Evening star., 1923-06-07
CURB OIL OUTPUT
TO HELP INDUSTRY
! Only is Wells Started in
Week in CaIifornia-NeW
Efforts to Push Auto Sales.
BY j. c. ROHLE.

Special Dlspatcn 10 i ne star.
NEW YORK, June Fear for the
life of the goose that lays the golden
egg is having a marked effect at last
in cutting down the tremendous oil
production of the California fields.
Only sixteen new wells have been
started in that section in the last
week, the lowest number begun in
any similar period since January 1.
In the meantime Great Britain, TAX
ing advantage of the slash In prices
which has already taken place, is
buying immense quantities Of Cali
fornia gasoline and light crude oils
and storing for future use, at the
same time conserving her own sup
plies, in expectation Of future short
age in world supplies, which oil men
here declared today was sure to
come. This fact was established by
reports both here and abroad today.
Furfner Cuts Predicted.
Conservative bankers and oil pro-
duceEe in California stated today
thit further cut in crude oil prices
Vas bound to come and predicted
price as low as rs cents a barrel.
unless those producers who have not
needed the warning curtail opera
tions until the huge surplus of Cali
rornia oil is reduced. The larger
California companies are pinching in
most of their wells in an effort to
help the situation and rushing work
on new storage facilities to the ut
most.
Strong pressure on the producers
Is pelng exerted by business men and
that stupidity might bring disaster to
an industry which yields the state
over S2G5. 100000 annually. employs
IS'OoO workers in the southern field
OF Ss5.000,000.
Drilling in the Pennsylvania and
mid-continent field have checked to
some extent but not to as great
degree as expected.
!, IN the meantime, gasoline consump-
tion is increasing and automobile
manufacturers are determined that it
shall not diminish If production of
new cars and selling efforts can keep
1t up.
Increasing Auto Sales Efforts.
Manufacturers are watching closely
Studebaker cars on a $40 weekly pay
ment put into effect by the New
ARK. N j., agency of that COM
pany. The plan in general resembles
the FORD IS week bank deposit plan
winch gives purchasers possession of
the cars while paying for them. 1t is
expected that If the Newark expert
ment proves successful the Stude-
naker Company and others will adopt
IL TO widespread degree.
immediate slackening Of activity Is
not expected, according to many
large makers. E. s. Jordan. president
OF the Jordan Motor Car Company Of
Cleveland, said today that from pres
ent indications the demand would be
maintained at least through June and
July with possible lull from late in
July to September.
Manufacturers generally centered
July 1 in mind" he said. They are
now making their plans for the sec
ond half year. and because of labor
conditions operations are expected to
during the summer. with an increased
production after September l. De-
mand for closed cars is now close to
20 per cent of production throughout
still short. Warmer weather has
stimulated buying of open cars and
we, we look for good business in June
Materials Easier to Get.
George w. Booker. president of the
r. B Stearns Motor Company, when
asked about material prices. said: "I
do not know that we will realize
, much of a reduction in materials, but
we hnd that they are easier to get
than they were. Our May business
was better in dollars than that of
April, but we ran to capacity both
months"
In the opinion of Alvan MacAuley,
president of the Packard Motor Car
Company. the present year will be
a record breaker in every line of in
dustry.' He has just completed a sur
Hey, directed by means of Ques-
tionaaire to leading business men in
every section of the country, which
showed he declared, that the United
States as a whole had never faced
a more favorable year for business
The answers indicated that demand
for automobiles would keep up with
out abatement.