The Washington herald., 1921-07-14
SAYS OIL TARIFF
WOULD ADD 5PER
CENT TO GAS Bills
Head of 5,490 Producers
Protests Schedule in
Fordney Law.
ny MARK SULLIVAN.

Gas bills will be increased per
cent to 46.0JO.0o0 users OF gas in
houses and apartments IL the pro-
posed tariff on crude oil is enacted
into law" was the statement of j.
b. Klumpp. of Philadelphia, chair
man of the oil committee. American
Gas Association. protesting against
the oil schedule in the Fordney bill
at a meeting in the willard Hotel
yesterday.
The American Gas Association"
said Mr.. Klumpp. which represents
5,4s0 producers of manufactured gas
in the United States. voices its op-
position to the imposition of tariff
on petroleum. Artificial gas COM
panies in the United States used
2s,0oo,0o0 barrels OF gas oil last
year in the manufacture of gas.
Since 1914 the cost of gas oil. the
petroleum product chiefly used, has
enormously increased. Less than a
year ago We were told by repre-
sentatives of the oil industry that
the. depletion OF the oil supply. OF
the country was assuming such
proportions as to threaten complete
exhaustion in SO far as the Ameri-
can grades OF oil used in gas manu-
facture were concerned.
DimeuIt to Get Contracts.
Several of the largest oil pro-
ducing companies notified gas COM
panies who had been their Gus
toners for many years that as
surance could not be given of a
continued supply of this essential
material and IL became extremely
difficult and in some cases impos-
sible for gas companies to nego-
tiate contract for gas oil even al
the prohibitive and unprecedented
prices that prevailed.
"A temporary condition OF over
production, together with what an
pears to be a temporary reduction
in the demand for gasoline, seems
to have induced those oil producers
directly affected to seek a tariff on
petroleum. Such a tariff would be
directly against the interest of the
manufactured gas industry and 70
per cent OF the $4,000. 900 people to
whom the product of that industry
is served, for not only would II
appreciably add to the cost of gas
service. but it would increase the
already serious difficulties which the
gas industry has experiences in
securing the necessary supplies of
gas OIL"
Would ndd to Building Cost.
Shortage of homes cannot be
overcome if greater cost burdens
are added to the building of ohuses
through tariff on crude oil, which
In turn is reflected In the cost Of
asphait, now the most widely used
roofing material in America" de-
clared Herbert Abraham, Chairman
OF the Technical Committee of the
Prepared Roofing Association. in a
letter presented to the meeting
During 1920 the total shipments of
asphalt for roofing purposes were
equivalent to 2.S37.500 square feet OF
roofing, and with an average OF -
600 square feet per dwelling. these
shipments are equivalent to roofing
internal for more than $500. O0o
homes" continued Mr.. Abraham
More than IS per cent of the as
phalt used in the roofing Industry
Is derived from Mexican petroleum.
and the result of this tariff would
be direct increase in the cost of
building" said Mr.. Abraham further
More than so per cent of all high
grade city pavements in the United
states are of asphalt" said ]. F.
Pennybacker. Secretary of the AS
phalt Association. New York. "Prac-
tically every type OF pavement in
CITY and country requires asphalt In
some form and the intensive use ~
the automobile renders dusties.
highways almost a necessity"
Affects Good Roads.
More than so per cent of the as
phalt used east of the Rocky Noun
tam states is derivet~from Mexican
Petroleum. continued Mr.. Penny.
backer. and as the Mid Continent
and Gulf Oils produce very little AZ.
phalt, the imposition of this tarfs
would practically throttle asphalt
paving in the United States or else
impose great cost burden. The
Federal Government has appropri-
ated s275, DO. 900 to aid In the build
ing of good roads, and has pending
In the Senate bill which has airedy
PISSED the House of Represe sentatiys
appropriating hundreds Of millions
Of dollars more 1t is Uncomfortable
that the Federal Government should
appropriate these millions for high
ways and then interpose a serious
obtacle for tshe carrying out Of the
good rod policy"
fA~--s-lk soos.