The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-08-06
NAvYSAVES
MILLIONS IN
OIL Buying
Wins Great Victory in War
on Profiteers: It's First
Low-Price Wedge

SANS navy has declared war on oil
profteers.
Thru a contract recently closed by
the department with the Cochrane.
Harper Co. Of Boston. the govern.
mont, for the FIRST time. will be put
In possession of every detail IN the
cost OF producing gasoline and fuel
oil and OF secret processes followed
In oil refining.
With this information. the navy
and the government viii possess In.
dixputahle data as TO what should be
= proper cost for both oil and easo.
Iins and win no longer be at tho
mercy Of greedy oil interests
m LEARN WHY
COSTS 60 UP
ONE YEAR AGO. special navy
grade fuel oil cost the government.
delivered at Port Arthur. Tex. IS
cents per barrel.
TODAY. the same oil. delivered at
the same port. costs the navy--and
therefore the puhlie-ss.sS per barrel
Gasoline for navy use. which was
put on the docks at Galveston in
tank wagons and drums NJ ~ cents
= gallon hast year. costs IS cents on
the same docks and In the same con.
tainers today.
Secretary Daniels and Rear Ad.
mtrai Samuel MCGOWAN. chief Of the
nAvy's bureau OF supplies. like 20
know WHY prices 20 up. They
hike 10 know HOW things are made.
II was this inauisisivcness that led
Daniels 20 establish navy powder
plant which demonstrated the gov
eminent was paying more than 100
PER cent profit on smokeicss powder
bought from the powder ''trust." The
name tnQuisitiveneSs developed that
tho navy was paying double a proper
cost for arsnor plate. The resulting
savings on powder and armor plate
have amounted to hundreds OF mill
hons.
So Daniels and MCGOWAN decided
TO find out just the why and WHERE
fore OF increasing fuel oil and gaso-
line costs.
On . request for bids on 5000. 900
barrels Of fuel oil. made In March.
only bids covering $4,000 barrels
we're received and at prices from
sass to S4..o. depending on points Of
delivery. All were rejected and new
proposals sought
This time the Cochrane-H Harper
Co. Of Boston. came thru with an of.
fer on 100000 barrels. the fun ca
pacity Of their plant. II was propos-
I'd that the company supply the fun
amount of gasoline derived as a by.
product In refining the fuel oil.
Negotiations led to a contract
which gives the department It's first
zeal wedge Into the oil industry.
This contract specifies that the
company shaai instruct specially de.
tHiIed naval officers 10 every. detail
~ fuel oil SafxasoIIne daanrfacture.
In this why, for the first time. cx-
oct and accurate knowledge Of the
cost Of fuel oil and gasoline manu-.
facture WIN be put In the hands OF
the government
HIGHEST GASOLINE
At - CENTS
In producing these 1000. 900 bar.
rels OF fuel oil. u iS estimated Is.-21-
go gallons Of gasoline win be OBJ
tanned. of which s.s00. 900 gallons will
BE- ordinary motor gasoline. at 20
cents a gallon. ana -7.s9..ooo gallons
high-test gas al 20 cents. This as
against Is cents now being paid. !.
but the navy needs less than g.
ooo. 900 gallons. So II will sell TO-.
COO. 900 to other government depart.
ments at cost
Having nailed down the major part
of Its fuel oil requirements. and
having secured an option on the pro
ducts Of an additional 1000. 900 bar.
Yels Of crude on similar terms. the
navy was in position 10 talk turkey
TO other oil concerns which had main
tanned prices sky-high.
Results: Standard Of New Jersey,
Standard OF Louisiana and Texas Co.
accepted contracts to supply the g.
100000 additional barrels of fuel oil
necessary TO make up the navy's an
nual requirements. at prices from 30
to rs cents under their previous bids.
On gasoline alone. the cochranc-
Harper deal nets a saving Of 81 $50, !.
900 under the low bids received The
direct total saving. when the lower
costs Of gas to other departments Is
considered. probssbIy will exceed 81.
oO0. 900.
But the big gain IL In this: The
navy has large oil reserves OF its
own Under its latest contract, II
viii obtain the full manufacturing
secrets and cpzt data reeaaaa,vs fnr
opening up naval refinery Of It's
own. should the greed Of private oil
Interests make that desirable. II will
have, in the officers trained at the
Boston plant men qualified to take
charge OF such a government plant.