The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1937-08-11
BIG OIL FIRMS
IN ANTITRUST
ACTIONS SOON
Sweeping Prosecution by
u. S. Set for Hearing 3
October .4th
BY WILLARD R. SMITH
United Press Staff Correspondent

I
MADISON, Wis, Aug. IL
(UP)-Trial Of the governments
greatest antitrust action in years
is scheduled to open here October
4, when % major oil companies
and Sd of their executives face
charges of engaging in a price
fixing conspiracy.
Two federal grand jurieS, the
first converting here more than a
year ago, subpoenaed tons of COR
reSpondence and other documents
from private files of these COM
panies and returned indictments
against rs companies and II indi-
viduals.
Defendants facing trial first
are charged with combining and
conspiring for the purpose of
artitically raising and fixing the
tank car prices of gasoline alleg-
eddy through a buying pool OPP
Grating among independent refin-
ers in the East Texas and Mid
Continent fields. ....
Prices which these major COM
panieS charge jobberS are based
upon spot market tank car sales
quoted for the previous day in
trade publications, the indict-
ments charged. The government
argued that by influencing this
market, which amounts to less
than 8 per cent of the gasoline
sold in the Middle West area
where they operate, these major
companies were able to raise their
prices to jobbers and increase re-
tail prices by so doing.
TWO JOURNALS ACCUSED
Participating in this practice,
the government charges, and CO.
defendants with the oil executives
in the first trail are the Chicago
Journal of Commerce and Keith
Fanshier. it's petroleum editor,
and the National Petroleum News
and Platt's Oilgram, and Warren
c. Platt, Cleveland, o., president
of the last mentioned publica-
tions. Clyde NJ. Boggs, Arkansas
City, KaS., and Arthur V. Bour-
que, Tulsa, Okla, president and
secretary treasurer respectively
of the Western Petroleum Rein
ers association, also are defend
ants in the action. .
The trade journals are charged
with aiding the conspiracy by
knowingly publishing as spot mar
ket task car price quotations the
prices paid by these companies in
their buying program. Major COM
panies in this program beginning
in February, 1885, were assigned
independent refiners as dancing
the government charg-
es. buying from them at high, ar
bitrary and progressively increas-
ed prices in order to influence
jobber and, ultimately consumer
prices.
TRIALS TO BE LENGTHY
Trial of the first case is expect
ed to last from 6 to II weeks
Housing facilities are being re-
served for between 200 and 500
persons, including the defendants,
their families, secretarial and
household staffs. ...,,.,
William ]. (Col. "Wild BilP0
Donovan. former assistant 7. >.
attorney general, is chief defense
counsel. Burden of the prosecu-
ton falls upon John Henry Levin
and Hammond E. Chaffetz, young
assistants of Attorney General
Homer Cummings, sent here from
Washington. Judge Patrick T.
Stone, regular jurist of L. 5. dis
trict court for the Western Wis
consin district, will preside.
In additional to personal APP
pearance of the defendants here
to enter pleas of not guilty, the
case already has been carried
through legal technicalities which
may lead to an appeal to higher
jurisdiction.
Defendant corporations in the
first case include Standard of In
diana. Socony Vacuum, Cities
Service, Continental, Gulf, Pure
Oil, Shell, Sinclair, Texas, Mid
Continent, Phillips, Sicily, Barns
dali, Deep Rock, the Globe COM
panies of Oklahoma, Illinois and
Kansas. and some subsidiaries
Cities Service Export. Empire,
Louisiana Oil, Gulf Refining, and
Wadhams. .-.