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CHAPTER VII.

ORDERS AND REGULATIONS RELATING TO PETROLEUM

AND ITS PRODUCTS AND NATURAL GAS."

TITLE I.

ORDERS AND REGULATIONS RELATING TO THE LICENSING

OF IMPORTERS, MANUFACTURERS, AND DISTRIBUTORS OF PETROLEUM AND ITS PRODUCTS AND NATURAL GAS.

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Proclamation of the President of the United States of Jan. 31, 1918, Requiring the Licensing of Distributors of Fuel Oil, Issued as Part 1 of Publication No. 18 of the United States Fuel Administration.

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA.

A PROCLAMATION.

WHEREAS, Under and by virtue of an act of Congress entitled "An act to provide further for the national security and defense by encouraging the production, conserving, the supply, and controlling the distribution of food products and fuel,” ap- i proved by the President on the 10th day of August, 1917, it is provided among other things as follows:

"That, by reason of the existence of a state of war, it is essential to the national security and defense, for the successful prosecution of the war, and for the support and maintenance of the Army and Navy, to assure an adequate supply and equitable distribution, and to facilitate the movement of foods, feeds, fuel, including fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, implements, machinery, and equipment required for the actual production of foods, feeds, and fuel, hereafter in this act called necessaries; to prevent, locally or generally, scarcity, monopolization, hoarding, injurious speculation, manipulations, and private controls, affecting such supply, distribution, and movement; and to establish and maintain governmental control of such necessaries during the war. For such purposes the instrumentalities, means, methods, powers, authoritics, duties, obligations, and prohibitions hereinafter set forth are created, established, conferred, and prescribed. The President is authorized to make such regulations and to issue such orders as are essential effectively to carry out the provisions of this act.''

AND WHEREAS it is further provided in said act as follows:

"That, from time to time, whenever the President shall find it essential to license the importation, manufacture, storage, mining, or distribution of any necessaries, in order to carry into effect any of the purposes of this act, and shall publicly so announce, no person shall, after a date fixed in the announcement, engage in or carry on any such business specified in the announcement of importation, manufacture, storage, mining, or distribution of any necessaries as set forth in such announcement, unless he shall secure and hold a license issued pursuant to this section. The President is authorized to issue such licenses and to prescribe regulations for the issuance of licenscs and requirements for systems of accounts and auditing of accounts to be kept by licensees, submission of reports by them, with or without oath or affirmation, and the entry and

" Chapter VII includes all formal orders dealing with petroleum and its products and natural gas. The number is relatively small, the regulation of the production and distribution of oil and gas having been accomplished in large measure by voluntary cooperation between the Fuel Administration and the industry.

inspection by the President's duly authorized agents of the places of business of licensees."

AND, WHEREAS, It is not possible to move promptly our abundant supplies of fuel oil by reason of the traffic congestion on our railways and the transfer to trans-Atlantic service of a large number of tank steamers ordinarily engaged in coastwise trade, and it therefore seems desirable that a plan of control be made effective in case the distributing companies are unable to transport as required fuel oil to all consumers now being served,

AND, WHEREAS, It is essential, in order to carry into effect the provisions of the said act, that the powers conferred upon the President by said act be at this time exercised, to the extent hereinafter set forth,

Now, THEREFORE, I, Woodrow Wilson, President of the United States of America, by virtue of the powers conferred upon me by said act of Congress, hereby find and determine and by this proclamation do announce that it is essential, in order to carry into effect the purposes of said act, to license the importation, manufacture, storage, and distribution of fuel oil to the extent hereinafter specified.

All persons, firms, corporations, and associations engaged in the business of both manufacturing and distributing fuel oil (including gas oil), whose gross sales of fuel oil (including gas oil) amount to more than one hundred thousand (100,000) barrels per annum, are hereby required to secure on or before February 11, 1918, a• license, which license will be issued under such rules and regulations governing the conduct of the business as may be prescribed. Application for license must be made to the United States Fuel Administration, Washington, D. C., License Division.

Any person, firm, corporation, or association other than those hereinbefore excepted who shall engage in or carry on any business hereinbefore specified on and after February 11, 1918, without first securing such license, will be liable to the penalty prescribed by said act of Congress.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the United States to be affixed.

Done in the District of Columbia, this 31st day of January, in the year of our Lord One thousand nine hundred and eighteen, and of the independence of the United States of America the One hundred and forty-second. By the President:

WOODROW WILSON, Robert LANSING, Secretary of State.

Order of the United States Fuel Administrator of Jan. 31, 1918, Approved by the President of the United States, Establishing Rules and Regulations Governing Licensees Engaged in the Distribution of Fuel Oil.'

These rules and regulations are promulgated by the President for the purpose of assuring an adequate supply and equitable distribution of fuel oil, for purposes vitally

1 The following five rulings construing the regulations of February 4, 1918, were issued over the signature of the United States Fuel Administrator, Nos. I to 4 on February 27, 1918, and No. 5 on March 12, 1918:

1. Plants engaged exclusively in manufacturing machinery for plowing, planting, fertilizing, tilling and harvesting crops (including wheels therefor), binder twine, firm wagons and tractors for farm use; and plants engaged exclusively in the manufacture of fertilizers, including phosphate plants, are hereby classified in Class 9.

2. It appearing that the Sparrows Point plant of the Bethlehem Steel Company is supplying gas to the City of Baltimore, and it further appearing that the City of Baltimore cannot secure sufficient gas from any other source to meet its requirements, a ruling is hereby made that the Sparrows Point plant of the Bethlehem Steel Company is placed in Class 5 as a public utility for the purpose of permitting said Sparrows Point plant to supply Baltimore with gas.

3. The Panama Canal is hereby classified in Class 1 as to requirements for fuel oil.

4. It appearing that Fullers Earth is necessary in refining oil, the ruling is hereby made that corporations or individuals exclusively engaged in the production of Fullers Earth for use in connection with oil refining processes necessary to the conduct of the industry are placed in Class 1 as necessary to the operation of railroads.

5. Bunker fuel comprises suel for all power-driven vessels other than those operated for pleasure purposes.

essential to the national security and defense and to the successful prosecution of the war.

The shortage in the amount of fuel oil which can be delivered, because of transportation conditions, is such that it is clearly a wasteful and unreasonable practice to deliver such fuel oil for uses which are not intimately and directly connected with the prosecution of the war.

Rule 1. The licensee engaged in the distribution of fuel oil, in that part of the United States east of the Rocky Mountains, shall not, without the consent of the United States Fuel Administrator, make any deliveries of fuel oil to any customer of any one of the classes mentioned below, until he shall have delivered to customers of every class designated by a lower number, with whom he may have a contract, all fuel oil for which deliveries shall be then due upon such contract. Differentials as between members of the same class may be made only with the consent and under the direction of the United States Fuel Administrator.

This rule shall apply to all deliveries regardless of the dates of the contracts therefor and whether heretofore or hereafter made.

Provided that this rule shall not prevent the delivery of fuel oil by any licensee to any jobber or distributor if it is to be used for a purpose for which the licensee could deliver such oil direct.

The classes referred to and the order of their preference are as follows: 1. Railroads and bunker fuel. 2. Export deliveries or shipments for the United States Army or Navy. 3. Export shipments for the navies and other war purposes of the allies. 4. Hospitals where oil is now being used as fuel. 5. Public utilities and domestic consumers now using fuel oil (including gas oil). 6. Shipyards engaged in Government work. 7. Navy yards. 8. Arsenals. 9. Plants engaged in manufacture, production, and storage of food products. 10. Army and Navy cantonments where oil is now being used as fuel.

11. Industrial consumers engaged in the manufacture of munitions and other articles under Government orders. 12. All other classes.

H. A. GARFIELD,

United States Fuel Administrator. Approved:

WOODROW WILSON, : WASHINGTON, D. C., January 31st, 1918.

Order of the United States Fuel Administrator of Mar. 19, 1918, Establishing Revised

Rules and Regulations Governing Licensees Engaged in the Distribution of Fuel Oil.

These rules and regulations are promulgated by the President, acting through the United States Fuel Administrator, for the purpose of assuring an adequate supply and equitable distribution of fuel oil for purposes vitally essential to the national security and defense and to the successful prosecution of the war.

The shortage in the amount of fuel oil which can be delivered, because of transportation conditions, is such that it is clearly a wasteful and unreasonable practice to deliver such fuel oil for uses which are not intimately and directly connected with the prosecution of the war.

RULE 1. No licensee engaged in the distribution of fuel oil in that part of the United States east of the Rocky Mountains shall, without the consent of the United States Fuel Administrator, make any deliveries of fuel oil to any customer or consumer of any one of the classes mentioned below, whether the licensee is under any contract

to make delivery to such customer or consumer or not, until such licensee shall have delivered to the customers or consumers of every class designated by a lower number with whom such licensee may have contracts or to whom such licensee shall have been directed to deliver by order of the United States Fuel Administrator, all fuel oil to be delivered upon such last-mentioned contracts or such orders of the United States Fuel Administrator. Preferential deliveries as between members of the same class may be made only with the consent and under the direction of the United States Fuel Administrator. This rule shall apply to all deliveries of fuel oil, regardless of any contracts therefor or hereafter made: Provided, That this rule shall not prevent the delivery of fuel oil by any licensee to any jobber or distributor if such fuel oil is to be used for a purpose for which the licensee could deliver such oil direct, nor in any case where the jobber or distributor shall have been licensed or designated by the United States Fuel Oil Administrator.

The classes referred to and the order of their preference are as follows: 1. Railroads, bunker fuel, and oil refineries using or making fuel oil. 2. Export deliveries or shipments for the United States Army or Navy. 3. Export shipments for the navies and other war purposes of the allies. 4. Hospitals where oil is now being used as fuel. 5. Public utilities and domestic consumers now using fuel oil (including gas oil). 6. Shipyards engaged in Government work. 7. Navy yards. 8. Arsenals. 9. Plants engaged in manufacture, production, and storage of food products. 10. Army and Navy contonments where oil is now being used as fuel.

11. Industrial consumers engaged in the manufacture of munitions and other articles under Government orders.

12. All other classes.

Rule 2. Licensees shall promptly comply with all orders of the United States Fuel Administrator with respect to the delivery of fuel oil, the submission of reports, and other matters proper and necessary to carry into effect the President's proclamation of January 31, 1918.

Rule 3. Neither these rules and regulations nor the orders of the United States Fuel Administrator shall relieve any licensee from his obligation to deliver fuel oil which he has contracted to deliver as soon as the prevention resulting from such rules, regulations, or orders shall have ceased to operate and the fuel oil shall be available for delivery under such contracts.

These rules and regulations shall apply to all licensees heretofore or hereafter licensed under the proclamation of the President dated January 31, 1918, and shall supersede the rules and regulations issued with the approval of the President on that day.

H. A. GARFIELD,

United States Fuel Administrator. WASHINGTON, D. C., March 19, 1918. Proclamation of the President of the United States of Sept. 16, 1918, Requiring the

Licensing of Importers, Producers, Manufacturers, Distributors, and Transporters of Crude Oil, Fuel Oil, Gas Oil, Kerosene, Gasoline, and Natural Gas, Issued as Part 1, of Publication No. 28, of the United States Fuel Administration.

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA.

A PROCLAMATION. Whereas, under and by virtue of an act of Congress entitled "An act to provide further for the national security and defense by encouraging the production, conserving the supply, and controlling the distribution of food products and fuel,”

approved by the President on the 10th day of August, 1917, it is provided, among other things, as follows:

“That by reason of the existence of a state of war, it is essential to the national security and defense, for the successful prosecution of the war, and for the support and maintenance of the Army and Navy, to assure an adequate supply and equitable distribution, and to facilitate the movement of foods, feeds, fuel, including fuel oil, and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, implements, machinery, and equipment required for the actual production of foods, feeds, and fuel, hereafter in this act called necessaries; to prevent, locally, or generally, scarcity, monopolization, hoarding, injurious speculation, manipulations, and private control affecting such supply, distributions, and movement; and to establish and maintain governmental control of such necessaries during the war. For such purposes the instrumentalities, means, methods, powers, authorities, duties, obligations, and prohibitions hereinafter set forth are created, established, conferred, and prescribed. The President is authorized to make such regulations and to issue such orders as are essential effectively to carry out the provisions of this act."

And, whereas, it is further provided in said act as follows:

“That, from time to time, whenever the President shall find it essential to license the importation, manufacture, storage, mining, or distribution of any necessaries, in order to carry into effect any of the purposes of this act, and shall publicly so announce no person shall, after a date fixed in the announcement, engage in, or carry on any such business specified in the announcement of importation, manufacture, storage, mining, or distribution of any necessaries as set forth in such announcement, unless he shall secure and hold a license issued pursuant to this section. The President is authorized to issue such licenses and to prescribe regulations for the issuance of licenses and requirements for systems of accounts and auditing of accounts to be kept by licensees, submission of reports by them, with or without oath or affirmation, and the entry and inspection by the President's duly authorized agents of the places of business of licensees.”

And whereas it is further provided in said act as follows:

“That in carrying out the purposes of this act the President is authorized to enter into any voluntary arrangements or agreements, to create and use any agency or agencies."

And whereas the President has heretofore designated and appointed Harry A. Garfield United States Fuel Administrator for the purpose of carrying into effect the provisions of said act, relating to fuel, and has directed that "said Fuel Administrator shall supervise, direct, and carry into effect the provisions of said act and the powers and authority therein given to the President so far as the same apply to fuel as set forth in said act, and to any and all practices, procedure, and regulations authorized under the provisions of said act applicable to fuel, including the issuance, regulation and revocation under the name of said United States Fuel Administrator of licenses under said act," and has authorized said Fuel Administrator to employ such assistants and subordinates as may from time to time be deemed by him necessary, said Fuel Administrator and such assistants and subordinates together constituting the governmental organization called the United States Fuel Administration;

And whereas it is essential in order to carry into effect the provisions of said act, and in order to secure an adequate supply and equitable distribution, and to facilitate the movement of certain necessaries hereafter in this proclamation specified, that the license powers conferred upon the President by said act be at this time exercised to the extent hereinafter set forth;

Now, therefore, I, Woodrow Wilson, President of the United States of America, by virtue of the powers conferred on me hy said act of Congress, herehy find and determine and by this proclamation do announce that it is essential in order to carry into

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