Evening star., 1952-08-29
oil Firms Skirmishing
lin Antitrust Case
Hint Long Legal Battle


Evidence is mounting that the
Government may need years to get
a court decision on its ANTITRUST
complaints against major oil COM
|panies.
The Government and the oil
companies have barely made con-
tact in their legal war. and already
the cry is for delay. The oil COM
|panies won a tiny skirmish yester-
day in court. but they took verbal
blows from the State Department
and Senator Sparkman Of Ala
bama. the Democratic candidate
for the Vice Presidency.
In District Court, Judge Burnita
Is. Matthews granted the Standard
lOil Co. of New Jersey and the
Standard-Vacuum Oil Co. an ex-
ira week to answer subpoenas Of
a grand jury.
The original deadline for the
companies to submit voluminous
records was September 3 but
now is September 10. Standard
Oil of California won q similar
delay Tuesday.
Longer Delays in Prospect.
But these short delays are sure
to breed longer ones. The oil
companies want the extra time
primarily to challenge the grand
ljury's authority to subpoena the
lrecords in the first place.
| The latest verbal attack on the
loil companies came from Senator
|Sparkman as he left for the West
Ito campaign. He wrote to w. s. s.
Rodgers. chairman Of the board Of
1.-THE Texas Co. This Is one of the
Ifive American firms the Federal
Trade Commission accuses of help
ling an international oil cartel.
Mr.. Rodgers had protested that
release of the ETC report. on
Monday, gave the Soviet Union
talking points in the cold war.
Senator Sparkman, as chairman
lof the Senate Small Business
Committee, which made the report
II can not agree with you that
publication Of this staff report
will place our country at q dis.
advantage with relation to Russis
in the present conduct of oul
foreign affairs.
"On the contrary, I feel that
our traditional system of free
enterprise can continue to serve
as an example to less favored
nations only II we keep our owr
economic house in order and have
the courage, when necessary, tc
conduct a public audit of oul
business morality"
State Department Slap.
The State Department also
slapped at one Of the accused
companies. Standard Of Jersey.
The company. in a statement de.
Tending itself against antitrust
complaints, implied Monday thai
lit acted overseas only with thu
Ifull backing Of the State Depart.
lrnent.
State Department Spokesman
michael ]. McDermott told q new
lconference. however. that the De
partment approved the oil com
panies' activities "only from tn
viewpoint Of foreign policy"
The FTC report alleged a globs
oil cartel-the basis Of the Gov
ernment's case that is schedules
to go before the grand jury in tn
District. The Government sent ou
an armful of subpoenas for oi
company records affecting foreigl
trade arrangements since 1928.
Standard-Vacuu In askinI
Judge Matthews to quash tn
subpoenas, said yesterday sucl
sweeping subpoeanas would violat
the rules of criminal procedure
would constitute illegal search ant
seizure and would violate the du'
process clause of the Constitution
Standard-Vacuum also com
planned that the documents unde
subpoena are SO confidential tina
making them public would hurt tn
company's business.
The firm also said the document
could not be produced from
foreign countries without sub
jecting Standard-Vacuum an,
certain Of its employees to the risl
of incurring serious criminal an,
civil procedures.
Standard of California. the frs
of the companies to ask Judg
Matthews for delay, compliance
that the subpoena would requir
the company to produce 2 milliol