Salt Lake Tribune | 1917-06-24 | Page 4 | Oil Reserves in California may be Opened

OIL RESERVES If CMI MAY HEED Secretary Daniels Opposes Leasing Bill at Hearing of Senate Public Land3 Committee. WOULD NOT TOUCH THE NAVAL LANDS Gives Figures on Oil Burning Burn-ing Warships Now Under . Construction; Necessities . of Navy Paramount. ' Hy International Nows St-rvice. WASHINGTON, D. (.'., Juue 23. All oil and coal in tho cnuutry may be ; commandeered by the govrrnninnt before be-fore tho war i:i over. This wo9 the indication given today by Secretary of tho Navy Daniels. As an alternative he suggested an , arrangement whereby a controlling ; agreement might be entered and prices - fixed. The secretary spoke before the public lands committee, which is considering a bill to throw open to leasers the naval oil reserves in California. "Tho tu'n y has begun a policy of oil-burning shins," he said. "If we do not get oil, we must reverse our Rcheine. Tho problem is whether California's Cali-fornia's oil needs ore greater than the needs of the national defense. Demand Is Growing. " Kverv acre of oil land in the country coun-try should be opened before tho naval oil lands are even touched," said Mr. JJaniels. '.'The demand for oil will grow greater and greater as the war goes on. "In my opinion, the time will come Boon when the government must either commandeer all coal and oil or enter into an agreement for controlling the supply and thus fixing the prices." If the navy's lands are leased, it ' must be only under strictest supervision, and not by "dummies," the secretary told the committee. Ho gave figures on the oil-burning warships now under construction, saying three such dreadnoughts will . be launched in the next three months, fsixty oil-burning destroyers are being built. Three oil-burning dreadnoughts nave recently been launched. "It is said' the California oil situa. tion is critical," he said. "There is great need of oil everywhere. But oil is tho basis of war operation. You cannot run your submarines, aeroplanes or destroyers without oil. "In fact, you cannot go to the front without oil. Oil is necessary to the success of the ITnited States navy. M Senator Kellogg of Minnesota suggested sug-gested to the secretary that the needs of tho allies for oil be ascertained. Then tho testimony began to touch on tjhe Mexican oi supply. The secretary said: " There has not been a mouth in the past three years that oil men have not said that if their Mexican oil wells were not surrounded by troops they would be blown up." Senator Walsh of Montana, who presided, pre-sided, said there were just two alternatives alterna-tives before the committee. One was: "Shall we fisht the lawsuits?" The other: "Shall we compromise?" No decision was reached by the committee. com-mittee. Senator Hasting of Wisconsin moved .that tho attorney general appear next week and testify.