Evening star., 1941-09-05
Henderson Favors
Pipe Lines for Oil
In Case Of Attack
Eastern Seoboord Looks
To Tank Cars for Quick
Alienation of Shortage

~ the Associated Press.
Heavy construction of pipe lines
to carry petroleum products to the
East was advocated today by Leon
Henderson as the Seaboard States
looked to rail transportation for a
quick, if temporary, solution of the
oil and gasoline problems.
You can't sink a pipe line" said
the chief of Price Administration
in testifying before Senate COM
mittee that if this country ever
should be attacked, pipe lines would
be hole cards" backing up the GUS
tomary transportation by tankerS.
The hope that the Eastern emer-
gency might soon be alleviated was
based on a pledge by oil industry
Representatives last night to use
every available railroad tank car at
once to move oil from the West,
SpokeSmen for the railroads said
this could eliminate oil shortages
within two weeks.
When the Senate committee re-
sumed its investigation this morn
ing, Chairman Maloney criticized
the oil companies for failing to make
use of idle tank cars to alleviate
the situation until after the con-
greSSional inquiry had started.
Witness Admits Delay.
Senator Maloney, Democrat, of
Connecticut disclosed his diSpleaSure
as the committee questioned c. F.
DoWd, traffic manager of the ASSo-
ciated Tidewater Oil Companies of
New York and chairman of a sub
committee on tank cars appointed
by Petroleum Co-ordinator Ickes.
Mr.. Dowd admitted no steps had
been taken until about 10 days ago
to work on the tank car problem.
Was that the result Of this in
vestigation?" asked Chairman Ma
loney.
L have no comment to make
on that" he replied. Il don't
know"
~ What is disturbing me at the
moment" remarked Senator Ma
loney. lis that you waited so many
months to do it,"
Curtailment Safeguard.
In his testimony later Mr.. Hen
derson told the Senators that tank
GERS moving from the Gulf to the
East Coast might require a large
and expensive convoy system. He
added:
: Demands upon railroad traffic
due to the. curtailment of inter-
coastal shipping and other move
ments would be almost unbeliev-
able"
I Mr.. Henderson said his Office
would give favorable consideration"
to increasing the prices of petroleum
products if large-scale movements
were necessary at materially higher
costs.
The new Supply Priorities and
ALLEGATIONS Board. he said. will pass
soon on the question of steel prior
tiles for the proposed crude oil pipe
line from the Gulf area to the East.
The price administrator testified
that the order curtailing supplies of
gasoline to retailers in the East was
a safeguard against possible greater
shortages next winter. s.
Even though the figures show
that we might just get by" he said.
II consider it sound business judg-
ment to build up additional stocks
against possible crisis which might
occur in December, might not hit
until February or might not hit at
all.
The current 10 per cent curtail-
ment in the use of gasoline should
increase our storage stocks substan-
tally as contrasted with the
amounts which would be on hand if
gasoline had not been restricted. I
have been asked whether greater
reduction in the use of gasoline will
be necessary. I could make a fairly
informed guess that a 10 per cent
or IS per cent curtailment is all that
Is likely now, but we all should
realize that it is a guess made in
the face of rapidly changing situa-
ton both locally and internation-
ally"