The producers news., 1927-03-04

''It is our opinion that if cOmpeti-
ton was unrestrained in the state of
Montana that gasoline would be low
cred to the consumer" the joint gas
Oline investigating committee said in
its report filed with the senate to-
day. "Where competition is entire
ly eliminated the consumer must pay
the established price," the committee
commented.
No Comment on Tax.
With reference to the nOnpayment
of state tax the committee says "the
contention of the refineries is that
they did not collect this tax and the
contention of the state is that the
! tax was collected and not returned.
We refuse at this time to comment
on this proposition because a ques-
ton of law is involved which will re-
quire the determination of the courts.
We do know this, however, that those
refineries which did not pay the tax
sold the gasoline at approximately
the same price as other retailers eX-
cepting in the city of Butte. If they
didn't collect the tax, then the two
cents was an additional profit which
they have been collecting and which
the people of Montana have paid and
which your committee thinks was an
excessive charge in view of the fact
that the public thought or had the
right to think that this extra two
cents was going to the state to be
expended on the roads"
FraiUht Rates HandicaO
Handicapped by unfavorable freight
rates and by the custom of Montana
refiners in following prices fixed by
AN outside competitor which distri-
buted so per cent or more of the gas
oline used in Montana, consumers Of
gasoline in this state, outside o-
Butte, are charged more than con
sumers of neighbOrly nonproducin8
states, the committee found
Retailers Bit Too Small.
"'The retailer" says the report
'does not fix the price at which h
buys nor does he fix the price a
which he sells. The price t.
! the retailer is fixed by the jobber o
! refiner. The retailer is allowed b,
the jobber or refiner a two cent mar
gin but does not have the privileg,
of fixing this margin himself"
Y Commenting on this condition, tn
n report expresses the opinion tina
"the margin to the retail dealer 0
two cents a gallon is too narrow fo
e the retail dealer to make any prof
e unless his business is of enormou
n volume"
Ie Commenting on testimony that tn
= jobbers have been permitting then
g selves to make a charge of 4 p cent
n, a gallon, approximately, as a hand
le ing charge, the committee expresse
n, belief the amount is excessive an
says "this Az cent jobber's charg
y could be divided up so that the re
at taller could have more margin tha
a two cents and the consumer pay les
p and still leave the jobber a sufficie1
III margin" 1t declares that "the jol
le Der and refiner in many instance
re are the same concern or affiliate
rt corporations and therefore get a r
finers' profit, a jobber's profit an
n if retailing their own gasoline, al:
ty get the retailers two cent margin.
ty Butte Is Favored.
ey With the exception of Butte, Il
s. report declares, "the production al
vo refining of crude oil and crude {
or products in the state of Montana HI
not resulted in a material reductiC
in the price of gasoline to the co
sumner in this state and has only r
suited in the refineries of the sta
meeting the price that outside ref
ers can import and resell gasoline
the state of Montana"
8 The committee found, the repC
says, that ga freight rate charge
10 being made by all the refineries Sc
ing gasoline locally in their respe