Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-01-16
Concentration of Oil
Problem Under Ickes
Proposed by Scott
Believes Transportation
Rotionine and Supply
Should Be Unified
BY NORMAN kAHL.


Concentration of the entire
petroleum problem in the hands
of Petroleum Administrator
Ickes and his Petroleum Indus
try Committee was proposed to-
day by Lester Scott, director of
the oil heating division of the
Merchants and Manufacturers
Association, in a letter to Chair
man Maloney of the special Sen
ate committee investigating fuel
oil and gasoline rationing prob
lens.
Mr.. Scott said he had been con-
WINGED for more than a year that the
solution to one of the East's most
pressing problems lay in giving Mr.
Ickes full control over all oil mat
ters, including supply, transporta
ton and rationing.
Under the present arrangement
the petroleum administrator for wal
governs supply. the Office of De
Tense Transportation is in charge
of movement of stocks and the Of
flee of Price Administration has
jurisdiction over rationing.
Would Bring Improvements.
In the absence of centralized con-
troll, Mr.. Scott recommended to the
Senate committee the adoption of
his previously announced proposal
to set up a special fuel oil commit
tee, comprising representatives OF
the Federal agencies involved and
of the industry. He said he be-
lieved the creation of such a board
would accomplish many improve
nents which apparently cannot be
accomplished under the present
Setup."
This committee would include rep
resentativeS of the Fuel Oil Ration
Division of the OPA. the Petroleum
Transport Division of the ODT, the
Marketing Division of the PAW, the
District rationing administration,
the Supply and Distribution Com
mtttee of the Petroleum Industry
Committee and the primary and
secondary suppliers and dealers of
this area.
Mr.. Scott expressed confidence
that such a group could arrive at
numerous sound and practical rec
concentrations"
Need Help of Dealers.
In connection with his recon-
mendation that a representative of
the city's rationing boards be a
member of the committee, Mr.. Scott
said it was important that the local
OPA Office gain the full co-opera-
ton of District dealers in handling
distribution and emergency deliv-
cries. He also urged that local
boards set up special panels to
handle quickly all appeals for ad-
1ustment Of rations and to take
care OF emergency cases.
The recommendations were sent
10 Senator Maloney at the request
Of members Of his committee, be-
fore which Mr.. Scott testified on
Wednesday. The oil representative
pointed out that his suggestions
might be applicable to other metro
oolitan areas having similar fuel
oil problems.
Meanwhile, fuel oil supplies here
continued to gain slightly. but
new barrier to distribution ap-
peared in the ALLEGATION system set
up by the PAW. Under this ar
rangement, suppliers are given a
quota each manth which repre-
sents a percentage of the oil they
brought into this area during the
corresponding month of the year
before.
Excess Oil May Be Sold.
Z One large primary supplier ex-
planned that it had already used
up its quota for January and that
u would be unable to distribute
more oil until February unless the
restrictions were lifted. In another
instance, jobber said he was I'M
able to obtain supplies from Balti-
more because he had already used
up his quota for the month.
Z 1t was pointed out however. that
any oil held in excess of the quota
amounts may be sold to other pri-
mary suppliers, even though it may
not be distributed to the oil COM
pany's own customers. Thus, a dis
tributor who has oil above the
amount he is allowed to distribute
70 his usual wholesalers and deal
ers, Is permitted to turn this oil
over to another supplier which has
not yet exceeded its quota, and this
oil may then be distributed among
dealers, who have enough coupons.
The allotments to the suppliers
are made each month by the Supply
and Distribution Committee on the
basis of the total quantity of oil
expected to be shipped into the area