The Omaha morning bee., 1924-09-13
CAMPAIGN ON OIL
COMBINES LOOMS
Government War on Other
Trusts May Follow Suit
Against Standard.
BY ROBERT s. THORNBURGH,



International News Staff Correspondent.
Washington, Sept. 12.-No criminal
prosecutions are anticipated by At
torney General Stone in connection
with the equity suits entered in the
federal court at Chicago against
Standard Oil corporations and 30
other oil companies throughout the
United States.
The government In its epochal suit,
probably the most important Of this
character since the famous Roosevelt
trust busting actions" In 1911. seeks
abrogation of a number of contracts
between Standard Oil companies and
smaller corporations in Is states, al
legged to restrain production through
system of asserted patents" and
to increase the price of gasoline.
Attorney General Stone feels the
anti-Standard action may lead the
government to enter the courts
against these, and other companies.
from different angles. taking the
form of a general campaign to re-
strain production and increase prices.
Stone announced that the Washing.
ton conference of state attorneys gen,
eral. to meet here soon. may dis
close evidence that will constrain the
government to go into court on other
cases of somewhat similar nature.
Several state attorneys general
have requested the calling of the con-
ference, believing that there may be
grounds for action against oilproduc-
ing corporations in the state courts.
May Appear Personally.
Following the precedents set by
former Attorney General Palmer in
the packer cases and former kttor-
ney General Daugherty in the rail-
road Injunction action, Attorney Gen.
eral Stone hopes to find time to ap-
pear in person to argue the gasoline
prosecutions, he told international
News Service.
1T IL difficult to find time from
the executive duties Of the office to
grasp the facts of a case sufficiently
to present 1t to a court" Attorney
General Stone said. However, 1 am
seeking to find that necessary time"
rhe attorney general declared that
the gasoline case will undoubtedly so
to the supreme court of the United
States for final adjudication. He re-
CARDS the action of far-reaching I'M
portance. vast in its remifications
and one which will have a bearing
on the future gasoline and oil prices
of the United States.
The oil probes were launched under
the late President Harding, who re.
quested the federal trade commission
and the Department Of Justice to
launch separate investigations. The
federal trade commission report was
recently completed and placed in the
attorney generals hands. 1t is now
undergoing study.
After the retirement Of former At
torney General Daugherty Stone Inn
mediately attacked the gasoline case,
having spent much time at night pre-
pairing the evidence and putting the
facts in condition for presentment.
Date Doubtful.
Just when the action will be heard
in Chicago is doubtful. Stone point
ed out that it is possible the defend
ants will admit the facts charged by
the government, contending that the
actions complained of are not viola
tions of the law.
On the other hand, he said. should
the defense file an answer challeng-
ing the facts it might be a consider
able time before trial will be pos
sible.
The corporations named In the suit
are charged with engaging lin COM
bination and conspiracy in restraint
of trade and commerce among the
several states and with foreign ma
tions in gasoline, kerosene and other
hydrocarbon products. and have made,
entered into and are parties to con-
tracts in restraint OF such trade ana
commerce in violation of the pro-
visions OF section / of the act OF
July 2, 1890. known as the Sherman
antitrust law
THE defendants" says the petition,
"are attempting to monopolize and
are combining and conspiring with
one another to monopoliZe a part OF
said trade and commerce among the
several states and with foreign ma
tions. This suit is instituted to pre-
vent and restrain the defendants
from further violation of the law.
Patents Attacked.
Pointing out that in 1923 the gaso-
line production reached 100000. 900
gallons, of which s,5oo,000,o00 were
consumed in the United states. the
petition goes into an elaborats de-
scription of the latest methods OF
gasoline manufacture - namely. the
cracking" process. which increases
the yield from a given quantity OF
crude oil over other processes.
It 10 alleged that the primary de-
fendants" are operating under the
supposed protection Of patents" ap-
piled for or issued to them on
methods of distilling gasoline.
The government charges these
methods "are the same processes as
those known and employed long prior
TO the application for or issuance OF
any OF their said patents"
Wherefore" 1t was stated, "the
petitioner alleges that the procuring
a nd aa.