The sun., 1918-07-18
PREMIUMS ON CRUDE
OIL RECOMMENDED
A. G. Bedford Advises Govern
ment to Pay Certain Sums
Above Posted Rate.
WOULD STABILIZE PRICE
Proposed Plan to Affect Ap.
palachian, Midcontinent
and Gulf Coast Fields.

Payment OF certain premiums above
the posted prices OF crude oil was rec
commended In plan for the stabilizing
OF prices in the Appalachian, Midconti-
nent and Gulf coast fields. submitted
last night to NJ. L. Requa. Director-Gen-
eral OF the oil division OF the National
Fuel Administration. by A. C. Bedford.
chairman of the national petroleum war
service committee. representing the oil
industry.
The plan. which Is to remain in force
until November 1. also Is intended to
assist the continuous and uninterrupted
flow Of oil through its present channels.
Although the committee extended its in
CURRY to the Rocky Mountain and Pacific
coast oil fields no recommendation will
be made for them at this time. Mr.. Bed
ford stated.
Repeated advances in crude oil prices
and the fact that tempting premiums
above posted rates were being offered to
producers met with a rebuke from the
oil division of the Fuel Administration
several weeks ago. 1t was declared that
the Government would look with dis
favor upon any attempt to further ad-
vance prices.
In an effort to evolve some system by
which the oil producer would be Justly
treated and the renner would be able
70 secure raw materials the National
Petroleum War Service Committee was
asked by Mr.. ReQua, in Letter dated
May IT. to give the question careful
consideration. This committee inves-
tigated conditions in the various fields
through the several advisory committees
on production and on refining and dis
tribution, and the plan outlined last
night Is the result Of these investiga-
tons.
OIL Industry Patriotic.
Mr.. Bedford, in his letter to Mr.. Requa,
expressed the belief that the oil industry
would conform periodically and 10y
ally to the recommendations" and sug-
gested that Mr.. Requa visit the mid-con-
tinent and Gulf coast fields and meet
personally the producers and refners
there.
This visit. Mr.. Bedford stated in his
Letter, should be made "in order that, be-
fore acting on the recommendations
there may be the fullest understanding
not only on the part Of the industry bu,
also on the part Of your department. OF
all the phases governing the situation
The committee recommended that the
large purchasing companies in the Appa-
lachian and mid-continent divisions con-
tlnue to purchase crude oil at the!r
posted market price and that all other
purchasers who now pay a premium be
hereafter permitted to pay a premium
which in the Appalachian district shall
not exceed ten cents barrel and in the
mid-continent field shall be as follows
For Gushing crude. a maximum prem
!um Of rs cents per barrel; for CARRIER
and all Billings crude. a maximum prem
ium OF 81; for Kay county crude. g
maximum premium OF 60 cents fol
Healdton crude. a maximum premium ci
30 cents.
For all other crudes for the whole
mid-continent division, including Kan
sas. Oklahoma and northern Texas. {
maximum premium not to exceed 2!
cents per barrel, would be permitted
with the strict understanding that In NJ
district in which premiums are beini
paid of less than 25 cents a barrel will
the OIL Administration permit the pay
ing Of a higher premium than is now II
effect.