BRITISH NEWSPAPERS BITTERLY ASSAIL TEXAS INDEPENDENTS AND RRC LONDON DAILY EXPRESS SATURDAY JANUARY 19 1957 were ROSE nond They had been hoping for a 17 working day month. A lap ou expert said last night: "It is due to see how suppbes of fart oil to industry can be main tained at the present rate unless fresh uptues can be found Mr Peter Thorneycroft the Sew Chancelier sad at Baro Rapie Dever, last night "There 320 way Brown to man whereby You can sees all the w shes of the road hage industry, or any industry which is using You cannot meet them because the petrol is not there" LONDON LONDON DAILY MAIL Drowning in oil concerned about the They point out that they have at no time refused to be of assistance to our and add that it seems obvious that we "We also have a vast sur- The official view in this country is that to use tanker space for petrol or heating o is uneconomical, because we can refine our own. Daily More Texas oil -but not enough By Daily Mail Reporter TEXAS last night agreed to increase nil production next month by 92.970 barrels a day. But Britain is unlikely to berent much as the extra production has to be shared with other European countries who are also rationed. An od company spokesman said in London last night: The increase is not what we expected. we really expected much more. It is based on 15 days produe ten for February. Seven of the major companies asked for 17 days which would have meant an extra 431 000 barrels a day." The increase-decided on by the Commission Texas Railroad at House-means tha: Texas la producing on at its highest-ever FOR QUEEN AND COMMONWEALTH THE HOUSTON POST British MP, French Press ASSOCIATED PRESS A British member of Parlia British newspapers have been hammering at Texas oil leaders. Texans hint at ransom price." was the headline Monday 'on the tabloid Daily Sketch. Several papers referred to Texas "jillionaires." showing British industry as a The Sketch printed a cartoon stagecoach being held up by a mounted horseman labeled "Texas ol." The Sketch said "Texas oil bosses" had hinted at "the terms under which they will increase production to ease Britain's pet rol crisis." This is their demand: Buy Texan even after the supplies of cheap oil from the Middle East are resumed that Without this assurance, they point out that if Texas raised her output now she could be heavily hit by cheaper supplies from the Middle East once Suez is clear." The Daily Express said to Britain, Texas means "The place where el men already wealthy are trying to squeeze still higher the dollar price we have to pay for their product." An article from Dallas by a Daily Mail staff writer said Texans were trying to make money out of the Suez crisis "but stories of their holding Britain and Europe to ransom are wide of the mark." all oils to Western Europe rose concern the giants of the Lone to 513,000 barrels in the week Star State." He blamed Texans' attitudes to The extreme right wing pa appeal for U. S oil supplies to per Aurore of Paris splashed make up the shortage caused across its front page: the minimum level "for nation American government must not The by closing of the Suez "Unlike Standard Oil, for inal security." be content with exhortations stance. these independent produces have not sufficient ac He said production of anoth but must act to assure blaming them for the oil shorter 250,00 barrels a day is need ply of oil to Europe the sucess to pipeline and tankers share in the bonanza caused by age in Europe. ed because of the Emergency The Paris Presse said in the Suez crisis." Crossman RH Crossman, a Socialist Oil-for-Europe Program. front-page editorial: "The gov. wrote. "So they have adopted Labor Party member of Parlia Stewart, speaking at a news ernment at Washington, if it strict millionaire-in-the-manwants to preserve ment charged Texas oilmen conference, prodded the Texas Europe's ecoger policy. with playing what he called Railroad Commission to "de a nomic potential and NATO's "In order to prevent their "mulionaire in the manger" and little more generous" in its to the national defense of the sle advanced positions necessary rivals profiting by increased *holding us up to ransom." production allowables: He said United States, must adopt spes by Europe they have French press blasted there has been no response cial legislation during the next into permitting only a derisory blackmailed Texas authorities U S. oilmen for not raising from the oil and states and the few days production to help Europe and oil industry to an appeal issued increase of production. criticized the American govern last week for greater co-opera Franc Tireur had as its top "WHILE TEXAN OIL milment for not making them tion to meet the emergency "Oll Rivalry Among lionaires defy his will. Presi do it. caused by closing of the Suez Texas Producers Aggravates dent Eisenhower is entertain MEANWHILE, IN Washing Canal. the Crisis in Europe" ing another oil magnate. King ton. Hugh A. Stewart, director THE WEEKLY REPORT on CROSSMAN SAID in an ar Saud. The king will be speak et the Office of Oil and Gas. United States oil shipments ticle in London's Daily Mirror, ing on behalf of all Arab coun -nce -Whether ropean Austry triI ar BUT INCREASE LESS THAN SOUGHT DOUBTS ABOUT MAINTAINING SHIPMENTS TO EUROPE By Our Oil Correspondent The Texas Railroad Commission yesterday announced an increase of 92,970 barrels a day in permitted oil output for February. This was not as much as requested by purchasers, and the figure is regarded as disappointing by oil com panies operating in Europe. To make any significant increase possible in the rate of actual shipments to Europe it is considered that the allowables should have been raised to permit production on 16 or 17 days of the month. It is, therefore, quite possible that, despite the increase in output, actual shipments to Europe may fall. in other recent months, major oil companies sought a larger increase in allowables. SEVENTEEN-DAY RAT Urged by 7 Firms Seven compa day rate of which d tion oe con Tanker the transport urope had reached a year by the end of er, and the limiting factor then has been the difficulty purchasing oil on the Gulf TEXAS INCREASE "INSUFFICIENT " STOCKS BEING EXHAUSTED WASHINGTON, Jan 18 Federal officials here said after the Texas announcement that the increase was probably insufficient to enable shipments to Europe to be maintained at recent levels. One Government spokesman told Reuter: Stock withdrawal cannot continue much longer." Much of the nation's oil stocks were unavailable for export. What was available had largely been sent to Europe already. a Asked to comment on the Texas decision, British Embassy spokesman said the increase was very disappointing Other diplo matic sources said that in fact there might well be a decline in oil shipments to Europe - Reuter. GROWING BITTER THE HOUSTON POST Britain Feels U.S. Let Her Down in Suez Row By JAMES F. KING AP Ball Correspondent for Prime Minister Eden, told a Conservative Party meeting: Th This correspondent has lived in England for 10 of the last 15 years and never before has seen such antagonism toward Americans. Junior ministers in the, Eden government and some Conserv ative backbenchers in parlia ment criticized the United States at political rallies. Lord Macroft parliamen tary undersecretary the home office, said: ما THE ENGLISHMAN has al Richard A. Butler, deputizing MANCHESTER GUARDIAN TEXAS ADDS 92,000 BARRELS A DAY "Very disappointing" WARRINGTON, JANUARY 18. Texas to-day raised its oil output quota for February by 92.970 barrels a day, but British officials here described the move as "very disappointing." Some United States officials had forecast that the increase would ease a bottleneck in supplying Europe with oil, but West European diplomatists here said that a much bigger rise was necessary to maintain existing shipments-let alone increase them. The increase will raise production In Texas in February to a permitted total of 3.543.726 barrels a day. The Increase was authorised by the Texas Railroad Commission The January output was fixed at a maximum of about 3.450,000 barrels daily The commission said that the allow able output for February of 3.543.762 barre's a day was equivalent to fifteen days' production in the 28-day month of February, compared to this month's sixteen-day equivalent in a 31-day month Federal Government officials here have urged the Texas commission to permit an increase of as much as 250.000 barrels a day -Reuter. | Canal. "IT IS NOT Britain, however, who is obstructing either. "One or two Americans re gard their friendship with Brittain as unilateral-to be wel come when Britain supports them as she has faithfully done, but rejected when asked to understand Britain's needs and difficulties." This was an obvious refer ence to Korea. Theres a strong feeling here in official circles as well as among the man in the streets--that Britain came to the aid of the United States in the Korean War. One of the bitterest attacks on the United States came from R. Dudley Williams, a Conserv ative member of Parliament, who told voters in his district: "WE UNDERSTAND the advantages that could accrue to the United States by our ex clusion from the Middle East which oll fields, exclusion would undoubtedly be joyfully received by the powerful oil lobby in Washington. "America must stop putting pressure on us through the United Nations. She must stop her State Department putting out lying stories about there having been collusion before the Israel attack took place." The Conservative Sunday Times accused President Eisenhower and Secretary of State John Foster Dulles of "antiBritish policies. It said: "A belief is spreading that American Dolley is controlled by the oll lobby, and that its effect is total replacement of British influence and economic Interest by America in the Middle East. "A RIVAL popular explana tion is that of personal pique in high places. "Only new actions and pollcies by the United States can stem the swelling tide of distrust and ill-will. The danger to the Atlantic Alliance, which we believe is of vital impor tance to both countries, is acute." as a temporary mesure Dec US. Gets Riame They charged that the United States 13 chak supplies a American crude oil to further 21 ewn interests Texas ou producers are trying to prevent increased shipments ta Britain in hopes that incras de mand will raise prices, the s servative Daily Telegrap charged Lord Beaverbrook's Day Express also criticized Texas s Congressional Ire on Oil Problem Spreads To Include Drought Issue By SARAH MCCLENDON Bahingi Cerrespondent WASHINGTON, Feb. 11-Every little band of Texas would not be owner agreed to keep cattle off able to stand against it. until the grass could come back. Around Washington, the belief Secretary of Agriculture Ezra por Texan in the drought area of observers is that no amount Taft Benson sent a hot worded who has a hungry cow seeking of lobbying, no matter how much letter to the House door to the money is spent, would help the embarrassment of Republicans a blade of grass coming up from industry now. In fact so bitter from agriculture states, trying to the dry sod was branded with is the feeling that some Texas keep this bill from being passed the signs of big o companies of lobbyists have been told to unti President Eisenhower's own on the floor of the House of may out of Washington. Here, drought recommendations could Representatives last week when some men are heard daily saying he sent to the Hill. His trip was that the big oil companies have made in mid January but as yet a bill for drought relief was being gone too far for this time-they no recommendation have come to considered have hurt themselves." the Hill. This caused Representa . Nevertheless the bill passed The drought bull before Con- tive Carl Albert of McAlester, asly on a roll call vote. but gress was what was left of a Olda, to compare it with govern. not before some of the batterest bill sponsored by 17 Texas House ment red tape which ordered an members and Senator Lyndon injured mule in his state to be things said by US congressman of Johnson after the Department of slaughtered two weeks after it New England and northern states Agriculture ne had died. through whittling about their brothers in this same it down in committee. That took The worst heckler of Texas country were buried against Tex out the provisions for supplement when this drought bull was on headed by Representative tative ing protein feed with cottonseed the floor was Representative Tho Bab Ponge of Waco. Poage kept cake and soybeans, as is customas (Tip) O'Neill of Cambridge, tensper Oklahoma. Colorado, mary in the cattle industry in Mass, D.. who has candy tac Missouri soun and Tennessee congress the Southwest. This time it had tories in his area and who always men came the rescue of Texas been sought against government resists high price supports for seemed like it was open expehse. But that failed. Texas that day peanuts. He has kept up a barSPLIT. Against Washington President Eisenhower had lashed out at the oil companies for not producing and shipping more od to Europe and for increasing prices. He blanketed the entire od industry with his denunciation, but the question that set off the discourse one which mentioned Texas "proration board and Texas Are copiate Evrope to b without off. There was no mention the system that has caused the is of the oil industry today and the fact that the plan was Worked out for shipments of oil to Europe and for continued im parts of o into the US by major ell companies in New York of Dices Over In the Senate anti-monopy committee. Senator Estes Ketaver. (D., Tenn.,) and other senators took out after the oil companies which first raised their prices in Texas and which con tinue to divert all that could go to Europe into more gasoline than Is needed here. But despite the fact that mixing oil with the sufferings of the drought area seemed unfair to Texana, this House debate served patice on Texas House members and the oil industry how deeply al prise rise and the feature 19 ER Mcent of to Eur has cut into the public conscience Word •from the offices of senators sitting on die Senate anti-monoply committee headed by Sen. Joseph O'Mahoney of Wyoming is that the public is beginning to send in a mountainous volume of mail rapping the oil industry. the Senators and House members are keen to listen to public opin Jon these days. If a vote had to come against the oil industry, a The remaining portions of the rage of question for years about bill offered to pay $1 to $1.25 an why farm prices had to go up in acre to any farmer who would cities. This time he said to Poage:: decline to graze cattle on dry "You from the great state of acres where a few blades of grass Texas with all your of wealth. were beginning to show. For these why can't you work out your own direct payments, the private land problems? The Ballas Morning News 12757 Southwestern Oil By JAY HALL, Ou Editor of The News Government Makes Flow Boost Appeal By HARRY WILSON SHARPE to turn out surplus gasoline rather WASHINGTON (UP) -The govthan lower priced fuel oil. erament appealed Saturday for Europe's most urgent need is crude oil production and eut for fuel oil or unrefined crude backs in domestic refinery opera which it can convert to fuel oil. tions to step up emergency cil American producers have fallen shipments to Western Europe. far short of the 500,000 barrels a The appeal, directed both to the day originally promised Britain oil industry and to state agencies and other oil-famine countries. such as the Texas Railroad Com Wormser said shipments from mission which regulate crude oil November through mid-January output, was made in a statement included 18 million barrels of by Assistant, Secretary of the In- crude oil, most of which came terior Felix E. Wormser. from stocks already in storage on the East and Gulf Coasts rather than from new production. It followed a report by the In terior Department Friday that The effect of this has been to US oil shipments to Europe are Aling for short of the 300,000 reduce these stocks to a level barrels a day this country under considered a minimum for nationtook to supply to help replace al security," he said. Mid-East cu cut off by blocking He did not refer directly to of the Suez Canal Shipments from state restrictions on crude oil outthe Gulf Coast to Europe in the put but the appeal was obviously week ending Jan. 17 were 275.000 med in part at the Texas commission which controls a major barrels daily, lowest point since the government-sponsored aid et portion of the nation's output. Texas has increased its producfort began. Wormser warned that the Euroton about 5 per cent since the pean supply situation is "critical Suez Canal was closed. The commisson recently allowed an inand said NATO countries vital to crease of 93,000 barrels a day for C.S. security will be serious February but rejected pleas from undermined unless the economic effects of the shortage are quickly 430,000 barrels a day or more. companies for 250,000 to relieved. He said Europe can get by on gasoline through rationing, but shortages of fuel oil and other distillates for industrial power and heat threat to have a "mo sever some US Officials Wish For More Texas Oil By SARAH MCCLENDON Washington Correspondent WASHINGTON, Dec. 12-Top of ficials in Washington who are directing the stepped up oil for Eu rope program would like to see Texas ell BER eil fields producing 300,000 to 400,000 mere barrels per day than they are now allowed by the state Railroad Commission. ly he could not outline at present from Gulf Coast ports as of Dec. 1. but which would all be taken into And that an extra 150,000 barrels consideration in making any fu- daily was needed. They said 850,ture policy on oil imports. 000 barrels daily was needed for Hugh Stewart, director, oil and Canada and the US East Coast, to gas division, interior department, offset the exports to Europe. Of and Ed Warren, Midland oil op- this 50.000 barrels is for Canada's erator, who is consultant to the East Coast. government on this particular pro- Stewart and Warren pointed out gram, said that by Dec. 15. there that the Texas oil allowable is This information was given here will be 1,200.000 barrels of oil daily raised when there are nominations Wednesday at a background press in tanker capacity awaiting deliv-posted to buy more cil conference attended by a half dozeries at Gulf ports, and by Jan. "Nominations are posted largely en key officials. will be reduced to 778,000 by the same major oil companies At the same time, it was reveal barrels. If the Texas fields do not doing the hauling, aren't they?". ed with some embarrassment by fill the tankers, then the tankers a Texas reporter asked. Stewart government officials that instead will be delivered around the Cape laughingly admitted this is true. of a tanker shortage at Gulf Coast of Good Hope to bring oil to Eur ports, there is a surplus of tanker ope from the Persian Gulf or other bottoms carry the oil required. Another factor cited by the offi cials is there are not enough pipe lines in the Gulf Coast area to carry the oil to market. 15 this sources Officials said they had been disappointed that domestic production had not been raised. They cited the fact that the Texas Railroad It was also brought out that this Commission had raised its allowstepped up oil program may go on able last time by one day, which for months past March, maybe a amounts to 100,000 extra barrels year or two. It might also develop daily. "new patterns of distribution" They said 400,000 barrels extra which one official admitted frank-daily was going out to Europe He also said one of the limiting factors on shipping is that pipelines to the coastal terminals can carry only about $50,000 barrels per day. Asked if this meant the govern ment saw the need for building more pipelines there, he said that matter would be "examined" in the future but not now. The tanker surplus will not be taken up by shipments of gaso line, he said. FORT WORTH STAR-TELEGRAM FORT WORTH, TEXAS Where the West Begins SUNDAY, JANUARY 27, 1957 European Supply Program Falls Far Short of Its Goal DORIS FLEESON. 2/7/57 US Oil Industry Fails In Oil Needs of Europe WASHINGTON The lack of presidential leadership in foreign policy. about which Senator Mansfield notably complained last week, extends to the problem of supplying oil to Europe to meet the deficit caused by the closure of Suez. The 300,000 barrels a day which we promised to mec: Europe's minimum requirements is a goal which the United States oil industry is failing to meet by at least a third and possibly a half, depending on whose figures one relies on. The Interior Department issued plea to the oil industry to increase its efforts. a The director of the department's l and gas division says that there has been "no response." The oil industry has a peculiarly intimate relationship with the Eisenhower administration. It has supported President Eisen- Some of its executives are among the Oil sources supplied much of the fi- The support of the industry had not Yet the President has used no personal influence, which with the oil industry is enormous, to see to it that European industry dependent on oil keeps operating, that essential transport keeps running, or that homes are sufficiently warm. Nevertheless, the Govern The weekend appeal by Felix press con Gulf shipments to Europe • A 250.000-barrel-a-day in- The Washington Post TUESDAY, JANUARY 22, 1957 Oil Squeeze in Texas The behavior of the Texas Railroad Commission, which regulates oil production in Texas, is surely becoming curiouser and curiouser. In the face of a rising world demand for crude oil, the Commission ordered a production cutback last week. It is true that the Commission raised daily output limits. slightly, but it simultaneously trimmed allowable monthly production days from 16 to 15, meaning that the February output limit is 3.5 per cent lower than this month's limit. All this takes place at a time when Western Europe is much more dependent on American oil because of the Suez stoppage. What kind of game are the oilmen playing? Recent crude oil price increases have been blamed F Su may Britain's Automobile Industry London (AP)-Europe's oil,ternal and external traffic,,ernment may cut the domestic famine has thrown Britain's dealer deliveries and repre-purchase tax-now 60 per cent automobile industry into asentatives cars Now, the com- of a car's retail price-in slump, causing unemployment pany's ration "amounts to order to encourage sales. and short-time work for tens about a third of our needs." Some dealers are looking The government recently for a general rise in car prices Gasoline rationing following blockage of the Suez Canal has sought to soften the blow to unless the situation changes home sales by easing install suddenly. of thousands of workers. While this would cut into car sales both at home ment buying terms jacked up shoo off even more buyers, and in the European market last year in the nation's fight dealers are said to feel they With short gasoline supplies against inflation. The required cannot go on taking present in prospects for many months, down payment on a car was losses. motorists are showing little in cut from 50 to 20 per cent. terest in new cars. Some dealers claim it has As a result, automobile helped used car sales, but has makers are cutting back pro had little effect on the new duction. Layoffs in this coun-car market. try's once booming motor industry are beginning to snowball on top of widespread short-time work. Ford Motor Co. is the latest to announce a cutback-the layoff of 1000 of 12.000 men) at its Briggs motor bodies sub. sidiary next week. More than) 1000 dismissals already have been announced by various! automakers around Coventry An estimated 35.000 more workers are on a three or fouriday week. The Daily Mail's motor correspondent describes the sitwalion as the worst crisis in the industry's history." Some industry experts say the slump may grow more acute One reason they give is that the factories don't have enough gasoling to bring sup[plies into the plants and make car deliveries They cited a Ford Motor Co. statement to its employees. It said that before rationing the company used 200.000 gallons of gasoline monthly on its in Herrmann said that 50 car Several British newspapers goes of gasoline, even at pres in special dispatches from ent tanker costs, could be deTexas and Washington, in edilivered to British ports at 25 torials and cartoons, have crit per cent of the price being icized Texas oil producers for charged to British consumers. not stepping up oil production to meet Britain's and Western The Houston Post January 10, 1957 This was interpreted here as an objection to Britain's im port duty on gasoline. The duty was raised on Dec 4 from two shillings, six pence (35 cents) to three shillings, six pence (49 cents), and that boost and a few pennies more besides was passed on to the British motorists. A SPOKESMAN at the Cus toms Department said the gov ernment had no plan to waive that duty. It was stepped up to make up for the revenue loss which the government would have sustained because there was less gasoline avail able to tax DORIS FLEESON 2/1/7 US Makes Up Only 65% Of Europe Oil Shortage WASHINGTON-The failure of the American oil industry to meet its quotas in the shipment of oil to Europe to make up for losses caused by the closure of the Suez Canal is likely to put that mostfavored industry in the deepest trouble it has been in since the days when the trust busters broke up the Rockefeller oil monopoly. It was revealed by Assistant Secretary of the Interior Felix E. Wormser that the American companies have been delivering only 65 per cent of the amount of oil needed to meet Western Europe's shortage. Persons close to the industry insist that in actuality the shortage in deliv eries comes closer to 50 per cent. Senators who have been incensed at the recent increase in the price of crude oil and its products have already threateaed a full-scale investigation of the price increases. A number of them have had vigorous complaints from constitutents who think that the oil industry has taken advan tage of the Western world's troubles to increase profits. That investigation will begin Friday through the anti-monopoly sub-committee of the Senate's powerful committee on the judiciary. The revelation now that the industry is failing to deliver oil to Europe in required quantities is certain to produce heavy pressure for an even more extensive investigation than had been planned. The oil industry is unique in the United States. It has tax allowances and privileges which set it apart from other segments of industry. Because of its preferred status it has been allowed very largely to regulate itself. Its failure in the present instance will surely bring its privileges into question. Whether it likes it or not, the oil industry has become an arm of American diplomacy and a vital part of the defense mechanism. If the industry does not effectively serve the needs of defense and of diplomacy, say some senators, then it will be essential that the government see that it do so. The question in the minds of Democratic senators is whether the industry or the Eisenhower administration is properly to be blamed for the present situation. As in earlier emergency situations, such as World War II and the Korean War, committees from the oil industry, with special exemptions from the Department of Justice from the anti-trust statutes, effectively kept the free world supplied with oil. Such an emergency committee was established to deal with oil problems as a result of the closure of Suez. The trouble is they say, that Interior Secretary Se failed to use influe "ers to 90507-57-pt. 2——8 |