Business: California Cut

Standard Oil Co. of California normally buys about 15% of its crude oil from independent producers, paying an average of $1 per bbl. Last week Standard of California cut its bids for this oil to 60¢ on some grades, 50¢ on others—first big price reduction in the industry since early in 1933. On the New York Stock Exchange oil shares promptly sagged. Immediate result of the price cut in California was to scuttle the voluntary proration committee which big producers had set up to police the industry....

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