The sun., 1918-08-15
OIL COMMITTEE
URGED BY BEDFORD
Suggests Tribunal to Stabilize
Price Of Oil and Main
tain Supply.
HAS REQUA'S APPROVAL
Latter Says Premiums Will
Probably Re Needless IL
L. s. Control Comes.
HAS REQUA'S APPROVAL

A committee composed OF an equal
number OF producers and purcta sers
acting with three disinterested outsiders
was proposed yesterday by A. c, Bed
ford as an ideal tribunal to stabilize the
price OF crude oil and maintain Its con-
.tinuous flow for the term of the war.
Mr. Bedford, who Is chairman Of the
Standard oil Company Of New Jersey. Is
also chairman OF the National Petroleum
War Service Committee In state
ment yesterday he declared his plan had
been approved by the United States Fuel
Administration, and tina: It's purpose was
TO enable the industry and all con-
nected herewith TO settle all matters of
dispute and difference within their own
councils before burdening the oil di-
vision of the United States Fuel Admin
istration with their troubles"
Features of the Plan.
The fundamental features Of the plan
as outlined by It's author are:
That the large purchasing companies
the posted market price.
That all other purcha sers who now
pay "A premium for crude oil be per-
mitted hereafter to pay certain stated
premiums. substantially the same as
those now in effect.
That all contracts hereafter made for
the diversion OF crude oil from its exist
ing channels be first submitted to the
committee created within the trade as
suggested
TIE attitude of the Fuel Administra-
tlon toward the plan was expressed yes
terday in a letter to Mr.. Bedford. written
by NJ, L. Requa, Director General OF the
Administration oil division. The letter
was in part:
In expressing to you the approval OF
the Fuel Administration OF the effort OF
the industry to bring about the much de-
sired sterilization | believe that there
are certain factors which should point
out. so that there may be no misconcep-
ton on the part Of the industry as a
whole
Il want first to say that it is the un.
derstanding OF this department that the
premiums mentioned are to be maximum
and are not to be paid unless absolutely
necessary; are not to be used in justif-
cation for a demand for increased prices
for refined products, and that prices
above existing posted prices, IL justified
at all. can only be SO upon the score OF
existing trade practices making euct
premiums necessary to permit the small
purchaser to secure his crude oil.
Premiums Needless Under Plr,,.
"If Government control and direct or
finally follows as a national need pre-.
miums will. ! believe. be entirely wiped
out, as present posted prices are III
themselves ample to stimulate produc
ton.
Broadly speaking. it is the hope o.
the Fuel Administration oil division tina
further advances in finished product.
will not be necessary; but should Il
prove that this is not the case it mean.
that such proof must be carefully, com
pletely and accurately made and pre-
scented to this department before an,
acqutescence or approval can be expected
Il am assuming. therefore. that tn,
premiums mentioned will not necessaril,
be paid in all cases that they fairl,
represent premiums already established
and that they can be paid and a salts
factory proft realized without affecting
prices of finished products
Il have already pointed out to YOU,
committee that competition for crude
with resultant advances in prices would
not IN my judgment produce any add
tional quantity of crude oil, but woul,
on the other hand be In direct confiic.
with national welfare"