The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-05-25
Asks Probe OF
Monopoly Trend
In Oil Industry

Washington (LPA)-If the mem
bers of the House Interstate Com
merce subcommittee investigating
"petroleum and federal power" be-
lieve that where there's smoke
there's likely to be fire, testimony
of Federal Trade Commissioner
John Carson should lead them to
Aelve deeper into monopoly trends
in the industry.
Impressive" complaints are con-
stantly coming to the Commission,
Carson told the subcommittee May
10, "that Independents are being
driven to the wall and that the
major companies are following
monopolistic policies. Some facts
which are matters of common
knowledge appear to support these
complaints"
The investigations of the oil in
dustry in 1889 by the Temporary
Natl Economic Committee showed
that "a relatively few major COM
panies controlled from 60 to 95 per-
cent of most of the branches or
of the industry" from oil
wells to gas stations. "The Com
is constantly faced with as
sertions," Carson reported, that
since 1889 "there has been an in
creasing concentration in the pet
roleum industry"
"The Commission also receives
constant complaints that there is a
great and growing disparity. of
power between major companies
and the independent segments of
the industry. That there is such dis
parity is evident, although there
has been no investigation thorough
enough to show whether or not it is
growing. We think there is need for
a definitive study of the nature
and trend of concentrations in the
industry and of the nature, extent,
and economic consequences of the
power of the large companies"
Carson pointed up the competi-
tive advantages that the big COM
panies, which handle the oil all the
way from the we'll to the filling
station or the consumers oil tank
for a home heater, have over the
smaller in d e p N d ent outfits.
Among these advantages of the
major company" he said, "are
cheap means of transportation, by
pipe line and by tanker; ready ac-
cess to supplies of crude oil, assur-
I'd by ownership of crude and by
access through crude oil trunk
lines; assured marketing outlets
resulting from a highly integrated
marketing program, which may in
volye exclusive dealing contracts
and the use of short-term cancella-
ton clauses in leasing and sub
easing arrangements; tire, battery
and accessory programs which pro-
vide a profitable source Of income
requiring proportionate in
and the opportunity to
iiversify risks, to realize income
rom various branches of the indus
.ry's activities, including crude
production, transportation and mar
leting, and not to be. handicapped
)y condition in which one or more
of the industry are tenn
,orarily Improbable. This last
condition, namely, an
,ver-all profitable position while
Independent branches of the indus
ry are Improbable, has been par
icularly important source of COM
,laints during recent months"
The investigating committee,
leaded by Rep. Oren Harris d.
irk.), will hear next week from
Rep. Clarence Cannon Cd, Mo- ),
Who wants to appropriate $25, 1000
o the ETC for a thorough investi-
cation of the oil industry as al
monopoly threat. Also, the HouseI
small Business committee, headed
" Rep. Wright Patman Cd, Tex.
a running study of the
Ill industry.
While declaring he preferred tol
i've the detailed information to the
in executive session,
arson confirmed reports that FTCl
5 now conducting a three part
robe of the oil industry. One part,
with its relation to in-l
onopOl arrange
lents, cartels, has been announced
ublicly by the oil companies them
elves.
Expressing his good-natured inn
atience with the multitude of
robes and the small results, COM
littee member John Heselton OR,
Iass.) told Carson to send up to
ne committee FTC's collection of
acts, and the House group will
,yark thao nm -