The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-30
OVERPRODUCTI0N OF OIL AMOUNTS
TO GAMBLING WITH FUTURE SAFETY
OF NATION, SECRETARY WORK SAYS
Cabinet Member Calls At
tentiOn to Tremendous
Cvcrproduction Of The
Smack0ver and Seminole
Pools Government Must
Help Industry For Its Own
and Public Good

Buffalo, N. Y, Aug. 3O.--tP-The
federal government should ask the
next congress for legislation to con-
serve the nations oil resources, Sec
retary of Interior Work today told
the Mineral Law sections of the
American Bar assoc iation.
So as to have "unity in thought,
action and legislation in the interests
of economic production and consump-
tion Of our greatest natural re-
sources the interior secretary pro-
posed the constituting of committee
Of three leading lawyers. three petrol
cum engineers and three government
representatives to draft bill for the
federal oil conservation board to in
troduce in the 10th congress. The
legislation should be intended to pro-
tect the nations oil de"osits against
waste in production, he added, and
the public against future high cost OF
oil products.
Issues Warning
Secretary Work warned that the
present overproduction of about a
MILLION DdTEelS VI VII uduy 0uouuNS
to gambling with national safety and
appealed to the legal profession to
formulate "sane and positive course
that will protect our national struc-
turc in the years to come"
The secretary said that the need
for conservation of oil in the ground
was never more apparent than no"
if "our future needs world be as
surcd' and "Our national life surely
safeguarded."
"If federal or additional state leg
! islation is essential as a corrective,
he continued, "the sooner such enact
mcnt is evolved the better.
Time Ripe For Action
If the remedy rests with the OF
companies themselves, through volun
tary and wholehearted cooperation
! or through compulsory unit pool -Dp
Grafton, or some other method, tn,
time is precminently ripe for action
The secretary, who is chairman o
the Federal Oil Conservation board
called attention to the tremendou
Overproduction of the Smackover ant
Seminole pools with its attendan
waste of billions of feet of valuabl
gas, and pleaded for "constructiv
craftsmanship to save an 0vcrc0m
/ petitive industry from ITSELF
"What is needed" he declared, 81
not government interfering with busi
ness nor business mcddling with gov
ernment, but government helping in
dustry for its own and the publ
good"
Unless the industry is able to CO
operate in the conservation program
the secretary asserted, huge losse
are inevitable.
! Statistics for which he would no
vouch but which he said were ver
tured by men intimately in touc
with the industry were cited by tn
secretary as indicating decline sine
the peak of 1926 Of over five hundre
million dollars in the mar
ket values Of oil compan
stocks represented on tn
New York Stock Exchange. Som,
he added. indicate the losses to tn
industry as whole to be nearly
billion dollars.
! General Public Affected
These losses suffered by the ir
dustry similarly affect the geners
public, he said, since nearly all tn
large producing and refining con
panies now arc owned by hundred
Of thousands of individual stock
holders and not by handful G
wealthy men.
/ The secretary said the presen
price of gasoline was not the onl
factor to be considered but tina
fluctuations in prices Of crude OF
greater than those Of gasoline, waste
full competition in distribution. an
) other factors should all be include
: in the problem for solution.
"My feeling is that it is more tn
part of constructive craftsmanship
we seek to lower prices by maxim
economic conditions favorable I
: lowering COSTS" he said.
:, "There may be too many petty law
. but there is too little fundaments
t law that defines the larger relation
J between government and busines
bringing the two into vital harmon!
"More authority is needed for go,
ernmental activities in aid Of bus
ness but the oil industry, at leas
now seems to appreciate that its firs
, step is to win public confidence b
!, taking the public into its confidence