Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-09

rVOHlH: lHdC DIS COnc0rIlS IIldIhcInS, Vic uclu
of greatest competition there is no reason to
single out the oil industry for special Federal
intervention. That industrial pacts and agree
ments when voluntarily made by any industry
for the purpose of eliminating unfair methods
of competition should be permitted.
FIFTH: That any such economic straitjacket as is
contained in S. 2445 or similar proposals for the
enlargement of the N. |. R. A. would serve to
increase the price of gasoline and demoralize
the industry.
In support Of the foregoing we point to the
record of the oil industry during the last fifteen
years as one of outstanding public service
But for cheap gasoline many industries which
have contributed substantially to American eco
nomic progress could not have enjoyed such re-
markable development. Notable among these are
automobile and tire manufacture and modern
road building, with the related industries such as
steel. textiles, plate glass; leather and numerous
accessories.
The production, transportation, refining and
distribution of petroleum and it's products go hand
in hand with the automotive industry. Important
as it is that automobiles should meet all reason
able demands upon them it is equally important
that the car owner wherever he may travel should
have access to plentiful supply of gasoline and
oil, of good quality and at reasonable prices.
During the last fifteen years the efficiency Of
American-made automobiles has steadily in
creased while their price has as steadily declined.
Today the United States makes Is per cent of all
the automobiles in the world. During the same
period the petroleum industry has supplied the car
owner with gasoline and oil in ample quantities,
of constantly improved quality and at steadily
decreasing prices.
In 1920 the average selling price for gasoline
exclusive of tax in fifty Cities representing all the
States was 297 cents per gallon in 1884 the figure
for the same cities 1876 cents-a drop of 542
per cent A barrel of crude petroleum now yields
about twice as many gallons OF gasoline as it did
fifteen years ago. No consumer of gasoline and
oil can reasonably complain that he can not readily
procure a plentiful supply of each, of good quail
ity at reasonable prices. The average cost, exclu
sive of tax, of owning and operating motor car
today, mile for mile, is about one-fourth of what
it was fifteen years ago.
The free play of economic conditions under
which these two great industries have so we'll
served the consumer has been substantially the
same. In both there has always been keen, unre-
lenting competition; and this, in turn, has stimu-
lated new discoveries and new methods, has led
to the development of new markets and has con-
stantly tended to improve quality and reduce
prices.
Because it has grown so fast, the oil industry
has constantly needed large amounts of new
capital It's investment increased from $780,
100000 in 1921 to $4,000 100000 in 1892 During
these twelve years 1924 of new capital was put
into the industry for every dollar that was earned
and the annual average earning of the oil industry
on it's investment was only 166 per cent. It is
inconceivable that political management could
operate a fast growing and hazardous business on
so close a margin as this.
in transportation, particularly, which is such an
important factor in COSTS the oil industry has de-
vised and developed it's own unique systems, CIV
ing incomparably cheap movement by pipelines,
ocean tankers and by barges on inland waterways.
Every resource of science and technology has
been enlisted in the search for new supplies Of oil
in the earth. In fact, the chief offense imputed
to the industry is that has been all too successful
in finding new pools.
With such record it is apparent that the hands
of the oil industry should not be tied by govern
mental bureaucracy. The issue between govern
ment and private responsibility for this vast in