Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-07-01
SCENE OF RAIL

be compelled to try for cheaper
transportation by motor carrier.
McCabe said that the Standard OF
California is the price meter" in
the Spokane field and said the Shell
when its Alfalfa water-truck ar
lrangement went into effect, with
the Standard looping off another
| y cent in April OF this year. one
month before 1t started shipping
from Umatilla on June l.
Supports ascent Rate
Henry b. Moyle. vice president
OF the Inland Refinery company at
Spokane, said his company is sup
porting the 25-cent rate asked
from coast terminals to Spokane by
the rails but that he would like an
1S-cent rate on crude oil from the
Cut Bank field to his refinery at
! Spokane. He said his refinery had
been built at solicitation OF oil pro-
dueers in Cut Bank. who said they
had to have an outlet for their pro-
duct in Spokane. The gasoline the
refinery produces is sold to distri-
butors in Eastern Washington gem
orally.
State Appears Formally
The state of Montana moved IN
to the hearing officially by intro
duction of exhibits prepared and
explained by H. B. Shafer, rate
clerk of the Montana railroad com
mission. The gist of his testimony
is that the Spokane dealers should
be given rates to permit them to
buy gasoline produced In Montana.
He thinks a 30-cent hundred gas
oHne rate from the Cut Bank field
in Montana to Spokane would equal
lie the Columbia river barge-truck
combination rate between Portland
and Spokane.
Technical issues involved were: |
1. A proposed rail rate of rs
cents per hundredweight on Pc
troleum products shipped from
north coast ports into the Spo-
kane area. This rate, now under
supervision, was posted by the rail-
roads ostensibly to meet truck and
barge competition up the Columbia
river
2. A proposed rate-also sus-
pended-by the Great Northern
railroad of 80 cents on refined pc
troleum products shipped from
north Montana fields westbound
into Spokane.
8. A proposed truck rate (post-
ed by an independent motor car
rier and likewise suspended) Of II
cents from Umatilla. Ore, Columbia
river port, into Spokane.
4. Examination of the entire IN
terstate motor carried rate structure
on hauling petroleum products in
the northwest.
John w. Bonner, special assist
ant attorney general for Montana,
who testified in behalf OF indepen-
dent Montana oil producers, said,
I'VE are entitled to a reduction IN
rates from Montana for petroleum
products to develop the natural rer
sources Of our state
Bonner's No. / opponent G. e.
Blaine, representing the major
California oil companies, counter
charged: ITO meet Montana COM
petition our plans lie up the Co
umbfa, and such competition has
forced us to use the river and
trucks"
Big West Appears
On Monday Charles p. Lund,
attorney and vice president of the !
Big West oil company of Montana, I
.estified his independent company y
lad sold 100000 gallons of gaso-
inc in Spokane In 1888 and 5O0,- I
700 additional in the contiguous
erritory, with the California COM 3
,anies, the chief competitors. The
spokane area is the natural outlet
or his company, he said, and the
Columbia river transportation rates
lave reduced the gasoline costs in I
spokane more than a cent a gallon, .
With the California companies UNI Z
lerselling, or at least underquot- !,
ng, the Montana concerns.
Stations Bought Up e
He never had heard of any sales
4 standard grade Montana gas at .
wo or more cents below the Cali +
ornia quoted prices, but ii was
robable that the quotations men p
Toned was for low grade gasoline, O
oming from Montana, but not stan
ard grade. =,
Lund said his company had SUI u
cred a big loss in business early IN "
gag. The Big West had been dis &C
-ibuting through independent deal
r stations, but that these had been
ought up by California companies, I'm
, the Montana company had lost "a
s distribution outlets. 1t was be-
IL compelled to put in its own cen re
al distribution and service sta le
ons or get out OF the territory.
L. c. Wilson, traffic manager III
the Yale Oil Corporation OF Bill +,
ngs and B. A. Thomson. traffic OF
anager OF the Independent Rein an
II Co. stated that Montana oil IT
1mpanies don't care what the ~
eight rates on petroleum products At
gasoline. from their re- q