Evening star., 1941-09-11

uHu COuHLTCiulWS OF shortage
plus Development of quota system
for dealers prompted inpesttgd-
ton by Senate Commerce Com
nittee.
5y the Associated Press.
A special Senate investigating
reported today there was
no actual shortage of gasoline or
other petroleum products in the
East and recommended immediate
removal of existing restrictions.
Accusing Secretary of Interior
Ickes, defense petroleum Coz
and his aides of "over-
in creating "unneces-
sary alarm" among the public, the
special committee said, the short
age, as We see it, is a shortage Of
surplus-and not a shortage Of
products or lack of facilities to
transport them"
Chairman Maloney, in presenting
the finding to the Senate, cautioned
that it was preliminary. He added
that the fact-finding group would
resume public hearings whenever it
found them necessary.
The group began hearings Aug
ust % after Secretary Ickes and
Ralph K. Davies, deputy co-ordi-
nator, had issued a series of public
warnings about gasoline and oil
shortages along the populous At
lantic Coast. Filling stations and
other retail outlets were ordered to
close from pm. to 7 am, and
supplies to retail outlets were cut
10 per cent below July deliveries.
Restrictions Lifting Asked.
With proper conservation motor
lists should find 1t possible to ac-
quire the gasoline and oil products
which they need Senator Maloney
told the Senate. I'VE believe that
present restrictions should be lift
ed and that the public, with clear
er understanding of conditions,
would cooperate in carrying out an
effective program of conservation.
The committee said mild form
of hysteria spread among small re-
tailers and anger and confusion, and
uncertainty, were in evidence" as a
result Of warnings about the assert.
ed shortage of gasoline, home-
burning oil, industrial oil and other
petroleum products"
Committee members were reported
as completely satisfied, from the
beginning, that there was no short
age of petroleum products. The COM
mittee quickly concluded that the
issue boiled down to the question of
locating enough transportation IA
cilities for the carrying Of oil to
what is known in the co-ordinator's
Office as Region No. /, and what
might more easily be recognized as
the Atlantic States area"
No Transportation Shortage.
Finding there was mo shortage Of
transportation facilities" to bring
gasoline and oil to the East, the
committee said this was based on
testimony about available railroad
tank cars by John j. Pelley, presi-
dent of the Association of American
Railroads, and Ralph Budd, defense
transportation adviser.
The group said it had not ex-
plored numerous charges that the
reported shortage had been stressed
to build support for cross-country
petroleum pipeline projects, or sim
liar charges, but that these matters
might have attention later.
Our conclusions may best be
summed up" the report said. "by
stating that there is not a shortage
of petroleum products-nor a short
age. as Of this date, of transportation
facilities-but that the whole fright
ening picture, from the standpoint of
the co-ordinator's office, seems to lie
In the fact that the shortage, which
has excited the activity of the CO.
ordinator, is really shortage in
large surplus which is desired"
The report recommended IAN i'm
mediate increase in the use of tank
cars, constant increase in facili-
ties through the continuing con-
struction of tankers, much help
through the improved use of pipe
lines now in operation and under
construction, the more extensive use
of highway oil-carrying motor trucks,
and the probable construction of
barges; and at the same time an
increased efficiency in the use of all
forms of transportation in this in
duStry."
No "War Scare" Attempted.
The group fatty stated that the
shortage situation was not mag
nif1ed by a desire to create a war
scarce" but noted mistakes in
many places"
The Senate investigation was said
in the report to have cleared away
many of these errors and to have
speeded cooperation among vari-
GUS interested parties.
All members of the committee
Senators Maloney, Radcliffe, Demo-
crat, of Maryland; ODaniel, Demo-
crat, of Texas; Barbour. Repub-
lican, of New Jersey, and Burton,
Republican, of Ohio signed the re-
port.
Before release of the report, Sem
ator Maloney had said that al
though the petroleum shortage
has been ''magnifed," conserva-
ton is necessary to build up reserve
supplies for defense and that he
favors construction of a pipe line
from the Gulf to the Atlantic sea-
board.
The Senator said construction
of vast pipe line from the Gulf
to the East would assure steady
supplies of crude oil. And, he added,
you can't sink pipeline and you
can't give it away" Apparently he
referred to transfer of more than so
oil tankers to Britain, which Pc
troleum authorities say has caused
the Eastern shortage.
The Senate committees hearings