Evening star., 1929-04-21
BOOST IN OIL PRICE
WILL Be RESISTED
Motorists Declared Opposed
to Making Conservation
Excuse for Increase.

Car owners of the country, who an
nually spend over $4,000, 100000 for
gasoline and oil, favor a constructive
program to conserve the Nations oil
resources, but will be quick to resent
any move on the part of the industry
to create an artificial shortage, with the
purpose of raising prices to the con-
SumerS, according to bulletin issued
today by national headquarters Of the
American Automobile Association.
The A. A. A. statement was issued
under the signature of its president,
Thomas P. Henry of Detroit. Mr.. Henry
said that the national motoring body is
in whole-hearted accord with the pol
icy of President Hoover as far as the
oil resources of the public-owned do
main is concerned.
when it is considered" said the
A. A. A. president, that America has
only about 18 per cent of the worlds oil
resources and in 1928 produced 68.2 per
cent of the world production, it is time
to adopt some means Of assuring sup
ply for the future.
Artificial Shortage Opposed.
eff all elements of the oil industry
are sincere in the move to join Pres
ident Hoover in honest conservation OF
these resources there is little danger Of
unfavorable reaction on the part of the
consumers. If, on the other hand,
there develops any indication that the
oil interests intend to use conservation
as a cloak for the creation of an arti-
fetal shortage. the organized car own
ers, through their national and local
associations, will be found ready to do
battle"
Mr.. Henry cited figures for 1928 to
show that there was no unusual excess
in the gasoline supply, although there
was an overproduction Of crude Oil.
"As a matter of fact" he said. 'it
appeared that refinerS did not accumu-
late suficient supplies of gasoline dur
ing the Spring and were pushed to fill
orders in Midsummer" The statement
continued:
Gasoline production totaled 377,-
$4,000 barrels. or 1884 ,686,000 gal
Ions in 1928. which represents an in
crease over 1927 of IA per cent.
Causes Of Increase.
"This increase resulted both from in
creased runs to stills and from an in
crease in percentage of recovery OF
from 1916 per cent in 1927 to 41.3 per
cent in 1928. The increased yield OF
gasoline from crude oil was due partly
to increased cracking activity.
"The indicated domestic demand for
gasoline in 1928 amounted to 328,8S2,-
600 barrels, or 13,810,944, 900 gallons. an
increase over 1927 of II per cent.
"In view of this situation, 1t is quite
probable that the low point in stocks,
26,378, 900 barrels, or 1,107, $4,000 gall
Ions, on September 80. 1928. represented
only working stocks.
Moreover. figures for 1928 show that
the supply in storage varied from one
sufficient to meet Al days demand in
January to % days in August, the peak
Of the motoring season, when there Is
the greatest demand for motor fuels
and lubricants.
However, it Is natural to suppose
that If the oil industry succeeds in cur
failing the production of crude oil 1t
will naturally diminish the amount OF
gasoline.
"The car owners feel that they have
an unquestioned right to demand that
an adequate supply Of fuel be main.
tanned, based on consumption, and
that the move toward conservation not
be made a cloak to cover a boost in
price for gasoline and oils"