Evening star., 1941-09-12

INDUSTRY, DuG W
Ralph K. Davies, DAVID Lawrence
deputy petroleum administrator. II
has won substantial support in the
press in Texas.
The plan involves the immediate
purchase of gasoline and petroleum
products by the Federal Govern
ment at the refineries and the trans
portation of all these products by
tank car to the various naval, Army,
Marine Corps cantonments, ter
minals and supply depots and to
leased storage depots along the
Eastern seaboard.
This would Immediately make
available all tank car facilities and
would cut short all the red tape
and legal squabbles that might arise
concerning the fixing of prices by
oil executives who have once before
had their fingers burned by accept
ing what they thought was a gov
srnmental assurance of immunity
from antitrust prosecution when
they pooled their interests.
Cites Benefits.
Mr.. Hill in letter to the deputy
administrator, after presenting his
plan for lifting the Government
purchases out of the normal stream,
writes:
"It will completely safeguard and
prevent undue hardship to business
enterprises and consumers gener-
ally.
1T will eliminate the problem OF
anocating these excessive costs, If
any. through some impossible pri-
vate pooling arrangement which
would also doubtless be Illegal
1T will start the flow of gasoline
and petroleum products to the East
ern seaboard.
'It will enable the purchase OF
large quantities and the shipment
to fewer destinations of the gasoline
and petroleum products so pur-
chased.
THE purchases should include not
only the requirements of the Army,
Navy and Marine Corps and various
camps and cantonments, but also
such Federal uses as United States
postal requirements for trucks and
various types Of automotive mail
carriers and perhaps w. P. A., P.
w. A. and various other Federal
agencies.
Percentage Substantial.
when you calculate the total
volume OF such gasoline and other
petroleum products required for
national defense purchases and other
uses by Federal agencies, you are
dealing with a substantial percent
age of Eastern Seaboard require
ments that can be Immediately pro-
vided for without collaboration be-
tween or consultation with, OF the
consideration of ineQuities among
oil companies and business enter
prises and consumers generally.
at will make no problem whatso-
ever for the oil companies. 1t will
not increase the cost to any con-
sumers except the possible increase
of cost to the Federal Government.
which is justified in this national
emergency because of the saving of
time and the service of the national
defense.
This will tremendously simplify
the solution of the railroad rate
question because it will only have
to deal with one entity, to-Wit: Fed
eral Government, and because of
the large volume of traffic involved.
The railroads will doubtless be justi-
fed In making better adjustment
of rates with the Federal Govern
ment than with the entire industry.
Furthermore, an emergency rate
granted to the Federal Government
Is something that could be disposed
of readily after the passage of the
emergency, and can be dealt with
without any selfish interest being
involved"
Would Speed Solution.
The foregoing solution has the
advantage of cutting through all
possible delays. Up to now, the
problem has been, first, to mobilize
the tank cars; second, to arrange
for prompt loading and unloading
and third to obtain from the Inter-
state Commerce Commission ap-
proval of a freight rate that would
not be prohibitive in cost.
There also has been the question
of who was to pay for the increased
cost of tank car transportation and
whether an increase in price would
be permitted by the Leon Hender-
son unit in the Government.
The Hill plan meets every one OF
these contingencies and thus solves
the problem of gasoline shortage
which has been worrying the motor
lists on the Eastern seaboard. There
is plenty of gasoline and only a
temporary shortage of transporta-
ton facilities. BY pooling available
tank cars and handling the Gov
ernment's own gasoline purchases
by rail under q co-ordinated plan,
the American people can forget their
worries about a fuel scarcity this
winter.
Reproduction Rights Reserved)