The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-12-25
The Marketing Situation
Throughout America
WILLIAM BERLIN GOOLSBY
LA.nnnInan EhItnr ALLHnr.. Al On uIrnA

WILLIAM BERLIN GOODSBE
associate Editor O!ldom Magazine)
The year 1922 has been character
iaed by many unsettling influences
within the oil business as a whole,
and probably more particularly in
the selling branch of the industry.
There have been localities where
price wars have ragged and the free
pump evil has also acted as an un-
settling influence in many sections,
IL is indeed unfortunate that busi-
ness made up Of men of such high
individual integrity would be the vic
tim Of q few men not gifted with
foresight and vision, and that the en-
tire marketing field would be affect
e. By the actions Of these few. An
Inherent trait, however, of a percent
az. OF those engaged in the oil busi-
ness IS that they Will needlessly tol-
low the lead Of some other individ-
uli without giving the matter care
ful and close scrutiny and taking a
broad view of the entire situation,
rather than view based on mar
row perspective.
Among other larger towns where
conditions have been very unsettled,
We might mention Forth Worth,
Texas. Here the tank wagon sched-
ulo on gasoline is 10 cents while 1t Is
selling for Is to IS cents due 10 some
small company having lowered the
price IN the hopes of securing addi-
tional gallonage and instead of the
remainder Of the companies letting
this one marketer see the error of
his ways, they began to slash prices
ana today there is no such things as
recognized price in effect there.
In several points throughout the
northwest, the same condition is in
effect, although the price slashing
was started by a large company, and
followed by other OF the major
agencies operating in the territory.
This took the form OF allowances for
pump rentals, and many other under"
handed methods, until today the sit
uation there Is IN a terrible mixup,
with no one knowing exactly who
IS to blame, and all pointing TO
somcone else and saying, They
started itv'
Recent increased production Of
gasoline in Wyoming has shifted
much business from the Mid-Conti-
uent refiners 10 those operating
there, and Furthermore the reduc-
tion in freight made in October in
favor Of north Texas also allows that
locality to compete on more equal
basis from the freight standpoint
with the Oklahoma and Kansas
ucts are uniformly lower in north
Texas than in Oklahoma and Kansas
the north Texas refiner and broker
enjoys some advantage over the COM
pany operating refineries in OKLA
homa or Kansas.
Probably the greatest single evil
existing today in the ranks or the
1obher and Independent distributor
is the prevalent practice in many
sections of giving away or leasing
for 81 year gasoline handing
equipment. This Undoubtedly places
q very unfair burden on the small
narketer who cannot afford TO tie
up his capital In pumps and tanks TO
loan TO garages and filling stations
II has been stated on authoritative
information that one Of the major
companies now has out more than
81 900, 600 worth OF such equipment
IN the east alone. Such practice gives
rise 20 many deplorable practices
Companies feeling themAelves un-
able 20 furnish such pumps TO
every Tom, Dick and Harry endeavor
70 secure their share OF the business
by offering discounts, rebates and In
some cases outright cut prices, Law
suits are being waged over the trou-
bles eminating from these practices
and the entire industry In such sec
tons as this are damaged by this
practice.
How long II win require for the
executives OF oil companies 10 real
ize that they are simply cutting each
others throats by this system, we
cannot hazard a guess, but the time
win come when the foolhardlnsss OF
this practice will be apparent TO all.
We wonder what a merchant would
think OF a iobber or manufactures
OF dry goods who offered him store
fixtures IL he would only handle
their liue7 He would probably be
elected forcibly from the mer-
cnant's store.
The many scattered influences
which were in evidence during the
past year as acting against the mar
keting division showing a sizeaole
profit seem to be growing less and
less In force, and II is anticipated
by those who are closely in touch
with the situation that the coming
year will be more favorable to-
wards the profitable distribution OF
petroleum products.