Evening star., 1933-10-31

Price-fixing in the petroleum indus
try through Government action ieaos
to widespread debate, with advocates
welcoming the step as necessary for the
salvation of the great petroleum Oh
business and critics insisting that II u
a dangerous threat to the whole conl-
petitive principle. e. 70
"That which contains no pront 70
ono Iink in an industrial chain" THINKS
the Fort Worth Star Telegram. can not
contain profit long to another: 0ug-
costing that purchasers OF gasoline are
Short sighted when they reJolce AT
low prices at the filling stations, tns
Star-Telegram holds that with cruue
oil at a proper price level Tor pronts
for everybody between the lana owner
and the service operator, the purcnaseis
of gasoline could better aHoro twenty
cents a gallon than the ten cents only
recentiv paid while the oil industry and
the oil producing States were suffering
staooerinp losses" The Texas paper
sevs "there can be few greater influ-
ences for removal of the depression
than a chain of fair profits running
through the entire fabric of crude OIL
and by-products." 1t continues: more
persons will thereby be able to improve
their priyate fortunes. More stores Will
know more sales of larger line OF
merchandise. More houses Will pc
rented. More miles will be driven In
old automobiles and more new automo-
biles will be in demand. AS the enecIS
Of the enforcement are felt there Will
he the greatest spread of general bene-
fits the country has seen since the pe-
ginnins OF the depression
"The oil industry. OF course" says the
Columbia Is. c. Record. was one IN
which some such system of unified con-
troll as provided by the national re.
coyery act was especially needed ana
there are other industries and businesses
like 1t. The demonstration OF tne OH
codes apparent success is slgnmcant
therefore as indicating the meVltapIe
shift of emphasis in the N: r: A. pro
gram from the So-called blanket cooe
70 the more important permanent
f1dgs fs1ssr dfSed ndaetries ie It IS the long pun
not the Suddent squirt in the recovery
effort that will count most" The Rec
has been benefited by the recovery pro-
gram. observing that contrary to sea-
sonal influences, gasoline consumption
increased 4 per cent in September as
compared with August, the increase
| being due, the theory is, to shorter
working hours in other businesses and
| industries"
"The Government has not forgotten
| the consumer in this new deal" de-
clares the Abnence Reporter. There
| is a definite price spread between the
raw and the finished product. In other
words, the ratio of gasoline to crude OIL
| price is fixed The refiner can exact
a higher toll from the consumer only
by paying the producer more Tor ms
crude. That may be small consolation
to the consumer but the fact that he
| has the protection of a fixed ratio Is
something he hasn't enjoyed before
Meantime, encouraging signs have beer
visible in the petroleum industry fol
some weeks. There is every reason tc
hope that the Governments price
fixing policy will work satisfactorily te
all concerned. OF course, 1t remains tC
be able to make the plan work, but il
will have the hearty cooperation OF
majority Of the industry and the SYM
pathetic well wishes Of the genera
has held the bag"
Conditions peculiar to the oil in
dustry probably justify this step.
thinks the San Jose Mercury Herald
recalling that destructive competition
again threatened Generalization Of TIN
industry" and that "there appeared K
be no practical way to stop waste O
natural resources save by fixing prices.
The Mercury Herald thinks, however
that "such a policy, widely adopted
would destroy the American system O
industry" and that "stabilization tha
earteltzea AneEtcen industry Youls