Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-06-14
Would Cost Half Million,

1t would cost half a million dollars
to establish filling stations and selling
agencies in Ohio" MIR. Stewart said
The ohio company, which how enjoys
few cents advantage, would imme-
diately reduce its price. and the In
diana concern would have no advan-
ta8e IN selling and no way to recover
the money spent III safes equipment.
T.. b. carson, sales manager for the
Consumers kehnlng Company, told
Jobbers by price cutting nad' forced the
renners look Tor the pest market
possible, and were themselves respon-
sible Tor dlverting the mIu-con,Ineut
oil to the ohio buyers.
Lower Prices Faced.
Overproduction of gasoline and lower
prices now is being faced by the oil in
dustry, H. G. James. secretary of the
Western Petroleum Refiners' Associa-
ton. told the federal trade commission
yesterday in the course OF the hearing on
the price rise in gasoline He told the
commission also that the low prices
prevailing in the early part of 1915
were due to overproduction in the cush-
ing field. The supply of gasoline, he
said further, now about equals the de-
mand, and when the overproduction
comes prices again will go down.
He said that a falling OF oI about
4 cents a gallon now was shown in the
refiners' quotations, but that this would
not be felt right now by the tank wap-
ons and jobbers. 1t will have to 20
much lower at the refinery before it is
reduced further along the line.
Pressed by Commissioner Hurley and
l.. H. Haney, the commissions econo-
mist in charge of the investigation, for
reason for the sudden rise in prices.
he declared that itw as due to the over
production which forced the price down.
Consequently, he said, when the pro-
duction decreased the price went up
suddenly. No one person, he said, was
to blame. but If any one at all was, 1t
was the government itself.
Is Asked to Explain.
Mr.. Hurley asked Mr.. James to ex-
plain this. and the witness said 1t was
because the government believed the
Indian was better than the white man.
1t required the producer to drill a GER
tain number Of wells, whether the de-
mand required 1t or not. All of the rul-
ings by the government on the oil lands.
Indian. He said the Kansas field would
be another Gushing field. and would
equal 1t in production. 1t was the
Cushing field which was blamed for the
low prices in early 1915. Other fields
just as big as these are waiting to be
tapped, he told the commission.
The fault for the high price, he said,
Is not with any one person or company.
Asked by Commissioner Hurley II he
could suggest a remedy for the situa-
ton, he said he could not.
Independent Jobbers Testify.
Independent oil 3obbers testified Monday
pany had demoralized the oil industry
and through failure of the units Of the
company to compete in each others
independent jObbers and reflners. They
declared that arbitrary high prices set
by the Standard OIL in Ohio and eastern
states had diverted the flow Of Oil from
the independent reflneries of the middle
west, until the independent jobbers of
the west, where lower retail price Is
set by the Standard OIL Company of In
diana, were no longer able to- buy crude
oil at prices which would permit them to
compete with the Standard company.
A table showing large profits made by
ings in the commissions investigation,
was submitted to the witnesses. but was
not made public. 1t drew vigorous objec-
tons from the renners: who charged that
the most conspicuous successes. and had
10 arranged its figures as to make them
misleading.
e. B. Carson. representing the Con-
sumers' Refining Company, declared
that the profit made by his concern had
not been through the sale of gasoline,
but through a rise In the price of crude
oil.
Stored 2,ooo, 600 Barrels.
The Consumer company put g.