Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-17
The Gasolinr GO,igc

WHENEVER monopoly or combina-
wv JiOn has wanted 10 levy a special tax
upon the public. il usually has invoked tho
old economic law of supply and demand.
Il has justified its grab policy by citing di-
minished production OF a given commodity
or by an ovcrdemand And people. with
out any positive Knowledge OF the facts.
have tamely stood for the gouging
At the moment the Standard Oil Com
pany is engaged III taking little heavier
toll from the gasoline consumers Of the
country. II has advanced its price 9 cents
in most centers and as much as 3 cents a
gallon in others. Tho so-called "independ-
ents' have done likewise. The price in
o;easos have been so general and so uniform
on the part Of all producing interests that
tho conclusion is inescapnbe that they are
made as result OF friendly understand
ing.
To date the gasoline producers have
merely referred to market conditions" as
defeuse Of their action. Exactly what is
meant by this remains TO be explained. II
The oil companies dared they probably
would fall back upon the dear old supply
and demand platitude as their answer. but
ii so happens that this gun had been Of
fec,ively spiked before it could be dis
charged
The Bureau of Mines. which interests IT.
the public that new high mark in the
stock OF gasoline in the United States has
just been reached, and on April l n total OF
sal .@32. 900 gallons OF that commodity was
i'll storage, awaiting a market This was
an increase in single month OF nearly
10000, 600 gallons.
This does not indicate any marked in
crease in the demand, such an increase. for
example, as would warrant quick and de-
c!sivc jump in price to the consumer. If
the stocks had been reduced either by di-
unfinished production or by an increase in
consumption there might be some excuse
for shaking down the public. But the
stocks have increased enormously within
tho past six months and the aggregate
amount OF this product now in storage may
soon reach the billion gallon point.
The Senate was quick 10 call for an Off
cial investigation OF the amazing action of
oil producers in demanding more money for
its output AZ timc when production was
steadily increasing and consumption APP
parcntly was al a standstll. The Depart
ment of Justice and the Federal Trade Com
mission were ordered by formal resolution
TO get at tho truth about this business and
to report the truth to Congress.
This inquiry will not merely comprchc nd
the question OF price advances. but It Will
20 further. IL the Senate's orders are car
ricd ont. II will throw some light on the
phenomenon Of a group of great com
petitors" in the oil industry deciding a tho
- me time 10 raise the price OF their gaso-
line to exactly the same extent.
There may be no cu'.usion. III course. on
The part OF these interests. There may be
no understanding or agreement hut it
seems singular that all OF them should en-
terrain the same thought at almost the same
hour Of the same day and all should act
on that thought in tho same manner. The
millions OF gasoline consumers III this coun-
try will he interested 10 know how this
could he possible without some interchange
OF ideas on the part OF the competitors.