WHEELS OF INDUSTRY.
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"The wheel of wealth will be slowed by all digoulties of transport at whatever points arising, as a carriage is 5y . the roughness of the roads over which it runs, "—John Beattie Crozier.
THE PRICE OF PETROL. WILL THE STATE ACT?
./TO-DAY, the undertaking, given by the petroi distributing companies to maintain the price of petrol at a level which should produce no higher rate of profit than they were getting whilst the Government were in control through the Pool Board, expires, and, with that restriction on their actions removed, the companies will probably carry out their threat to put the price up to a level which they contend is reasonable. The argument of the distributing companies is this: "Petrol costs are as follow :-Petrol f.o.b.. in the States, 1s. Sid., freight 7c1., duty 6d., cost of distribution 31d., retailer's profit 40., total 3s.. 9id: The present retail price, is 3s. 00. We are importers and distris butors, and have no Shareln any profits made between the wells and the coast or made by the ships. If we cannot run our, part of the business at a profit, we must cease to supply."
That being their attitude we have no hesitation whatever in saying that it is one Which is inimical to the whole motor -industry, which has helped a small number of oil groups to build up a vast and profitable trade. This fact cannot be denied: there is the evidence of the stock and share markets to provide ample
proof. The confession of the petrol companies is, therefore, ono of impotence. They have an obligation to the public which they are unable to carry out. They. .assert that it is to their interests to supply the country with cheap petrol, but contend that,the control of the incidental charges point by point' between the well and the aonsumer is out of their hands.
It is this attitude which we are not prepared to support. With such a vast business, fraught. with consequences vital to the nation, under their command, the obligation is upon them to secure fuller control of the supplies at. their sources, and to make arrangements for the cheapest transport and, most economicalmethods of distribution. Instead, what do we find? Filet that the -output-of the wells belonging to each individual group is not employed to stabilize the price of the fuel, which is charged to the accounts at is. 8d. per English gallon put on board ship. This is practically the price paid by any small user near the coast in America. The tank steamer tonnage owned by the oil groups-is insufficient to exert a controlling influence on freight rates, which have risen to
colossal: heights. The cost of distribu
tion in this country is not lessened by the adoption of up-to-date, methods.
The indictment is a heavy one, and, as there seems to be no likelihood of reformation, the Government must be brought up to the point of taking immediate action in the shape of earnest efforts to bring down freight rates and of attempts to effect a scale of fuel ration-. lug between countries, serving to remove. the competition l for supplies, which is now welcomed by the oil groups because, it ..keeps market rates for oil and for tonnage at high and unreasonable levels. Also the 6Government should immediately devise means of retaliation, some of which have already been suggested by the Press, the development of alternative fuels—in particular, 'alcohol—being something which should beyushed ahead. This country needs fuel for its road transport at a price which will make it practical for that transport to compete with the railways running on home; produced fuel. Dear fuel would inevitably. close down the road transport industry, which would be calamitous to-the -whole of the community, and for this reason there is every justification for a strong call to the State for ,immediate
corrective action. ,