The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-02-11
Continued from First Page.)

Standard OIL Company stations,
the intimation that the practice ID
general among dealers here.
Situation Foreshadowed
II the members of the commit
tee should read the reports OF the
proceedings OF the American
Petroleum Institute, ct its AannnaI
meeting in Fort Worth Tex, early
in December last. their amusement
might be tempered, as something
approaching the present situation
was there pretty clearly fore
Swallowed.
Thus, Mr.. Walter G.. Teagle. of
the Standard Oil Company Of New
Jersey, in his address says:
I'm my opinion we are nearer
the Lighroad Of returning pros
perity If we frankly admit that
most OF our troubles are Of our
own making: that we are all in
varying degrees responsible, the
larger companies including the one
i represent perhaps in greater pro-
portionate degree: that none Of us
is able to say 4 told you So and
that of Us all the producer Of crude
is perhaps the least to blame
OH Men in Common Cause.
eThe struggle Of the producers
from whom we buy il also ours,
Tor, II we pay an unrenunerative
price not only IL our source Of sup
ply uncertain, but we. must sell
our own production In the form
OF refined product at prices unre-
mlnerative to as Therefore. any
policy that will help the producers
will help us, and any policy which
will injure them will injure US.
Speaking as a producer, the OBJ
iect which most distinctly meets
my eye IL the accumulated stocks
of $40. 200. 900 barrels of crude oil
and products in storage IN this
country.
Then. Mr.. Amos L. Beatty, In
his address, said:
During recent years we have
seen several periods of over-produc-
ton and consequent low prices OF
gasoline. In several Of those peri
DDS it has happened that some
large marketing company alarmed
by the loss Of gallonage, due to
keen and continued competition,
has seen fit TO make extreme and
sweeping price reductions. These
reductions have been so extreme
at times that plainly the market.
ing was selling at q loss. Other
companies found 1t necessary to
meet the prices. the alternative
being a loss of position, idle fach-
tiles and organization, ana exces'
sive accumulation Of stocks. The
result has been a general reduc-
ton of prices followed by actual
losses.
A Drastic Remedy.
"The initiation of a program OF
that kind may not violate laws
which prohibit such selling to drive
out or limit competition, and as
commercial proposition 1t may
be justified on the theory OF stabili
cation. 1t may even be justified
on the theory that If a physician
knows how to treat only one dis
ease, and that disease is fits, he
should start his treatment by
throwing the patient into fits. But
selling below cost is certainly a
like prescribing 1t and have often
wondered about its efficacy. 1t
has the effect of sterilization, also
uniformity; it makes the business
uniformly bad"
Moreover, consumers are led. to
false conclusions. They reason that
IL the companies can sell gasoline
for 10 cents today they can do the
same thing tomorrow, and that
there is profiteering when the price
is 20 cents. Their impression in
turn Is reflected in the attitude OF
Government officials. with resulting
Investigations. questionnaires, con-
ferences of Attorneys General. and
complaints by the Federal Trade
Commission. Merchants in every
line of business are annoyed more
or less by bootleg competition. The
clothing merchant must be content
with fire sales, bankruptcy sales.
and other schemes or calamities,
but l have noticed that those who
are successful in the long run pay.
little attention to temporary dis
turbances of that kind. They pur-
sue the even tenor of their way
looking straight ahead. I wonder
why we cannot come nearer doing
that in our business.
Opposes Giving Rebates. 4
1.-THE giving of rebates and the
making of special allowances should
be condemned. There are laws on
the statute books in many of the
States designed to prevent such
practices. One marketer justifies
himself by the fact that others are
doing it, and the others justify
themselves by the fact that he is
doing it. 1t Is like the ambitious
young lawyer just out Of college
who secured a partnership with the
leading lawyer in his town by tell
ing him that he was about to marry
the daughter of that lawyers most
influential client and in turn in
duced the latter his fiancee's pa.
rent, to consent to the marriage on
the ground that he was about to