Evening star., 1951-10-04
Partial Text of GobrieIson Statement on Loon'

the conservation of our oil
reserves and the desirability
of creating synthetic fuel in
dustry. Under the Synthetic
Liquid Fuels Act of 1914 as
amended, Congress has authorized
$85 million to date and has ap-
propriated around $64 million to
the Bureau of Mines for the con-
struction and operation of expert
mental or pilot plants to make
gas and gasoline from coal and
oil shale. ..
An Associated Press dispatch in
yesterdays New York Times re-
ported that the present Secretary
OF the Interior. Oscar Chapman
had asked the Defense Production
Agency for borrowing power" to
provide Government aid to indus
try in establishing two huge
plants for the. manufacture of
liquid fuels from coal and
We hear recurrent statements
by defense officials that gasoline
ratloning may again be necessary.
Each winter brings shortages of
fuel oil for homes and industry.
The Middle East, which has sup
piled Oil for the defense require
ments of our Allies of the North
Atlantic pact, as we'll as part of
our own needs. is a tinderbox and
no one knows when its supply to
us will be shut off.
! Mr.. Keith saw this need for our
own synthetic fuels industry. He
spent his own funds for research.
He studied Germany's famed
Flsc err -Tropsch synthesis
through which gasoline was made
from coal and came up with his
Hydrocol process, an adaptation
w hi n Fischer -TropSch would
hardly recognize. He raised So
million to construct and operate a
pilot plant in New York State to
prove his process and perfect his
engineering data.
Private Banking Refused.
He tried TO interest private
financing in the construction of a
commercial plant but was unable
to do SO because he was pioneering
IN a new industry. He then made
an appointment with Mr.. Jesse
Jones, then Federal loan admins
traitor. Mr.. Jones on September
8. 1914, told him the conditions
under which RFC would partici-
pate in this industry-Mr. Keith is
: here to give you the condi-
tionS.
Mr.. Keith is my neighbor ir
: Northern New Jersey. He organ.
, lzed an engineering firm known a.
Hydrocarbon Research, Inc. anc
on November IL, 1943, 1 became
: its counsel. He interested a mum.
Der OF companies in his project
. mainly because of his achieve.
: ments in other fields and the sue.
cesstul operation of his pilot plant
and on September 8, 1945, or.
ganlzed Carthage Hydrocol. M,
law firm became this company.
counsel after handling the lega
work setting it up.
On April 26. 1916, I was electee
president of Carthage Hydrocol b,
! its board of directors upon thu
> resignation Of its initial president
Construction of the plant was ther
begun at Brownsville, Tex.
;, The project cost more than was
originally estimated. due to infla-
ton ard other factors. An appli-
cation for 3 second RFC loan OF
S3.5 million was made February
g, l948, and approved April IL
l948. Application for a third RFC
loan OF 50 million was made
March a. 1949, and approved
April 25. l94s.
To date. the RFC has loaned
SlS.5 million to Cathage Hydrocol,
Stockholders of Carthage Hydro
col and other interests have put
up approximately $30.25O, 900
Thus. S48.750,000 has been in
vested in the company with the
RFC loan protected by a first
mortgage on all its tangible as
sets.
! Now for my compensation. The
directors of Carthage Hydrocol or
February 7, 1916, voted to pay me
and my law firm S34, 900 for legaI
services and $2.07546 for expenses
IN connection with organizing the
company, acquiring gas contracts
leasing land for a site, etc. Since
that date, have received an an.
nual salary of $4,000 as President
of this $48.750.000 company, ano
my law firm has received $4,000
ANNUALLY for legal services. All OF
these payments were subject tc
approval by the RFC. and Z an
nounced them in my letter of last
March q.
Elected to COP Job.
On August 4. 194s, five months
after the third and final loan was
granted, was elected Chairman
OF the Republican National Com
mlttee. 1t is perfectly clear, there
lore, that neither before nor after
became chairman did receive a
fee, or any other compensation,
for obtaining a Government loan,
and l expect this committee to so
state in its report.
/ Since becoming the non-salaried
Republican chairman, have con-
tlnued as president of Carthage
Hydrocol at the request of its
stockholders. I felt responsibility
to them. as well as to the Gov
ernment, to render what services
were within my power to get this
plant into commercial operation
SO that both the public and pri-
Vate loans could be repaid. l was
proud to have a part with Mr.,
Keith and his associates in cross
ing an industrial frontier and
helping to start a pioneer enter
prise whose success means so much