Evening star., 1941-09-24
Gas Investigation
Has Produced Results
Writer ReeopituIotes Findings
Of Fuel Shortage Inquiry
Which Did Not Score Public
BIZ Jack Stinnett.

By Jack Stinnett.
Wading through the confusing maze of
statements coming out of the so-called
oil shortage in the East one is bound
TO stumble over some significant con-
clusions:
l. This Is a continuation, If not cul-
mination, of the ancient fight between
the oil companies and the railroads
Railroad rates on petroleum products
were four to six times tanker and pipe
line rates. Amy company that had its
own pipelines or tankers was just that
much ahead in its delivered price-but,
any company that had pipeline or
feet of tankers was knocking the rail-
roads out of just that much business.
In Georgia, the railroads blocked two
interstate pipelines Zone of them for 18
months) by refusing to grant rights of
way across their rights of way until
President Roosevelt, invoking the Cole
Act. granted the pipeline companies
eminent domain on the theory that it
was in the best interests of national de-
fense to allow the pipeline companies to
condemn property for right of way.
The railroads claimed they had $4,000
to 10000 idle tank cars available. CThis
really was an equivalent figure" No
body has been willing to guess even the
actual number of idle tank cars, but the
railroads claimed that if all available
cars were put to best use, it would be
equivalent to putting that number of cars
on the rails.)
Not until September did the railroads
and oil companies get together to solve
the shortage problem. When, finally they
did, the rail firms agreed to cut rates on
crude and gasoline about 35 per cent.
2. There never really was any actual
shortage Of petroleum products-but
there did develop an alarming decline
land it could have grown greater If
something hadn't been done to stop IT.
in reserve stocks. If this decline had
been allowed to go on indefinitely, all the
dire results that the most pessimistic pre-
dicted could have come about
However, activities Of the petroleum
co-ordinator's Office by September had
Sue blilS VI IcScIfc SUOChS
from 353 200 barrels day to 174, 500 bar
relS day, with the virtual assurance
that barring something unforeseen 1t
would be eliminated entirely by spring
3. That if the II eastern seaboard
States and the District Of Columbia are
any criterion, the country can't be
stampeded into any hysteria by state
ments of politicians and business leaders
So apathetic was the public to the gas
oline conservation program that con-
sumption maintained its seasonal level
or increased throughout the campaign.
4. That We haven't heard the last of
this battle. Senator Francis Maloney's
investigation committee has promised to
reopen hearings any minute-even to
digging into "ulterior motives" If any,
behind this overblown bubble And that
particular attention will be paid to the
request Of Russell E. Singer, general
manager Of the American Automobile
Association, that investigation be made
Of motor, fuel price increases.
5. That even with all our fine high
ways, superb railroads and free water
ways, distribution (or transportation)
still is one Of our prime problems and
must be given equal consideration with
production and manufacture in the ma
tional defense setup.
6. That there's nothing like an inves-
tigation to start the ball rolling. Almost
everything that has been done to ale
viate the oil situation has been done
since the investigation started. This has
been skirmish between production and
distribution. Mr. Ickes and his boys
just happened to get caught in the
middle.