Evening star., 1943-11-24
Truman Denounces
|CanoI Oil Venture.
As Bad Project
BY the Associated Press.


BY the Associated Press.
Chairman Truman of the SEN
ate War Investigating Committee
today denounced the War De-
partment's $780, ,000, 900 Canol oil
venture as bad project" which
the United States should not
have undertaken"
He told reporters he was unim-
pressed by testimony from Under
secretary of War Patterson that the
development at White Horse, Can
ada, for the protection of Alaskan
defenses, was "a bold undertaking"
of which "the War Department is
proud"
1T cannot be utilized before the
spring of 1914" Senator Truman
said. Transportation costs of mov-
ing oil to the refinery do not justify
the use of the manpower involved"
These objections, together with
the alleged failure to get an analy-
sis of obstacles In advance" he
added, made the project "indefen-
sible from any standpoint"
Route to Russia.
During committee hearing yes
terday Mr.. Patterson disclosed the
existence of an established and busy
air ferry route through Alaska over
which hundreds of combat airplanes
have been delivered to Russia
Relating the history Of the Canol
oil project, Mr.. Patterson cited the
fueling and servicing Of planes be-
ing flown to Russia as one Of the
factors influencing the decision to
undertake the development.
Mr.. Patterson's testimony was the
War Department. official answer to
complaints by Secretary of Interior
Ickes that the Army went ahead
with this oil venture without his
knowledge and as far as he was con-
cerned it ought to be junked now"
A War Production Board spokesman
had voiced the same complaint, and
the Budget Bureau also had ex-
pressed interest in the contracts.
Patterson Defends Deal.
"1n addition to defending Alaska
Mr.. Patterson said in his formal
statement, 1T was then (early l940
our plan, since consummated,~ to
ferry combat planes to Fairbanks,
there to be delivered to the Rus
slams for use against Germany on
THE Russian front.
"This is the short Arctic routs. to
Russia. The best available route for
planes from this country to Alaska
is to Edmonton, Alberta, and then
along a line of airfields through
White Horse to Fairbanks, and a
large number of planes have been
delivered to the Russians along this
route, and are still being delivered
in undiminishing numbers.
Our fighter planes, and to lesser
degree, our bombers and cargo ships,
require servicing en- route Emer-
gency landings required additional
service at intermediate points"
Operation Close Secret.
1t has been known in informed
quarters for months that planes
were being delivered to Russia over
the Canada Alaska route, roughly
|paralleling the Alaskan highway,
but few public hints have been per-
mitted.
The imposition of secrecy on the
operation has been generally at
tributed to the Russian government.
Mr.. Patterson, in a general dis
cussion of the Canol project, pro-
claimed it master stroke of mill
tary strategy.
In the face of barrage of criti-
cism from members of the commit
tee, who said the development was
undertaken without regard to Its
costs in manpower, materials and
shipping space and over the pro-
tests of oil experts, he clung to this
story:
"Canol was begun as q military
installation. We were not concerned
with its commercial use. We were
too busy staving off defeat"
"Cockeyed Investment"
Agreeing. in effect, with the COM
ment of his special assistant, James
H. Graham, that the project was
justified by military necessity, but
"as an economic proposition the
whole thing was cockeyed," Mr.. Pat
terson declared:
1T is not decisive to compare the
cost per barrel of petroleum products
delivered through Canol with. the
cost of products refined in the
United States and brought up by
tanker or flown up along the high
way by airplane."
Il grant that the cost will be
high" he continued. This was a
war measure. One might as well
criticize the cost of capturing the
Salerno bridgehead by stating the
land was worth only a few dollars
an acre"
Senator Truman took the position,
as did other members of the COM
mittee, that the project was under
taken after a one-day conference
with experts of the Imperial OIL Co.
of Canada on the basis of one
page memorandum Mr.. Graham
submitted to 1t. Gen. Brehon Som
ervell, chief of the Army's Service
Forces on the very next day.
Objections Discounted.
Committee Counsel Hugh Fulton
brought out that the Standard Oil
Co. of California had recommended
against the project because OF the
time required to develop the Nor
man oil fields, construct a pipeline
from Norman to White Horse and
transport a refinery to the latter
point from Texas. Mr.. Patterson
conceded there had been plenty of
objections" 1--WE are now disprov-
ing every one OF them," he declared.
Mr.. Fulton said present prospects
do not envision the supply OF more
than 497 barrels Of aviation gasoline
q day at the White Horse refinery
and asked "how much aid would
that be in defending Alaskan"