Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-08-21
NAPIER SAYS GAS
PRICES ARE FIXED
BY STANDARD OIL
Finds That Dealers Who
Buy From Texas Group
Make Most Profit From
Sales

pany,' indicating the virtual control
Of the situation by that company,
and if evidence of manipulation can
be discovered, the matter may be
reached by the courts" Attorney
General George NJ. Napier declared
in a report submitted to Governor
Walker Saturday. The report was
one of progress. and the inVestiga-
ton will continue, the attorney gen.
eral stated
When his attention was called to
the statement of Attorney General
Napier that the Standard Oil com
pany appeared to control the price of
gasoline in Georgia, r. E. Hodgson,
district manager for the Standard
Oil company, denied that there is
any connection between the Standard
company and the other gasoline dis
tributors.
"Of course the Standard Oil COM
pany has the largest investment in
the gasoline and oil business; has a
long history of successful operation,
and does an immense volume of
trade, so it is quite natural for other
companies to follow the leadership
of the Standard company to some ex-
other companies want to fix their
prices at the same figures we set, we
can't help that, but we do not die
tate to them in any way"
The report of the attorney fol
lowed an investigation of the gas
situation in Georgia and adjoining
states, inaugurated several days ago
at the request of the governor. 1t
reviews the system of buying gas
oline followed by the various groups
OF dealers, and the prices charged
by the refineries, the jobbers and
the dealers. 1t is brought out that
dealers who buy from the big pro-
ducers, known as the Texas group,
set profit of one and sixty-four
one hundredth cents more than
dealers who buy from other re-
fineries, such as the one at Bruins.
wick.
The Report
The letter of the attorney general
to the governor follows:
This is in acknowledgment of
your excellency's letter of the fif-
teenth instant, wherein you say:
My attention has been called
to a dispatch sent out by the Asso-
ciated Press, in which the statement
is made that gasoline is today sell
ing for 15.4 in Chicago; ID IL cents
in Omaha; II cents in Dallas, Texas.
In Illinois. Iowa, Michigan and 9th.
er states the cut made By the Stand.
ard Oil company of Indiana is &C.,
while the cut in Georgia. is only
cent.
Kindly advise me what authority
the governor has in this matter, and
be good enough to secure such facts
in the premises as you have the
authority to gather. 4
"1n the meantime, of course, I
desire that the interests of the in
dependent dealers shall be protected
and that no steps which will preju- |
dice their rights shall be taken.
I'm the event facts justify it, pro-
ceedings could be instituted, under
our laws concerning monopolies and
combinations in restraint of trade. |
The state would need to have a
strong case in order to succeed.
Clear proof would be needed to set
UP acts and doings in combination
to maintain excessive and unfair
prices.
dtlh w dSut lOCS
Upon investigation I find that
prices in this state are virtually
based upon the prices in North Tex
as territory. Dealers handling the
gasoline of the large producers to
a certain extent can speculate on
the fluctuating prices fixed by these
producers. The independent dealers
have a margin contract based on
tank wagon prices.
These tank wagon prices have
been ranging around nineteen cents
per gallon in Georgia.
"Jobbers are usually gwen a net
price of IL cents less than the
tank wagon price. The invoice to
jobbers would show then nineteen
cents Iess.4 IL cents-equal to IA IL
cents net.
Out of the IA IL cents is deducted
one cent for present state tax on
basoline distributed in this state,
and 2.S1 cents freight. Deducting
this 3.S1 cents from the 14.50 cents
leaves 11.19 cents to the refinery.
1.-The price Of gasoline in the north
Texas producing group is eight cents
per gallon. Adding 1856 cents freight
per gallon to Atlanta makes 11.86
cents per gallon; then adding 11a
cents to cover inspection fees and
state taxes makes a total of 1886
cents per gallon.
ut is figured that the retailer Is
entitled to a profit of two cents per
gallon.
Selling to the retailer at nine
teen cents would leave the jobber
5.64 cents profit on the Texas gaso-
line.
Dealers Profits
"If the dealer buys from the re-
finery, as many independent dealers
do buy, the 1850 cents per gallon
deducted from the tank wagon"
price of ninetee cents leaves a net
profit of 450 cents. From this, how
ever, must be deducted, the one-half
ment inspection fee. Thus 1t appears
that the dealer who gets his gaso-
lene through the * producers (The
Texas group has one and sixty four
hundredth cents more profit on each
gallon of gasolene than does the deal
err who distributes from the refin-
cries, say for instance, the refinery
at Brunswick, Georgia.
1T is said by some dealers that
jobbers would be satisfied with
certain clear profit of one cent per
gallon. 1t is contended that shrink
age, f1uctuation in prices, and the
Like, necessitate their demanding a
wider scale of profit than one cent
per gallon.
adding to the 10 cents, the tank,
wagon price, the two cents retail
ers' profit, makes gasoline cost the
consumer twenty-one cents per gal.
lon.
Inquiry has been made as to
comparative prices in the Caro-
linas.
ION May II. 1923, the tank wagon
price at Batesburg, S. c., was 81
cents. Adding the state tax of three