New-York tribune., 1918-06-30
Price of Crude Oil
Must Not Be Raised
Chairman Bedford Issues War
Committee Warning to
Petroleum Producers

The United States government is op.
posed to any further increase in the
price of crude oil, and so announced
about six weeks ago, but notwithstand-
ing the notification a few cases have
been reported Of additional premiums
being offered, and now it is stated BY
Thomas A. O'Donnell, representing the
fuel administration, that Federal au-
thorities are insistent that at the pres
ent time there shall be no increase in
the price of petroleum products. There
must be no bidding among refiners for
the existing supply of crude oil which
might cause a dislocation in the basis
Of production, and the government will
seriously object to any diversion of OIL
from present channels.
This was made known Yesterday
through an authorized statement from
Chairman A. c. Bedford, of the Fed
eral Petroleum War Service Commit
tee. He said: "The committee has for
two days been in session considering
methods of complying with the request
or Mr.. M. l.. Requa, director of the oil
DIVISION, fuel administration, that tho
petroleum industry work out some sys-
tenn of stabilizing the price of crude
oil. The special point was how to pre-
vent the payment competitively Of
premiums over and above the estab-
llshed price of crude in order to OBJ
tain preferential delivery.
I'm view of the fact that the point
at issue primarily involved the produc-
ton and distribution of petroleum in
the Kansas and Oklahoma fields, it was
decided to refer the various suggestions
made to the associations of retiners and
producers in that field with the request
that through their committees and
their associations an agreement he
reached upon plan which could be
recommended for adoption by the Ma
tlonal Petroleum War Service Commit
tee and put into effect with the sanc-
tion of Mr.. Requa. The associations
and committees in the Oklahoma and
Kansas City fields were requested 70
make their definite report back to the
National Petroleum War Service Com.
mittee on Friday, June 2S.,
"A representative of the fuel admins
lstratlon was IN attendance at the meet
ings of the National Petroleum War
Service Committee and the COMMITTEES
was requested by the fuel administra-
that the government would regard with
serious concern and disapproval any
further offerings of additional pre-
miums; in other words, that until def
mite plan of stabilization is worked
out there shall be no change in ths
scale of premiums now being paid.
"The fact is frankly recognized that
at the present time there is an excess
of refining capacity in the United States
over the current production of crude
oil. The National Petroleum War Ser
vice Committee. with The cordial CO.
operation of the oil division, is accord
ingly striving earnestly both to stimu-
late the maximum production OF crude
and at the same time insure to all re-
finers, both large and small, that their
supply of crude in relation to the quan.
tity available as whole shall not suf-
fer diminution.
leum War Service Committee is in its
cooperation with tho government In
dealing with this delicate problem seek
ing to develop the largest possible sup-
ply for the use of the nation and our
allies. as well as for the commercial
needs of the country, to act with the
fuel adm ;nistration in stabilizing prices
and to protect to the utmost the inter.
| ests Of both the large and small fac
tors IN the industry; in other words, to
preserve the industry In the highest
state of efficiency and prosperity. not
alone for the war itself, but for whats
ever opportunities and obligations the
after-war period may develop.
"To sum mp. the National Petroleum.
War Service Committee is carefully
considering the whole problem in con-
sultation with the government and
with the interests of both the nation
and the trade always in mind. Until
q solution Is worked out the COMMITTEES
is strongly Of the opinion that any diss
turbsnecs Of the present price bssis
would be contrary to every interest ina
yolved."