Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-27
ANTITRUST LAWS
|CHANGE DEMANDED
Government Can Act Only in
Advisory Capacity to
Help Oil Prices.
BY J. C. ROYLE.

Reinterpretation Of the antitrust
laws OF the country is being demanded
by many diverse interests here, includ-
ing members of the House and Senate.
the Government departments and execu-
ives OF various great industries. As a
result anti-mogopoly laws may be
reframed in the light Of modern needs
and methods. If they are not so altered.
many authorities declare 1t NAV be
necessary for the Government to step
in and fix prices in some lines to pro-
tect consumers. The agitation has been
rendered active by the plans proposed
to better the condition Of the petroleum
industry.
All parties interested agree that the
trouble of the petroleum industry has
come about from overproduction and
That restriction of output Is advisable.
Secretary Of the Interior Wilbur has
made 1t plain that the Federal Govern
ment cannot intervene to restrict pro-
duction except by the advice of its fact
finding and administrative bodies. He
puts the matter directly up to the States
and voluntary action of producers.
Secretary Of Commerce Lamont pins
his faith on voluntary agreement for
lowering OF domestic production and
imports.
Mitchell Gives Warning.
Attorney General Mitchell asserts that
nothing In the proposals of his fellow
cabinet members is violatiye of the anti
trust laws, but he gives warning that
any move to nix prices by production
limitation will eventually result In Gov
eminent regulation of prices for the
benef1t OF the public. Such price regu-
lat1on Is advocated strongly by some
OF the more radical members Of the
senate and House, headed by Senator
Borah.
The petroleum industry declares what
It needs Is better prices. An agreement
Tor limitation of production by oil.
producing States must come before Con-
gress for confirmation. but those who
VIII vote on it there will want to know
IN what way such compact differs from
the alleged monopoly in restraint of
trade which was ordered dissolved by
the United States Supreme Court when
the old Standard OIL Co. was sepa-
rated into its intergral parts in 1911.
Tney also want to know how a volun-
Larry agreement among producers differs
from monopoly In restraint of trade.
On the other hand, 1t Is admitted by
many legislators that the parent anti
trust Jaws are not adapted to modern
conditions. Senator Nye of North Da-
kota declared today that In many re-
SpectS these laws have become anti
quated and have lost their usefulness.
He added that changes in the economic
system Of the country have revealed
their weaknesses. There is no question,
he said, that their enforcement At TIE
present time lends to waste of the coun-
trys natural resources through un-
pridleo competition between producers.
For Price Protection.
Experts In the methods Of operation
used in the So-called European cuartels
point out that such cuartels are no
more than voluntary agreements for
regulation OF production and marketing
to protect or advance prices. Such for
e1gn cuartelS have been vigorously at
tackled in this country. In nearly every
instance. where the cuartels have been
successful, the experts state, 1t has been
necessary for the government to inter-
vene to protect the consumer.
The Federal Farm Board has urged
farmers to restrict voluntary production
of wheat and cotton. The recommends
tons of cabinet members in connection
with petroleum go no further than this
IN enect and many economists declare
one is about as likely to prove effective
as the other. There are over 5000, 900
farmers who would have to come to
voluntary agreement and stick to it in
the one case. In the other there are
over 5000 wells located In 10 States
and new wells are being drilled at the
rate of 10000 a year. The 10 States
are not likely to pass similar regulations
or enter general pact. The owners or
leasers of the 800, 900 wells are as equal
~ unlikely to reach and hold TO an
agreement for restriction.
What consumers say is far more likely
Is that II prices for petroleum products
are artifcially raised the antitrust laws
viii be invoked by the consumers.
Copyright, 1e31.)