The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-01-04
Dill PRICE FIXED.
REVEALED BY
PROBE
Senate Committee to Make
Startling Disclosures OF
Methods Employed.
BY KENNETH w. CLARK.
international News Service.


international News Service.
Revelations Of a startling nature
specifically charging arbitrary and
concerted price-fixing by the leading
gasoline and oil producers OF the
country. will be set forth clearly in
the report of the special Senate com
mittee investigating the oil industry,
high official connected with that
committee told International News
Service today.
The committees report and recom-
mendations probably viii be made
public early In February, following
completion OF the exhaustive inquiry
OF gasoline and oil prices. Taking
Of testimony will be conducted late
this month, after examination OF Of
ficials and experts from America 8
richest oil concerns.
Since early last summer the COM
Irnittee has been probing the entire
oil industry. Numerous high off
cials have testified concerning
every phase and angle Of the bust
ness, including the domestic and
foreign activities. The prices of
gasoline and refined oil products
have been traced from the time the
oil first came out Of the ground
until the finished materials were
sold to the public.
Facts Now Established.
In all this work some fundamen-
tai facts already have been def
nitely established by the witnesses
before the committee. 1t was de-
clared. These are:
That the price Of oil, and sub.
sequently gasoline and all refined
products, IL determined In what is
known as the mid-continental field
of the United States. This en-
braces the rich southwest oil re-
gions. Most OF the oil in the mid
continental field is controlled by a
comparatively small number OF
companies by means OF subsidiary
firms, or closely Interviewing direc-
tOrates.
When the price In the midconti-
mental field Is raised or lowered the
change il reflected similarly In every
section Of the country, and the ad-
vance or decrease is virtually the
same by every oil and gasoline dis
tributing company.
Moreover, the price alterations. In
cessantly frequent, have been made
in defiance of all economic laws of
supply and demand, according to
this official OF the Senate inQuisi-
torial body. Many times, he de-
clared, witnesses have shown prices
have been advanced when, economi-
cally, they should have been de-
creased.
Much evidence thus fart he con-
tinued. tends to show that there
has been a forceful and concerted
action on the part of certain pro-
ducers to fix prices Of all oil prod
ucts.
Z ""ThA COMMITTEES is determined ia
sIft this evidence thoroughly and
then make some drastic recommen
dations to the Senate as 20 what
best can be done to tighten up the
supervision Of the oil industry 80
that the public no longer win be
fleeced by arbitrary power OF cor
porations."
Leasing to BE Probed.
At today's hearings OF the com
mittee officers of the Magnolia Pc
troleum Company, Of Texas. an
swered questions concerning fluctu
atoms In price in the vast South
west oil fields.
Other companies scheduled to ap
pear before the committee befort
testimony is completed includes:
Prairie Pipe Line Company, the
Sinclair interests, the Texas Com
pany, and the Standard Oil com
panies Of Indiana, New York, Ohio
Kentucky and California.
Sinclair officers, who are to come
here next week, will be questioned In
regard to the leasing Of the rich Tea
pot Dome oil deposit from the Gov
eminent. Secretary of Interior Fall't
action in leasing this deposit to the
Sinclair interests provoked storm
of protest in the Sena.5 and resulted
in resolutions demanding Senatorial
investigation of the leasing negotia
tions.
The Senate Committee on Public
Lands also Is probing the leasing Of
Teapot Dome. This was done at the
instigation Of Senators LaFollettt
Rep.) OF Wisconsin, and Kendrici
Dem.) Of Wyomips. LaFollette ii
chairman Of the committee at pres
ent probing the gasoline and oil