was because of the fact that you viewed this as an emergency situation. Mr. WORMSER. It is an emergency, sir. Mr. McHUGH. But you don't think it is the kind of emergency situation which would justify your formal intervention in Texas? Mr. WORMSER. Mr. McHugh, the answer to that is it was carefully considered by the administration, and the decision was made not to enter into it and intervene. Senator O'MAHONEY. Mr. Stewart. Mr. STEWART. This morning before the recess, Senator Kefauver asked to have furnished for the record a list of the membership of the Foreign Petroleum Supply Committee as it was precrisis, and the membership list as it is now constituted. I have for the record a membership list of the Foreign Petroleum Supply Committee as of July 11, 1955, which will give you the membership as then constituted and operative. Senator O'MAHONEY. Which will be made a part of the record at this point. Mr. STEWART. Likewise a list of the Foreign Petroleum Supply Committee as of February 1, 1956, and of the Middle East Emergency Committee as of February 1, 1957. Senator O'MAHONEY. Thank you. If you will hand those to the stenographer, they will be made a part of the record at this point. (The documents referred to are as follows:) R. O. Rhoades.. Gulf Oil Corp., Gulf Bldg., Post Office Box 1166, Pacific Western Oil Corp., 417 South Hill St., Los Sinclair Oil Corp., 600 Fifth Ave., New York, Socony Mobil Oil Co., Inc., 26 Broadway, New Standard Oil Company of California, 225 Bush St., Standard Oil Co. (N. J.), 30 Rockefeller Plaza, Standard-Vacuum Oil Co., 26 Broadway, New Superior Oil Co., 601 West 5th St., Los Angeles, The Texas Co., 135 East 42d St., New York, N. Y.. Emil Kluth. E. L. Steiniger.. A. L. Nickerson... T. L. Lenzen. E. E. Soubry. C. B. Marshall. Howard B. Keck. A. N. Lilley. Dale Nix. Herman A. Metzger. C. W. Hurley, Jr. A. E. Watts. S. P. Coleman (chairman). Elmer Patman. H. T. Dodge. American Independent Oil Co., 111 Sutter St., San Arabian American Oil Co., 505 Park Ave., New Caltex Oil Products Co., 380 Madison Ave., New Cities Service Co., 70 Pine St., New York, N. Y... Getty Oil Co.. 206 Pennsylvania Bldg., Wilming- Gulf Oil Corp., Gulf Bldg., Pittsburgh, Pa... Standard Oil Company of California, 225 Bush Standard Oil Co. (N. J.), 30 Rockefeller Plaza, Standard-Vacuum Oil Co., 1000 Westchester Ave., The Texas Co., 135-East 42d St., New York, N. Y.. Venezuelan Petroleum Co., 600 Fifth Ave., New The Frontier Refining Co., 4040 East Louisiana Representative Harley C. Stevens... W. F. Bramstedt..... Chas. S. Mitchell.... R. O. Rhoades. T. L. Lenzen.. S. P. Coleman........... C. B. Marshall. A. N. Lilley. H. M. Russell. M. H. Robineau...... 1 Chairman: S. P. Coleman; Vice Chairman: J. A. Cogan. Alternate J. T. Duce.. Arabian American Oil Co., 505 Park Ave., New Caltex Oil Products Co., 380 Madison Ave., New Cities Service Co., 70 Pine St., New York. Creole Petroleum Corp., 1230 Avenue of the Americas, New York, N. Y. Getty Oil Co., 206 Pennsylvania Bldg., Wilming- Gulf Oil Corp., Gulf Bldg., Pittsburgh, Pa. Socony Mobil Oil Co., Inc., 150 East 42d St., New Standard Oil Co. of California, 225 Bush St., San Standard Oil Company (N. J.), 30 Rockefeller Standard Vacuum Oil Co., 1000 Westchester The Texas Co., 135 East 42d St., New York, N. Y. Venezuelan Petroleum Co., 600 5th Ave.. New The Frontier Refining Co., 4040 East Louisiana W. F. Bramstedt..... Chas. S. Mitchell. R. O. Rhoades. Paul V. Keyser.. T. L. Lenzen.. S. P. Coleman C. B. Marshall. A. N. Lilley. H. M. Russell. M. H. Robineau................. Dale Nix. Robert E. Roehl. Raymond J. Fish. C. W. Hurley, Jr. A. C. Ingraham. Howard W. Page. H. T. Dodge. W. L. Fanning, Jr. W. C. Paton. Norman L. Meyers. 1 Chairman, H. A. Stewart, Director, Office of Oil and Gas, Department of Interior, Washington, D. C. Senator O'MAHONEY. Do you care to say anything else? Mr. WORMSER. No; except to thank you, Mr. Chairman, for your courtesies. Senator O'MAHONEY. We thank you for coming before us so readily and so frankly answering the questions that have been propounded. I want to say, Mr. Stewart, and Secretary Wormser, that we have not of course gone over all the area that it was hoped we could cover with you today. Time takes its toll on us, you know, and many things come up with us which are not planned. Mr. Fowler was an essential witness in the drawing of the picture of this operation. He is now in Europe and will not return, I understand, until about the 15th of February; is that right? Mr. STEWART. Mr. Fowler will be back this next Sunday. Judge Hansen will not return until about the 15th. Senator O'MAHONEY. Well, then, so far as Mr. Fowler is concerned, he will be available at a convenient time next week, and it may be desirable, I think for you at least, Mr. Stewart, to come with him. Mr. STEWART. At any time you wish. Senator O'MAHONEY. When that time comes, information as to whether or not Secretary Wormser should be present will be transmitted to him at that time. Tomorrow we will have the testimony of Mr. McGregor Smith, whose name I mentioned earlier in the day. The committee will stand in recess now until 10 o'clock tomorrow morning. (Whereupon at 5 p. m. the hearing was adjourned to reconvene at 10 a. m. Thursday, February 7, 1957.) EMERGENCY OIL LIFT PROGRAM AND RELATED OIL PROBLEMS THURSDAY, FEBRUARY 7, 1957 UNITED STATE SENATE, SUBCOMMITTEE ON ANTITRUST AND MONOPOLY Washington, D. C. The subcommittees met, pursuant to recess, at 10:25 a. m., in the caucus room, Senate Office Building, Senator Joseph O'Mahoney presiding. Present: Senators Kefauver (chairman of the Subcommittee on Antitrust and Monopoly), O'Mahoney (presiding), Wiley, and Dirksen, of the Subcommittee on Antitrust and Monopoly of the Committee on the Judiciary. Senators O'Mahoney (chairman of the Subcommittee on Public Lands), Carroll, of the Subcommittee on Public Lands of the Committee on Interior and Insular Affairs. Also present: Senator Spessard L. Hollard (Florida), Senator George A. Smathers (Florida), Representative Dante B. Fascell (Florida), Representative James A. Haley (Florida). Committee and subcommittee staff members present: Donald P. McHugh, cocounsel, Antitrust; James De Maras, Jr., research consultant, Public Lands; Gareth Neville, assistant counsel, Antitrust; W. B. Watson Snyder, consultant, Antitrust; Peter Chumbris, counsel for minority, Antitrust; Carlile Bolton-Smith, counsel to Senator Wiley; Louis Rosenman, attorney, Antitrust; Paul Banner, economist, Antitrust; Wilbur Sparks, attorney, Antitrust; George Clifford, attorney, Antitrust. Robert Murphy, professional staff member, Senate Interstate and Foreign Commerce Committee; and Stewart French, chief counsel, Committee on Interior and Insular Affairs. Senator O'MAHONEY. The committee will come to order. As a preliminary and off the record (Discussion off the record.) Senator O'MAHONEY. Now on the record. It is our pleasure this morning to have Senator Holland of Florida and his colleague, Senator Smathers, to present the principal witnesses. I understand that the senatorial delegation is accompanied by some distinguished members of the delegation from Florida in the House of Representatives. We shall be very glad to hear from them all. Senator Holland. 90507-57-pt. 1- -13 STATEMENT OF HON. SPESSARD L. HOLLAND, UNITED STATES SENATOR FROM THE STATE OF FLORIDA Senator HOLLAND. Mr. Chairman and members of the committee, my distinguished colleague, Senator Smathers, and I appear jointly in this matter as indeed we have been jointly deeply concerned by the results in Florida and to Florida citizens and businesses of the very rapid increases in the price of fuel oil and gasoline, but particularly fuel oil is the matter to which we will address our principal attention. We are accompanied this morning by two of our colleagues from the House, Congressman Fascell from Miami and Congressman Haley from the Seventh Florida District, and several Florida witnesses who are familiar with the practical aspects of the present oil situation. Senator WILEY. Is it a cold winter down there this year? Senator HOLLAND. Very warm, I am happy to say. If it were cold, our troubles would be even greater, Senator. I am happy to say that this winter has been an exceedingly fine one and we are glad to have in the State numerous citizens from the good State of Wisconsin, the good State of Tennessee, the good State of Wyoming, who have come there for sunshine, and we are happy to say they have gotten a good liberal quota of it there. Senator WILEY. Has the scarcity of fuel oil reduced the Florida rates? [Laughter.] Senator HOLLAND. Mr. Chairman, we are happy to have this opportunity. Senator Smathers will be called very shortly to a meeting of the Interstate and Foreign Commerce, and I am already past due to a meeting of the Appropriations Committee where we are considering the first urgent deficiency bill. So, of necessity, our participation this morning will be brief. We would like at this time, therefore, to present all of the Florida witnesses somewhat in reverse order, or at least, we will save until the last the one who will be your first witness, if that is agreeable to the committee. Senator Smathers and I have been following this matter with great concern because of the difficulties that have developed in Florida, some of which we will try to show for the record before we present the witnesses. For instance, Mr. Chairman, here is a wire from the Orlando Utilities Commission, C. H. Stanton, secretary, Orlando having a publicly owned municipal utility, which I ask to have included in the record. Senator O'MAHONEY. It may be received. (The telegram referred to is as follows:) Hon. SPESSARD L. HOLLAND, United States Senate, Washington, D. C.: JANUARY 22, 1957. Today we have sent the following telegram to the President of the United States. The city of Orlando, Fla., owns and operates its electric-generating facilities through the Orlando Utilities Commission. The city, and therefore the people represented by approximately 38,600 metered connections, are being adversely affected by what we think are exorbitant price increases in residual fuel oil prices. During the last 60 days the American Oil Co., our contract supplier, has given us 3 price increases totaling 60 cents per barrel. Of necessity, these price increases, over which we have no control, must be passed on to our customers by means of fuel oil adjustment to electric rates. We bring this matter to your attention with the fervent hope that you will start an inquiry as soon as possible into facts concerning these unusual increases and take such |