Daily capital journal. (Salem, Oregon) 1903-1919, 1917-09-20
PETROLEUM SUPPLY
IS DECLARED SHORT
Country Now Using 100000
600 Barrels Says Stand
ard Oil Man

Atlantic City, N. j., Sept. 20.-Amer-
ic is producing 1926 900 barrels of
petroleum and is using 100000 bar.
rels annually-but reserve stocks will
give the nation a sufficient supply for
five years. President A. C. Bedford of
the Standard Oil company told the war
congress of the United States Chamber
of Commerce today.
But with such a reassuring predic-
ton, Bedford insisted that economy
must be practiced by automobile own
ers and other users of gasoline.
"There is not the slightest danger
of their being a deficiency either of
crude or refined products necessary for
the use of our government or for the
uses of the allies in the conduct of the
war; the Standard Oil head declared.
"Ameriea is producing and can produce
all that will be needed for these pur-
poses"
He outlined a plan of cooperation
with the government which would give
war uses first call ON the oil supply;
keep oil prices from governmental fix
alton because they are now stable; only
fix oil prices if a RUNAWAY market
develops; start a campaign of education
of automobile users to obtain q maxi
mum of usefulness from cars at min
imum consumption of gasoline; and af-
fering of every possible inducement to
producers to seek new oil supply sources.
Bedford insisted ''plenty of oil still
was concealed under the earth" and
urged governmental aid in locating
| 41,ana rar f,o11a Eop fba I.,bo1n Ill -,
dustry he pledged answering and com
plete cooperation at all costs, to the
government and its most efficient prose
eution of the war.
The speaker detailed at length the
manifold uses of gasoline and oil in
the war and the supreme Importance of
affording the allies unlimited supplies.
He said the trade has responded to the
appeals of the petroleum committee of
the National Defense Council and thru
them the distribution had already been
begun.
Bedford explained how the govern
ment IS demands for gasoline and oils
had been met by practically all pro
ducers.
"The question of price," he said,
F'has not yet been determined by the
government. We are all interested in
price, of course, but we have conf
dence in the fairness and broad minded.
Eess with witch this question will be
met by the government and our acts
have been in accordance with our
faith
Bedford explained the heavy cost of
developing oil properties and the un
certainty of continued supply and urg-
ed that the price be kept attractive for
this reason.
"The law of supply and demand, with
reference to this great field, involving
the use of the automobile in our daily
lives, should be given reasonable oppor-
tunity to operate" he said.
"The petroleum industry is not, so
far as prices 90, ON a wal basis. | mean
that prices are reasonable and fair and
no undue advantage has been taken be-
cause of tither the extraordinary de-
mands due to war conditions or in
creased costs or Of shortage Of crude.
Prices have not materially advanced
during the present year in spite of in
creasing costs due to increase in wages
and high costs of material, and l be-
lieve the trade generally will maintain
that position, making only such adj
vances in the prices of their products
as may be necessary to meet increases
in costs of manufacture or material or
OIL"
Bedford argued against any step
which might in any measure hamper the
automobile industry.