The New York herald., 1922-08-11
SENATORS SEEK OIL
MEMS INSIDE TALKS.
McNary Says Investigation
Would Show How Gasoline
Prices Are Made.

WAsHINGToN. Aug 10.--Deeision 20
ell companies who can "talk about the
inside OF the oil industry" was reached
to-day by Acting Chairman McNary of
tie Senate Manufactures Committee as
the next step in tne Senate investiga tion
cf the gasoline price situation.
Senator McNary said he was deter
mined to have relevant facts instead Of
side issues" In the committee record
THE Investigation would show Sem
ator McNary said, whether there is
actual competition, for instance, among
the units of the Standard oil group" "
He bell. n also, he added, that the
question OF whether there Is IAN under-
standing. or what amounts to an under
standing" between selling companies
as to the antics gasoline prices shall
perform, also could be answered.
The committee has heard In the last
four days r. l.. WEIGH secretary OF the
American Petroleum Institute. ana John
D. Clark yice-president of the Mid
West Refining Company. Both gave
testimony which the chairman said he
regarded MS highly interesting and
frankly offered" but he stated that II
did not get anywhere in the commit
tees plan"
Consequently the committee adjourned
to-day to meet again probably early next
week. when Il Is proposed to call wit
resses from the ranks Of nigh oil com
pany Officials.
III addition Senator McNary explained
that the committee would inquire into
the makeup OF the big companies, The
names and natures of their subsidiaries.
their capital. net returns and overhead
expenses. the personnel and salaries of
the directorates and details as TO trade
practices. He declared that it was COM
mon report that some producers holding
near monopolies on small fields had
resorted to choking wells In order that
the production could bo held down and
the market buoyed.'
Senator McNary called attention TO
statements to-day of Mr.. Clark to the
effect that the production OF the Rocky
Mountain field where his company
operates, was not at full capacity. Mr.
Clark said this was because the re-
fners could not dispose Of the crude oil
as rapidly as IL was offered, but Senator
McNary said he thought that in some
cases the practice might be move TO
compel higher prices on finished or re-
fined products.
The recent decline in gaSoilne prices
-9as a natural consequence of the fall In
the price of crude oil and was not an effort
TO make q Showing" in advance OF the
Senate investigation. Mr.. Clark testified
He asserted In reply to questions that
the cut OF two cents gallon in gaso-
line and one cent a gallon on Kerosene
was the equivalent OF fifty cents barrel
reduction in the price OF crude. Mr..
Clark conceded under examination that
the selling price OF gasoline had been
increased more between April of this
year and the date Of the reduction than
the two cents recently cut ~off. He
stated frankly that some or the inc.rases
81, gasoline prices after April were made
because the market would stand II"
The Midwest Refining Company makes
70 attempt to fix the price of crude in
the field from which its supply Is drawn,
said Mr. Clark. adding that his company
usually compromised on the price with
the Ohio OIL Company in the Wyoming
district and used that as a basis for a
field quotation. The Ohio company. Mr..
Clark said, was q part of the Standard
group as well as the Midwest Refining
Company. the stock which he testified
yesterday was 80 per cent. owned by the
Gtan1ard OF Indiana