Evening star., 1947-06-28
oil Export Controls
Pushed; Probe Asked
OF Navy 5 Imports

VI VI QCI uCW COtlblOAo oAA PSSAo
leum exports as Senator Brew
ster, Republican. of Maine called
for a full inquiry into the rea-
sons why the Navy must import
millions of barrels of oil fram
Arabia while Russian tankers
are moving out Of West Coast
ports with American oil.
As an immediate proposition. the
Senate approved by voice vote yes
terday a two-week emergency exten-
sion of legislation limiting export
and import of certain scarce COM
modities, and forwarded the measure
to the House. introduced by Sen
ator Wiley, Republican, of Wiscon-
sin, the resolution would serve as q
stop gap for pending bill to ex-
tend controls for year beyond
June 80.
concurrently, Chairman Weichel
of the House Merchant Marine Com
mittee introduced a bill to make
curbs on oil exports mandatory IN
the time OF shortage. Under exist
ing legislation, the controls are ai
the Presidents discretion.
Law Expires Monday.
In offering his resolution Senator
Wiley said there viii not be time fol
Senate and House TO act on a per-
manent measure before the present
law expires at midnight Monday.
II the control legislation is per-
mitted to lapse, he added, 1t will
create a situation dangerous to oul
economy"
He explained that ships ready te
sail for Russia are waiting on the
West Coast, and that If export con-
trolls lapse even for day, they will
SAIL" He did not elaborate.
The resolution continues until
July Is ALLEGATION control of ma
terials certified by State and Com
merce Departments as necessary te
meet international commitments.
The Commerce Department al
ready has moved to reimpose con-
trolls Monday to block further oil
shipments under the expiring legis-
lation.
Navy Imports Oil.
Senator Brewster's proposal fol
an inquiry followed a communica-
tion to the Senate War Investigat-
ing Committee by Navy Undersecre-
tary John L. Sullivan, who said that
the Navy has had to arrange to
import SOC, 900 barrels of fuel oil a
month for the next six months from
the Persian Gulf area.
He said this Is necessary to bring
East Coast stocks, by fall, to "a po-
sition compatible with the Navy's
obligations for national security"
Mr.. Sullivan described the price
of $l.O5 barrel as "the current
prevailing price for oil in that
area"
Senator Brewster, chairman Of the
committee, issued statement last
night, saying:
"On April 16, 1941, the American
Arabian OIL Co. offered the Navy
3,400, 900 barrels at 40 cents a bar
rel. The Navy said 1t didn't take
it then because it was not ready
and that the oil had an excessive
sulphur content. The Navy has
said it was wrong on the sulphur
This is the same oil"
Loan paid Back.
Senator Brewster added that the
American Arabian Oil Co. has paid
back a $39, 1855, 900 loan made to ii
by the Standard Oil Co. of Cali
fornia and the Texas Co., and In
addition has paid these companies
as stockholders SO, 900, 900 in divi-
dends, 81, 900 900 each.
This Is approximately, the profit
on the difference between 20 cents
and $I.o5 q barrel between 1S41 and
1916"
Col. G. N. Vogel, executive officer
Of the Army Navy Petroleum Board,
told Mr.. Weichel's House commit
tee yesterday the United States has
plenty of oil reserves but that pro
ductive capacity is not now sufn-
cient to meet q continuing national
emergency"
Mr.. Weichel told the House that
President Truman, holding author
ity to ban exports of petroleum, had
permitted shipments of about 1s1,-
900 600 barrels of gasoline and petro-
leum products since January l
1916, including about 600, 900 barrels
to Russia.
Commenting on the recent House
action In extending those control
powers, Mr.. Weichel asked, "of what
good Is this further vested authority
when 1t has been utterly ignored
for nearly two years? There must
be positive bans and restrictions by
Congress to stop the flow of gaso-
line and petroleum to foreign ma
tions."
Imports Called Vital.
Capt. Ralph E. Wilson, Navy rep
resentative on the Army Navy Pc
troleum Board, told Mr.. Weichel's
Committee that the feet might be
largely immobilized" in case OF
war If oil imports could not be OBJ
tanned.
He declared that there is no In
dication ''of heavy shipments to
build up military stocks" in Russia
but acknowledged, that he did mot
know the purpose for which the
Russians were using the oil. He
said that the bunker oil was Of the
type used by this !, ,country's mer-
chant marine. He said that oil
would not meet naval specifications
Representative Bonner, Democrat
of North Carolina inquired: "Al
that oil could be used here?"
Capt. Wilson: yes"
Mr.. Bonner: "And could assist In
avoiding rationing?''
Capt. Wilson: "In general way
But the rationing in the Midwes
which has been r eferred to ha!
been due to transportation, in part.
! Committee membe ers said one com
pany already is rationing dealers ii
the Midwest.