The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-08-11
NAVY MUST
OPEN OIL
RESERVES!
Fight With Companies or
Coast Hampers Operations
Of Pacific Fleet

PACIFIC COAST
NAVY pAy~ $50 . barre, for fuel
"a en- Atlantic srab~sris IN rNraue
& refusss 10 ny mere than sl.,s.
NnsAes p~tce On Pacific. sutrtnuus.
a.ox. AL other government dessars-
uneasa payteg this price n.
Navy csstr~is eA.oee srr~s 81 vi
ue~~1urlng lad In California. hut has
- ~ snpp~d this reserve
Navy has seiseul. under Lever act.
1no.oee gnlie~s VI eli. aad thsssAssns
- urtse morv
op~rsalsas II raeifs< f.e~s s.vsers-
y curssil~d. and sAsy fa~a storage
on csmrsns.s, ciaimins Financial
tonn b. cssnnsandcrsed oil, prvpAr>nx
s~is for es.ece.sos against govern
meat
The deadlock between the navy
ana the west coast oil concerns re.
eArding fucling OF the Pacific fleet.
already seriously hampered In Its op-
erAttons as . result OF the dispute.
With probably Indefinite continuance
- the situation. has faced the navy
with tho question as 10 how soon II
onn and must begin developing It's
own oil reserves In the west
Thesc reserves. withdrawn by Taft
= 1908. were provided for just such
: sltuation. which In its effects Is
ransnmcunt 70 fuel oil famine. for,
while there Is no actual oil shortage.
ne biz companies controlling tho
output have refused 10 supply the
Pacific fleet at what they claim to
! - financial loss. except under dur
-
OPERATING ON
UAY.TO-DAY MARGIN.
In the meantime the twelfth naval
1lstrict - operating on day'today
margin under the Lever act. which
permits the requisitioning Of oil for
Immediate emergencies only. while
Oh companies are preparing q -.
~. 900 suit against the government
Suspension OF operations on ship
4 bufiding At Mare Island cursatiment
o. Pacific cruising and practice
plans. have resulted. while war vcs-
sels Of al kinds are temporarily
tied up useless. In ports from Mex
leo to Canada
N such serious situation. Why Is
ne navy not making use Of Its g..
80 acres Of rich oil reserves
Because Il cannot. say naval off
eials- They point out that this land
hns thus far not been available for
operation BY the navy and win not
~ - until Aug. rs. this year.
When the California reserves we're
~ aside BY Prcsident Taft In 1909. .
e1AuDe was Inserted In the act pro
vi6lng that corporations and individ-
~ already on the land might re-
AIN there.
The famous suits By he govern
ment agnlnst the Southern Pacific
lefs he railroAd company In posses
oton Of alternate sections. with many
oeher suits SIN pending.
LEAKING ACT TIES
U NAVY RESERVES.
Under tho recently passed Land
Ieaslng oct compromise was
ronched by which companies already
/ Af1l1tng wells In the reserves were 10
~ allowed to retain them and suffi-
cent ACREAGE for operation. provided
- royalty to one-eighsh TO one-fourth
w1s poid the government
01x Wonths was allowed In which
- filo claims with the government.
4&is period does not expire until the
s1Wonty-fifth Of this month Until
ehen ths navy b unable to begin op-
egAtions on the reserves. even II IL
- - minded
In the meantime on must b -
euBe6 from private owners. either by
payment Of the market price or by
oetgro Of handtomouth quantities
. pesmit Pacific fleet operations
The navy. refusing 70 pay the
market price. has been seizing emer-
gency oil ratons-
The companies have submitted
Ids for = years supply at prices
ranging from S3.o3 barrel upward
the navy demands It at S1.72. al.
though paying 33.2s In the east. and
the companies have refused to accept
e1.7,. claiming that IT would mean
financial loss.
WON'T VOLUNTARILY
SUPPLY THE SHIPS.
They have issued fiat ,efi. stat.
ing they win not voluntarily supply
The ships unless their bid price In
paid.
That the navy Is contemplating
the operations Of It's reserves short
iy 10 Indicated In contract signed
with the Ccchrane-Harper company
Of Boston recently for fuel oil at
33.2s a barrel. The contract pro.
vides that the company train men
and officers OF the navy's selection
in the production and distribution OF
oil.