Imperial Valley press., 1942-08-07
CAPITAL TALKS
by
Peter
Edison

The coming. almost inevitable
crisis in fuel oil for the II eastern
seaboard states. is going to make
all past crisis on price control, wage
control. gas rationing. sugar ration
ing and synthetic rubber production
look like Sunday school plcnics.
This may sound like a lot of alarm
ist spreading of the old confusion,
but it can probably be traced back
to the one fundamental difficulty
experienced with every phase of
the war effort that has gone wrong
too many conflicting agencies try
ing to run things, too much division
OF authority. In a town so full OF
co-ordinatorS and liaison officers
that they're easier to count your
self to sleep with than sheep, there
is no one in clear, undisputed con-
troll of this fuel oil problem, SO the
prospects are excellent that this,
like every other administrative con-
fliet, will eventually have to be
rolled back to the President for
solution.
Currently, five government
agencies have their fingers in
the fuel oil barrel, not counting
the Army, the Navy and the lend
lease administration who have
first call on all petroleum pro-
duets.
First is the War Production Board
Donald Nelson & Co.-whlch Is
supposed to issue directives TO other
! agencies, telling them what to 90
about any given shortage or crltl-
cal material.
Second is the Office OF Price Al
ministration - Leon Henderson &
Co-which has the power not only
to set the price on fuel oil, but also
/ to ration it.
Third is the Office of Defense
portation-Joseph B. Eastman
& Co-charged with moving fuel
oil as we'll as everything else when
and where it is needed, to the best
of its ability.
UNCLE JESSE, TOO
Fourth Is the Defense Supplies
Corporation IN the Reconstruction
Finance Setup-Uncle Jesse Jones
& Co. This is the only outfit with
any money and therefore the only
one that can consider paying subsi-
dies to oil dealers to reimburse them
for losses incurred when they nave
TO nav higher transportation costs
to get oil by rail into the eastern
seaboard area so as TO sell 1t below
maximum prices set by the ONCE
of Price Administration.
Fifth and finally there is the
Office of the Petroleum CO-Ordi-
nator for War-HarOld l. Ickes
g. CO.-which controls production
of all petroleum products. Thru
its decree that no fuel oil can be
sold TO consumers in the eastern
seaboard area between Aug. and
Sept. Is, OPC has actually taken
over control of distribution,
though that would seem to be the
function of OPA.
Actually, the conflict between
these agencies runs much deeper
than that.
OPC wants to build a pipeline
from the continent fields 10 the
eastern seaboard. instead OF just as
far as Salem, III. WPB says the
steel can't be spared and won I
allocate 1t.
OPA is ready and willing to ra-
ton fuel oil any tine WIPE tells 1t
to. but OPC is against ratohlng'
although Co-ordinator Ickes de-
clares that even if every bus, truck
taxicab and passenger car IN the
eastern seaboard were taken OIL the
highways for the entire monthS ol
January and February, existing 1uel
oil transportation facilities sui
could not meet the normal require
ments of the 100000 dwellings, III
this area. heated by fuel OILS.
MORE RATIONING
OPA leans to the idea that the
middle west. east of the Mississippi
river at least, should be rationeO
on gasoline and fuel oil so as 10
share their supply with the StrlcKei
oaoboord states but OPC is against
this.
OPA wanted to permit the east
ern states oil dealers to raise their
prices on petroleum products
couple of cents gallon To make
up for the higher transportation
costs, but the southeastern states
conyressmen made loud noises o.
objection.
The next step therefore had to be
to ask RFC to pay subsidy TO the
dealers in the east, TO compensate
for this freight differential
In the midst of all this conlu
sion. pulling and hauling, your Ole
friend Joe Public of down east
left shiyering. A congressional SUD
committee under Rep. William j
Fitzgerald of Norwich, Conn Is IN
yestigating this fuel oil mess but SC
far it hasn't even got it's hands oirty
and it is doubtful if the committee
is able or strong enough 10 get The
furnaces converted to coal and the
fuel tanks filled for the million
dwellings that can't convert 10 coal 10