Evening star., 1941-09-03
Gasoline
Continued From First Page.)

cents a gallon, whereas the cost In
tankers is only OATS cents a gallon.
The difference, however, Mr.. Pei
lev explained. is not as great as the
variance in the gasoline tax between
the District and Virginia. The local
tax in the District is 2 cents gal
lon. The Virginia tax is cents a
gallon.
Was Ready All While.
Senator Burton. Republican, of
Ohio was curious to know how long
the railroads have been ready to
meet the emergency in the East
coast oil situation.
Mr.. Pelley said he did not know
whether an emergency existed"
but declared:
I'VE have been ready to do this
all the while"
Surprised" at Statement.
Mr.. Pelley said he was surprised"
at one statement made by Mr.
Davies, the first witness to testify
before the committee last week
statement in which he said he
had continually invited the rail-
roads to submit information con-
cerning the number of idle tank
cars and it was difficult" for him to
understand their failure to do so.
Mr.. Davies told the committee
during his testimony: "A physical
thing such as a tank car, which
must be somewhere on railroad
track, ought not to be too hard to
find. Yet, when one pursues the
question of idle equipment with
railroad people, one finds tank car
to be one of the most elusive things
imaginable.
Yet, Mr.. Pelley said, checks made
by the Petroleum Institute in May
showed that 10000 surplus tank
cars were available, and copy of
its report was submitted to Mr..
Davies as well as Ralph Budd, COM
missioner of the division of trans
portation of the Office of Emer-
gency Management.
Many at Refineries.
Prom information previously
given you," said Mr.. Pelley, L am
afraid some confusion exists IN
some quarters as to just where
these surplus cars can be found
and I would like to clear up tnat
point"
Then he explained that at re-
fneries and other locations from
which petroleum is shipped there
is generally a system of railroad
sidines which are built and main
tanned for the exclusive purpose
| of storing surplus tank cars.
"We could only get occasional
checks from our f1eldmen about
surplus tank cars" he declared, be
cause there has not been much OF
a demand for this equipment and
as a result have not made detailed
! check at all of the loading points.
We could have procured this in
formation had any one indicated
1t was needed and in view OF this
I was surprised at Mr.. Davies STATE
| ment."
125,OOO Suitable for Petroleum.
As of aJnuary /, 194l, Mr.. Pelley
testified, there were 143,921 privately
owned and 9,734 railroad owned
tankcars suitable for the inter-
| change of freight service, or total
of 1865 cars. Of this total, he
said, about 125, 900 were suitable for
the transportation of petroleum and
it's products. About one-third of
these cars, he explained, are owned
by oil companies and the remaining
two thirds by private car leasing
companies. The cars that are owned
by the railroads, he pointed out, are
used largely for handling railroad
fuel oil and other railroad materials.
Mr.. Pelley said that by agreement
between the railroads and the pri-
vate car owners, the railroads pay
to the owner one and one-half cents
for each mile both loaded and
empty.
This agreed mileage rate" he
declared, ''is only slightly above
ownership costs. The difference be-
tween the rate paid for use of the
car and the actual costs of owner
ship is the margin of profit that
permits the tank car leasing COM
panies to continue in business"
Mr.. Pelley, in response to ques-
tions by Chairman Maloney, said
he had not seen Mr.. Davies since
June and at that time gave him
copy of the railroad associations
survey of the tank car situation
showing surplus equipment.
"At that time he (Mr. Davies was
told that we would be glad to CO.
operate in any way in furnishing in
formation or otherwise help in the
work he was to do" said Mr.. Pelley.
II have never had any request from
Mr.. Davies for any information.
Oil Executives Called.
when called on Mr.. Davies and
discussed the tank car situation he
made some reference to freight rates