Douglas daily dispatch., 1928-01-11
ARIZONA GASOLINE CONSUMERS
HAVE ROAD TO BETTER PRICES
DECLARES HUNT AFTER A STUDY


are higher than can be JUSTIFIED anc
that the. primary trouble les witt
the wholesale distributors CT gasoline
is the conclusion reached by Governor
G. w. P. Hunt following a recent
inquiry into the subject which
brought to him the prices being
charged consumers in more than 15(
cities in every state in the union
That there is a remedy available anC
that it may be found by the people
working through their local govern
1nents, either the city or the county
also is the assertion of the governor
and he backs up the statement with
the opinion of Attorney General John
W. Murphy. That some effort will
be made, at least in certain sections
of the state, to see ii any results
can be obtained, is said to be certain
Governor Hunt points out that
when he asked the producers of gaso-
line to submit figures in support OF
their prices that without exception
they based them on the retail prices
prevailing in Los Angeles to which
they added the freight The Los
Angeles retail gasoline price carries
the wholesalers base price in that
city, plus the three cents tax on
gasoline that the state of California
takes, plus the four cent margin
which the retailers are allowed by
the wholesaler The Arizona state
tax is exactly the same as the Cali
fornia tax, so that the consumer here,
if the price is made as the pro-
ducers told the governor it was
made, is paying the state tax here
and the one in California. 1t is
insisted by those who have heard
this fact that it would be stretching
the imagination too far to assume
that the state of California gets the
three cents involved.
Some three and one half months
ago the producers in California, for
the alleged purpose OF eliminating
the so-called "bootlegger" in gasoline
made rebate price to contract Geal-
ers and a flat price to all not holding
contracts for gas. The contract
dealers secured four cent margins
that way and those not, holding
contracts had to pay price three
cents under the retail price and the
retail price was fixed by the whole
saler in its contract with the dealers
who held them. So that any retail
price considered as OF Los angeles.
would be one of four cent retail
gross profit and also the California
state tax.
In the statement issued by the
governors office it is pointed out
that effort to bring more favorable
price 20 users of gasoline in Arizona
may easily be carried on by coopera
ton between cities or counties and
retail dealers and have the gasoline
handled through the agencies already
established, = thereby protecting them.
from business loss, if they are willing
to cooperate to bring about more
equitable treatment of consumers OF
gasoline in this state. The statement
of Governor Hunt is as follows.
Executive Office, Phoenix, Arizona,
January Z, 1928.
Governor George w. P. Hunt today
issued the following statement con-
cerning Investigations conducted by
his office for the past fortnight CT
alleged Determinations against con-
sumers of Arizona in prices charged
fer gasoline The Investigations by
the governors office covered all
phases of the situation, and were
instituted following the receipt Of
very large number OF protests from
Arizona citizens.
Comparison With Other States
"In order to obtain a comparison
of prices charged consumers Ior gaso-
lire in Arizona, with those charged in
other states, information was obtained
by the governors office on prices in
approximately $50 cities in practically
every state in the union. The quo
tations supplied the governors office
showed wide range OF prices from
a low of ten cents a gallon in one
Illinois city, to the highest price OF
27 cents gallon charged n three
of the principal cities OF Arizona.
Freight rates on gasoline in carload
lots, from California, GFexas and
Oklahoma fields to Arizona points.
were obtained from the railroad COM
panies serving Arizona. It has been
frequently claimed that excessive
freight rates are responsible for the
top prices charged Arizona consumers
for gasoline. Figured in costs per
gallon, it was found that freight on
gasoline from California fields aver
aged a little over five cents a gallon
and from Texas and Oklahoma fields
a little over six cents a gallon.
"While freight rates on gasoline to
Arizona points were recently reduced
by the interstate commerce com
mission, it is the opinion OF the
governor that these rates are still
excessive and should be further low
cred.
Freight Rate Factor
However, the Investigations re-
vealed that the claim freight rates
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