Salt Lake Telegram | 1947-04-19 | Page 2 | Navy Refused Price Cut, Arabia Oil Probers Told

Navy Ivy Refused Price Cut Arabia Oil Told WASHINGTON April Apil 19 UP UP- UP Evidence before a senate committee commit commit- tee showed Saturday that the navy rejected a rate cut-rate offer of Arabian oil In 1941 on the ground of In Inferior Inferior In- In quality while at the same time it was purchasing oil of similar simIlar simi simI- lar Jar quality from the same area The senate war investigating committee scheduled a door closed-door session to hear a report from former former lormer for lor- mer Sen Burton K Wheeler of Montana who is directing Its Inquiry in inquiry inquiry in- in into naval oil purchases Inthe in inthe inthe the middle east Chairman Owen Brewster R. R Me told reporters the information he received on his recent visit to I Ito Cairo Egypt contained nothing to contradict charges th that t the i navy is paying excess prices for mid east oil I Lower Cost He Ho said production costs of Arabian Arabian Arabian Ara Ara- bian oil are arc even less than I had figured Oil man James A. A Moffett has charged that the Arabian-American Arabian Oil Co reaped close to in extra pro profits through the navys navy's failure to accept his rate cut-rate offer in 1941 This the navy strongly denied Moffett claimed to have made the offer in behalf of the Standard Oil Co of California and the Texas Oil all Co Joint owners of the Ara Ara- American bian Oil Co The committee believes missing navy documents will show that the late Secretary of the Navy Frank Knox down Moffetts Moffett's offer on grounds the quality of the theall oil all was too low for lor navy needs at atthe atthe atthe the time Quality Improves Later according to navy statements statements state state- ments the quality y im improved r ved and it contracted to buy oil from the Arabian-American Arabian Co in 1944 Documents available to the committee showed the navy had been buying oil all from the same general oil pool In the middle east cast for lor as long as a year before Moffetts Moffett's offer was rejected Committee sources said they believed believed be be- the evidence would show the quality of oil from the two sources was about the same The missing navy documents al allegedly allegedly allegedly al- al were sent to the White WhiteHouse WhiteHouse Hou House e following a mysterious telephone telephone telephone tele tele- phone call in 1944 at about the time the navy oil contract was being negotiated The committee has asked the White House for permission to examine examine examine ex ex- ex- ex amine the late President Roosevelt's Roosevelt's Roosevelt's Roose Roose- velt's files to see if there are any documents bearing on its Us inquiry As yet et it has received no reply