CHEAPER PETROL

Hawera Star, Volume LI, 20 February 1932, Page 12

CHEAPER PETROL

ASSOCIATION OF MOTORISTS. NEW COMPANY FORMED. Under the auspices of the Taranaki Automobile Association a meeting was held m New Plymouth recently of all motorists interested in the formation of a company, known as the Associated Motorists Petrol Company, Ltd., the chief object of which is the supplying to shareholders in the company of petrol at a cheaper price than that for which it can be bought at the present time in New Zealand. There was an attendance of about 50 persons, over which Air. F. Amcore presided. Mr. AY. O’Callaghan (Hawera), one of the directors of tlie company, in introducing the subject said tlie idea of the promoters of the company was that of getting cheaper petrol in New Zealand. If petrol could be bought in England for Is 44d he did not see why it should be any dearer in this country. There was only a fraction of a penny difference in the tax between the two countries. The idea was that members of the various automobile associations should become shareholders in the company and obtain their petrol supplies through the company. The associations were not going to market the petrol, but thee* were assisting the movement. It jvould mean that every man who subscribed and became a shareholder would get a dividend every time he went to a petrol pump, in the form of cheaper petrol. It was the general opinion that petrol was too dear in this country.

Air. W. G. AYalkley (Hawera), organising broker to the company, then outlined some of the details of the proposals. He said the matter had been in the minds of some motorists Tor a long time, because they considered the price of petrol in this country was too high. He also emphasised the tact that the automobile associations were not running the company, but they were supporting it, and several of them were behind the movement and some of them were actually shareholders.

Continuing, Mr. Wnlklev said it was the intention of the company to sell at 4kl on the. cost of petrol into the pumps of re-sellers. At present the price in New Plymouth was 2s 3d per gallon, and it was 2s Id in the cities. The company’s prices would be Is lQe and Is 7d respectively. They would sell only one grade, and that would be the first grade of spirit. It would be on sale all over the Dominion. It was not the intention of the company to put in pumps ; indeed, it was not the intention of the company to own any pumps at all, as they had found that re-sellers were prepared to carry supplies and provide the pumps.

Difficulties had arisen, but many of them had been foreseen and provided against. They had been told that the company would not be able to get supplies, but they were not worrying over that as supplies would be readily available. That provision had been made before the company went to registration, and within 48 hours of the registration of the company there were cables sent from independent refinery companies offering to supply the company with petrol, so that there was no danger of not having a continuous supply. The company also intended to use oil tankers for bringing the petrol to this company. The company was not out to right any other company, but merely to give its shareholders cheaper petrol, hut if other foreign corporations began to fight the company would be prepared to fight. Tt had not been intended to operate in towns like New Plymouth at the present time, but representations had been made in several centres and the result bad been very gratifying, and the speaker hoped the outcome of their visit to New Plvmouth would bo that many of the members of the Automobile Association would become shareholders in the company.

In the course of answering some questions Air. AVnlkloy said that the reason why the price was dearer in New Plymouth than in the chief centres, even though there was a harbour there and direct shipment, was that the method of distribution would have to be different. In the chief centres hulk containers would he erected and the distribution would bo by means of tank trucks, while in the smaller centres the supplies would be sent in drums. The estimated additional cost of bringing the petrol to New Plymouth was 3d. The capacity of the hulk installations they would have in the cities would he about four million gallons. If sufficient inducement was given, no doubt tanks would be erected at New Plymouth

In answer to another question as to why American supplies were beimr secured, Mr. Walkley said that at the present time Britain had no netrol to offer the company. If she had. the directors would not hesitate for half a minute.

Several other questions were asked as to the representation of ordinary and preference shareholders on the directorate, and some of the more domestic affairs of the company, and these were answered by Mr. Welklev as far as he could go without disclosing the actual plans of the directors

At the conclusion of the meeUncr A’" O’Callaghan thanked the Taranaki Automobile Association for convening the meeting for the representatives of the company, and the meeting passed a vote of thanks to, Alessrs O'Callaghan and AValkley for their explanation of the proposals.