The Washington herald., 1918-07-29
U. S. CONTROL
REQUA'S PLAN
In OIL TRADE
Fuel Board May Take 1t
Over to Assure Allies
Supply.
@an4E rAfrS tn nV rkfTTryTYI
GASOLINE IS PLENTIFUL
Protection Of Independents
Promised if Government
Steps in.

Complete governmental supervision
and control of the oil industry from
the well to the consumer is fore
shadowed in a statement by Mark
L Requa, head Of the oil division
of the Fuel Administration.
The American production is esti-
mated at sz5,O0o.0co barrels of crude
oil by W. C. Robinson, head of the
conservation division. The allies re-
quirements are between s., 5,0O0, 900 and
creasing each day, with the increased
shipments of battle planes, scout
boats and motor trucks to the front.
whose motive power Is gasoline, and
the launching Of additional war and
carrier ships burning heavy crude.
The great Mexican output, 1900. 900
barrels a year, is not now available
as q dependable supply and the Rus
sian fields are in possession Of the
central powers. The allies look to
America for their oil and gas
Plenty of Gas.
There Is plenty of gas now, but
increased demand is so great that
any day may see the surplus reduc-
ed to a deficit.
When that happens a sharp cut
in fuel for nonessential industries
and pleasure purposes will come
on order from the Fuel Administra-
ton; in the meanwhile here is the
new proposition of Requa:
THE war cannot be won without
the products of petroleum.
/ The proposal is that stabilized
dinerentials be created as between
crude petroleum and finished pro-
ducts at the refinery and as be-
tween refinery prices and the price
to the ultimate consumer: that
these differentials be maintained
and move in unison with the price
Of crude; that IL necessary the VOL
ume of business be frozen AMI new
business equitably distributed; that
the old theory of competition give
way for the war period to n JudI-
tion of mutual helpfulness. in Re
half of the mutual welfare, and
that all these things be brought
about by the Voluntary action of
the industry in harmonious opera
tion with the Fuel ADMINISTRATOR"
Told to OIL Men.
1t was this proposition which he
carried to convention of oil men at
Tulsa, Oklahoma, recently, making
1t to them as a feeler to prepare them
Tor a formal proposition to come to
them later. Commenting on il and
the attitude of the industry, he said:
If any there be who are so lacking
In the spirit of the times as to build
up selfishly their own business at
the expense of others, regardless of
the larger view, l am sure we will
md some way to control their ac-
tivities"
The government is prepared to take
stern repressive measures to force
its new program. il necessary.
1T is obvious" he continued cha,
II a large proportion of the refining
Industry patriotically sets and OBJ
serves a reasonable standard of pre-
miums for crude, the government can
not permit other refiners to take that
crude at increased prices, to the in
jury and detriment of the patriotic
citizen.
May Mean Alteration.
1T has been intimated that any
interference with premiums upon
crude would tend to eliminate the
independent and tend to throw the
entire business into the hands of the
Standard and other great organiza-
tions. 1t is unthinkable to presume
that the government should take one
action that might prevent the refiner
from securing his crude, and not
take another action which would as
sure him his source of supply, per-
mitting him to continue his activi-
ties.
The quantity OF oil so provided
Is to be based upon some past vol
ume of business. keeping in mind
the paramount necessity to see to it
that our army and navy and the
armies and navies of our allies are
amply supplied.
This in effect may mean the allo-
cation of oil. which will be under
taken II necessary"