The Washington times., 1921-07-02
GOVERNMENT OIL
RESERVES IN Peril
BY TARIFF LOBBY
Hapgood Predicts Big Fight In
Congress- Over Transfer to
Largest Corporation"
By NOnMAN HAPGOOD.

Oi comes somewhere near beinB
the GENRE OF diplomacy In the world
today. But not all the issues have
to do with the distribution Of oil as
between one nation and another. An
aspect of II that calls for atten-
ton is whether what oil has been
under the control OF the Govern
ment. for the Government use should
lie handed over TO certain large
and, able, but private concern.
Plans 10 perform this manoeuvre
are now being carried along In
Washington with good deal Of
eclat. They will come to a success
ful- conclusion unless the public out
cry promises to be such as can be
heard for a considerable distance.
However, there are difficulties
ahead In the way of those who be-
iieve that what little oil the Govern
ment controls should be turned,
directly or covertly, over to private
interests. One test case will be
brought sharply to public attention
soon. do not feel at liberty to dis
cuss II, but IL will be an entering
wedge Of far-reaching Importance.
NAVY OIL IN PERIL.
Another case. however, am free to
discuss, and IT brings up the same
question Of whether all Government
oil should be given away. A Tight TO
protect the naval oil reserves has
been going on for more than fifteen
years.
Roosevelt started the movement.
After the Ballinger row, and the col
lapse OF the attempt to return to spe-
cial privilege. the Taft Administers
ton carried along the Roosevelt
policy. Large areas of oil lands were
Withdrawn for navy purposes.
In the Wilson Administration there
was sharp controversy on the sub
3ect. The side represented by Secre-
tary Daniels and Attorney General
Gregory won. Defeated in the depart
ments, the oil interests tried to reach
the same result by legislation. They
possess In Washington. and have pos
sessed for number of years, one OF
the grandest Hobbies ever seen in this
town.
On their list can be found former
Senators, former Congressman. form
er governors, and II can be whispered
that the former Cabinet world is no
longer unrepresented. If Congress
decides to investigate Hobbies twill
find something I'm this field.
HONOLULU CASE REOPENED.
The Honolulu oil case has been re-
IS eIcd by Secretary Fall. This step
comes on top OF the transfer. to the
Interior Department, by Secretary
De-sy, on re s>ommendation of the
rrecident of the naval oil reserves
located In California, Wyoming and
Utah.
The navy experts have always
wanted this oil stored in the ground
for future use by the navy. The
II .ss af iue "a "a
was to secure a supply of naval oil
fuel in preparation for the day when
all ships will burn oil.
The British do not sleep much In
these matters. The British admiralty
keeps its oil In the ground. Nature
makes pretty good storage tanks.
Here are two facts that must be
taken into account when we see oil
taken away from the Navy Depart
ment:
The Interior Department is set up
by its very law to dispose of re-
sources mot to protect them solely
for the navy.
The principal opposition, inside
the Government, to the naval re-
serves, beginning years back, has
come from the Interior Department.
CONGRESS FIGHT LOOMS.
A son OF President Roosevelt Is now
Assistant Secretary OF the Navy.
am convinced that he made the best
proptest he could against the transfer.
and he did succeed In pulling off
little victory. to the effsct that on
policy Questions the Navy Depart
ment must be consulted and must
give accord.
AS far as the conservation ideas of
the present heads of the two depsrt-
ments are concerned, there is no diff
ference of sympathy. They are in
general accord. Mr.. Denby sat on the
Ballinger committee and voted stead
lily for Ballinger, and Senator Fall
stood firmly on the same sode.
The case I have been describing is
not the one over which the contro-
Versy Is about to begin. That case
will concern the Interior Department
and one of the largest corporations
In the world. 1t will break out in
L.. a.