Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-10
CHANGES IN TRADE
CODE PLAN URGED
A.A.A. Notifies Federal Com
mission Petroleum Pro-
poSal Weaknesses.

The code of trade practices proposed
by the petroleum industry and which
the Federal Trade Commission is now
considering must be radically amended
II adequate protection is to be afforded
to the purchasers of gasoline, oil and
allied products, according to a state
ment issued today from the national
headquarters of the American Automo-
bile Association.
The statement of the national mo-
toring body is based on a brief filed
on behalf of the organized car owners
Of the country with Commissioner Ed
gar A. McCulloch, who presided at a
conference of the oil industry in st.
Louis recently when the code pro-
posed by the oil interests was discussed.
At the same time that this brief was
filed, the A. A. A. served notice that
every available means would be used to
give thorough airing to the case for
the purchasing public before the stamp
of Federal approval is definitely placed
on the selling program of the petro-
leum industry.
An analysis of the proposed code, &C
cording to the A. A. A. brief, discloses
that its adoption would accomplish lit
tie or nothing to eliminate the unde-
sirable practices and conditions that
have initiated against the interests of
the purchasing public and which have
eliminated In large volume of ma
tional resentment.
Short Sales Not Considered.
Particular attention is called to the
fact that the code does not propose any
remedial measures for the prevention of
the short sales of gas and oil which now
amount to levy of more than $40, 000,-
600 year on the car owners; to the
sterilization of prices which now vary
like kaleidoscope in areas where basic
conditions are the same; the excessive
number OF stations and pumps which
tend to increase the cost of doing buSi-
ness and the price to the consumers; to
guarantee that the consumer gets the
quantity he pays for; or to afford CO.
operative organizations of citizens the
savings through joint purchasing that
the code would give to commercial or
CARNATIONS.
The A. A. A. in its letter to Com
missioner Mccullough expresses keen
interest in any program to stabilize the
great American oil industry, but points
out that the following issues should be
considered in the code:
Il. What will the proposed code do
70 prevent the great variety of prices
which prevail in almost every territory?
%. What will the proposed code do
about posting an exact statement as to
the quality Of gas sold at each station,
rs well as the price?
70. What will the proposed code say
about the possible restriction in the
number OF gasoline stations that are
established at present in such numbers
In many communities as are scarcely
warranted by the business offered, the
excess number of which undoubtedly
adds to the cost Of doing business?
Cooperative Purchase Basis.
a. We note that the proposed code
would prohibit the public the oppor-
tunity of purchasing gasoline upon a
cooperative basis at net saving Those
to be favored, according to the code,
are those strong commercial organiza-
tons which can establish charge ac-
counts through written contracts. It
would seem to us to be good public pol
Icy in an industry seeking public sup
port. not to restrict possible selling ben
efits, other than the customary retail
sales at gasoline stations, to commercial
accounts and exclude those cooperative
associations which are an integral part
Of American life and which are as clear
IL entitled to financial recognition as
commercial concerns. and which on the
whole would buy quite as much gaso-
lac. The American Automobile Asso-
citation clearly recognizes that there
are certain igyp' practices on the part
OF irresponsible 'hy-by-night' promoters
which do not come under the category
OF cooperative associations mentioned
above.
IS. We do not find anything in the
code with reference to guarantee as to
full gallonage given to the consumer at
all times or any penalties proposed In
the way of the withdrawal Of selling
privileges from retailers who are found
not to accord full measure at all times.
IS. We do not find in the code any
provision Tor the universal adoption of
certain mechanical facilities at gasoline
vending stations which would absolutely
guarantee full quantity and quality
Most other businesses have scales and
established measuring devices whereby
the customer can assure himself that he
Is receiving the quantity and quality
purchased and these measuring devices
are regularly inspected by authorized
officials.
"7. We do not find any suggestion in
the code Of the support of the passage
Of universal laws or ordinances that
would provide for adequate and regular
checking Of all gasoline pumps, whether
In cities or in the country
In conclusion, the national motoring
body notifies the trade commission tina
1t is now engaged in making further
survey OF some of the existing condi-
tons and asks leave to present the re.
suits as soon as they are completed.