Evening star., 1934-03-24
INDICTMENT Of 46
BOMB NO|L TRADE
Code Violations in Price
Wars Charged in Sweep
ing California Bill.
Nv the Associated Press.

py TIC ASbOCinbtu lCoos
LOS ANGELES, March pa Fed
eral grand jury tossed bombshell
into the California petroleum industry
today with a wholesale indictment Of
Al individuals and companies. in
Guiding the Standard Oil of Califor-
mia, on charges Of starting price wars
through marketing subterfuges.
Charged with violations of the ma
tional petroleum code Of fair compe-
tition and infraction of interstate
commerce relations. two of the en-
panies. Standard and Associated Oil,
face possible maximum fines, if con.
victed, ranging from $l,600,O00 to
81, 200 900.
Kingsbury Among Indicted.
Among the individuals named in
the indictment was Kenneth r.
Kingsbury, president of Standard and
a prominent figure in preliminary dis
cuSsions during the formation of the
code. The charge brought quick
response from oscar Lawler. legal
counsel for Standard. that the char
acter of the men named In such an
indictment should be In itself an
answer to the charges of this nature" 3"
The indictment, accompanied by
bench warrants for the arrest of in
dividuals and setting bonds of 81 900
each, was voted on the heels of an
apparent truce several days ago in a
price war during which gasoline re-
tailed as low as ia cents gallon.
Besides Standard and Associated.
the true bill named the Signal Oil &
Gas Cos. of Delaware and California.
and the Seaside Oil Co.
In l49 counts the jury charged
Standard controlled Signal by a SER
les of contracts. all money being held
in trust for Standard. In 185 counts
it was alleged that Associated con-
trolled Seaside.
Varying Trade Names.
In effect it was alleged that the
major companies produced gasoline
and distributed and sold it through
the minor firms under varying trade
names. The prices of first and Sec
ond grades of fuel were identical with
those charged by the majors for their
own products. but it was alleged that
the minors posted prices on third
grade gasoline so that it appeared
they were underselling ostensible
competitors.
The individuals. all described as
officers or directors, were charged with
aiding and abetting the sales subter-
fuge
The indictments were prepared
upon United States Attorney Pierson
M. Halls return from Washington, D.
C., where he spent a month discussing
the Southern California oil situation
with Secretary Ickes, oil administra-
tor.
The individuals indicted, besides
Kingsbury, included w. H. Berg, H.
D. Collier, r. w. Hannah Oscar SUIT
70, M. E. Lombardi. A. H Tuttle. G..
E. Kennedy, A. S. Russell r. K. Da-
vies and V. F. Palmer, all of Stand
ard; H. M. Mosher, S. B. Mosher, o.
w. March, H. H. Green. Norman
Chandler. David r. FAIRIES, Earl Hunt
ley and H. j. March of the Signal
Cos.
The Associated defendants were
W. F. Humphrey, L. F. Bayer, B. 1.
Graves. j. H Jenkins, L. D. Jurs, E.
l.. Shea, w. A. Sloan. j. H. Edwards,
Alden Anderson, F. H. Buck, Charles
M. Cadnam, j. A. Chanslor. John F.
Forbes. H. P. Grimm, j. A. Mccarthy,
and Paul Shoup. Seaside defendants
were: A. M. Hineman, j. F. Bushnell,
John Doe Brent, C. F. Gilmore, D. E.
LeComb and M. w. O'Brien.
Two Months Investigation,
The oil industry has been under
investigation here by the Federal
grand jury for two months. Several
smaller companies we're indicted pre-
viously.
Mr.. FAIRIES. member of the board of
the Signal Co. and one of its legal
representatives, said:
This is a complete and absolute
surprise. No evidence whatever can
be unearthed which will show a par
ticle of guilt on the part of any one
named in such an indictment. We
have never at any time violated the
letter of the law in this connection.
STANDARD Oil never at any time
owned share of stock in Signal Oil.
Signal had been organized IL years
before it had any relations with an
other organization. The two firms
have always dealt at arms length in
respect to business. True, We have
had agreements for sale and pur-
chase of products. but our products
were independent of one another"