Evening star., 1948-02-13
U. 5. Diverts Oil
Obtained toHeat
District Homes
Portion Is Returned
To Petrol Corp.
After Protests

TEMPERATURES ABOVE FREEZ-
ING helps clear streets. Page AS
The Federal Government has
diverted for its own use a sizable
amount of fuel oil acquired by a
Senate committee for private
homes in the District, it was
learned today.
The oil is a $4,000 gallon-a-day
emergency shipment being piped
into the city for distribution by
the Petrol Corp, a major supplier
here.
That, at least, was the purpose
planned by the Senate Small Busi-
ness Committee, which got the SIM
clair Refining Co. to furnish its
pipeline-the only one into the Dis
trict-to help Petrol solve short-
|ages and transportation difficulties.
But instead of going to dealers,
Yesterdays delivery went to the Bu-
reau of Federal Supply, the Gov
ernment's procurement agency here.
Protests Follow.
The action brought a deluge Of
protests into the bureau from both
city and national officials.
AS a result of the protests, bureau
officials disclosed. they will turn
about half" of the special supply
back to the District hardship pool
controlled by District Fuel Co-ordi-
nator J. Thomas Kennedy.
Mr.. Kennedy said the bureau will
get about 10000 gallons of the oil q
day and that he will get the remain
ing $4,000 gallons for home use un-
der the arrangement. The special
shipments, which began Tuesday,
will end next Monday. ne said.
H. M. Kurth, spokesman for the
supply bureau, told reporter the
oil it is taking is part of 1000, 900
gallons which Petrol owes the Gov
ernment.
Petrol, he explained, holds the
contract to furnish the Government
with fuel Several weeks ago, Mr..
Kurth said, the supply bureau had
100000 gallons of oil stored in
Petrol tanks here.
Found Supply Gone.
But when we went after it re-
Gently, it was gone" Mr.. Kurth
said. The oil firm. he said. had
used the stock to supply its own
dealers.
Petrol, in the meantime, has re-
: paid about 100000 gallons, the Of
. fetal declared. He added that the
Government lis not complaining
about Petrol's use of the oil and
that 1t regards it as a Loan
"But we had to have oil" he
continued. Were not taking any
we absolutely don't have to have. I"
If yesterdays special allotment had
not been granted by Petrol, he
said, I'VE would have been COM
pletely out by Saturday morning" I"
Mr.. Kurth said about one-half of
the Governments fuel oil stocks
heat housing units at Greenbelt,
Fort Myer, Fort Belvoir and other
military installations In the vicinity.
The rest, he said, heats "a few
buildings the Government Is using
here"
Meanwhile, Eugene M. Calls, pres
ident of Petrol Corp, testified today
before the House Interstate Com
merce Committee and told Of his
concerns difficulty in getting sup
plies after the Cities Service Co.
acquired 81 per cent of Petrol's stock
in May of last year.
Representative Heselton, Repub-
lican, of Massachusetts,, while ques-
tioning Mr. Calls, announced he
would introduce bill Monday ito
put the oil industry just as much
under control as is labor" He said
he didn't like this sort of thing" 4"
but 1t is being forced on the country.
Our people are not going to put
up forever with shortages and high
prices" he said.
Three Barges Arrive.
Mr.. Kennedy was to meet with
representatives of major oil firms
this afternoon in New York to seek
, means of easing the oil shortage
here. He was to confer with spe-
cial subcommittee of the Petroleum
Regional Advisory Committee, which
!, is studying supply and delivery
phases of the fuel pinch.
The situation was eased slightly
, with the arrival late last night Of
three barges with supplies con-
signed to the Standard Oil Co.
. They carried about 100000 gallons
, of household fuel oil-of which
, 240, 900 gallons will go to the Wash
: ington Gas Light Co.-and about
, , 100000 gallons of gasoline.
The Combined Veterans Housing
(See FUEL OIL, Page A-4)