Evening star., 1924-06-25
Conspiracy to Curb Trade
by Pooling Patents Is
Charged to Standard Oil
and Secondary Defendants.
LEGAL ACTION FOLLOWS
INQUIRY LASTING A YEAR
Department of Justice Men Gov
cred q. S. and Europe in In
Observation-Disclosures De-
clared Subject to Extortion.
Production Held Down.

The government today struck
blow aimed to break the gasoline
Combination, conspiracy and mo-
nopoly"
The Department Of Justice filed
in the United States court in Chi
cago suit in equity against the
Standard Oil Company of Indiana.
the Standard Oil Company OF New
Jersey, the Standard Oil Company OF
California, Kansas, Kentucky, Louisi-
ana, New York and Ohio; the Texas
Company, the American Refining
Company, Aetna Refining Company
and two-score more OF the country's
great oil-producing companies, al
leg1ng conspiracy to violate the
Sherman antitrust law, and asking
an Injunction to restrain the COM
panies from further violation.
The action constituted one OF the
most sweeping antitrust moves on
the part of the government in man.
years. Besides the principals, the
Attorney General named as parties
a number OF secondary defendants
who, he charged, were in the COM
binatlon as a result of accepting
licenses from one or more Of the
primary defendants
Conspiracy Is Charged.
In making this announcement the
Department of Justice today ex-
planned in formal statement, "the
court is asked to prevent and re-
strain the defendants from further
violating the Sherman act it being
alleged that all of the companies are
now engaged in combination and
conspiracy in restraining of trade
and commerce among the several
states and with foreign nations in
gasoline, kerosene and other hydro
carbon products"
In bringing this suit" the state
ment continued. Attorney General
Stone, charging that all of these
great companies have combined to
control the production of gasoline by
a pooling of asserted patent rights
in violation of the Sherman anti
trust act. names as the primary de-
PENDANTS in the conspiracy to or
ganize and maintain the unlawful
com mbination the Standard Oil Com
pany of Indiana, the Standard Oil
Company of New Jersey, Standard
pany and Gasoline Products Company.
The secondary defendants" the
official statements explained, who
have become parties 10 the combi
one or more of the primary defend
ants. are: Standard Oil Company of
Kentucky, Standard Oil Company Of
Standard Oil Company of
New York, Standard Oil Company of
Ohio, Aetna Refining Company, Amer,
Company. Clayton Oil and Refining
Charles F. de Ganahl. Gale
Oil Company of Texas,
Globe Oil and Refining Company,
PraSueing company Coz GSmp@PK Humble ek9Sh o
and Refining Company. the Imperial
Industrial Refining Com
pany, Indiahoma Refining Company,
Ref RefneriTs' d Ell Elliott Rsn;es J1nes
Company, Magnolia Petroleum Com
pany. Miller Petroleum Company,
Omaha Refining Corporation, Owl Oil
Company, Petroleum Refining Com
fining Company. Pure Oil Company,
Root Refineries, Roxana Petroleum
Sapulpa Refining Com
pany, Southern Oil Corporation, Sun
Company Tidal Refining Company,
Utah Oil Refining Company. Vacuum
pany, waverly Oil Works Company
and White Eagle Oil and Refining
Suit Follows Inquiry.
The suit filed today followed a
investigation by the De-
partment of Justice, covering a peri
cd of more than a year, which was
conducted separately from the gaso
line investigation by the Federal
Trade Commission.
Agents of the Department of Jus
tice, it was learned, had operated in
the investigation in all parts of the
United States and abroad as well.
Those in close touch with the lat
est developments declared that this
suit was of greater magnitude than
even the famous "trust-busting" ac-
Roosevelt. President Roosevelt, in
,ne of his drives against combina-
ions in restraint of trade. directed
action against dissolution of the
Standard Oil Company alone. The
action today, however, contemplates
restricted measures applicable to all
he great oil producing companies
the United States
In substance, the petition filed by
he Attorney General alleges, it was
explained in the departments state
nent, that due to the increased de-
nand for gasoline resulting from
he great increase in the use of au-
omobiles, manufacturers now utilize
processes for Cracking gasoline
which increases the yield from a
given amount of stock from so to 100
per cent over the old methods of
"The process is described" it was
las the subjecting of the
'esidue after distillation to high tenn
,eratures and superatmospheric pres
,ures, thus effecting the decomposi-
ion or cracking of the molecules of
he heavier hydrocarbons, gas, oil.
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