Bitter Sniping at Simon

After nearly four months as U.S. energy chief, William Simon could use any respite that a lifting of the oil embargo would bring. When he stepped in, he was almost universally hailed as the tough decision maker who would finally whip the nation's faltering energy policies into shape. The honeymoon could not last, and it has not; Simon now is getting a barrage of criticism, some of it astonishingly bitter.

Simon still has the solid support of President Nixon--so much so that Nixon is expected to appoint Simon Secretary of the Treasury later this spring when George Shultz is likely to step down. He has also earned high marks from a group who might be considered Simon's natural enemies: liberal Democrats in Congress. Says Illinois Senator Adlai Stevenson III: "He's doing everything possible in a situation that's nearly impossible."

There are, however, a few surprising sources of anti-Simon sentiment: some lower-level aides at the White House and in the Office of Management and Budget resent Simon's sudden prominence and independent ways (he recently said that OMB Director Roy Ash should keep his "cotton-picking hands off energy policy). Some of them have taken to making snide wisecracks about Simon: "When the President appointed an energy czar, he didn't know he was getting Ivan the Terrible."

More substantive criticism centers on the allocation programs devised by Simon and other officials of the Federal Energy Office. The plan for crude oil at one point forced oil companies that had supplies sufficient to run their refineries at more than 76% of capacity to sell the "excess" to competitors who had less, at low Government-mandated prices. Rather than do so, FEO officials believe, some oil companies slashed imports. Some Government officials complain that weeks passed between FEO'S discovery of a decline in imports and Simon's decision to order needed changes in the program. One economist at the Council of Economic Advisers grumbles, "There was great reluctance to bite the bullet."

The gasoline-allocation program was supposed to spread the shortage evenly. Instead, some states like Georgia have been awash in fuel, while others, especially on the West Coast and in the Northeast, have had to impose local rationing. Maryland filed an unsuccessful suit against the program, and New Jersey is considering suing also.

Simon is very aware of the problems, and he and his staff are working overtime to find solutions. Late last month he ordered additional "emergency" allotments of fuel to 26 states and the District of Columbia. That required a drawdown in gasoline inventories that, if repeated, could have serious effects later this year unless the Arab embargo is eased. Simon believes that FEO can "cool off the situation within three to six weeks by shifting fuel from states with ample supplies to those that are hard-hit.

These problems have been compounded by Simon's less-than-sterling performance as an administrator. FEO staffers say that he spends all too much time meeting with anyone who wants to see him and testifying before Congress. FEO has also suffered from the high turnover rate and lack of expertise of its staff. Many employees were assigned to FEO on a temporary basis, and have since returned to their agencies; their replacements had to start from scratch to learn their jobs. Moreover, the long hours that FEO officials have invested in getting the programs started have taken a toll. One top assistant has resigned because of the grueling pace, and two other key aides have left because of disagreements over how the allocation programs should be run.

Assurance. When asked about the complaints, Simon reels off a list of widely predicted energy disasters that have not come to pass: "People freezing, cold factories and homes, closed schools, massive unemployment, brownouts and all the rest." He gained more supporters three weeks ago, when gasoline dealers threatened a massive shutdown to underscore their demands for an immediate gasoline-price increase. Simon resolved the dispute by offering the dealers a 2-c--per-gal. hike. Although that offer means higher prices for motorists, it was an assurance that gas would continue to flow. Dealer-Leader Victor Rasheed was so impressed that he is now touting Simon as a candidate for President.

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