The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-08-24
STANDARD TO
ADJUST STATE
PRICE BASIS
Directors Consider Request
That pittsburgh Plus"
Plan be Abolished
WOULD CUT PRICE,
Would Figure Freight Rat
From Casper, Wyo., Instead
of From Whiting, Ind.
WOULD CUT PRICE,

| action ana very satisfactory results
from his letter to the Standard Oil
Company complaining that the oil
companies were using a method sim
liar to the pittsburgh plus" plan in
steel in figuring freight rates on
oil. to the disadvantage of North
Dakota, it was. learned today.
1t was claimed that the Standard
Oil, even though shipping their prod
uct from Casper, Wyoming, would
figure freight rates from their Whit
ing, Indiana, refinery, by boat and
rail, via Superior, and that the in
dependents, even though shipping
from Miles City, Montana, or from
Wyoming, would-by adding to the
Miles City or Wyoming oil price
actually charge freight rates from
the "Group 3" field in Oklah oma and
Texas.
When F. E. Packard, the represen-
tative Of the Standard Oil, came to
Bismarck today, he informed Cover
nor Nestos that the directors of the
Standard Oil considered the COVER
nor's letter of request at their meet
ing and concluded that in view of
the fact that their refinery at Casper
was now ade quate to take care Of all
of the needs of the Northwest and
to supply the field steadily and de-
pendably, that the governors COM
plaint was justified and that there
was every reason why they should
abolish the old practice and charge
freight rates only over the distance
the oil was shipped, just as soon as
normal marketing conditions obtain.
Figures were presented to the gov
ernor to show that last year when
the wholesale price of gasoline was
about 13 cents that the crude oil
from which it was manufactured
could be bought for $1.25, and that
now when, because of the large
amount Of distress gasoline in the
Mid Continent Field, the wholesale
price of gasoline has dropped to
about az cents that the crude oil
from which it is manufactured has
gone up to $1.45. 1t is believed by
many that re-adjustment here must
soon take place and the directors of
the Standard Oil feel that the new
method Of figuring freight rates on
oil should not be put into force until
this readjustment has taken place
and normal conditions exist.
Governor Nestos says that the
change so made in the freight rates
on North Dakota oil will mean saw
ing to the people Of North Dakota
for all time of from one-half cent to-
three cents per gallon, depending
upon the location in the state, and
the governor hopes that the Texaco
Oil Company, the Sinclair Oil Com
pany, the Pure Oil Company, and
others will follow the lead Of the
Standard Oil and figure their freight
rates on actual distances shipped.
PRICE CUT
Sioux Falls, S. D., Aug. 24.-The
first casualty in South Dakota's gas
oline war will be brought in soon
according to independent oil dealers
of this state, who today brought
down their price of 10 to 20 cents to
meet the 15h cent rate Of the Stand
ard Oil company.
Independent oil dealers in Sioux
Falls will reduce their price for
gasoline to 1914 cents, the price
maintained by the Standard Oil
Company in South Dakota, according
to an announcement made last night
1--WE realize that this price," their
announcement says, "will put a
large percentage of dealers entirely
out of business for no dealer can
sell gasoline at l5h cents except
so long as his capital holds out"
The announcement goes on to
severely criticize Governor w. H.
McMaster for his action two weeks
ago in precipitating the gasoline
price war by retailing the product
for 16 cents a gallon through supply
! depots Of the state highway commits
sion.
1T may be a personal victory for
the governor-it is a sad tragedy
for the helpless dealer who must be
| sacrificed to the. governors ambi-
tion," the independents announce
ment declares. 1.-THE governor is
quoted as saying: it is going to be
u llkuI. ~ 10. ~ 30 6Vau6 W
be the finish of large number OF
legitimate dealers who are perfectly
helpless. OF course the public will
applaud the governor. No doubt that
is what he wanted. The sacrificing vf
| few hundred business men appar-
emily weighs but little when the po-
litical situation is at stake. 1t is 4
| wnu DO rful nxhihifiOn of the ruthless
ness Of ambitious politicians. The ir-
dependent dealers will maintain the
prices as fixed by the larger oil
companies so long as they are able to
stand the pace. When they are nc
longer able to finance themselves they
can simply close up their places, 81
business, throw several Thousand
wage earners out Of employment and
ruin the living Of thousands Of fam.
lies"
ROIyFEANT.