Douglas daily dispatch., 1927-08-31
OIL INDUSTRY
ENDANGERED
BY PROFIT RACE

BUFFALO, NJ Y, Aug. 80 ga
race for profits threatens to deplete
Americas oil resources, the mineral
law section of the American Bar
association was told today in trias
partite message.
Hubert Work, secretary of the in.
terror and chairman of the federal
oil conservation board, and Henry l..
Doherty, father of the pool plan for
conserving petroleum and gas re-
sources, warned that oil waste is a
national menace and declared that
the mineral law section, through the
American Bar association, should adj
wise the federal government to ask
congress to provide conservation legis
lation.
James A. Veasey, of. Tulsa, Okla.
general counsel for the Carter Oil
company, although agreeing that the
oil industry was in a demoralized
condition, due to over production,
starting last November, said it was
his opinion that federal legislation
to control the industry would be
unconstitutional.
Action in the matter, if any is
taken, probably would follow SUBJ
mission of the mineral law sections
report to the bar association during
its annual convention, which begins
tomorrow.
At present Secretary Work said,
over production, to which he assigned
the difficulties of the oil industry
is approximately 100000 barrels a
day. He added that losses indicated
for the industry would total $1,000.
000,O00 This, he pointed out, would
not be borne "by a handful Of
wealthy men, but by 1,450,OOO stock
holders and bond holders of both
sexes of all stata of society.
'The chief cause of over produc-
tion," he continued, sis over compe-
tition. Nature and human nature
seem to have conspired to make the
oil game game of chance. The
present crisis in oil, described as
the most malignant form of indus
trial disease and as an economic
disaster of International proportions,''
has come because OF delay in attend
ing to the human side of the prob
lem"
He described oil as a mobile pro-
eeSSiOn, which might be taken under
another mans land if a first land
,Cwner delayed drilling, and attributed
to this desire to get the oil first
virtually the whole of the industry's
problems.
,Doherty saw waste of oil resources
as a danger to the nation in the
time of war. His brief, made public
here today pictured conditions In
the oil industry as "scandalous." lie
urged the mineral law section tu.a
work for federal control Il
VeaSey laid at the door of COM
petitiVe drilling the over production
which he described. He said con-
servation was necessary to the in
dustry and the public, but he thought
the oil industry "too individualistic
and too technical to be controlled by
statute"
In his communication to the bar
association, copy of which was also
sent to the federal Oil conservation
board at Washington, Mr.. Doherty
said that coil is our most important
munition of war and it's waste and
dissipation has reached proportions
which can hardly be described by
the use Of conservative language. /.
Exhaustion of the American oil re-
sources to the point where national !
defense would be inperiled would
be- national calamity he said.
A resolution calling upon Presidents !
Coolidge to call a conference of gov
ernors of all states to consider regu-
lation of the uses of firearms and
ammunition was unanimously adopted {
at the final meeting of the national
association of attorney generals. The
association is allied with the Amer
lean Bar association. j
At the same meeting resolution
commencing Massachusetts, for it's
action in the Sacco- -Vanzetti case was
withdrawn. Objecting members said
they - N1nsidered legal aspects of the
case the only points the association
should deal with.
The trying of criminal cases in
newspapers" was deplored but blame
for it was shifted, partially, to prose-
cution and defense attorneys, who
rush to newspapermen to present
their cases to the public" in the,
report of the bar associations COM
mittec on cooperation between the
press and the bar.
--O