.
tho Standard interests have firm
grip on the business and dominate the
market" and that this "monopolitie
situation" is possible under the Stand
ard oil decree Of the Supreme Court
by which a.crloeking ownership is
permitted. ise commission urges that
Congress pass law prohibiting COM
mon stock ownership IN corporations
which have been members Of a eombi-
nation that has been dissolved Under
the Sherman law.
Gasoline Zones In United States
rThe report pictures the entire coun-
try as divided into eleven Standard
on gasoline marketing territories "in
which a Standard oil marketing COM
pany Is the dominating factor and in
which there IL no real competition be-
tween the various Standard units
These units. the commission finds, arc
held together By interlocking stock
ownership which has perpetuated "the
very monopolits.ie control which the
court sought 20 terminate"
The Senate subcommittee, headed
by Senator la Toilette. which is in
vestigating the oil and gas business
and seeking 70 find the cause Of the
increase In prices, Is expected 20 sug-
sest legislation. u is believed the
measure favored b. the Trade Com
mission will be recommended, among
other things The subcommittee is
In close touch with the Trade Com
mission.
Ina statement regarding rs report the
trade commission summarizes the i'm
portant facts developed through inquiry
into the condition OF the petroleum
trade in Montana and Wyoming made
pursuant % a complaint OF the Mon
tana StsSe Railway Commission regard
ing gasoline prices IL links I'd Sin
clair interests. which recently acquired
by lease Te-pot Dome. the Wyoming
naval oil reserve, with Standard Oil.
Prices Usually Identical
"The margins" says the commission
in its report, between the wholesale
and retail gasoline prices AZ numerous
points In Montana ranged from 5 90 10
cents a gallon, but these unusually
large margins were in all cases obtained
only by the smaller retailers The
wholesale and -etail prices OF the large
marketing companies were usually
identical AZ points taking the same
freight rates. and price changes were
made BY them az practically the same
time. No evidence was found. however.
which indicated a conspiracy among
these large companies 10 tx prices.
Although the prices Of high-grade
crude petroleum were lower in Montana
and Wyoming than in any other crude
producing states In the country, the
refinery prices Of gasoline and kerosene
we're much higher than al indecent
nent rehnerios. The Midwest Refining