Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-11
OIL INDUSTRY .UNDERFIRE
AGAIN IN GAS PRICE RISE
Federal Trade Commission Initiates Full
Investigation at Behest of
President and Senate.

its newest inquiry into the petroleum
industry, for in June, 1924, a little
more than two years ago, 1t submitted
to President Coolidge q report on
gasoline prices covering the early
part of that year. which was never
fully completed. This repot revealed
that even though the famous $4,000
900 Standard Oil decision of Judge
Landis dissolving the nationwide
Standard OIL Co. into smaller com
panies was handed down not much
more than a decade ago, the Standard
Oil Co. still is recognized as the leader
in price movements and virtually con-
trolls the price of gasoline in the ter
ritOry which it ServeS-which means
the entire United States.
Important developments of the in
quiry which was halted when a re-
quest for $4,000 additional was made
to the budget bureau to complete 1t,
included letters and kilograms passing
between the agents and representa-
tives of the following companies:
The Pure Oil Company, Sinclair
Refining Company, Mutual OIL Com
pany, Cities Service Oil Company,
Producers and Refiners' Corporation.
Continental Oil Company, Empire Re
finers, Inc; National Petroleum Mar
keters' Association and several other
local and State jobbers and dealers
associations, together with memoi
randa and letters describing confe.F
ences on prices and price situations.
between local agents of the STANDARD
OIL Company of Indiana and represen-
tatives of various independent COM
panies and marketers' associations.
STANDARD Is Leader.
All the data uncovered show that in
the territory in which the Standard O.
Indiana operates, the independent
marketers recognize the Standard OH
Company as the leader in price moVE,
ments and that they try to keep them
selves informed as to Standard price
changes in order to remain in line
with them. 1t was also revealed that
through exchange of information and
informal conferences with local repre-
sentatives of the Standard of Indiana
the Independent marketing companies
attempted to maintain uniform prices
and that they generally recognized
the futility Of trying to sell at prices
other than those maintained by the
Standard company.
Just as in the inquiry which has al
ready begun, that of two years ago
was precipitated by wild e spre
charges of illegal monopoly in the
petroleum industry and unwarranted
boosting of prices which took many
millions Of dollars in the aggregate
from motorists and others.
But the commission was not alone
| thwarted in prosecuting its inquiry of
two years ago by budget bureau re-
fusal to ok" a larger expenditure.
Eight Independents refused agents of
the commission access to their files
for the purpose of examining and
copying any documentary evidence.
which might have revealed more
proof of collision to fix prices. Those
companies which refused to work
with the Commission in this matter
were the Texas Company, White
Eagle Oil and Refining Company,
Shaffer Oil and Refining Company,
Derby Oil and Refining Company.
Sterling Oil and Refining Company,
Indiahoma Refining Company, Ne
braska Independent Oil Mems Asso-
citation and Winters OIL Company.
These companies, however, all gave
the commission information as to
statistical and financial data, together
with Information regarding produc-
ton. prices and profits.
Sensational Price War.
The 1924 inquiry came Immediately
after the sensational price war of that
year when Gov. McMaster Of South
Dakota organized State agencies to
| fight what he believed unwarranted
price boosts on the part of the big
companies and sold and distributed
gasoline through the State highway
| commission.
No such situation now exists or mas
existed since that time is9soiine IS
retailed generally through territory
served by the STANDARD Oil Couopa M
of New Jersey, which operates in
Washington and surrounding states,
at "a cents gallon, against a Mid
winter price in 1885 of 20 cents a
gallon. These prices include a 2-cent
tax. And refiners agree that the pro-
cesses necessary to manufacture So
called Summer gasoline are not so in
VOWED or expensive as those used in
the manufacture of Winter run gaso-
line which must be especially adapted
to quick starting of cold engines.