Evening star., 1941-09-10
0ne-Cent Gas Rise
Urged by MaIoneY
To End Shortage
Would Cover Added Roll
Cost, He Says; Pipeline
Spiked by S. P. A. B.
b. the Associated Press.

b. t0e ASsoClSleu EteSs.
Chairman Maloney of the special
Senate committee investigating the
Eastern gasoline and petroleum Sit
uation suggested today that price
increase of less than l cent gallon
would remedy all threats Of shortage.
Senator Maloney said such an
increase would cover the additional
cost of moving a large supply OF
petroleum overland by railroad tank
cars to more than Offset shortages
resulting from diversion OF Ameri-
can tanker ships to British service.
A few hours earlier the Supply
Priorities and ALLEGATIONS Board
had spiked a plan for immediate
construction of an 100000 pipe
line from Texas to the East Coast
a project advocated by Secretary
of the Interior Ickes and agreed
to by a number of large oil COM
panies.
Board Denies Priority.
The board simply refused to grant
priorities at the present time for
the steel needed to build the line.
Admiral Emory S. Land, chairman
of the Maritime Commission, has
contended repeatedly that the steel
was needed more for ships.
While the S. P. A. B. did not pass
on ultimate construction of the pipe
line, the decision apparently blocked
any chance that the line might be
completed by next spring, as orig
inally proposed.
Various factions of the old industry
expressed totally divergent views to-
day on the S. P. A. B. decision.
Some, in view of the growing short
age of gasoline stocks in the East
0ast week the American Petroleum
Institute reported that supplies there
dropped by $4,000 barrels, or 22.000.-
900 gallons, viewed the decision as
calamity. Others were delighted.
Still others called it "a political
gesture which may be reversed or
modified"
On one point. every one concerned
seems to agree: If many more
tankers are transferred to Great
Britain, the East definitely will run
short on petroleum products this
winter.
Rail Transport an Aid.
One ameliorating factor will be
TRANSPORTATION of oil and gasoline
by railroad. Prospects are that
virtually every tank car in the coun-
try will be pressed into service by
the end of next week, now that the
Interstate Commerce Commission
has approved a reduction of Is to
so per cent in tank car rates,
formerly six times as high as ocean
shipping costs.
The highest authentic estimate on
car supplies to date is that of J. j.
Pelley, president of the Association
of American Railroads, who said
there were 10000 idle tank cars in
the country.
Oil men generally state they believe
Pelley's estimate far too high on the
basis of what they themselves are
able to lay their hands on.
Ralph K. Davies, acting petroleum
co-ordinator, told the Senate In
vestigating Committee yesterday
that the pipe line should be built "as
matter OF national defense just as
vital as warships and planes" He
was recalled before the committee
today for cross-examination.
In his second appearance before
the committee yesterday. Mr.. Davies
insisted there was a serious threat
of insufficient gasoline and fuel oil
to get the populous Atlantic sea-
board area through the winter.
Curtailment Continues.
He said that the present curtail-
ment of supplies for service stations
and gasoline retailers should con-
tinue until spring and offered mass
of petroleum statistics to support
this and the proposed cross-country
petroleum pipe line.
Senator Maloney urged Mr.. Davies
to work out some formula so that
additional cost of railroad movement
of petroleum products could be
shared by the entire industry. The
witness said such a move was under
! consideration but he believed that
| the oil industry should actually
demonstrate increased costs before
| asking price increases
You may be right" Senator Ma
loney agreed, but urged that speed
was essential.