South Bend news-times., 1921-03-31
MARCH 81. 1921
THE WAY PRICES COME DOWN.

Perhaps one Of the best SAMPLES of the way prices
coming dowu-or rather fail 90 come down de-
spite loud talk about it's found i'm the case OF
gasoline sort Of semi-Iuxury. Of course as it is
used. and yet in this complex age more of a neces-
sty than appears on the surface. We do not mem
ton it because gasoline is largely controlled by
Standard oil-the Rockefeller intcrests-either. The
purpose not to appeal to a popular prejudice
against that rich corporation It is no worse than
thousands of others with no Rockefellers in them
and not so right.
Gasoline is taken merely as an example. and tho
query is that while the price OIL from which
YOUR gasoline is made has been cut in two why IS
Sc that you haven't noticed any such drop i'm the
price Of gasoline Here and there the refners have
topped off cent two. but i'm the main you
paying the old high prices
Three months ago. redners and pipe line COM
panes were paying oil producers Se1O a barrel for
Pennsylvania crude oil. This price has dropped to
IS a barrel The price of an other gasol!ne-produc-
ing crude oil has dropped correspondingy. with the
reception of California oiL the price O which
been given backbone by the possibility OF mild
oil and gasoline shortage in Pacific coast states.
The rcaners say that they can't cut gasoline prices
until they rid of huge oil stocks bought at high
prices But stocks OF crude oil on hand in the Unit
Ell States Jan D. 1921. otaled only $4,000 600 bar
rcls, according 10 the American Petroleum institute
That was less than a four-months' supply and IS
practically used up now
When crude oil prices collapsed the huge tank
aae I'm the middle west was nearly empty Rehners
and pipe line companies are now duing up their
tankage with cheap oil-which means cheaper-cost
gasoline Stocks OF gasoline hand less than
three-mouths supply. but no danger of a shortage.
The market sIutted thousands of oil wells are
closed down-not being Iumped-because the pipe
line companies say they can't take all the produc-
ton
Gasoline, according to veteran oil producers
should be selling for an average Of not more
than is cents "a gallon. some oil men say II cents
would yield the refners snug profits Americans in
1920 consumed, l256,42S,OOO gallons of gasoline
Consumption now is at about the same rate despite
many not driving their cars. ON that basis. every
ponny-cut in gasoline would save car owners $42,-
56i,2SO year. Likewise, every penny Of inflated
price of gasoline is a levy of $425642SO year
automobile users.
Gasoline is averaging about 27 cents gallon in
the United States IL. as oil producers claim this
is about 10 cents "a gallon much. the excess
profits gasoline industry are costing us at the
rate oe about $500 100000 a year.
Hehners say that they must keep gasoline high
because they can't market all other by-products of
crude oil those by-products- lubrcating oil and
the Hke-are being stored for future sale. Since
when must gasoline subsidize a dead lubricant
cil market? When viii the gasoline price bubble
burst? Is buyers strike necessary TO bring the
gasoline industry to time?
And still the interests that indulgng in this
scrt OF profteering. bowling like so many wild
Tyenas for a reduction removal of the excess
tax" We do claim to be tax experts. but we
hope somehow Uncle sam viii be able to get a
share of that s3OO.0OOOOO a year, and his share of
other millions accumulated from other sources by
similar processes lie needs it TO pay the expense OF
keeping the kaiser from coming over here and TAX
lng from these prodteers the country that they so
brazenly abuse-and the one that tolcrates it SO
Cauiv