The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-21
OIL PRICES HINGE ON
OKLAHOMA RULING
New Law Giving State Board
Power Over Output Called
Invalid.
TEST WILL COME SOON

oYLAHuMA CITY. Okla. March 20
Whether the new oil conservation law
gives the state Corporation Commission
the right to determine the price OF crude
oil at the well ia the important dues-
tlon being discussed here. As the out
put Of the Gushing and the Healdton
fields IL Of such tremendous quantity
that a rise or fan in price would affect
the entire industry Of the country 1t Is
an important question to the nation.
The new law under section . gives
the Corporation Commission the power
20 investigate the prices OF crude ana
refined oil. the cost OF production and
then Az the price ~ crude at the vel.
Finally the law gives the commission
the authority to regulate the supply Al
the fields.
These questions are expected to be
decided in connection with the prosecu-
ton Of complaints filed with the Cor
poration Commission through the At
tornev.Generdl The complaints charged
that oil IL be.ng produced at the Cush-
ing and the Healdton fields in violation
Of the new law. But attorneys for some
Of the leading oil producers assert that
the law is unconstitutional irasmuch AS
the commission caruot tN the price OF
crude AZ the wells without jmpair'ng eN-
listing contracts.
Gov. Williams. who is q law yer and
helped draft the Constitution OF OKLA
hona. will not say that section : or
the new law IL constitutional and Will
stand the test Of the courts. Tie did
say. however. In signing the bill, that
he thought there was enough that
would hold IN the law to make n ef-
fective.
COmmi.sio Goes slowly.
The Corporation Commission o the
position when the law became effective
that ~ would not initiate any o TO
proceed under the law, but that IT would
receive complaints from the oil produce
ers themselves aud treat each complaint
as II came with the view OF making
some dehnite final order touching a par
tiCular feature Of the production until
a combination OF regulatory provisions
could he assembled tina would cover
whstevtr was Necessary 10 bring about
the results ought
This Is the plan MIR Henshaw Of the
commission, who has given personal at
tention TO rho oil business. says has
been adopted tor future guidance. That
this plan might be changed Is possible.
In other words. the commission will
take up one thing At a time. and II II
IL successful first. then the second step
will be aiken. Just what feature OF
the oil business eacn step will embrace
IL problematical with the commission at
this time. because there is absolutely
no precedent to reason from. no sign
post TO guide.
II is stated I'm the complaints fled with
the ATTORNEY Generals office that oil is
being produced in IN. fields mentioned
which will result N disaster to holders
of adjacent leases, many of the latter
being indepcu dents and able to only pro
duce q small Of oil The small
oil man cannot command tile attention Of
the pipe lines that the man with a
large production ,du, Therefore the
latter gets his oil ont I'm larger guam
titles than the smnl man ana gets an
unjust p'rtiou OF the oil.
This is one OF the conditions with
which the commission is given power to
deal. Complaints under this provision
Of the law viii be taken up and con-
sideled first. although cond ions al
legged to Exist call for the Application Of
the whole law.