Evening star., 1933-06-02
INDEPENDENT GAS
DEALERS FACE RUIN
AS PRICE IS RAISED
Distributors Cease Absorbing
Part of Tax in Arlington
and Montgomery.
TW0-CENT DISCOUNT
FOR CASH PROVIDED
Cost in Virginia Is 1875 Cents, Dis
trict 15.5-Station Proprietors
Threaten to Quit.

An upheaval in gasoline prices here
today threatened to put the independent
dealers in Arlington County, Va. and
possibly in nearby Maryland communi-
ties out of business. Several Arlington
County dealers declared they will sell
their present supply of gasoline at Dis
trict of Columbia prices and then close
their doors if the distributors refuse
to again absorb a part Of the differ
ence between the District of Columbia
and Virginia gasoline taxes, as has
been done until today. Prices in Mont
gomery County, Md, 2 cents of which
is tax, have generally increased 2.3
cents, while in Prince Georges County,
Md, those dealers who have been sell
ing at District of Columbia prices today
continued to meet them.
without warning to the dealers, it
is claimed. the distributors have de-
eided to increase the posted station
prices for straight gasoline in Airing
ton County from 1872 cents gallon to
1876, with 2-cent per gallon discount
for cash. This will make total In
crease in cash prices in Arlington
County of 33 cents.
In the District of Columbia the price
was boosted from 1872 cents to 15.5
cents, with a 2-cent discount for cash,
making a total increase in cash prices
of only three-tenths OF cent.
Credit Is Discouraged.
Credit business under the new sys-
tenn is discouraged by the application
-E q TIos, xzy11tp
the distributors declare, is the amount
it costs them per gallon for bookkeep-
ing. The ethyl hign-teSt gasolines
under the new scale are 8 cents higher
than the straight gasoline prices and
the benzol gasolines are cents more
than the straight gasoline prices.
The move was seen today by the
dealers as having two purposes N mind
the elimination CT credit business and
the discontinuance of the practice of
the assumption by the distributors, or
large oil companies, of portion OF
the difference between the gasoline
taxes between the District of Columbia
ami Virginia and the District OF Co
lurlb.a and Maryland. The tax in the
District of Columbia is cents gall
lon, in Virginia ceIltE, and in Mary
land cents, all exclusive of the 1-cent
Federal tex.
Until this time the distributors have
been absorbing cents Of the difference
In Virginia and the independent agents,
l cent. In Maryland, where there is
q 2-cent difference, the distributors
have been absorbing l-cent and the
independent agents 1-cent.
Because no part of Arlington County
Is far removed from the District of
Columbia, dealers there declared today
they must either meet Washington
prices or go out Of business.
Seek to Revive Group.
Efforts were being made today to
revive quickly the dormant Suburban
Gasoline Dealers Association, which
was formed to meet a similar situation
IN Arlington County several months
ago, and it was planned to hold meet
ing somewhere in Clarendon tonight
to decide what is to be done.
Gasoline dealers in Prince Georges
County, who have been selling at D. c.
prices continued to meet the Washing
ton market today. They boosted the
price Of gasoline 2.3 cents. allowing a
2-cent discount for cash, the same as
was done in Washington.
Henry Caspeare, Colmar Manor
dealer, said the controversy over abb
sorbing the difference between the 4
cent Maryland tax and the 2-cent Dis
trict of Columbia tax, which was re-
newed between the oil companies and
the dealers today, breaks out every time
there is change in gasoline prices.
A move to form a gasoline dealers
association, such as now exists in Ar
lngton County, started in Prince
Georges as a result of today's contro-
versy. w. A. Bobb, Cottage City dealer
and former town commissioner, is spon-
soring the movement.
With few exceptions, gasoline prices
in Montgomery County increased 2.3
cents per gallon as result Of the in
crease in the basic prices and the re-
fusal by the major distributing COM
panies to continue paying any portion
of the difference between the Mary
land and District gas tax rates.
Difference Only Cents.
However, the actual difference be-
tween the new prices charged in the
District of Columbia and Montgomery
County is only 2 cents, as the 3 OF a
cent increase in the basic rate is also
effective in the Capital today.
Some independent dealers are selling
their present supplies at District of Co
lumbia prices. but have been informed
by the distributing companies that no
norton of the differentiation in gaso-
line taxes between the District and
MARYLAND will be assumed by them in
the future
Branch managers of the Standard
Oil Co. explained prices for nearby sec
tions of Maryland and Virginia are
based on a tank car price at point of
supply. The points of supply in this
vicinity are Washington, Alexandria
and Rockville.