The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-15
GAS COMPANIES FIND
IT HARD TO GET OIL
Unable to Make Contracts
Longer Than Three Months
Ahead.
WINTER OUTLOOK is DARK
Oil Men Say There Is Plenty
if Gas Concerns Will Pay
the Price.
WINTER OUTLOOK is DARK

Gas oil. used In the manufacture OF
| gas. Is extremely difficult to obtain at
the present time, representatives of sew
eral Eastern gas companies declared at
conference held yesterday in this city.
The gas companies representatives de-
clared. were unable to make contracts
for oil periods of over three months, and
| Unless the present situation is quickly
| relieved. 1t Is likely some cities of the
East will face winter without gas.
The conference, which was attended
Representatives of the country's biggest
gas companies and oil producing and
refining interests and held at the head
I quarters Of the American Petroleum In
stitute. 10 West Forty fourth street, was
called for the purpose OF attempting to
obtain a solution that will relieve the
SITUATION. Phillip H Gadsen vice-presi-
! dent of the United Gas Improvement
Company of Philadelphia A. p Lathrop
president Of the American Light and
Traction Company of New York. and W.
r. Addicks of the Consolidated Gas Com
pany. represented the gas interests. R.
l.. WEIGH secretary of the American
Petroleum Institute, spoke for the oil
interests. and presented the major por-
fton OF the statistics given at the session.
Gas Men Want Relief.
Mr.. Gadsen said that the gas men
represented over 10000. 900 gas consum-
ers of the United States and that imme-
date relief of the oil shortage must be
secured. He said the use Of gas for
cooking and heating purposes had in
creased greatly during the last five years
and that gas in the cities Of New York,
Philadelphia and Chicago was as essen
tial as food
1T Is impossible for gas companies of
the East to obtain large supplies of gas
oil" said Mr.. Gadsen. land the situation
is rapidly becoming acute. I can recite
case Of company in Philadelphia
where 1t was impossible for contract
for oil to be renewed for a longer period
than three months. The company's con-
tract will expire in the middle of Feb
ruary. during which month gas is
greatly needed. There Is no Immediate
relief for the coming situation in sight"
Mr.. WEIGH IN presenting the side for
the oil interests stated there was plenty
Of gas oil. but that the gas men were
unwilling to purchase 1t from the open
market. He declared that in the early
days Of the gas business the companies
had been favored with oil, but since the
advent of automobiles there has been a
greater demand for oil and that COM
petition had become intensely keen. To
substantiate his statement that there
was plenty Of oil. Mr.. WEIGH presented
statistics which he had compiled.
Production Greatly Increased.
THE production of oil has greatly in
creased In the last year." Mr.. WEIGH
said although there has been a revolu-
ton in the Industry This has been brought
about by the great demand for gasolene.
and has resulted in keener competition
on the market. There need be little
worry about the oil supply If the COM
panies are willing to pay the prices
which l believe are just. II an industry
can supply a deDand for a commodity
throughout a war and greatly Increase
its production following the conflict there
never need to be any worry Of col
lapse"
Statistics produced during the confer
ence showed that the demand for oil
during the last three years had increased
s7s per cent, while only II per cent.
marked the increase in supply.
The automobile industry Is the cause
of the shortage OF OIL gas men declared,
and they desired that the supply to that
industry be curbed. declaring it to be
luxury. while the gas stove was an essen
tial They suggested ALLEGATIONS of oil,
but were informed by petroleum repre-
scntatives that such products are sold
in an open market. while prices are gov
erned by the fundamental economic law
of supply and demand
The gas men, however, feared they
would be unable to obtain sufficient sup
files Of gas oil at any price and were
free to say that the outlook this winter
is a gloomy one.