Evening star., 1926-06-05
PRESIDENT FAV0RS
GASOLINE INQUIRY
Will Ask Trade Commission
to Probe Prices But Doubts
ManipuIations.

President Coolidge very shortly
will request the Federal Trade Com
mission to make an investigat ton of
gasoline prices in this country as a
means of determining whether there
exists any evidence of price manipu-
lation, restraint of trade or other
violations of the law Gil the part of
oil companies
The Presidents action will supple
ment the investigation called for in
a resolution introduced by Senator
Trammell of Florida and passed by
the Senate two days ago. Before the
President makes his request to the
commission however. he will await
a report from the Department of
Commerce, which has been conduct
ing a study of the oil and gasoline
situation with especial reference to
the production and distribution of
this commodity.
Doubts Any Irregularities.
In making known the President 5
intention the White House has eX-
planned that the President, while very
willing to have the matter thorough
~ Drobed and to have corrected any
evils that may be found 20 exist, per
sonally does not expect the commits
sion'S investigation to develop any
irregularities incident to the increas-
ing prices of gasoline.
The President is inclined to believe
that the steady rise in gasoline prices
is due principally TO the reduction In
the supply and the increase in de-
mand, rather than any manipulation
on the part of producers and others
handling the product before it reaches
the consumer The President bases
his opinion upon advices he has re-
ceived from those departments of the
Government which would deal with
these matters. Also, he is mindful of
the outcome of an investigation of
gasoline prices made by the Federal
Trade Commission a year or so ago,
which revealed nothing that would
indicate manipulation on the part of
the oil companies.
In making the Presidents position
more clear the latter's spokesman
called attention to the fact that prior
to last year there was a great in
crease in the oil production in this
velopad and the output was tre-
mendous, all of which resulted in low
ering the price of gasoline to the con-
sumner. This the President looks upon
as natural reaction, and he also con-
sidars it natural that the prices
should advance, now that few new oil
fields have been opened in the past
year and that the output of the older
fields is diminishing greatly.
Great Increase i'm Consumption.
Because of this slump in the pro-
duction the President Is not sur
prised at the increased cost to the
consumer. This is particularly true
inasmuch as there are about 3,000,-
900 more automobiles. many of them
trucks, in existence this year than
there were last. Besides, oil. as a
fuel. is being more extensively used
in industries, in the operation of
ships and as a means of automotive
transportation. The Presidents ad-
vices show that automobile busses
throughout the country are today
the railroad lines.
President that there is sufficient
cause for an advance in the prices.
The President. however, has re-
ceived complaints from various
quarters against the climbing gaso-
line prices, among the protests being
one from Gov. Byrd of Virginia, who
personally requested that the Pres
ident call upon the Federal Trade
Commission to make an investiga-
ton. Whether or not it is due to
the latter suggestion that the Pres
ident intends to act in this matter
was not explained at the White House.