Evening star., 1928-01-23
OPINIONS DIVIDED
BEFORE OIL BOARD.
Committee Opens Hearings
on Conservation of
Petroleum.

Sharply controversial opinions as to
competition and monopoly in the oil
production in California were presented
today. as the special committee of nine,
appointed at the suggestion of Sccrc-
tary Work. chairman of the Federal
Oil Conservation Board. began public
hearings TO so into the question of
over production and elimination of
waste in the petroleum industry. The
hearings. Chairman Henry NJ. Bates of
Michigan said. will continue until all
available data have been collected. and
the committee then will draft tenta-
tive bill, designed. il is understood. to
eiye greater authority TO the Federal
Oil Board.
A statement by Charles A. Son of
Los Angeles. representing independent
oil operators in California. that eight
large OIL companies in that State con-
troll so per cent of the output. and
wicld a virtual monopoly. was sharply
challenged by Thomas A. ODonnell of
Los Angeles chairman of the board
Of the California. Petroleum Corpora
ton.
Asks State Legislation.
Mr Son read a lengthy statcmen;
advocating State legislation 10 0Ttall
petroleum producticl. and predicted
that conditions are now artonrine
themselves in the midcontinent field to
produce a similar monoOolv t'r,re un
less some stop is put TO the, growing
situation. He suggested an nrganiza-
tion Of producers. State aoi Nation
wide 70 reach pn agreement 10 control
out>ut and refuse 10 bring in wells
until the market has passed the satura-
tio~ rolnt
Questioned bv Mr.. O'T,onnell. ono of
the three members Of the committee
representing the petroleum industry.
Son declined tn admit there was COM
petition between the er-ht large COM
panies.
I do not admit arv monopoly in tho
oil industry in California" ODonnell
said In fact w have the keanest
competition nf any industry in the
country and as result. our industry is
suffering from overexpansi and
ovcrcompetition These eight COM
pauies tn which you refer are in deadly
competition and no Sincle interest con-
trols anv two OF them <, refining. mar
keting cr transportation
Son declared that "the eight con-
panies do not have any competition in
price" and cited statements Of some
other corlDanies that had lowered or
Legislation that would curtail produc-
tion On a percentoge Dlan. and tha.
would force use Of the INIT plan of
one-ation 70 bring in me'hoTs If rro-
ducins a HIGHER nercenta"e of oil than
hes hitherto hoen possible was advo-
Gated bv Nr Son.
Waste of Gas Cited.
Waste nf natural gas used as pres
sure TO force oil from the sands intn
the wells is one of the problems that
goes along with overproduction and
market Saturation. according to Chair
man Bates. Whatever legislation is de-
cided upon by the committee Mr. Bates
said. II must not control production in
order that the price of petroleum can
be forced 70. and must not conflict
with the anfi-trust laws This subject
was also touched uDon bv Mr Son
The committee represents the Ameri-
can Bar Association the Government
and the petroleum industry Besides
Mr Bates the Bar Association repre-
septatiyes are James A. Veasev of
Tulsa. Okla and Warren Olnev. jr..
81 San Francisco The industry is reD.
resented BIZ Mr. ODonneil Edgar Pcw
of tho SIN Oil Co. Of Dallas and " S.
Fs-'sf Of Houston. Tex
The Government is Represented by
z G Finrrv Assistant Secretarv of the
Interior: walter r Brown Assistant
Secretary Of Commerce. and Abram r
Myers. member of the Federal Trade
Commission