The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-08-11
SAME REDUCTION IN GASOLINE
GIVEN SOUTH DAKOTA DEMANDED
FOR STATE BY GOVERNOR NEST0S
Also Approves Cooperative
Buying of Gasoline If Prices
of Gas Are ExOrbitant -
Discusses Method Used. in
South Dakota - Wire 8
Standard Oil Demanding
Cut.

ceiving information that the Standard
Oil Company Of Indiana had reduced
price of gasoline in South Dakota to
1G cents gallon, today wired officials
Of Standard Oil company in Chicago
demanding that any reduced retail
rate of gasoline also be given to
North Dakota citizens.
"Although am informed the
Standard Oil officials assert this price
is below the cost Of production,
feel that there should be no dis
elimination and that North Dakota
is entitled to similar rate. taking
into consideration difference In
freight costs" he said.
Governor Nestos also approved the
suggestion of Governor McMaster of
South Dakota that cooperative asso-
Citations be formed in different COM
munities to buy gasoline in carload
lots "till such time as the dealers in
gasoline shall cease, their policy Of
charging exOrbitant prices"
When asked today in regard to
the suggestion given by Governor
McMaster Of South Dakota that CO.
operative associations be formed in
the different communities to buy
gasoline in carload lots till such time
as the dealers in gasoline shall cease
their policy of charging exorbitant
profits. Governor Nestos stated that
he wholly agreed with the suggestion
so made; that If it ia true that gas
oline can be supplied continuously
and dependably at about fourteen
cents gallon, that it is unconscion-
able to sell the gasoline at from
twenty-six to twenty nine cents per
gallon and that the people Of the vari-
GUS communities are warranted in
making arrangements by co-opera-
tion. and otherwise. to purchase their
gasoline in carload lots and to save
their community these exorbitant ex-
actions.
Governors Charges.
Governor Nestos said: II notice
that Governor McMaster says that
the independent dealers fill their gas
orders st such prices as the Standard
Oil company Dictates If this is
true, it is bad situation and it seems
to me that if it is done because of
the fear Of the independent dealers
that the Standard Oil will start a
price cutting campaign that will
drive them out of business and rem
der their investment worthless, that
| this can be overcome by having these
independent dealers, who are salts.
fled with a reasonable profit on the
product sold, make an agreement
with all the principal users Of gaso.
line in the community to supply
them with all the gasoline they need
for two or three years period at sc
many cents over the wholesale price
thus protecting the Independent deal.
er who is honest and fair against the
possibility that the consumers, fol
whose benefit he may have reduced
prices. will desert him and buy from
the Standard Oil as soon as the,
commence their price cutting cam.
paign.
"Of course, the Independent deale,
and the local associations, whether 9
farmers elevator and farmers lum
Der yard or any other organization
could not handle the gasoline at 6
profit of two cents per gallon if they
were to render the kind of q service
that the people nowadays require
without losing money on it, but the,
could fix such margin of profit a.
would be reasonable and still save /.
great amount Of money to the userl
Of gasoline in this state"
Demands Same Treatment.
The Governor added: II have JUS
received information to the effec
that the Standard Oil company ha,
ordered gasoline reduced to l6 cent.
a gallon in South Dakota, although
asserting this is below the cost O.
production. ! feel that North Dakot,
should receive the same rate as othe
states, taking into consideration an!
difference in freight or similar costs
and have wired the officials Of tn,
Standard Oil company Of Chicago
stating that If gasoline is to be solt
at reduced price in South Dakota
we will insist upon q like price i,
North Dakota"