Milford chronicle., 1947-08-29


state and Foreign Commerce Committee,
John w. Boatwright of the Standard Oil
Company of Indiana summarized current oil
problems as they affect both producers and
consumers.
To meet present record domestic produc-
tiOn demand, the industry must produce
crude oil and operate the refinerleS at level
in excess of 100000 barrels day, which 1t
is doing. It's present refinery capacity is ap-
proximately 100000 barrels a day. Thus
if the distribution of refinery capacity and
the availability of crude oil supplies were in
keeping with the distribution of consumption,
the industry could meet all requirements. |
Unfortunately, that ideal situation does not
exist, and for two paramount reasons. First,
there are insufficient transportation facilities
to move crude oil, and products to market.
Second, there has been a serious loss of effect
i've refinery capacity because OF plant shut
downs During the first six months OF this
year, work stOppageS were responsible for a
loss of 15,0000,000 barrels of crude running
capacity.
The industry is attacking the first prob
lem by using every form of transportation,
including both pipelines and tank cars, to the
absolute maximum. The second problem can
be solved if strikes can be prevented. In the
meantime, Mr.. Boatwright forecast, there
should be an improvement in the supply of oil
products in the near future. Everything that
is humanity possible is being done to meet the
terrific demand.
VARIOUS CURES HAVE been suggested
for the freight car shortage. But the only
lasting cure is an increase in the supply of
freight cars.
Furthermore, there is no mystery as to
why there is shortage now. During the
depression freight car purchasing was below
normal due to lack of freight. The war fol-
lowed close on the heels of the depression, and
during it relatively few freight cars could be
built due to material shortages. Existing
equipment was worn out rapidly by wars de-
mands on the transportation system. Since
the end of the war; there has been an unpre-
cedented peacetime demand for railroad ser
vice. Thus, the present shortage is primarily
the result of tremendous demand imposed
upon War-depleted car supply and continued
shortage of materials.
The railroads have placed orders for many
thousands of new cars, and they are being put
in service as rapidly as manufacturers can
make delivery. In the meantime, cars on hand
are being distributed to the various sections
of the country on an equitable basis The
charge made few months ago that the West
was being strangled for lack of freight cars
was Immediately exploded. Western car
lOadings have been keeping pace with all
other regions, and more freight is being
handled by the western roads than ever be-
fore.
The railroads are making every piece of
rolling stock perform peak service. The car
problem will be gradually eased as new stock
is received
CONSUMER PROTESTS against the high
cost of food continue Understandable as this
is, it seems certain that the public at large
is unaware of certain basic economic facts
According to one authority, food bills are
no greater today in proportion to gross pei
capita income than they were in the 1858
period. They have, in other words, simply
followed the general trend.
Again, farm authorities have presented
some very compelling evidence to the effect
that allegedly swollen agricultural profits are
largely nOn-eXiStent. The enormous increases
IN farm operating costs - labor, materials
feed, taxes and everything else-have eater
up the increase in the farmers gross income
To blame packers and retailers for high
prices is a common practice 1t is also ar
utter falacy. The meat packing industry, fol
instance, states that it earns less than one
cent day, after expenses, for providing meat
for an average American family of four.
The retailer is in precisely the same posi-
tlon. The large food chain systems earn, a!
net profit, only cent or two on each dollar O.
; sales. The independent merchants, who mus
meet the competition, work on similar mar
gins. Many stores have voluntarily slicet
their already narrow profits in order to holt
, price increases to the minimum But the,
= can't operate at loss
High prices are an economic cOnSeQuenc
: OF the times. Neither producers, distribut
: ors, professors or retailers are responsible fO
them.
! WRITING ON EARLY results of the Taft
: Hartley labor law, David Lawrence said: "a
, ready major labor unions have pledged them
selves to settle their disputes with employer
= directly and to resort as little as possible t
= governmental boards-a development lon
hoped for but not until now beginning to b
realized
= 1t ho fhof tbo 1ol,o-