The Washington times., 1936-08-17
WAIT
ANTITRUST
ACTIVITY

Business officials and politi
clans today were anXiouSly await
ing the outcome of the first major
trustbusting activity into which
the Roosevelt Administration has
entered and which appears to be a
complete reversal of the New Deal
attitude with respect to antitrust
law violations.
During the life Of the MIRA,
1t was generally conceded that the
antitrust laws were being winked
at by the Federal Government in
order that the purposes of the Re
covery Act could be effectively car
ried out. This policy not only had
the approval but the sponsorship
of the Roosevelt chieftains.
Now, however, the Department
of Justice has instituted antitrust
law violation proceedings against
a group of oil company officials
for their activities in effecting an
agreement which sought to &C
complish the same purpose in the
gasoline industry that the Ad
ministration-Sponsored Guffey
Coal Act attempts for the coal in
dustry.
Keeping Close Watch
Corporation heads are keeping
a close watch over the outcome
of this court controversy, seeking
to determine which side of the
fence the Administration is going
to settle upon now that the NRA
has been tossed out of the window
They see, on the one hand, the
Administration attempting price
stability for certain industries and,
on the other, seeking to stem ef-
forts of other industries to carry
out such policy.
Interest in the matter has
aroused even greater interest be-
cause of the claim of the oil com,
pany officials directly involved
that they have in their possession
documents signed by Secretary Of
Interior Harold E. IckeS, Oil ad-
ministrator under the NRA and
recognized Administration SpokeS-
man on oil policy questions, show.
ing that he approved the agree
ment which the Department Of
Justice is contending violates the
antitrust laws.
AS a result of the Department.
of Justice action, a large number
of officials of Well-knoWn oil COM
panies recently were indicted by
a Madison, Wis, grand jury.
Stabilized Prices
The agreement contested by the
Justice Department was entered
into between the large oil COM
panies and small independent re-
timers with a view to stabilizing
the price of gasoline. The small
refiners, having no means OF hold
ing the gasoline, previously had
been turning it out at low prices
and thus bringing about gas price
wars. Under the agreement, the
small refiners sold all their gaSo-
line to a pool of the large oil COM
panies, which had adequate Stor-
age facilities, the larger companies
agreeing to pay regular market
rates for the gasoline.
Administrator IckeS gave his APP
proval to this agreement under
the MIRA, and this carried with it
the implication that the Roose-
welt Administration believed it
legal and that the Department Of
Justice would not bring antitrust
law violation charges against the
companies party to the agreement.
This agreement, later, however,
was dissolved, but in February,
1885, the oil interests drew up an
other similar agreement and put
it into effect, although Secretary
Ickes did not sign it. Oil company
officials, nevertheless. claim that
they have correspondence signed
by Ickes and other oil administra.
ton officials encouraging them to
go ahead with their pool program.
JObberS in Protest
Following the invalidation Of
NRA, a group of Michigan jobbers
and the National Oil Marketers'
Association, of which Paul E. Mad
lick, of washington, D. c., is secre-
tary, protested to the Department
of Justice that the oil pool plan
was a violation of the antitrust
laws, and as a result Attorney
General Homer Cummings had
the Madison grand jury investi.
gate the plan with view to bring
ing the indictments, which charge
the violations occurred even dur
ing the effectiveness of NRA.
Spokesman for the oil interests
feel that they have been virtually
doublecrossed by the Federal Gov
eminent, with one official leading
them to believe they were proceed
ing in line with Administration
policies and another turning on
them with criminal prosecutions
for carrying out these policies.
Other business men, likewise,
want to know what the Admins
tration policy truly is.
VOTE AMERICAN
n r Mop ~ cnooL