Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-10
Oil Merger Turns Thoughts
Of Public to Old Trust Case

/ the Sherman law about all the vitality
it ever had. The jeering that for years
followed the development of each dis
solved oil subsidiary into a concern
which, in volume of business and mag
nitude Of wealth surpassed the original
wicked old Standard Oil Co. of New
Jersey, has been somewhat modified in
recent months. How, with the passage
/ Of years, each has come under the con-
troll of new men Of new ideas and has
invaded the territory of other sub
sidiarie6, and how now there is among
them competition alleged to be as
great as that with companies under
entirely different ownership, has been
repeatedly described"
Attorneys for the concerns that now
plan to merge" says the Chicago Daily
News, hold that the proposed merger
would violate neither the Sherman anti
trust law nor the decree of 1912. They
take the position that while the decree
broke up the old combination, it does
not prevent former constituents of the
trust from creating new combinations.
Presumably, If any two Of the
separated constituents of the former
trust may now consolidate, they all may
be brought together again and the de-
cree thus nullif1ed. Whether even that
would be a business disaster may be
doubted. Since the old Standard Oil
group was broken up. Independent oil
companies have developed tremendously.
Under the Supreme Courts rule of
reason conduct and treatment of COM
petitors and the public, not mere size,
should govern in determining the valid
ity of industrial combinations And
Standard Oil may have mended its
ways: Further. in the Shell interests it
faces powerful competition, both at
home and abroad, and it is girding for
still greater struggle to come with
its international competitor. In any
must prove Of deep interest to the
public and to great commercial enter
priSes."
Advising that there should be "some
way to deal with the oil companies on
their merits, with reference to some
clear and consistent public policy Of
antitrust law enforcement" the Balti-
more Sun points out that these two. it
is reported, If merged, would control
only about per cent of the petroleum
products consumed in the United States,
a very small percentage compared with
the control exercised by merged COM
panies in other lines of industry" and
that paper offers the judgment: When
the Standard Oil Co. was dissolved, in
1912, the conduct of the oil business
was regarded as almost exclusively a
it has become very important phase
of foreign trade, enlisting the direct
support of governments in an interna-
tional competition contest of the first
magnitude. 1t Is this contest that is
assigned as one of the major reasons
for the proposed merger. When the
packers consent decree was entered, in
1920, chain distribution Of food products
was relatively in its infancy. Since
great food distributing chains have be-
come a commonplace of our economic
system. There have also been vital
changes in the judicial Interpretation of
the meaning of the Federal anti-truSz
laws and in the governmental policy u
enforcing them"
The new company" as underStoo4
by the Hartford Daily Courant, will hA
called the General Petroleum Corpora
ton. 1t Is expected TO defend itself Or
the grounds that the merger involves
no restraint of trade and competition,
since the Standard Oil Co. deals largely
in gasoline and kerosene and the
Vacuum Oil Co. in lubrieating and fuel
oils. Whether the prosecution Is sue
cessful or not, the prompt action Of the
of Justice is wholly cox..
mendable. particularly because q nsT
definition of legal merger ought to b
handed down. Since the fight viii I'M
doubtedly be carried to Me Supreme
Court such definition Shouts ~ FORTH
coming"