San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-08-19
] oil WAR; IS
!. CARRIED To
! WASHINGTON
Leaders Of Industry to
T. Discuss Problems With
T: Coolidge.
STANDARD IS TARGET.
Independents Charge Con-
( spiracy to Squeeze
Them Out.
Bx John EDWIN NEVIN

ington. With the Department of Jus
lice investigating various charges thai
certain of the larger corporations are
in a conspiracy to drive the indepen
dents out of business, leaders Of the
Industry are assembling here to insist
that the Coolidge administration take
action to compel selling of gasoline
and. in fact all petroleum products al
a fair price"
But what a flair price" is will &c
hard to determine. Senator Robert
III. LaFollette, who will be an ex-
tremely dominant factor in the coming
session of Congress, hes already pub
licly charged that the Standard Oil
Interests have determined to drive
the independents out of business and
ne predicted prohibitive prices of gas
oline when the Standard had absolute
control.
' In this connection witnesses before
che congressional committee insisted
that ''in order to be sure of gasoline
supplies, the chain station retailers
are obliged to buy By contract and
The contract price is fixed by Gus
tom on the Standards retail prices"
It was contended this meant that even
when the open market price breaks as
il has during the last week, retailers
get no benefit.
A Big Problem.
There Is little doubt that the en-
tire gasoline problem will be one OF
the biggest which will confront Con-
sress when it meets here rext De
cember. One of the suggestions made
today was what he public needs is
not the opportunity TO save few
Cents on the price of gasoline today,
But the creation Of proper govern
ing body that will permit the oil in
dustry to develop ain fair competition
and guarantee the supply Of oil prod
nets at a price that will pay the pro-
Queer a fair return on his investment
and risk and. at the same time. pro
vide the public with all of these ma
terials at fair price"
This suggestion was endorsed by
Matthew G. Collins, president of the
Interstate Gasoline Company with
large refineries in this country and a
Concession in Mexico for the manu-
facture of gasoline south of the Rio
Grande. Collins who is an intimate
friend of President Obregon. has been
assisting Mexican officials in the ne
gotiations which have just eliminated
whereby recognition OF Mexico is TO
be arranged and American interests
TO be protected.
THE present situation" he said to-
day, sis caused primarily by the flood
of crude oil produced in California
which reaches the Atlantic coast by
steamship at a price lower than crude
oil can be produced in Oklahoma,
Kansas and Texas and delivered to
the refineries of hose states. This
gives the seaboard refiners q real
Benefit and the middle-western re-
fners have the eastern market closed
to him. For three months the larger
oil companies have paid producers a
high price'in order to prevent the in
dependents buying so that they also
Guild get their gasoline on the market
at low price. lacking orders from
the East, western refiners find them
selves with an enormous supply Of
gasoline which costs them - cents O
gallon TO make and with a very de-
cided uncertain market for such ,gaso
line at s cents q gallon.
Millions Are Made.
But the big companies for three
months have been able to sell theil
products at a high price TO the con
sumer and have made millions Of dol
lars with the public, as usual. con
frituting the surplus profits. Now i
-xpuld seem these furplus profits ar,
being used TO endeavor 70 force int
Bankruptcy fully one-tLird of the re
finers of the country since no busi
ness can continue to sell produc
for say 75 cents which costs a dol
lar to manufacture.
Nevertheless ihe big thing TO tn
public is not whether for the mex
three months it gets gasoline at Il
cents a gallon less than it has bee,
paying. but rather whether fair CON
petition shall MOI be re-establishet
Eliminate one-third of the refinin
capacity and then the excuse will
present for raising nrices to the lin;
Which Senator LaFOllette suggested
because. IL you KEEP in mind TIE grea
increase in the number Of motor cav
IN the country and that. were il nc
Tor the fact that tho unusually larg
production in California met ,xistin
demand. It will be realized that price
fDday must h" much higher than the
rfailv are. These big oi; fields. sue
as California. come every five or to
wears ard in intervening years il
scramble to secure enough oil {
supply demand and create a propt
reSorve.
Some ten years ago the gres
Gushing field wac discovered and D
sid at 30 cents 4: brrrel. Every on
Thought the end Of the oil husines
was in sight. yet. since that time. til
same grade of oil has sold for 81
barrel and today is quoted ut So 90
Other lenders of the indenpnder
arour said today that thev believe
Il would be possible for Congress I
create a governing body. with power
Smilnr TO those now lodged in III
Interstate commerce commission. I
take charge of the oil industry Sue
sction. II was asserted. would mr.
tfct the public. and Mt the same tim
prevent any knockdown and drag o.
f~ht which would exterminate n grea
rrrceninge If the indrnendents to tn
ultimate detriment of the buying pull
rc. -.s---a-A1s-1-..--.-e