Evening star., 1923-08-13
SMALL REF|NERS
FACE BANKRUPTCY
Gasoline Price War Forces
Charge as Low as II Cents
in Middle West.
By the Associated Press.

By the Associated Press.
CHICAGO. August 13.--Many of the
small refneries are threatened with
failure unless they are protected and
obtain price that will equal the cost
of production. according to state
ments brought out by the gasoline
price war started by South Dakota
and which has spread to several other
states in the middle west. with reduc-
tions which have brought the price
OF gasoline down to IL range OF IL cents
to 22.5 cents gallon at various places.
In South Dakota, where Gov. w. H.
McMaster declared the former price
of 26.6 cents gallon was mo less
than highway robbery" and obtained
a large quantity of gasoline to be
sold by the state at 16 cents u gallon.
gasoline sold yesterday for 15.5 cents
a gallon, the lowest price in ten
years. Drivers adopted the slogan,
"t'ill her up" and sales were reported
trebled.
Independent dealers in South Da-
ahead. and at Milwaukee, where a
three-cent REDUCTION Is predicted,
ONeil Oil and Paint Company, de-
ducers can be protected they will be
forced out of business.
In Texas yesterday gasoline sold
from IL cents in Dallas to 10 cents in
fight when Gov. c. W. Bryan sent
kilograms to all principal oil COM
panies requesting reduction in
price.
AS result of the agitation in the
central west. Gov. Len Small of
H.
ing the situation with a view of TAX
ing action.
Cut in kentucky.
Officials of the Standard Old Com
pany in Kentucky intimated there
soon would be reduction made in
Kentucky. Gov. +. p. Morrow of that
state said he had no public funds
of gasoline.
Reports from st. Paul. Mimi. state
that the two refining companies there
have announced they will sell gaso-
line from trucks at 1872 cents a gall
Ion
Some Minneapolis independent oil
companies said last night they could
IL cents a gallon. Others, however.
declared that was an unusually low
price.
Twelve-Cent Offer Made.
According to q. Roy Hill, secretary
Of the Minnea polls Automobile Club,
he has been quoted an offer of 12
cents a gallon for gasoline in car
load lots.
Due to the influx of California oil
and gasoline in large shipments
through the Panama canal to Atlantic
ports, the refineries east of the Rock
les have been forced to sell below
cost of production, and are, in con-
sequence, in danger of going out of
business. Aubrey G. Mcguire, presi-
dent of the Bartles-Ma guire Oil Com
pany, declared at Milwaukee.
George F. O'Neil, president of the
O'Neil Oil and Paint Company, in a
statement said that lat present many
refineries in Oklahoma are closing
down for thirty days. and a large
number of smaller refneries are on
the verge of bankruptcy. Unless they
can be protected and can secure a
price that will equal the cost of pro-
the nations supply will be closed. 1t
10 the elaborate equipment for serv-
ing public that gasoline companies
must maintain in order to compete,
that is responsible for the apparent
high cost of gasoline. Statistics show
that over the entire country service
stations average 800 gallons a day the
year round in sales. Estimating ex-
pense of maintenance of each of these
stations at $25 a day, there is an ex-
pense of cents gallon which must
be paid by the consumer.
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