Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-02-09
Senators Hail
Oil Price Probe
BY Grand Jury

II am very glad the justice
Department is taking Up the
story" said Senator O'Mahoney
1.-The increase in prices has not
been satisfactorily explained.
Senator Magnuson said in q
separate interview the grand
jury INVESTIGATION would be very
helpful.
Senator O'Mahoney is chair
man Of a Joint Senate antimo-
nopoly-public lands subcommit-
tee which has been looking into
the emergency oil-for- Europe
program, inaugurated after the
closing of the Suez Canal cut off
Europe from most of its Middle
East Oil sources.
Price Boosts PrObed
The joint subcommittee also is
probing recent widespread price
boosts-75 cents a barrel for
crude oil and one cent gallon
for gasoline and fuel oil. Sena-
tor Magnuson heads the Senate
Commerce Committee which has
set up a subcommittee to con-
duct separate study of gas-oil
price increases.
Yesterday, in Alexandria, Va,
attorneys from the Justice De-
partment's Antitrust Division
asked Federal District Judge AL
bert v. Bryan to order a grand
jury investigation of companies
and individuals in "the produc-
ton. refining and sale of OIL"
Judge Bryan authorized the
inquiry and directed that a grand
jury be convened March 4. JUS
tice Department officials said 1t
was decided to take up the mat
ter in Alexandria because the
Federal court docket is not as
crowded there. The grand Jury
will set up headquarters on the
third floor Of the Alexandria
Post Office.
Assistant Attorney General
Victor r. Hansen. in charge of
the Apti-trust Division. said that
while the Government has no
power to control oil prices, it is
concerned with the possibility Of
any concerted action within the
industry to raise prices.
Records Are SubpOenaed
Senator O'Mahoney said he
thought it was a lair inference"
that the department did not re-
gard the antitrust exemption,
granted to oil companies CO.
operating in the European sup
ply program. as extending to
any domestic price fixing.
Senator O'Mahoney said last
night his subcommittee has sub
poenaed various records OF ma
jor oil companies which were
authorized by the Government
to Coordinate their efforts to
cope with Europe's oil supply
problem He said a number of
the firms had volunteered to
produce their records but that
I'm fairness to all" it was de-
cided to send out subpoenaes to
16 firms.
AS OF the week ended January
80. the oil-to-Europe program
was falling short Of the Govern
ment-Set goal of 100000 barrels
a day Of crude and fuel oils. The
Interior Department said yes
terday that during that week.
shipments of United States
petroleum products to Europe
averaged $4,000 barrels daily.
but an average Of $1,000 barrels
a day went in the form of gaso-
line. Government officials have
said Europe doesn't need gaso-
line.
Senator Magnuson said the
grand jury Investigation would
take a different path than a
$4,000 probe being undertaken
by five-member Commerce sub
committee.
Scope Of Investigation
He said the grand jury would
be concerned with any collision
activities. while the Commerce
subcommittee would look into
what he called the fairness" of
the price increases and their
effect on consumers.
Senator Magnuson also said
every effort will be made ITO
get from the oil companies their
reasons for increasing prices at
a time when their earnings are
at a peak and there are ample
supplies Of crude oil and gas
oline available in this country. Z"
The Is companies on the
emergency committee are:
American Independent Oil Co..
Standard Oil Co. of California
and Tidewater Oil Co, all Of San
Francisco; Getty Oil Co., Will
mington. Del; Gulf Oil Corp.
Pittsburgh: Standard Vacuum
Oil Co., White Plains, N. Y; and
Arabian American Oil Co., CAL
tex Oil Products Co.. Cities Serv-
ice Co., Creole Petroleum. Corp.
Sinclair Oil Corp; Socony Mobile
Oil Co., Inc. Standard Oil Co.
IN. j.. The Texas Co., and Ven
ezuelan Petroleum Co., all with
headquarters in New York City.
A source on the OMahoney
subcommittee reported a SUBJ
poena also was issued for Humble
Oil g. Refining Co.
Immigrant Is Locked
Nine Dnue ~ Rn~nr,