Evening star., 1943-01-10
.0PA Order bannino
Oil Sale Favoritism
Snar|s D. {. Dealers
Defects Officials Aim
Of Spreading Supply
Spokesman Asserts
BY NORMAN KAHL.

BY NORMAN KAHL.
The OPA order banning favorit.
ism in the sale of fuel oil, which was
obviously intended as a steadyine
influence on the fuel oil situation
here and throughout the East ap-
pears to have boomeranged, at least
in the District, with the result that
oil dealers and suppliers are nc
closer to solving the distribution
problem than they were a week
ago.
Primarily, the trouble still is in
adequate supplies Of oil coming to
this area with virtually no hope for
an increase during the current
heating season. This basic diff.
Guilty has steadily complicated the
problem of distribution, and it was
to assure greater spread of avail
able supplies that OPA Admins.
traitor Henderson issued his order
Friday night compelling dealers ano
suppliers to sell oil to anyone who
could provide coupons.
Actually, the result of this latest
OPA move, the dealers complain
has been to create new confusion
and potential inequities. The pri-
mary suppliers who furnish oil to
dealers here, it was reported, do not
understand the order. In at least
one Of its sections, they say, it is
in direct conflict with an earlier
rule issued by Petroleum Admins
traitor Ickes.
Some Dep0ts May Close.
So critical has the supply and dis
tribution situation become in the Dis
trict that at least four dealers were
reported yesterday to be ready to &c
out Of business. One small dealer,
with several hundred customers, had
planned to close his establishment
yesterday but was persuaded ito
fight" the situation, carrying his
difficulties into court if necessary.
1--WE have been out of oil for more
than a week." he said. I'VE were
just getting tired of answering tele-
phone calls to tell people that there
was nothing we could do to help
them"
Lester Scott, director of the OIL
heating division of the Merchants
and Manufacturers Association,
condemned the Henderson order as
one that would do more harm than
good" and charged the OPA with
trying to pass hot potato" to the
petroleum administrator for war and
the oil industry.
He declared that while the new
order was ostensibly issued to end
discrimination, both among con-
sumers and dealers, it would actually
create a condition where discrimi-
nation would be necessary to stay
within the OPA regulation. The
dealers themselves, he pointed out
were trying to distribute the avail
able supplies of oil as fairly as pos
sible by restricting the size of de-
liveries, thus spreading their sup
plies among greater number OF
customers.
Could Demand Excess Oil.
Under the new order, he said
any one who had the coupons could
demand that any dealer supply him
with ofl, even though that consumer
already had a reasonable supply In
his tank.
Mr.. Scott also maintained that a
consumer could insist on getting oil
in any quantity up to the limit OF
his valid coupons, even though this
meant other households would have
to go without oil altogether.
The six primary suppliers in the
metropolitan area had another
problem. The Henderson order pro-
vides that they must sell oil to any
wholesaler or dealer, within the
limits of that dealers coupons, not
withstanding any previous commit
ments or contractual obligation
with other dealers. Yet, under Or
der No. l of the petroleum admin.
istrator, suppliers must remain
within definite quotas prescribed fol
them each month and based on g
percentage of the oil they handled
during the same month in the pre-
vious year.
If more oil is brought into the
zone than is permitted under 8
supplier's quota, the distributor may
sell this oil only to other distribu-
tors-not to dealers. Furthermore
to spread their supplies equitably
among their dealers, the suppliers
may impose a general cut equal tc
that under which they are operat-
ing.
Dilemma Of Suppliers.
AS the representative of one large
oil company explained it yesterday
Mr.. Hendersons order now makes
1t virtually mandatory that a sup
plier violate the PAW order. If he
abides by the latter regulation. he
will be running afoul of the OPA
And Mr.. Henderson has warned that
penalties for violations will be heavy
Suppose dealer who has already
used his quota of oil for the month
shows up with a fistful of ration
coupons and check to cover his
intended purchase. The suppIel
would have to accommodate him il
he complies with the anti-favoritisn
order. This would mean that some
Of the dealers doing business with
that supplier would get less oil
than they were entitled to for that
month. However, the OPA amend.
ment also provides that any dealer
may obtain oil from a supplier who