Standard Oil, giving combined asjects of nearly G.$1,000,000,000, was announced to-day-in a circular letter sent out by the Vacuum Oil Company to its stockholders.
The letter said that after months of negotiations, the boards of direc tors of the two companies had Jagreed upon the basis for the mer ger, which is contingent only upon a ruling by the courts as to whether such a merger will constitute. a Violation of the federal anti-trust In order to test this question, a "friendly suit" is to be instituted before long.
The new corporation intends to battle foreign oil combinations, which have frequently been declared a menace to American companies Jas they have heretofore been ganized, The merged companies will be known as the General Petroleum Corporation.
Stockholders in Vacuum Oil are receiving three shares of General Petroleum stock for each share now held in the old company. The Stand Oil stockholders will receive share for share, The General Petroleum Corporation will be the second largest company in the United States, according to its officials-—United Press, Senators on Trust Law Washington, Feb, 23, The announcement of the merger of the Vacuum Oil with the Standard Oil, coming on the heels of the recent approval of a rail merger, abruptly revived the discussion to-day on the rapid growth of great American industries. through com binations and pure hi This growth is hailed by "big business" men as a logical dovelopment in efficiency and the eftting down of wasteful competition and overhead. Those committed to the traditional American policy of tree competition and individual enterprise, however, voice alarm at a trond which they declare makes for the Jereation of strangling octopi which may in time achieve the status of super-governments.
Officials of the Department of Justice refused to comment on the Vacuum-Socony merger, saying that for the present it is impossible to give out any statement, Meanwhile it appears probable that the merger question will be inked with the fight for a erude: oit tavift designed to oppose what in Jdependent oil producers term "a flood of foreign all competing in, a market where, contrary to general belief, there is no overproduction."
This fight has been gaining momentum since the recent visit to Washington of a large delegation of the independent producers who pre~ sented their ease direct to legislators and administration leaders. Forty [votes in favour of such a tariff are inow claimed in the Senate.
Tt appears certain that importa~ tion of oil by the Royal Dutch, which comes at the head of the in-Jdependents' list, will be used as fan argument against the Socony merger, since Standard Oil imports Senators Walsh and Wheeler declare that if the merger docs not violate the anti-trust law, then "that act will cease to be of value."
United Pres
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