Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-03-21
WHY DOES GASOLINE GO UPs

The fact that hundreds of thousands of either
are not only consumers but compulsory consumer
Of gasoline, has given rise TO many investigation
regarding the rapid ADVANCE in the price of tn;
fluid 1t is doubtful whether any one other comm
dity has recently awakened more universal intere.
than the advance in the price of gasoline. SONwid
spread is the complaint against the increased prize
that the United States senate has taken hand 9
solving the riddle; the department Of justice Ia
been working on the problem; the department I
commerce has become deeply interested, and til
federal trade commission has probed to some exten
the latter reporting as follows:
The oil industry is an unusually complex one.
The prospecting for oil, the purchase or lease of
oil lands the drilling of wells, and the proy
sion Of tanks for crude storage in the field, form
more or less distinct branches of the crudeoil
industry The crude oil must be gathered
through networks Of pipes to some central point
for shipping. and then il must be transported by
trunk pipe line or tank car to the refinery. Mil
lions OF barrels are carried by pipe line from
Oklahcmaeven as far as the Atlantic seaboard.
At the refinery large supplies must be stored TO
provide a stock of crude oil which will insure
continuous operation In refining. the different
crudes field different products and refneries
vary from the "skimming plant" which takes
off gasoline and sells the balance largely as fuel
TO the complete run" plant that gets not only
naptlia and gasoline but also kerosene, lubricat-
ing oils. and greases parafin, floor oils, road
oils, gas oil, fuel oil, tar asphalt and coke Then
the refined products are marketed, and the larg.
er companies own and operate tank cars aud
ships, tank stations and tank wagons. Any
thorough investigation of even the gasoline sit
uatioh done involves consideration of the en-
tire petroleum industry from the production of (.
the crude petroleum TO the consumption Of the
refined products.
There IS no effect without cause, and the ques
hon Naturally arises to just what cause has war
1anted The increase in price of gasoline.
In hitting up the properties and assets OF th,
companies manufacturing the product, we find tha
they have the same pipelines. They are using tn
anne tanks for storage There has been no increas
1 the distribution agencies, and they are all appar
entity following the same means of operation. The,
ave certainly not increased wages Summing ~
NJ things, concerned there are no advanced condi
Tons that would warrant rise in the price iron
~ II cents gallon in April, 1915, to % cents a
ne present time
There Is an obvious reason for the extreme higI
prices for commodities and necessities In European
1o1ntries gasoline soaring with the rest In Eng
Md the present quotation for gasoline is 40 to Al
cents agallon, but the war had been in progress fo
many mouths before the latter part of 1916, a
which time the price of gasoline here in Honolulu,
vas quite steady at II IL cents gallon.
According to the law of supply and demand i
would be but natural and expected that increased
consumption would be followed BY increase in price
1ccording to the best figures obtainable there wer,
ii te Uned States in 1916 over 81 100000 licensed
automobiles by the end of 1917 the number Of
automobiles estimated to be in public use in tho
United States is S,OOOOOO Allowing 500 gallon,
b gasoline for each automobile, which is fair cs
Innate the autos for 1917 will require 800 600 OOt
.alIons against 1,OOO,0OO,OO0 gallons consumed in
1915. But this increase for the number Of autos
or 1917 has not yet taken place, while the rise ii
he price of gasoline has already occurred far in
advance With the prospects OF going still higher
therefore the present high price cannot be laid t.
The large increase in the number of automobiles
Notwithstanding the fact that a few oil wells
have diminished their flow somewhat, the output Of
producing companies during 1916 steadily In
rreased