The Birmingham age-herald., 1924-07-16
GASOLINE PRICES
 DUE FOR DROP ]. AS WAR LOOMS
Eastern Cut Expected To Spread Throughout
 Country
By RODNEY F. BUTCHER (By Leased Wire to Age-Herald)

(by Leased WlT0 10 ABo-K1OEdAuJ
 NEW YORK, July 15.-Cheaper gasoline for the rest of the summer may be in prospect for motorists throughout the country, following an initia. break in the east which brought the price down one cent a gallon.
 Aided by favorable conditions in the crude oil market, it is believed that local price wars fin widely scattered sec tions may soon spread to some where near the proportions achieved by the gasoline war" of last year which began when Governor McMaster of South Da- kota forced the price in his state down from A to 16 cents.
 Tuesday the principal oil companies announced a cut of one cent that went into effect in New York, New England, Pitttsburg, Philadelphia and surround ing territory. The way was led by the Standard Oil company of New York.
 Others To Follow
 This followed a cut of 9 cents bar rel in the price of crude oil by the Sin clair crude oil purchasing company, bringing the price per barred down to SITS. Other producing companies are expected to follow. Behind the situa- tio1. is large surplus in the midcon- tinent fields, where gasoline is said to have been selling i'll some instances at as low as g cents. This condition led bargain-hunting jobbers to send quan- titles to Rochester and Anbany last week, with the result that gasoline is now selling at 12 cents in Albany-a drop of four cents from the price of Monday.
 Wildcat" jobbers also are reported to be invading other good markets. The midcontinc:.t refiners h Ie contracts with well owners and jobbers which they cannot break and so must go on buying and refining the crude, oil, hop. ing for a turn in the market.
 Reports from the middle west, the south, the southwest and the Pacific coast, however, indicated that prices outside the east are holding firm. Price wars have been wont to begin in the middle west, however, ad in several iso- lated instances these have already oc- cured. Others are just beginning.
 Plans Prosecution
 Attorney General Barrett of Missouri is planning to prosecute oil companies operating in that state for alleged price, fixing combinations and Governor Jonathan Davis of Kansas Tuesday demanded that his attorney general in vestigate gasoline prices in Kansas. Da- wis said gasoline was selling generally | at 20 cents while some towns in the state were making a profit by retailing | it at 16 cents.
 .. The eastern reduction brought the retail price down to 22 cents and the tank wagon price to 19. In New Eng land the new retail price is 21 F cents and the tank wagon price 19. Pennsyl vania has a state gasoline tax of two cents a gallon, which left prices at 24 to 27 cents a gallon in Pittsburg and 20 cents a gallon in Philadelphia.
 The standard price in Chicago is 19 cents retail, IS tank wagon, and oil companies there, as in other districts SO far unaffected, declare there is no chance for a further slash. The last Chicago cut was one cent a gallon about three months ago.
 In Missouri, where Barrett has started the latest price war, the price is generally 20 cents, except in Kansas City where local battle forced it down to IT. In Atlanta, where a recent re- duction of two cents gallon was eff fected, the present price is 24 cents and an advance on coupon books indicates that gas will soon be back to 26 cents, according to dealers there.
 Prices have also remained stationary on the Pacific coast, San FraS-=z0 F1y- ing IS cents plus a state tax of two cents. No price cutting drives are ex-