Evening star., 1927-05-28

Can the Oil industry be stabilized
without running afoul OF the anti
trust laws and without injustice to
either the producer or the consumer?
This is the question engaging the at.
tention of the administration and OF
the oil companies at the present time,
with the public an interested listener
in" on the deliberations that are re-
corded in the press.
Something Of the average citizens
rather puzzled attitude Is thus ex.
pressed by the Bangor Daily CONNER
cial independently: ITO a public that
for years has been reading statements
of the steadily lessening supply of
crude oil and forebodings that within
a comparatively few years the output
Of petroleum products will be very
limited, the present outcry for action
to restrict overproduction of oil is
rather mystifying. Now we are told
that the production Of oil Is greater
than its consumption, that millions of
barrels are being placed in storage,
and that many producers. by reason
Of this condition, are compelled to dis
pose Of their output at less than the
cost of production. Pity the poor oil
producer whose wells are flowing at a
rate that bids fair to beggar him.
Such seems to be the idea, and demand
for a remedy is made. Established
operating companies have asked the
Federal Government to give its assist
ance and have received sympathetic
replies, 1t Is stated"
On the other hand, "some Of the
smaller companies, needing the turn
over which comes with capacity pro-
duction, are objecting to the proposals
of the big concerns" as the Flint
Daily Journal independently points out,
and many in this situation are not
forgetting that business experts have
clamored in vain for an adjustment
between supply and demand in agri-
culture, that producers may fare bet
ter and that prosperity shall be gen.
eral throughout the country" Never
theless, this paper believes that the
good wishes of the public should at
tend the efforts" of the oil industry to
extricate itself from an embarrassing
situation If 1t meets 'its problem
properly"
In discussing the appeal Of the oil
producers to the Government the Nor
folk Ledger-Dispatch independent
Democratic) says: 1.-THE Coolidge ad-
ministration. naturally friendly to big
business, finds itself in dilemma. 1t
has refused to sanction a price-fixing
agreement on farm products, and the
antitrust laws have been invoked in
other directions, so 1t cannot, with a
presidential election coming next year,
permit the Oil producers to effect an
agreement that naturally will result in
maintaining the present price or gaso-
line, If not reduce the supply to
point where justification can be claimed
for an increase"
The Lexington Leader Republican)
voices the opinion that "the only
thing that may be done in the pres
ence Of such a dilemma Is to permit
natural laws to take their course.
There are cycles of high prices and
Of low prices" the Leader points out,
and while 1.-The consumers benef1t at
one period, the producers and refiners
benefit at another" In other words,
while the President favors consert a.
ton of oil, he cannot indorse any
illegal combination in restraint OF
trade"
The Lynchburg News Democratic)
suggests that "it may seem a bit
strange that the Government should
be so concerned over limiting oil pro. |
duction In the interest Of the pro- |
ducers when 1t has to be driven into |
giving even sympathetic hearing to
farmers suffering from the same Ill
Of overproduction."
The vital necessity for the conserva- |
ton of the oil resources Of the country |
must not be lost sight of, In the opin- |
ion of many Of the newspapers, In
cluding the Sioux City Daily Tribune |
independently, the Richmond News
Leader independent Democraticb the
Canton Daily News Democratfol the
- HxxAA nvr
Democratic). HE Pittsburgh Sun dnde-
pendent Deusucratic) and the Collln-
bus Dispatch dndependentlasthe LAT
m mad decIarfn9 that ssfhn DUR AZ M13