Evening star., 1952-07-18
u. 5. Will Investigate
Seven Firms Accused
Of Monopoly on Oil
BY the Associated Press


a double barreled investigation
designed to break up an alleged
international oil monopoly by
seven giants OF the vital industry.
Both criminal and civil pro-
ceedings against five American
and two foreign oil companies are
being worked up by the Justice
Department under antitrust laws
forbidding monopolistic practices,
price fixing, and restraint of trade.
Attorney General McGranery
told a news conference yesterday
that a Federal grand jury, sitting
here, will shortly start probing
into activities of what he called
"the international oil cartel"
At the same time, Mr.. McGran-
cry said his department will in
Stitute a civil antitrust suit
against the seven companies in
the District of Columbia courts.
The criminal proceedings are
designed to punish past offenSes.
The civil proceedings are designed
to prevent any repetition of the
save offenses in the future.
Two Foreign Firms Included.
Mr.. McGranery named these
firms as involved in the probe:
Standard Oil of New Jersey. Stand
ard Oil of California, Texas Oil
Co. Socony-Vacuum. Gulf Oil
all United States owned-and two
foreign firms dominated by the
British. Royal Dutch Shell and
Anglo-Iranian Oil Co.
A spokesman for Standard Oil
of California said at San Fran
cisco last night "our record is
clear" and that the international
operations of it's affiliated COM
panies had been carried on to
the best interests of the United
States"
In London officials of the Anglo
1ranian company challenged the
right of American courts to take
antitrust action against them,
saying their firm does not operate
in the United States.
Officials said they are studying
Attorney General McGranery's
charges and may issue a formal
reply later.
A spokesman for the Royal
Dutch Shell firm said his company
also is studying the charges. It's
American subsidiary is the Shell
Oil Co.
Last week Eugene Holman,
president of Standard of New
Jersey. said his company was
not party to illegal practices of
any kind.
This company is not a party
to illegal arrangements of any
kind. including those which would
fix prices, allocate markets. or
control or restrict production any,
where in the world" Mr.. Holman
said.
Covered in Sherman Act.
The points Mr.. Holman men,
toned are among those covered
by the 62-year-old Clay
ton Antitrust law which bans
monopoliStic practices and out
laws agreements to fix prices or
restrain trade between States or
between the United States and
foreign countries.
Leonard j. Emmerglick, Justice
Department attorney who con-
Quoted the Governments success
full antitrust suit against Alumi-
mum Co. of America six years
ago. was commissioned to go be-
fore the grand jury and prosecute
the civil action in international
oil.
Senator Hennings, Democrat,
of Montana. currently demand
ing a congressional investigation
of the seven oil firms, said in a
public statement two days ago
Jnat the group dominates United
States foreign policy in the Middle
East, Indonesia and Venezuela
and works together in the pricing
field and elsewhere with the
regularity and precision of fine
Swiss watch"
The activities Of the group in
tho intorpo tiopo1 oil fold uero
analyzed in a recent secret report
prepared by the Federal Trade
Commissions staff.
This report has been circulated
among Government agencies, in
Guiding the Justice Department,
but has been withheld from pub
lication at President Trlman's re-
quest. Mr.. Truman said it would