1920 gas prices riled the public - News - MailTribune.com - Medford, OR

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1920 gas prices riled the public Until the 1920s, most gas was sold from auto repair shops and new car dealerships. Sunday Mar 18, 2012 at 12:01 AM Mar 18, 2012 at 2:46 AM Experts say we should expect record gas prices this summer. In the words of baseball philosopher, Yogi Berra, "It's deja vu all over again." By BILL MILLER Experts say we should expect record gas prices this summer. In the words of baseball philosopher, Yogi Berra, "It's deja vu all over again." Anyone remember 1920? That's when a gasoline shortage took the average price of a gallon of Oregon gas from 17 to 30 cents in less than six months, an increase of well over 75 percent. Most gasoline was still being sold by new car dealers and repair shops, and even before gas had reached 24 cents a gallon, it was members of the Dealers' Motor Car Association of Oregon who offered the loudest protest. "The committee's opinion," said their investigative report in June 1920, "is that there is no gasoline shortage and there has not been a gasoline shortage. "… We hazard the opinion that the public is being prepared to pay a higher price for gasoline." Not so, said Standard Oil Company officials. "There is no mystery in the existing shortage of gasoline," they said. "It is not a case of diminished supply, but one of increased consumption. The far West has never had so much gasoline as this year." "Gasoline shortage laid to consumers," read one newspaper headline. "Oil monarchs use alibi of lower supply," read another. At the same time, Union Oil, Shell and Associated were rationing gas to their distributors. Of the distributors' daily allotment of 500 gallons, only 20 percent could be sold to pleasure cars and 75 percent was reserved for commercial use. Use of the additional five percent wasn't specified. The experts predicted gas prices of 35 to 40 cents a gallon by the end of the year, but by the end of July, the shortage in Roseburg was so severe that a gallon of gas was costing 55 cents. The battle lines were drawn and neither side was ready to blink. One letter to the editor called for price regulation by the state government. "Is it not most fitting that this commodity, one of the most vital necessities of our age, be regulated?" he asked. The U.S. House Judiciary Committee directed the Federal Trade Commission to immediately investigate "recent advances in the prices of petroleum products." Relief finally came in the fall when supplies began to return to normal and prices slowly dropped. "The local filling stations have all the gas they can sell, and every automobile driver can buy all he wants," said a newspaper. The oil executives were still in a defensive mood. "Perhaps you think the president of an oil company simply says to his colleagues, 'Let's raise the price of gasoline this morning,' " said a Standard Oil news release. "Not so. No man, no company or group of companies can control the price of gasoline." Yes, the shortage had been painful, the release continued, but it was even "more painful to a harassed oil industry." The motoring public wasn't so sure about that, but any anger they felt was quickly abandoned in the dust behind a sputtering motor car — at least until next time. Writer Bill Miller lives in Shady Cove. Reach him at [email protected].