The Carbon County news., 1931-08-13
new RISE IN PRICE
OF GAS THROWS UP
QUESTION Of RATES

News that the price of gasoline
in Great Falls as last week adj
vanced one cent a gallon should
bring the attention of motorists
more foreibly to the steep prices
prevailing in Montana, and raise
the question as to how long Mon
tana gas consumers will continue
to pay for motor fuel at the exist
ing rates.
The raise, as usual, was attri-
buted to increased freight rates,
it having been decied in the
course of past legislative inquiry
that freight rates within Montana
have been responsible for gasoline
prices higher than those of ad-
joining states. Investigations sew
eral years ago disclosed that Mon
tana gas producers, handling only
fraction of the state consump-
tion, are unable to dominate the
price structure. Thirty-five per-
cent of the gas consumed in Mon
tana is produced within the state,
| the rest being imported, making it
impossible for the Montana pro-
ducers to regulate the price of the
imported product.
At the same time investigating
bodies found that Montana intra-
state rates-shipments within the
state-were higher than rates on
the imported gas. A California
producer, for example, could ship
gas to Montana markets with a
lower freight cost than could a
Lewistown or Billings refiner, al
though the latter shipped a much
shorter distance.
In regard to this unreasonable
situation, a hearing was held in
1929 before the Montana Railroad
commission, in which it was de-
clared that Montana intra-state
rates We're too high. A reduction
of approximately 29 percent was
ordered accordingly, and the peo-
pie of the state were promised
fair rates and prices. Opposition
b. the railroads to the reduction
was overruled.
Then the Midwest Refining COM
pany (Standard Oil Company OF
Indiana) opposed the reduction
claiming that it was preiudicial to
Wyoming shippers. When their
contention was ignored, and tie
20 percent reduction went into
effect, the Wyoming shippers
themselves appealed to the Inter
state Commerce commission.
The Commission sent an exam-
iner to Montana, who recommend
ed, after an investigation, that
the reduction be modified, and not
only that, but that the rates on
crude oil shipments in Montana be
increased. This recommendation
brought the case before the Inter
state Commerce commission at
Washington, D. c., last July where
the Wyoming shippers won then
point. The effects were the in
creasing Of gasoline prices, and
the increasing of the handicap or
Montana refiners who were al
ready making a valiant struggle
to cut costs on native gasoline.
The ruling, in effect, increases
Montana gasoline freight rates
| defective October 20) and will
probably boost the gas price
throughout the state.
+, The fight of Montana refiners
for lower rates on intra-state ship
ments apparently has failed. A
reduction in the gasoline price has
not been made, and the market
for Montana producers has beer
narrowed by allowing Wyoming
producers to further encroach up
on Montana markets.
So it is that motorists in Mon
tana, in the midst of oil fields
within short distances of Mon
tana refineries, find themselve
paying % to 25 cents a gallon fo.
gasoline, and until the volume o
Montana refiners is increased b,
an increased demand for Montana
made gas, motorists can continu
to enjoy this situation. For n
satisfaction seems to be forth
coming from legislative or rate
regulating bodies.