Evening star., 1934-07-10
Action Taken at ParIey of
Dealers and D. c. Code
Secretary.
ARL LINGTON OPERATORS
TO KEEP PRESENT RATE
Proposal for Increase in District
Taxes to Avoid Further
Trouble Is Revived.

Work out some method OF meeting the
difference in the gasoline taxes of the
three jurisdictions.
This request was agreed upon at a
conference held between G. w. Boyer,
secretary of the District of Columbia
Petroleum Code Committee. and a spe-
cial committee representing the North
ern Virginia Gasoline Dealers AsSo-
citation. While he has no actual juris-
diction in the matter, Boyer stated.
he is willing to intercede for at least
temporary relief
Bankruptcy Declared Faced.
The Virginia committee informed
Boyer that dealers in the Virginia
metropolitan area face bankruptcy If
the oil companies insist upon the with
drawal of their payment of portion
of the tax difference between the Dis
trict of Columbia and Virginia.
This committee was supported in its
contentious by Harry c. Weston, presi-
dent of the National Association of
Filling Stations. He asserted that the
oil companies are not within their
rights in arbitrarily setting up price
zones, as has been done in the present
| instance.
Boyer stated that his committee has
| Jurisdiction only in the District of
Columbia, but that he felt justified
in hearing the plea of the Virginia
dealers, because he had been asked
for report on this situation by the
Planning and Co-ordinating Commit
tee OF the National Petroleum Code
Committee.
The plan advanced by the oil COM
panies for making the price difference
Immediately adjacent to the District
only a cent higher than the District
prices appeared on its face to be fair,
since there is actually a difference of
3 cents in the tax, Boyer said.
Say Companies Set Low Price.
Members of the Virginia committee
pointed out, however, that the estab-
lishment of District prices in the area
Immediately adjacent to Washington
was inaugurated by the oil companies
themselves and as result of this
action many stations have been estab-
isheo on the assumption that the
! practice would be continued. Now.
they said. the oil companies, by re-
ducing their share of the tax payment
from 2I2 to l z cents per gallon, make
it impossible for them to remain in
business.
Recognizing the fact that some Solu-
ton must be found, Boyer agreed to
| appeal to the oil companies to recede
from their recent action for a few
days at least. In the meantime he
suggested that the Virginia committee
take its case both to the Planning and
Co-ordinating Committee and to the
Virginia Petroleum Committee in
Richmond to see what can be done.
Practically all of the gasoline filling
station operators in Arlington County
and Alexandria stood pat today on
their District of Columbia price lists.
Meeting here last night, the dealers
decided with but two exceptions to
defy the edict of the distributors and
to attempt some permanent solution
of the price problem, all previous
remedies having been temporary only
One of the suggestions was the revival
of the proposal to seek an increase
in the District of Columbia gasoline
tax to make 1t more nearly equal with
the taxes in Virginia and Maryland.
Tax Increase Sought.
In order to avoid further price COM
plications because of the difference
in the gasoline taxes between the
nearby localities, Weston said that his
association is attempting to secure an
increase in the District of Columbia
tax. To the argument that District
officials had asserted they did not
need the additional tax. Weston re-
piled that the revenues so derived
could replace certain road and street
appropriations which are now being
made by Congress. He said that the
eventual aim is the collection of all
gasoline taxes by the Federal Gov
eminent and distribution to the
States in proportion to their pay
ments.
Editors Note: The gasoline tax fund
is now entirely supporting the Dis
trict's street and road Improvement
program The 1885 appropriation act
and road oSd pPoiects f to be e paid out out Of the
general revenues
Action of the ma jor oil companies
in withdrawing l cent of their AZ
cents per gallon contribution toward
the Scent differences between the
gasoline taxes in Virginia and the
District of Columbia was said by Wes-
ton to have been with the knowledge
but not the consent of the code
authorities
Freeze out" Aim Charged.
Dove told the dealers that he had
been informed by good authority that
the withdrawal of the tax contribution
was a move by the major companies
TO freeze out the independent dealers
so that the best locations could be
secured by the companies for the
establishment of company owned
stations. Several dealers having such
| locations have been approached, he
| declared and told that if they will
obey the mandate to increase their
/ prices the oil companies will guaran-
/ tee the payment of their rent and
/ wages.
/ He asked that all dealers continue
TO sell at District prices even if it
is impossible to make a profit. A poll
of the IS dealers present showed that
! 80 of them are continuing the low
| prices, but none was able TO say
whether the distributors would con-
tinue to deliver them gasoline if they
refused to obey the price increase
edict
| One distributor continued to de-
liver gasoline to dealers at the old
| price up TO s o'clock last night. the
4 dealers were informed, but at that
time announced that it had joined
the others in the increase.
/ Several charges were made at last
nights meeting. One of these vas