The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-10
OIL INDUSTRY
HOPES HINCINC
ON COURT TEST.
Recent Betterment in Gas
Prices Cheers, but Texas
Is Watched.
BY r. ID. MOCKLER
Times Special Writer

Times Special WRITER
NEW YORK, Nov. 1o.-While ris-
ing retail gasoline prices are &C
copied as an authoritative indica-
ton of the sharp improvement in
underlying conditions in the indus
try. many oil men are Withholding
final judgment upon the last Texas
situation pending results OF the
authority TO the federal tender
board, according to local oil circles
today.
The almost complete shutdown
of hot OIL production in the last
Texas field by the tender board.
with The resultant curtailment OF
offerings of low-priced distress gaso-
line in the open market, has been
reflected in improved retail motor
fuel prices during the last week.
The improvement has been eSpe-
cially notable in areas where service
station prices have dipped far be-
low normal, due to the recent wave
If price cutting competition that az
fected all major markets east of
the Rocky mountain area.
Big Units Reticent
It was pointed out, however, that
neither Standard Oil of New jersey
nor Standard Oil Of Indiana, both
of which marked down retail gaso-
line prices quite sharply during Oc-
tober. have made any definite move
toward restoring prices to pre-war
level.
One of the main reasons for this.
it is held is the lack of success Of
the representatives Of the major
companies in the industry to arrive
at any definite decision on either
the differential or distress gasoline
purchase problems.
Both are of prime Importance in
establishing retail motor fuel prices,
and both are closely linked with the
situation N East Texas. Early re-
ports from East Texas indicated
that the federal tender board had
the "hot OIL situation firmly in
hand and that, as market factor,
hot oil" no longer was important.
This impression was strengthened
by the success of the board in hold
ing up a cargo of several hundred
cars of gasoline shipped on the
Texas e. Pacific in alleged violation
of the boards orders. However, the
quick success of the shippers to OBJ
tain an injunction in Texas fed
eral court ordering the road to re-
lease the cars, coupled with the fact
that court hearings Nov. II are ex-
pected to be the scene of a bitter
attack upon the board did much TO
dissipate this optimistic feeling.
Wait Test Outcome
The impending court test of the
boards authority was credited IN
Texas oil circles with having in
duced one or two companies, previ-
ously in full accord with the plan
to resume the distress gasoline pur-
chaSes, to hold off pending results
of the court action. This, it is be-
lieved, may hold the entire plan up
until after Nov. II.
The dlfferentlal question mas Deen
bothering the industry for some
time. Standard of New Jersy brought
the problem to the front early last
month when it announced that it no
longer would observe the Lucent a
gallon differential tacitly granted to
independent distributors during the
last year and half.
A differential of 12-cent gallon
was held the proper level by Wal
ter C. Teagle, president, and the
company slashed prices to bring
service quotations in line at this
level Independents, in turn, slashed
and almost daily reductions quickly
brought prices to record low levels.
Although officials of the COM
pany denied any change in its atti-
tude toward the p cent differential,
current prices in several areas
posted by Standard are cent gal
lon above the independents posting.