Evening star., 1934-07-09
GASOLINE DEALERS
FIGHT PRICE RAISE
IN NEARBY AREAS
Continued Prom First page.)

the retail price would be increased by
/ cent in the first zone and 2 cents
in the second zone. Beyond that
point the full difference in the gas
oline tax will be reflected in the re-
tail price, as at present
AS explained by an ofhcial OF one
of the major companies today, the
oil code permits spread of cents
between tank wagon and retail prices
At the same time it allows the dealer
spread Of cents. Hence, this ofn-
cial said, the distributors have been
allowing a half-cent more toward the
gasoline taxes in nearby Virginia than
they get in the spread.
Monopoly Move Charged.
Nearby dealers claim that the with
drawal of the aid in meeting the tax
difference is a direct attempt on the
part OF major companies to force them
out of business and make way for a
monopoly by stations operated by the
companies themselves.
They say they cannot remain in
business if they are required to charge
mare than the District prices, since
their customers would patronize Wash
ington stores.
Many dealers had their tanks filled
up Yesterday and announced they
would continue to sell at District
prices as long as their present supply
holds out, regardless Of orders that
their retail prices be increased to the
extent of the withdrawal Of the tax
contributions.
As to whether the dealers could
continue in business under these cir
cumstances or whether the distrib-
utorS will refuse to deliver gasoline
to those dealers who continue to sell
at District prices. local officials OF
the major companies declined to
comment. Such information, they
declared, must come from New York.
A M. Remschel, one of the leaders
of the Northern Virginia group, de-
clared today that the companies are
violating the petroleum code by the
arbitrary establishment of zones in
the Virginia and Maryland communi-
ties. since. he claims. the code itself
sets the retail price, exclusive OF the
tax.
Code Order Delayed.
Gasoline distributors are prohibited
under the petroleum code from sb-
sorbing any part Of the difference be-
tween the gasoline prices in Virginia
and Maryland. it was pointed out to-
day. but the order placing this part
of the code into effect has been de-
laved from time to time. with the
result that the distributors, who in
auglIrated the policy OF absorbing
mart of the difference. decided to take
the matter into their own hands.
In view of the code provision, Hugh
Reid. former member OF the House OF
Delegates from Arlington County, last
Summer succeeded in having the Vlr-
ginia General Assembly pass an act
nroyiding for the refund of the tax
difference to the dealers in the Wash
ington metropolitan area. but as re-
suit of a fight instituted by the Fred
ericksburg dealers, who charged dis
crimina ton, the act was declared un-
constitutional by Judge Julian Gum
in Richmond Circuit Court on the
grounds that the tax was diScrimlna-
tory because ii was not uniform
During the latter part of the last
session of the General Assembly a
group of dealers, with their attorney,
Capt. Crandal Mackey. appeared be
fore Gov. George c. Peery and asked
that another bill of a like character.
modelled after an Arkansas act that
has been held constitutional. be in
troduced They were informed by the
Governor that they were too late to
have the matter acted upon.
Capt. Mackey charged today that
the petroleum code was prepared by
the American Petroleum Institute
which. he said. Is controlled by the
major oil companies. and that the
provision prohibiting the absorption
of the tax difference was inserted to
drive the independent dealers out Of
business.