Gasoline Truce

"Effective Saturday morning July 12, at the opening of business, the Standard Oil Company of California will restore its prices for gasoline to levels prevailing prior to the beginning of the so-called price war. . . . The Standard Oil Co. of California announces as a policy that it will not sell its products to ... the dealer who cuts his prices."

Thus a fair prospect of a truce in the West Coast oil war was born last week. Just why Standard of California should belittle the conflict as "the so-called price war" was not clear. The war scattered gasoline prices on the Pacific Coast over a range of from 9-c- to 19 1/2-c- per gallon. It caused gasoline to be sold last week in San Francisco for 7-c-, in Los Angeles for 6-c-, in Tacoma for 8-c-, and in Seattle for nothing--an enthusiastic dealer giving away five gallons of gas to every motorist who had his oil changed. In California the State Tax alone is 3-c- per gallon. For a time people were buying gasoline and storing it in their bathtubs, which alarmed the Fire Prevention Bureau. Many a gas station proprietor has speedily approached ruin these last few weeks. The war was one between the big oil companies and the smaller "independents." Which group started it was uncertain, but certain it was that both parties were heartily sick of the battle, would rejoice exceedingly if mighty Standard of California should succeed in restoring peace and order.

To Macmillan Petroleum Corp., however, and not to Standard went the glory of having first taken a stand against the price cuts. With due regard to the Napoleonic maxim that the best defense is an attack, Macmillan Petroleum, one of the independents, met the price-cutting threat by actually raising its prices. "Commencing on the morning of July 4th," announced the company two weeks ago, "the price of Macmillan gasoline will be restored to 18 1/2-c- at the service station. . . . We confidently expect the purchasers of Macmillan gasoline to continue purchasing our product even though the price may exceed that of other brands while the gasoline war lasts. . . . We appeal to the public to back us up in the stand we are boldly taking for the good of the oil industry and the prosperity of our state." The Macmillan expectations were not disappointed: sales fell off less than 3% after the price rise. President Raymond S. Macmillan announced his resolve to stick to his price until the end of the war. Meantime, Director Herbert H. Macmillan asked for Federal intervention in the conflict.

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