Page 12-Friday, July 18, 1980-The Michigan Daily,
Gov't claims
oil compaies
weren't behind
gas shortages
WASHINGTON (AP) - THe Justice THE TWO departments said their in-
Department and the Energy Depar- vestigators found the shortages were
tment reported yesterday separate in- prompted in part by a cutoff of oil
vestigations into last summer's because of the revolution in Iran, bad
gasoline shortages uncovered no weather that slowed production from
evidence that oil companies U.S. oil fields, and flaws in the Energy
deliberately held back fuel to force Department regulations that control
price increases, allocation of fuel.
Gasoline shortages caused long lines The Justice Department, which had
at service stations in most parts of the been instructed to search for possible
country last summer, leading violations of federal antitrust laws, said
President Carter to order the two in its report that it found none. The
departments to investigate oil company agency reported that the evidence it
actions. found did not even warrant further in-
vestigation.
"The Energy Department, however,
indicated one of the reasons for the
gasoline shortage was that some oil
companies diverted oil which normally
s r ®would have been refined into gasoline,
o r turning it instead to petrochemicals.
For some refiners, the Energy
Department report said, "the shift
towards petrochemicals may have been
motivated by profit con-
siderations . . .since the
petrochemicals industry is willing to
pay more ...than the gasoline con-
sumer."
"It may also be significant," said the
WASHINGTON (AP)-The long- Energy Department report, "that some
suffering housing industry revived of the large oil companies also own
sharply in June, as construction starts petrochemical companies."
for the month shot up 30.4 per cent over The department added: "It appears
the May rate, the Commerce Depar- that some refiners may have decided to
tment reported yesterday. But con- meet the growing requirements of
struction for the first six months of 1980 petrochemicals customers, including
still lagged 38 per cent behind the same their own affiliates, at the expense of
period last year. _ gasoline production."
Split open
The side of a Conrail commuter train from Lylestown, Pa., that rammed a
stationary commuter train from Lansdale, Pa. yesterday morning during
rush-hour injuring seventy passengers, hangs over the head of a fireman on
the scene. The cause of the collision is still under investigation.
-0
The department also reported that
building permits-a harbinger of future
activity-were up 28.4 per cent last
month over the previous month.
THE JUNE FIGURES mark a
significant turnabout iq the depressed
industry, but last month's activity still
was well below that of June 1979.
And while the housing industry ap-
peared to be heading into an upward
trend, economists were quick to caution
that the nation's overall economy still is
far from recovery. For example, the
government said manufacturers in
June operated at only three-quarters of
capacity, the lowest level in nearly five
years.
In a separate report, the government
said the income of Americans in June
rose by 0.4 per cent, or $8 billion-more
thaln the total increase in the previous
three months. The rate was far below
that of inflation, however, which has
eased from the 18 per cent annual rate
reported earlier this year to 11 per cent
last month.
The upsurge in privately owned
housing starts followed five straight
monthly dives.
Georgian delegates think
Bush choice is 'peachy'
By LORENZO BENET
Special tDThe Daily
DETROIT - Only a few days ago, delegates from
Georgia were insisting that they favored New York
Congressman Jack Kemp for the vice-presidential spot on
the GOP ticket. Yesterday afternoon, less than 24 hours after
former CIA director George Bush was selected by Ronald
Reagan to be his running mate, a Georgia delegate was
overheard saying, "Georgia thinks the Reagan-Bush ticket is
peachy."
A number of delegates roaming the Renaissance Center
here yesterday expressed similar sentiments. Many, in fact,
said they initially preferred Bush over former President
Gerald Ford, who for awhile Wednesday night looked like
Reagan's choice for the vice-presidentialspot.
"BUSH CAN ATTRACT more votes from the northeast
than any of the other vice-presidential candidates because he
appeals to the moderate voter," explained Kentucky
delegate Gordon Guess. He added Bush can also effectively
attract votes from the metropolitan south.
Another delegate from California, Liz Simms, seemed to
agree with Guess' projection. She said she was pro-choice
and did not favor the proposed'constitutional amendment to
outlaw abortions, but if Bush supports this party platform
a issue, it would make her feel very comfortable. Bush's
nomination, Simms said, was "the best thing that could hap-
pen because he'll pull in the Anderson votes and disenchan-
ted Democrats."
Some delegates explained "the future of the GOP" as
another reason for favoring Bush over Ford.
"If anything happens to Reagan, Bush can take over,''
noted California delegate Norman Roberts. He added that
Ford is only two years younger than Reagan, and Bush, 56,
will be young enough to run in 1984 and again in 1988.
Although most delegates interviewed said they were
satisfied with the Bush selection, others were not. Ohio
delegate Beverly Parks said she came to the convention "ex-
pecting to seea 100 per cent Reagan ticket. We got only 95 per
cent of Reagan with the addition of Bush."
Helen Boyce, an alternate delegate from Ohio, said she
was disappointed with Bush because "he fought Reagan
down to the end" in the Republican primaries.
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