The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-03-05
Control of
OilIndustry
Is Charged
Standard Companies Accused
Of Domination in Violation
of Supreme Court Disso-
luton Decree of 1911.
81 Gasoline Is Predicted

i
Washington. March 4.-CP)--Com-
lleie control and domination Of rho
oil industry by the Standard com
panies in violation of the 1911 disso.
luton decree Of the supreme cnlr.
was charged BY the La Toilette oil
investigating committee, in its repoet
presented to the senate today after
three months inquiry into .c1ndi-
tons and prices in the oil business
The Standard companies were de-
eiared in the report to exercise this
pcontrol in such a manner as t. fix
The price which the producer of
crude oil receives at the well, the
lt'ice which the refiners receive for
his gasoline and kerosene as well
as retail price paid by the consumer"
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
10 the dissolution decree. and with
he result that 'in some respects, the
industry as a whole, as we'll as the
public, are more completely at the
mercy of the Standard Oil interests
than before the supreme court forced
he splitting up of the New Jersey
company.
Methods of Control
The methods of control, as ses
forth in the report. include division
of marketing territory between the
various Standard companies on al
most the same basis as before the dis
solution. ownership Of the principal
pipe lines. interlocking stock owner
snip. fixing of prices in the producing
fields. excessive and discriminatory
freight rates and ownership Of the
basic patents FOR cracking or gasoline
manufacturing processes.
IF A few great oil companies are
permitted to manipulate prices for
the next few years. as they have
been doing since 1920" the report as
serted. "the people of this country
must be prepared before long TO pay
: a least 81 n gallon for gasoline
Eight recommendations were sef
forth as follows.
Establishment Of n uniform system
~ bookkeeping By all oil companies
doing an interstate business. which
will stnvs az an- tine in detail. t,se
eests and profits Of the business so
that the reasonableness of the prices
charged for any petroleum product
can be ascertained on a cast basis.
Monthly Reports Urged.
inauguration of compulsory sys-
TEN of reports to a government bu-
reau monthly. showing the operations
of each oil company engaged in IN.
fersfate commerce.. and particularly
10 quantities Of crude oil and its prod
net in storage and transportation. 80
rs TO show the exact condition OF the
Industry.
The making Of pipe lines real con-.
mon carriers" through enforcement
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 petro-
leum products, sas will permit mid
continent refineries to once more find
a market for their products through
Michigan. Indiana Ohio. Pennsylvania
and the New England states.
Would Check Exports.
Prohibition or regulation OF the ex.
poriation OF petroleum and its prod.
uets. 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 eX.
pressed agreement or contract to TX
prices arbitrarily or 10 restrain trade
and IL facts warrant. citation OF par.
ties to the agreement for contempt OF
the supreme court dissolution decree.
Inquiry by the Department OF JUS
4ice into all claims for basic patenta
on pressure still processes used in
the production Of gasoline.
IaFoIlette Head Of Committee.
The report declared further the
suggestions here made OF certain rem.
odies do not imply that other and
more drastic ones may not later be
found necessary.
The investigation WAS In charge OF
subcommittee of the senate manu-.
faofurers COMMITTEES. headed by Sen.
ator LaFollette Of Wisconsin and com
prised OF Senators McNary. Oregon.
and Brookhart, Iowa, republicans. ana
smith South Carolina, and Jones,
New Mexico, democrats Most OF tho
testimony. however. was recelved at
ooinmltfce sessions attended only by
Senators IaFollette and Bfookharf.
aud the committee attorney. Gilbert
J.. toe of New York. former law
partner Of Senator IeFollette.