San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-08-16
THE GASOLINE WAR

While San Antonio is unaffected by
the gasoline war raging in some of the
western and middle western states, it
may be of interest locally to learn that
for year, this city has had among the
lowest gasoline prices in America. This
situation is due primarily to proximity to
the Somerset shallow field which. is pro-
ducing approximately 1000 barrels Of
marketed crude each day and is adding
nearly two million dollars per annup
to the cash revenues OF this community.
Practically all Somerset crude is refined
in the field or in San Antonio. The
bulk of the gasoline therefrom is mar
keted here. We have a situation that
is unusual in the oil business. produce
ton, refining and population all in one
place, without intervening freight ship
nents. brokerage or other costly middle
man fandling. For that reason, Sonier-
set gasoline. which is as good as any
gasoline and betteE than lot of gaso-
line now sold, can be turned into the
motor tanks of San Antono owners far
cheaper than any gasoline that is shipped
heres This may not be a profitable
situation for the larger companies en-
gagged in trying to sell gasoline here
both by tank wagon and at stations but
it is a very happy situation for the
motorist and one that bids fair to favor
him so long as the shallow field at Our
door remains.
Then too, within the last year, a new
field but fifty or sixty miles away at
Luling has come into being. Much of
the Luling crude is coming here for
refining and is certain to exert an in
fluence on local market conditions al
though it never will favor the consumer
as has Somerset because. Somerset is
entirely IN the hands of small indepen-
dents who are active and not passive
competitors in the gasoline market.
However the Luling field assures a
larger If not as long-lived crude supply
for San Antonio as compared with
Somerset. For that reason San Antonio
which is in the heart Of year:around
motoring country is likewise a mecca
for motorists because of good roads and
cheap gas. 1t should not be expected
that gasoline prices will remain at pres
ent levels Indefinitely but whatever the
minimum is, San Antonio NAV count
on paying it SO long as the local fields
remain in present, hands, a very i'm
portant consideration from the c;ty's
standpoint. ~
In the country at large, a chaotic con-
dition prevails in the oil market but
careful observers can not help but be
impressed with the fact that the worst
is over. The conditions are going to
be righted shortly because gasoline can
not be produced with all the tariffs it
now carries including new state faxes.
Tor the present retail price made by
the Standard of Indiana, to meet what
1t termed below-cost competition.
The Standard nor any of the COM
panies cutting the price of gasoline can
be justly censured in the face of action
by several state officials in entering the
retail market These states are buving
gasoline at wholesale and retailing it
at cost without proper carrying charges,
to consumers in an effort TO force down
prices. No state has any business in
the retail market, either oil or groceries,
unless some emergency exists making
for famine or severe suffering bv the
populace. No such conditions existed
in the gasoline market. The oil bust