The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-10-17
100000 OIL
CONTRACT may
Be CONTESTED
Low Bidder Charges State
Officials Favored Stand
ard Firm.
COMPETITION LACKING
Successful Company Alone
Gave Figures for Com
bined Supply.
COMPETITION LACKING

w lbliOub any COLlkJCJ4tIOll W4ldb-
ever on a combination bid, the
Standard on Company was award
ed a 100000 contract for gasoline,
oils and greases by the state high
way department, Director John j.
Brown announced today.
State highway commissioners ap-
proved the award late Wednesday,
after two days of discussion. 1t is
for the years supply. Standard has
the present contract
other companies submitted lower
bids on oil and grease, but were
turned down. Commissioners con-
tend the combination saves the
state $4,000.
Robert B. Denham of the Denham
oil Company was the lowest bidder
on oils and grease. He asserted to-
day that the state loses $4,000 on
these, by its own figures, and some
$4,000 by his. He conferred With
his lawyer and may bring suit.
Bids Are Compared
Here is how the Denham figures
compare with Standard as bought:
Denham oil, 80 cents a gallon;
Standard. SO cents; Denham trans
mission grease, figuring seven and
one-half pounds to the gallon
so 1925 cents; Standard, 1915 cents;
Denham hoist and machine oil, 700
cents; Standard, Bis cents.
Total loss to the state on oils was
S8213.81, Denham contends.
Greases included Denham cup ana
Transmission, 625 cents a pound
Standard, 6.5 cents; gum grease
Denham 7 cents, Standard cents;
axle grease. Denham cents, Stand
ard 6,8 cents. This added loss OF
$40 under the Standard contract
Denham argues. making a grand TO-
tai of S8,625.81 on the oils ana
greases under the combination con-
tract.
Brown and the commissioners de-
clare it is more than made up py
a saving of SIS 900 on gasoline, max
ing a net gain to the state OF
S6,7419.
nenham. however, points ouC UIaU
uhen his company had the contract
in 1926-27 deliveries we're 10 per
cent less than ten gallon lots, 20
nor cent less than twenty-five ana
65 per cent more than twenty-five
Gallons. In these lots the Standard
prices. under the contract, are "A
and SO cents, respectively. Inns
makes a total for oils of $72,712.5O'
as compared to the Denham inquire
of $4,000 for the same figure.
Grease. he says, was delivered by
him at is per cent under 70 POUNDS,
Is per cent under fifty, 20 per ceno
under 100 and so per cent IN parreI
lots Under the Standard figures
This would total $23, 023, while Den
hams would be $2l,325.
Great Saving Shown
The Standard total for oil and
crease. figuring these package de-
iiveries. would be sos, 1850 and
Denham's ST. 1926, making the say
ing to the state under Denham
award of $18,410.5O.
Brown asserted today that no
ouch quantities now are being USED
and that this makes up the dlIIer-
ence. He stated there is a standing
order not to buy any oil In less
than 25-gallon lots.
r S. Bosart, assistant superln-
tendent of maintenance, de1enoeo
+he Standard contract, pointing out
this company had it last year ana
is equipped to give better service.
He said the company has Installed
200 tanks of 500-gallon capacity ana
equipped them with pumps for the
department and given it the use OF
sixty-five tank wagons.
He also pointed out that Stand
ard has 400 bulk service stations and
can make quicker deliveries.
Denham contends that these
things should not enter into honest
competition. which should be based
merely on lowest price for similar
quality.
Concession Is Granted
Standard granted a concession on
the combination. permitting the
commission to buy not to exceed
100000 pounds of special grease
from the D-A Lubricant Company,
Inc.
The Standard bid on similar
grease was considerably lower, but
the motor transport division OF the
department is said to prefer the
D-A.
Standard prices ran from 3D. TO
I22 cents a pound, while D-A is
from 1876 to 1915 cents.
AHEPA ORDER 10 HONOR