Evening star., 1946-12-06
LitfIejohn 10 Seek
Free Hand 10 Sell
Inch Lines for Cash
By Don S. Worren

y
Seeking a free hand to negotiate
for the biggest possible cash price
on the 1,500-mile big Inch" Gov
ernment pipelines, War Assets Ad-
ministrator Robert M. Littlejohn
will ask Congress to accept a new
policy for ultimate disposal Of the
lines.
This, he made clear yesterday
before the House Surplus Property
Committee, would leave the door
open for disposal Of the mains,
either as gas. or oil carriers. They
were built during the war at a cost
Of about $143 900 600, when the East
was in desperate need of oil because
of Nazi sinking Of American tankers.
Il would like to be able to do a.
little horse-trading." Administrator
Littlejohn commented as he in
sisted he now was bound" to oil
use sale unless the issue again was
presented to Congress.
Would Require Cash.
His plan is to raise this issue
promptly, he said. Having rejected
all the pending is bids for the
mains, he said he shortly would call
for new formal" offers. He stressed
he would insist not only on cash
payment but on a certified check
for a proper amount of earnest"
money from bidders. Debenture
bonds were .out."
In planning an early supple
mentary report prior to the opening
of the new Congress, he said. he
definitely would upset" the policies
established year ago when Con-
gress acquiesced in the Symington
report of last January 4.
This much-debated Feport was
submitted by w. Stuart Synington,
then chairman OF the now-replaced
Surplus Property Administration and
now Assistant Secretary of War for
Air. 1t not only gave q high pref
erence to sale of the lines for oil
use but ruled gas usage was to be
considered only as a last resort.
Since Congress, within 80 days, or
dered no change in this policy, 1t
attained the effect of law, in the
opinion of Mr.. Littlejohn.
Would Sell by February 3.
II all goes well, Administrator
Littlejohn told the committee yes
terday, WAA would be selling the
big mains-now in emergency lease
for gas to relieve the effects of the
coal shortage-by February 8. That
would afford the new Congress 30
days after it convenes to debate,
approve, reject or modify the pro-
posed new pipeline sale policy Mr..
Littlejohn will outline.
John L. Lewis, leader of the strik-
ing United Mine Workers, has been
invited to testify before the House
committee. For obvious reasons" a
committee member said, referring
to the contempt-injunction court
case involving Mr.. Lewis, he has not
yet appeared. A new invitation
is expected to be issued. Mr.. Lewis
or some one for organized coal
miners is expected to protest gas
use of the Government mains as
striking at coal mine employment.
Administrator Littlejohn voiced
concern over what he deemed to
be a wide difference between the
views Of Interior Secretary Krug
and Ralph K. Davies, acting direc-
tor of the Interior Departments Oil
and Gas Division.
AS he understood their state
ments, he said, Mr.. Davies is hold
ing out for a final award of the
lines only for gas use, whereas Sec
retary Krug had left "the door
open," he believed, for either oil
or gas use, so long as commitments
were obtained for use of sub
stantial percentage of the oil well
gas now wasted.
Threat to Coal Seen.
Allen j. Johnson, speaking for
the Anthracite Institute, which he
said represented 80 per cent of the
Pennsylvania hard coal business,
warned that expansion Of the nat
ural gas flow would strike at the
heart" of the coal business.
He estimated the gas that could
be conveyed through the Big Inch
lines would cut sos 5,000,000 from
the annual $3.50, ,000. 900 anthracite
business, would displace 11,724 Of
u, 200 miners and "jeopardize bill
lion dollar investment.
For the Association Of American
Railroads, James M. Souby, its gen.
eral counsel. joined the fight against
natural gas, warning that its ex-
pansion would ruin" many indus
trial concerns and cut into the
railroads revenues, about one-third
Of which now comes from the haul
ing of coal.