KERBSIDE PUMPS

Evening Star, Issue 19175, 16 February 1926, Page 5

KERBSIDE PUMPS

AM AUCKLAND COMPLAIHT

MAKING " TIED HOUSES "

The derision of the oil companies to distribute petrol in bulk through the medium of kerbside pumps is not being accepted without some expressions ol dissatisfaction by dealers (says an Auckland paper). “A bold hid to make tied houses ” was the manner in which one highly indignant garage proprietor referred to the change. Ho alluded, of course, to the rivalry in securing kerbside pump stations, holders of which will be compelled to sell one brand of motor spirit. “ Rut,” he added, “ that is not the chief menace retailors apprehend. The new move began with the absorption of a. number of subsidiary companies, and none, of us will be surprised eventually to see the whole of the importing business in the hands of two or three establishments. controlled from the _ oil centres of the world, and, notwithstanding their local competition, obeying instructions to conform to the minimum price. Hence the present developments are not simply the concern of the traders, but of the general public, which must always pay the piper for any successful combination. We have been told time and time again of a, rise in Hie price of Is 6d a case, but a supply of petrol in bulk was ottered to a few garages possessing kerbside pumps at 2s less on the eightgallon case. Quantity had nothing whatever to do with Hie change in distribution methods, a chan go initiated before its time. Wo have been referred to the world's parity, and have been assured that New Zealand prices had been lagging behind it. My only comment is that Now Zealand traders have never been conscious of any such philanthropy in the past, and .1 would like to remark that against the taxpaying American gallon at L! cents, the rate in Auckland for an imperial gallon is 2s 2RI a gallon if bought by the case, or Is Hid a gallon if bought through the pump. _ ’Hie disparity, even allowing for freight on the most excessive scale, is too great to make tho world parity argument very convincing. 'Hie dealer proceeds: “ What has given great offence to retailers who do not possess kerbside pumps is the rebate of -'id a gallon given to a few who do possess this equipment. Old clients who had built up a substantial business m motor .spirit,” ho said, “ wern given no consideration. hirst, they were rushed to sign agreements for installation of pumps, which, in any case, could not he accomplished for a month or two, and practically next day found that their competitors who had already installed pumps were being given a concession sufficiently largo to absorb tho profit on tho case. The assertion that tho kerbside system of sale means no restraint upon a trader, because he may instal pumps of every company, sounds convincing until it is remembered that traffic conditions must definitely limit tho number of kerb-side pumps the city council will ftutliori.se. Imagine eight or ten garages in a busy street, each with three pumps on tho footpath. The local authority would not permit such a thing. Hence, of course, the efforts of the companies to get in first with the pump agreements with traders.