Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-04-23
MARKET Bill,
OPPOSED BY
LOCAL BOARD

from the marketing business TIM
week came into national prominence
as it appeared possible that the oil
will be crowded into the congres
! sional calendar during the presen
session. Last week il was believed
that the bill would be buried, be
cause of its unimportance. by com
parison with other pending legisla
ton This week local oil men were
advised that an appearance before
the subcommittee of the judiciary
/ committee at the hearing starting
Wednesday was imperative The
| Oil Conservation Board of the
! State of Montana was quick to re-
spond and forwarded a protest
against the bill to members of the
committee and to the Montana
congressional delegation in Wash
ington.
Many Join In Protest
Several local producers and re-
finers sent individual protests. also
civic organizations of north Mon
tana cities. 1t was pointed out
that passage of this bill, which
would prohibit the engaging in mar
keting of petroleum products. by a
refiner. would be the death knell
for Independent refiners. No new
refinery could start up because 1t
would be unable to get business,
whereas at present a refiner can
start up and if no jobber will buy
the products the refiner can estab-
lish his own outlets, as has been
done by all refiners in Montana -
Proponents Arguments
The bill is sponsored by the Ma
tiOnal Oil Marketers association.
which maintains that integrated
companies, by being able to charge
off marketing losses against pro-
Quoting and transportation profits,
can practically eliminate the indie
pendent marketer from the business
picture of the country. They also
contend that If the marketing end
Of the oil business were forced to
stand upon its own feet, many
economically unsound practices
would necessarily have to be dis
continued and the Independent mar
keter would be in a position to
complete equally with the integral
ed company
BOrah Sympathetic
The matter was referred to a
committee including Senator Borah !
of Idaho, foe of monopoly. Borah |
stated al the opening hearing that |
-four or five big oil companies"
control the price of gasoline and 1
oil, with no competition in price |
The measure would fine companies /
up to $4,000 for not divorcing mar
keting, production, processing and |
transportation. At the first hear
ings only the proponents of the bill |
appeared giving rise to comment
by Senator Borah that there was a
suspicious lack of opposition
Through utilization of the Iowa
plan" the major companies are al
ready in position to quickly take
advantage of the new measure
which would provide perpetual
in the refining industry,
though their ability to deal with
large jobber associations, were the
aw enacted.
Following is the protest forwarded
by the Oil Conservation Board:
BOards's Protest
On behalf Of the Oil Conservation
Board of the State of Montana.
ind pursuant to order approved by
/ majority OF it's members, I respect
ully request that you receive and
consider this Communication as the
protest of said Board against the
by our Honorable Com
nittee Of the bill above referred
O.; such protest being made upon
he grounds, and for the reasons,
o-wit:
1. II ii shall be made unlawful ,
or any person directly or indirectly ,
o be engaged in commerce in the :
marketing or refined petroleum pro- :
ucts while such person or affiliate
I such person is also engaged in
rude petroleum production. refin-
1g, and transportation, monopolies
Till not be thereby destroyed IL
ny now exist, or prevented If as
nmed to be now in process Of ac-
omplishment by reason to lessen. :
nd eventually destroy, competition =
retailing petroleum products ex-
ept as might be permitted by the -
now known as job
ers, chains, etc. who would ap-
arently be the only persons GER :,
lin to be favored by the proposed ;
Increment of said business
2. The industries in question :,
re now. and have been at all :,
mes, truly competitive despite any :
forts made. or alleged to have =
cen made, to make them other :
Use. They have attained present
-eatness under. (perhaps because =
}, competition as keen and unre- 4
nting as any industries ever en- =
lred and survived There is no .
'od reason why said industries ~
IouId be placed In a commercial :.
raight-jacket and II so ordered =
tcontiuued on Page Four