Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-23
OIL CASE WILL SET
EXAMPLE INPR|CE
REGULATION MOVE
Action Against California
Companies to Test Mean
ing of Sherman Law.
TRADE PRACTICE CODES
ARE INVOLVED IN SUIT
Result Of Action to influence Flu.
ture Policies of All Cor.
porations.
BY JOHN F. SINCLAIR.

- SOAA4N SAkNNAhANs
Special Dispatch to The Star.
NEW YORK, March 22.-When the
Department of Justice decided to file
suit for violation of antitrust laws
against the California oil groups, civil
and not criminal action was begun.
Oftentimes such actions carry a doubles
barreled approach, in that the Govern.
ment hles both civil and criminal
charges.
Usually civil actions are taken only
In cases where 1t is felt that the Lead
erS have not deliberately or with in.
tention violated the law.
The larger companieS-and most Of
the companies operating in California
are very large-had already entered
into an agreement to cooperate under
code Of rules which had been worked
out by the trade practice conference.
The code itself contained agreements
calling for posting prices at the re-
f1nery, with a further provision that
those prices would be adhered to.
What are the legal consequences,
therefore, Of such agreements? The
Department of Justice in this case
contends that they are pure violation
of the antitrust law In that such prac-
tices indirectly set the retail price. The
oil companies themselves deny the
courts.
The whole subject of trade practice
conference codes and antitrust Iegisla-
ton will receive a thorough airing be.
fore this case is closed.
Shipping Business.
Robert Dollar Of San Francisco
writes that conditions are excellent in
the shipping business. This business
veteran. approaching 90, did not inti-
mate whether or not he is about to
make another world tour, to drum up
more business for his allied companies.
From the tone Of his letter no drum
ming up Is needed at the moment.
Cant complain at all: Business is
excellent with u.s." says Capt. Dollar
The outlook for American shipping
locks more favorable now than at any
| time since 1920. While it Is true that
the excess tonnage built up during the
war has continued to depresS rate
schedules. the surplus of available ships
Is slowly being eliminated and will be
practically a thing Of the past within
five years.
Still, the Department of Commerce
has recently compiled figures to show
that the greatest percentage of idle
ships are American owned They
amount to about So per cent of the
worlds, total. $500.
The two major problems, outside of
excess ships, which make it difficult
for American shipping interests t. COM
pete with foreign vessels successfully,
are, according to standard statistics:
i. Higher operating charges, due to
the wage diherential allowed American
Seamen.
q. Greater. cost OF constructing YES.
sels. In American sl1ipyards. These
costs ara estimated at from so b so
~ t.
During 1929 q total Of 126,006 tons
in merchant vessels was built and
launched in the United States. This
represents an increase of 38 per cent
over 1928. For this year the prospects
will be better, with about $50 0Cc tons
reported under construction or Q gain
OF 244 per cent over 1929.
It has been q hard, uphill fight. But
over.
New York Reserve Board.
Who makes up the board Of directors
OF the Federal Reserve Bank Of New
York, most powerful Of all the Reserve
nanks? Several Of them have bean on
the board for years. Some are nww,
As it stands today, the board Is do
up as follows: J. Herbert Case, CHAIR
man OF the board; Owen D. Young,
deputy chairman and chairman of the
board of the General Electric Co:
Charles z. Mitchell, chairman of the
National City Bank: Thomas W. ste.
vens, president of the Bank of Mont
clair, New Jersey; Delmare Runkle,
chairman OF the Peoples National Bank
Woodin, president Of the American Car
& Foundry Co.; Theodore F. Whit
marsh, chairman Of Francis G. Leggett
q Co.; Samuel w. Reyburn, president
OF Lord & Taylor, and Clarence NJ.
Woolley, chairman of the American
Radiator d Standard Sanitary Corpora
ton.
Nearly all these men have been lead
ers In the business world and were
selected because of their success ia
their own field.
Mr.. Case. the new chairman, started
MS business career as q clerk when he
WIS IL. and has worked his waY
through the commercial banking field.
Joining the Federal Reserve Is years
ago .s........t..-......,
~ InStaEEmcnt Buying.
What of installment buying? Maya
zine articles and books have been writ
ten on both sides.
Many conservative thinkers still oues-
ton Its soundneSS in the business world.
TO purchase articles of consumption
WAtAAou5 1uu payment Is SCllI considered
by them "a sure path to the poor
house" Purchase of productive goods
on. the installment basis is bad enough,
but not so bad.
Arthur Fertig, New York auditor.
rises to say that in the final ANALYSIS
1t depends upon the skill with which
the machinery is used, whether It win
work or not In any particular business,
the annual volume of insranment
sales in the United States exceecs toe
combined volume in the rest OF the
world. It's total in the United states
now is above $4,000 000, 900 a year.
about 8 per cent of the total annual
income. So a far-rearhiA9
credit revolution has taken place.
Even In times of depression, no In.
stallment retailer looks fondly 81 SUE
eide. II new buyers grow scarce, thSee
are always collections coming Ia, suR.
geSts Mr.. Fertig.
Is irlstallment buying good or badp
Who knows yet?
C1UpyFfRht. 1870. North Aunn.t... 49,.