Evening star., 1923-03-05

coInillltIee, III d report SupHiilteu "
the Senate just before the adjourn
ment of Congress yesterday. charges
the Standard Oil companies with
complete control of the industry.
The report declared the committee,
through its inquiry had found that
this control was exercised through
methods more subtle" than those
used by the Standard Oil Company Of
New Jersey and its subsidiaries prior
TO the dissolution decree and with
the result that lin some respects tne
industry as whole, as well as tne
public, are more completely at the
mercy of the Standard OIL interests
than before the Supreme Court forceu
the splitting up of the New jersey
company.
Predicts Dollar Gasoline.
The methods of control as set forth
in the report include division of mar
keting territory between various
Standard companies on almost tne
same basis as before the dlssolutlo
ownership of the principal pipe lines,
interlockng stock ownership, nXlns
of prices in the producing fields, eN
cessive and discriminatory frelsi.
rates, and ownership of the pasic
patents for cracking, or gasolihe
manufacturing processes
"If a few great oil companies are
permitted to manipulate prices lol
the next few years as they have been
doing since 1920" the report asserted
after setting forth the evils in the
industry as seen by the committee
the people of this country must be
prepared. before long, to pay at least
a gallon for gasoline.
Make Eight Recommendations.
Eight recommendations to curb the
evils found were contained III lnS
report. These[recommendat tons We're
forth follows:
Establishment of Il uniform system
of bookkeeping by all oil companies
doing an interstate business, Whlcn
will SHOW at any time. in detail, the
costs and profits of the business so
that the reasonableness- OF the prices
charged for any petroleum product
can be ascertained on cost basis.
Inauguration of compulsory sys-
TEN of reports to government
bureau monthly, showing the opera
tions of each oil company engaged in
interstate commerce, and particularly
the quantities of crude oil and lts
products in storage and transporta-
tion, so as to show the exact condl-
tion of the industry.
The making of pipelines real COM
mon carriers" through divorcement
of their ownership from the oil trans
ported and compulsion of impartial
service. and the establishment of de-
livery stations wherever a reasonable
demand exists.
Revision of freight rates on
petroleum products "as VIII permit
midcontinent refineries to once more
find a market for their products
through Michigan. Indiana Ohio,
Pennsylvania and the New England
states.
Prohibition or regulation of the ex-
portation of petroleum and its prod
ucts. for which there is pressing de-
mand in the United States.
Institution of grand jury proceed
ings. under federal or state laws,
wherever price manipulation is at
tempted
Investigation of any implied or
expressed agreement or contract to
fix prices arbitrarily or to restrain
trade and, if facts warrant, citation
of parties to the agreement for con-
tempt of the Supreme Court dissolu-
tion decree.
% Inquiry by the Department of JUS
tice into all claims for basic patents
on pressure still processes used in the
production of gasoline.
La Toilette Most Active.
The report declared further the
suggestion here made of certain
remedies does not imply that other
and more drastic ones may not later
be found necessary.
The investigation was in charge of
a subcommittee of the Senate manu-
factures committee, headed by Sena-
tor La Toilette of Wisconsin,, and
comprised Senator'S McNary, Oregon,
and Brookhart. Iowa, republicans,
and Smith. South Carolina, and Jones.
New Mexico, democrats. Most of the
testimony, however, was received at
committee sessions attended only by
Senators La Toilette and Brookhart,
and the committee attorney, Gilbert
F.. Roe of New York, a former law
partner of Senator La Toilette.
The dominating fact in the oil
industry today is it's complete control
I,r- ha n rH nnn nj re
port contended. The Standard Oil
group divides among the members
of that group all the territory of the
United States and with slight eXcep-
tions avoids all competition with
other members of the group in the
business of retailing gasoline and
kerosene. Not only this, but two of
the leading Standard companies
New Jersey and New York-divide
the world between themselves in
marketing operations. and each care
fully abstains from entering the ter
ritory of the other, while both refrain
from competing with the Anglo
American Oil Co, Ltd. Zone of the
original Standard group, in the retail
trade in the British Isles.
New Field Only Competition.
Through the Standard control of the
pipe lines connecting the producing
centers Of the west with the consum-
ing centerS of the east and middle
west not only is the price fixed ac-
cording to the will of the Standard
group, which may say what other in
terest must pay for the transportation
of petroleum, but members Of the
group really determine whether any
concern outside their group shall
have petroleum transported at any
price.
Whatever competition has existed
between the Standard companies and
the so-called independents since the
decree of a dissolution in 1911 has not
been the result Of that decree, but has
been the result of the discovery in the
United States and Mexico of new oil
fields, largely through adventurous
independent operators, which fields, in
many instance, as soon as proven,
have by various methods been brought
under the control of the Standard in
terests. When the time comes. as it
is certain to come in the near future,
that there are no more oil fields to
discover and exploit in this country,
this competition, such as it Is, will
necessarily disappear"
The contention of the Standard COM
panies In support Of the maintenance
of the pre-dissolution decree division
of territory that 1t would be too ex-
pensive to build and maintain mar
keting stations outside such territory,
the report said, "is not persuasive in
view of the admission of substantially
every one OF those companies that
they have nearly doubled their mar
keting investment in their respective
territories in the last few years. and
In view of differences of prices suff1-
cient to make a profit between the
various territories.
Discussing interlocking stock own
ership, the report asserted the pre-
sent holdings of the Rockefeller
group In the various Standard COM
panies while representing only a
mi NF Ha -kD IL