The sun., 1918-07-23
Bedford Urges Producers to
Stabilize Quotations for
Crude Product.
WANTS PREMIUMS ENDED
Saws Cars in U. s. Have In
creased 100000 or 40
Per Cent. in Year.
Specio, DespnteA TO THn sus.


sey and chairman Of the National Pc
troleum War Service COMMITTEES. urged
the oil producers and refiners OF the mid
continent field to-day to carry out the
plan Of tho war Service Committee Tor
the conservation OF the oil supply. The
men Of the oil industry met to consider
the recommendation which had como
from the Committee.
Mr.. Bedford urged the increase IN
crude oil production. the stabilixation or
prices for the crude product and the
prevention Of ruinous competition among
refiners, who have been bidding premium
prices for the crude oil until the ulti-
mate cost has been made dangerous to
the trade As a collateral Idea the STAN
dard Oil man insisted that there must
be no advance in prices.
Looked Ahead Two Years.
The address Of Mr.. Bedford. in part.
follows:
The war service committee looked
ahead. not one year, but two years. 1t
considered plans for the upbulding OF
our army and navy, the increase OF the
coast patrol. of submarine chasers and
Of the airplane fleet. and that great mer-
camille navy SO rapidly coming into be-
ing, many of whose ships will be oil
burners. It gave heed to the fuellins of
ships, to the demands Of motor truck
service at the front
AS a spexlfc instance OF how critical
this service Is at times. we read in the
dispatches from France that at the bat
tie of Chateau Thierry a complete sur
prise was effected through bringing up
to the front cannon and horses by motor
trucks, some Of the motor trucks carry
ing six and eight horses each. all within
the brief space of twenty-four hours. 1t
considered the fact that Great Britain
alone had 100000 motor lorries behind
the battle line. to say nothing OF what
America, France and Italy would have
for supplying their troops. Furthermore
the committee gave heed to the necessity
Of supplying more and more factories
with fuel and to the rapid growth OF the
automobile industry.
1.-THE oil committee. looking into the
future. could not see how. except with
the most rigid economy, the war and
peace demands could be met. 1t urged
economy In the use ofHoil products and
made suggestions to the users Of auto
mobiles as to how best to conserve the
sasolsne supply. This warning was
grave and emphatic.
THE oil committee did q second thing.
II appealed to the producers of oil to dig
esrease the supply Of crude. 1t called
upon refining companies to enlarge or
change their existing plants and refln-
ing methods to meet the special demands
for fuel oil.
"The quick patriotic mobilization Of
the oil industry had two results in the
course of the year. In answer to the
committees appeal and without waiting
to discuss prices. strenuous efforts were
made to increase the production OF crude
oil, and the producers. manufacturer
and pipe line companies. giving heed
only to the national necessity. took en-
erKetic steps regardless OF cost to meet
the emergencies.
Cars Increase 40 p. c. in Year.
1.-THE production of fuel oil also en-
tails the refining OF gasolene. While
tremendous amount of gasolene has been
turned out by the refneriss. 1t would
not have been enough to meet the de-
niands had not the users OF automobiles
responded to our urging and been saw
ing of gasolene, for in the last year the
number of cars in the United States has
increased from 3 100000 to 5.ooo,ooo-a
growth of over 40 per cent.
THAT growth alone, upon the basis OF
ordinary consumption, called Tor lo,-
100000 more barrels OF gasolene this
year than last. a just basis for urging
conservation OF gasolene.
ct think what / have said will make
clear to any fair minded man the inJus-
tice Of assertions that reports were cir
culated that the supply Of gasolene was
endangered fer the purpose of maintain
ing the high price Of that product and
heavy profits from It, charge that as
sails the Integrity OF the industry.
THE spirit OF the men in the oil In
dustry has made 1t possible to accom-
plish what has been done along the
easiest and most common sense lines
The petroleum business has been free OF
Government regulation. The oil men
having been put upon their honor. were
left alone to work out this problem OF
national service, and thus far they have
succeeded in doing It,
Thus far the oil industry has ac-
quilted itself magnificently. Thus far
prices have been kept down and produc-
ton and refining have increased. The
National Petroleum War Service Com
mittee has always maintained that there
must not be. and there cannot be. any
runaway prices. II has held that prices
for crude oil must be put Mt the point
that would encourage production and
still more production.
Premiums Source of Danger.
I'm the last few months a new ele.
ment OF danger has entered the oil stu
alton. II threatens the delicate balance
that thus far, in the face Of many dis
turbing factors. has been maintained.
refer to the premiums on crude oil.
These premiums have been steadily
growing. and they reached the poin
where unbridled competition threatens tc
undo much that had been accomplished
In the last year. The underlying reason
for premiums is clear. Speaking broadly
the supply OF crude oil in the United
States to-day is not quite equal to tn,
demand. There Is surplus of refining
capacity.
MANY refining companies have beer
content to pay the posted price for oil
in any field. taking the low gravity anC
the high gravity crude. Other refinin'
companies. however. eager to keep the
refneries going. have entered the field
and offered premiums for the best grad
OF crude petroleum. They have bee,
bidding up the price Of the best grade
OF oil by these premiums. and reducln,
their margin of profits. This process ha
been going on until the cost of refnln
has gradually approached the sellin
price OF the refined product.
1.-THE result that naturally threat
ems Is an increase in the selling pric
OF the refined product. Against an
increase In prices the members of tn
Petroleum War Service Commute
have carefully planned and de
terminedly fought. The situation ha
become more and more acute.
THE National Petroleum War Ser
vice Committee, advising and coopera,
Ing with Mr.. Requa. has for some tim
past had this subject under most care
full consideration. with view of soly
ing the prOblem. Aa the first sten