Evening star., 1938-07-19
GAS PRICE FIXING
VERDICT UPHELD
Convictions Sustained of II
of 46 Defendants in
Midwest Case.

BACKGROUND
The first indictments in the oil
case ,Dere returned nearly tUo years
ago. Defendants 1pere charged
NTH illegal action to peg Midwest-
ern market through purchase of
surplus gasoline from independent
refnerieS in 10 Middle Western
States in 1885 and 1896. Motions
tor neiD trial 1Dere made at conclu-
sion OF nearly four months trial.
BY the Associated Press.
MADISON, Wis, July 19.-Federal
Judge Patrick T. Stone today sus-
tained the conviction of II of 46 de-
fendants found guilty last January of
conspiracy to raise and fix mid
western gasoline prices in 1885 and
1896. He fined these defendantS-12 IL
companies and five executives-a total
of $65,000.
The judge dismissed the charges as
to 10 other executives and one cor
poration and found that the rel, ain
ing defendantS-l5 officials and three
flrms-Were entitled to a new trial be-
cause they had been linked to the
alleged conspiracy only by circum-
stantial evidence.
In 16-page decision. Judge Stone
treated all defendants in three cate
gories: Cd Those whom he held were
shown to have combined through gas
oline purchasing agreements to peg"
the midwestern market; CD Those
whose connection with the conspiracy
was subject to doubt; 90 and those
who were clearly shown to be inno-
cent
Among the individual defendants,
whose convictions stand, is Charles E.
Arnott, New York, vice president of
the Socony Vacuum Oil Co., alleged
by the Government to have been the
master mind of the conspiracy.
Fines of $1,000 Each.
Mr.. Arnott and the following four
executives were fined 1000 each:
H. T. Ashton, st. Louis, manager of
the Lubrite Division, Socony Vacuum
Oil Co.
Robert w. Mcdowell, Tulsa, Okla,
vice president in charge of sales, Mid
Continental Petroleum Corp.
r. H. McElroy, Chicago tank car
sales manager of the Pure Oil Co.
P. E. Lakin, ST. Louis, general man
ager OF sales, Shell Petroleum Co.
Judge Stone assessed $4,000 fines
against each of the following u COM
panies: Socony Vacuum Oil Co.,
Wadhams Oil Co., Pure Oil Co., SIN
clair Refining Co, Shell Petroleum
Corp, Skelly Oil Co., Continental Oil
Co, Mid-Continent Petroleum Corp.
Empire Oil g. Refining Co., Phillips
Petroleum Co., Globe Oil & Refining
Co. of Illinois and Globe Oil g.
Refining Co. of Oklahoma
Defendants whose convictions were
upheld will share the trial costs, the
exact amount of which had not been
determined today.
List of Those Freed.
Judge Stone set aside the jury ver-
dict and freed the following executives
and companies:
Globe Oil g. Refining Co. of Kansas. |
A. V. Bourque, Tulsa, Okla, secre-
tary of the Western Petroleum Re-
fners' Association.
Dan Moran. Ponca City, Okla,
president of the Continental Oil Co. |
Henry M. Dawes, Chicago, president !
of Pure Oil Co.
Jacob France, Baltimore, Md, presi-
dent of Mid-Continent Petroleum |
Corp.
Alan Jackson, Chicago, vice presi-
dent in charge of sales, Standard Oil |
Co. of Indiana;
c. L. Jones, New York, vice presi-
dent of Socony Vacuum Co.;
Frank Phillips, Bartlesville, Okla,
president Phillips Petroleum Co.;
Bryan S. Reid, Chicago, general |
manager of the Chicago Division, So
cony Vacuum Co.;
Edward G. Seubert, Chicago. presi-
dent Standard Oil Co. of Indiana;
W. G. Skelly, Tulsa, president
Skelly Oil Co.
New Trials Granted.
The court set aside the verdict and
granted new trials to the following:
Standard Oil of Indiana.
Barnsdall Refining Corp.
Cities Service Co.
Edward j. Bullock, Chicago vice
president in charge of purchasing,
Standard of Indiana.
J. w. Carnes, New York, vice presi-
dent of the Sinclair Refining Co.
Harry D. Frueauff, Tulsa, vice presi-
dent of Cities Service Export Oil Co.
md vice president of Empire Oil &
Refining Co.
Alexander Fraser, ST. Louis, presi-
lent of the Shell Petroleum Co.
A. M. Hughes, Bartlesville, Okla,
,ales manager of the Phillips Pc
,roleum Co.
Harry J. Kennedy. Ponca City, Okla,
7ice president of Continental Oil Co.
A. G. Mcguire. chairman of the
board, Wadhams Oil Co.
Edward r. Reeser Tulsa, president
IF Barnsdall Refining Corp.
Noel Robinson. New York, vice
president of the Tidewater Associated
Dill Co.
I. A. OShaughnessy, Minneapolis,
president of the Globe Oil and Re-
lining Cos.
Edward L. Shea, New York, presi-
lent of the Tidewater Associated
on Co.
H. E. Brandt, New York. vice presi-
lent, Cities Service Export Oil Co.
O. j. Tuttle. Tulsa, tank car sales
manager, Empire Oil & Refining Co.
c. B. Watson, Chicago, vice presi-
lent, Pure Oil Co.
j. w. Warner, Tulsa, Tidewater As
'ociated Oil Co.
lIrlRI n