Evening star., 1943-01-28
Clearing House
For Emergency
Fuel Oil Studied
Merchants Group
To Ask PIun Unless
Other Aid Arrives

Unless other action is taken
within the next day or two allie
viate the fuel oil shortage here. the
Commissioners will be asked to set
up central clearing house to pro-
vide for prompt emergency deliv-
cries to families that have run
completely out of oil, Lester Scott,
director of the oil heating division
OF the Merchants and Manufac-
lures Association said today.
This method of handling distress
cases is already being used with
some success in New York CITY.
Boston and several other Eastern
cities, Mr.. Scott said. He warned
that some kind of clearing house
would have to be set up before
conditions here have become des-
perate.'
Advantages Claimed.
Ihe clearing mouse method. he ex-
planned, would make it possible for
consumers who are out of oil and
who cannot obtain a fresh supplv
from their usual dealer to get almost
immediate relief. At the same time
he said, oil dealers would not be
plagued by calls from persons who
say they are out of Oil but who still
have some on hand.
Mr.. Scott said that in New York a
committee had been set up by local
authorities and in Boston the Gov
ernor had appointed a man especial
ly to handle emergency cases. He
said it appeared the Commissioners
would be acting within their author
lty to establish similar system here
Meanwhile, the fuel oil situation
in the District was characterized by
Clyde Morrell of Boston. secretary
OF the Atlantic Coast Oil Associa
ton, as being no better and no worse
than conditions generally through
out the East.
Complete Confusion.
Mr. Morrell said everywhere In
the East Oil distribution was in a
state of complete and utter con-
fusion" He blamed much of the
difficulty on the conflicting orders
issued by the ONCE of Price Ad-
ministration and the Petroleum Ad-
ministrator for War.
I'VE have learned" he said, "that
the Government is totally incapab BILE
OF anticipating an emergency. 1t
must be tossed right in its lap be-
fore any action is taken"
The Oil preventative said the
current crisis had all the earmarks
OF "a disaster in the making" Up
to now, he pointed out, consumers
have been able to rely to some ex-
tent on the oil they had in their
tanks when the season began. Be-
cause Of distribution breakdowns.
however, he said, most consumers
tanks were now nearly dry.
Mr.. Morrell said he was in WASH
ington to seek some means OF relief.
He was to confer today with rep
of the PAW.
ALLEGATION Plan at Stake.
Meanwhile, it was learned that
possible abandonment of the al
location system imposed on primary
suppliers of fuel oil in the East is
being discussed by officials of the
PAW in an effort to ease the pres
sure of the fuel oil shortage.
While no action has been taken vet
along these lines, certain experts in
the PAW were understood to be ad-
vocating revocation of the order
which set up the ALLEGATION system
in the hope that greater freedom of
action among suppliers would result
In more equitable distribution of fuel
oil supplies.
Under the ALLEGATION system, pri-
mary suppliers here may bring in
as much oil as they are able, but
they are restricted in selling it to
their dealers to monthly quota
based on a percentage of the oil
they sold during the same month
a year before.
The PAW said the system was
established in the first place be-
cause 1t was felt this would guar
antee a certain amount of reserve
Oil for each area to be used for
emergencies and also would prevent
certain Eastern areas from receiv-
ing surplus shipments while other
places were without oil.
Huge Transfers Effected.
One factor that has tended to
disrupt the efficiency of the alloca-
ton plan in the District, oil dealers
complained, was the gain in popula- =
ton and the resultant increase in
the number Of homes that are heated
by oil. This increase, they said
was not taken into consideration
when the ALLEGATION system was
set up.
About 100000 gallons of Oil were
transferred yesterday from three
large District suppliers to two other
suppliers that were entirely out of
oil. The three suppliers made the
transfer upon the order of the Sup
ply and Distribution Committee
Until this transaction took place,
this quantity of oil remained frozen"
because the suppliers holding it had
reached their quotas for the
month and were unable to dispose Of
their stocks to their dealers.
Another supplier, it was reported,
was to release about 100000 gallons
to one of the two suppliers without
oil.
These transfers of oil helped to
relieve the local situation to some
extent, despite the fact that most
dealers yesterday experienced a
run" by customers seeking to cash
in their No. 4 coupons, which became
valid yesterday.