Evening star., 1940-05-21
Gasoline Retailers
Vote 10 End Discounts
To General Public
Dealers in District,
Virginia and Maryland
Join in Decision

Proclaiming the end of the gaso-
line price war in the District, nearby
Maryland and Virginia, more than
500 filling station operators today
were removing all gas discount signs
on their stations.
The move followed their opposition
to all gasoline price-cutting in the
Washington Metropolitan Area last
night at meeting OF the Gasoline
Retailers of Washington, Inc, at the
Shoreham Hotel.
In a unanimous drive to do away
with what was termed "chiseling"
in the gasoline industry, the dealers
whole-heartedly approved the plan
advanced by John H. Donaghue of
Pittsburgh to stabilize the business.
I'VE must band together to protect
ourselves against these rugged tndi-
vidualists who are destroying our
business" declared Mr.. Donaghue.
Educational Campaign.
The plan calls for the payment by
each dealer of one-tepth of a cent on
each gallon of gas sold in his station
to the Gasoline Dealers group to
defray the expenses OF an intensive
educational campaign aimed at con-
vincing the consumer that price
cutting is harmful, both to him and
to the gasoline station operator.
Since the dealer loses money every
time he cuts prices, Mr.. Donaghue
said, he must discharge some of his
employees in order to help make up
the loss. The ordinary citizen foots
the bills eventually, because these
persons who become unemployed are
added to the relief rolls. he added.
The only deviation in the drive
against such practice is provision
allowing discounts to owners and
drivers of commercial vehicles, in
Guiding taxicabs.
you dealers" he told the group,
'1ose $250,00O a month when you
give a 2-cent discount on every gall
Ion of gas you sell. Now, for the
benefit of your employees as well as
for yourself, organize the gasoline
business into some stabilized form
instead of trying to destroy your
selves"
Those who refuse to take down
their discount signs or who continue
to give price reductions to favored
customers will be dealt with by a
special Public Relations Committee
OF the organization, he asserted.
Film Is Shown,
In answer to objections raised by
some retailers that the public must
first be educated to the sudden raise
of gasoline prices, Mr.. Donaghue
replied that the public wasn't edu-
Gated to the reduction in price and
that this was only an attempt to
put the price back to normal.
A film depicting the sterilization
of gasoline prices in Pittsburgh last
year showed how the plan was sue
cessful there in securing the CO.
operation of the general public as
well as of the dealers.
In talk preceding the presenta-
ton Of Mr.. Donagnue's plan, John
Reilly, president of the Second Ma
tional Bank of Washington, called
upon all Americans to preserve and
protect the democracy of our coun-
try by insisting upon free enterprise
in a capitalistic system"
Any differences between employer
and employe, he emphasized, are
caused by those administering the
system and not by the system itself.
"The very heart of the capitalistic
system-its bone and sinew-is the
spirit of free enterprise and profit, "
he declared.
James D. Gouldin, president Of
the group, presided. Earl A. Nash,
executive secretary, acted as toast
master.