New-York tribune., 1918-01-24

mlnlStratOr relative to the con-
troll Of the petroleum industry is OBJ
tained, it is almost useless to speculate
as to what the effect will be on the oil
business. So far the announcement of
possible governmental control has
resulted only in anxiety as to what
It's purpose may be. AS rule the
members of the various branches of the
business are unable to figure out any
good that can come from change of
the present conditions attached to pro-
ducing, transporting and manufactur-
ing the article.
The fact that all the needs of the
country are being supplied, that the
government is furnished with all the
petroleum it uires-transportation
difficulties alone hampering its de-
livery-is sufficient answer to any
critics of the present system. When
every need can be filed as fast as the
government can furnish transportation
shipping, what more can be asked? The
Oil industry is not handling the rail-
roads or the shipping, and if there is
any shortage at any point, it cannot
be laid to the producers, the refiners
or the pipe lines. This being a fact that
can be proved, what good object would
be gained by governmental control? II
red tape is to be wound about the busi-
ness, it would prove an injury rather
than a benefit.
Government Investigates
Within five years there have been
several investigations of the oil bust
ness by government agencies. There
was the investigation Of the gasolcne
industry, caused by complaints from
consumers that they were paying too
high prices, and before it was con-
cluded the law of supply nd demand
1t had yet again advanced The findings
of the Federal Trade Commission wee
practically included in the statements
that the cost was due to the fuctuation
of the production of high grade Ectro-
leum, and the increased cost of certain
materials, such as sulphuric acid and
caustic soda There was no condemna-
tion of the oil industry in the report.
The pipe line transportation was also
investigated, and only minor changes
were suggested, and these were of
technical rather than practical nature.
An attempt was made to show that the
pipe line business was not extra haz
ardous, but this did not consider that
the laying of miles of line to wildcat
producing well-which in the end might
never pay the cost-was a venture.
since the pipe could be taken up and
used elsewhere-at a great expense.
In fact, the only real criticism was that
the common carrier law was not taken
advantage of by the producers to ship
their product-and so far as that WAS
old method. The conditions in the
Healdton field was also investigated at
the request of it's producers, who be-
licved that they should be paid higher
price for their OIL and the finding
showed that the article obtained there
was of an inferior quality. All the
government Investigations as to the
conduct of the oil industry have failed
to ind any reasonable charge against
tie efficiency of the business, any el-
cessive prices not due to local condi
tions, or unjust discrimination by pro-
ducer, pipe line, transporter or manu-
facturer, as to any other producer.
transporter or refner, or to the public.
Federal Control Not Expected
AS in four years of investigation the
government has found so little to con-
demn, and indirectly so much to COM
mend, the oil industry does not under
stand why there is any good reason for
taking the control of the business out
of the hands of those who developed it
and are "doing their bit" for the gov
ernment now and supplying all that is
asked of it at reasonable prices. There
fore, the oil men expect nothing more
than minor regulations of the industry.
They appreciate that the government
can give possible aid along certain lines.
The producing end Of the industry has
been hanpered for some eighteen
for drilling and equipping wells. The
shortage of labor has also entered into
the equation, but that is understood.
The difficulty of getting cables, Wire
rope, casing and machinery has prevent
ed more active work in the field. Re-
ports show that wells ready for the
drill shut down for months because of
the inability to obtain material. The
total Of these for all fields runs into
the hundreds, and as each one would be
followed by second and q third if
QulChly COIH HplCIcU, IL is II IulT eSClndCc
that one thousand more wells would
have been completed in the various
fields during 1917 under normal condi-
tions in the oil we'll supply business.
Many we'll completed could not be put
to pumping because of the inability to
get tubing, rods and pumping equip
ment. Slow railroad transportation and
shortage of material were responsible.
The effect of this on production can be
appreciated by the public, and yet with
all this handicap the producers brought
more oil to the surface IN 1917 than In
the previous year, thanks to the gusher
wells of Kansas and the Gulf Coast.
Census Now Being Taken
The Bureau of Mines is now taking
a census Of the oil we'll material in the
oil fields and at the supply houses, with
the object of ascertaining how much it
will be necessary to speed up produc-
ton of these articles. and also as to
-he ACCESSIBILITY 'of distributing it to
those regions where the best results
may be expected from Developments.
In this way the aid OF the government
would be valuable. If the Fuel Admin
lstrator can increase the supply of oil
we'll necessities he can stimulate pro-
ductlon, and that seems to be one of
the reasons stated for the appointment
OF MIR. Requa to study the needs of the
business. Such aid would be welcomed
by the oil men.
AS TO the distri button of oil to refin-
q RI f.,1