Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-27
OIL LEADERS URGE
!. PRODUCTION CURB
UPON 1928 BASIS
Petroleum Institute Commit
tee Recommends RestriC-
ton Effective April l.
WORLD PRODUCERS
AGREE UPON MOVE
Royal Dutch Shell, Mexican and
Venezuelan Interests Are ~
Represented.
By the Associsted Press.

on April to the 1923 production basis
was recommended to the directors OF
the American Petroleum Institute to-
day by the institutes committee on
world production and consumption OF
petroleum and its products.
Announcement of the committees
action was made by r. c. Holmes, presi-
dent of the Texas Co. and general
chairman of meeting of oil producers
held at the institutes offices.
''In attempting to formulate plan
whereby the conservation of crude oil
can become an actual accomplishment
and at the same time avoid the widely
f1uctuating condition resulting from
overproduction the committee has been
guided by the thought that whatever
Is practical should be done without
delay" said Mr.. Holmes.
'tAt the Houston meeting of the COM
naittee on March Is last regional COM
nittee reports were considered" said
Mr.. Holmes statement, land the rec
ommendation is being submitted to the
board of directors of the American
April /, average daily crude oil pro-
duction for the four regions, namely,
Pacific Coast, Gulf and Atlantic Coast
interior and Mexico and northern
South America, should not exceed the
average daily production during the
year 1929"
Thorough Study Urged.
The general committee also recon-
mended that committees be established
to enable the industry to keep in effect
any plan adopted as workable and to
study all various features through which
a more orderly operation can be con-
Quoted and waste of all kinds avoided.
Mr.. Holmes said that the four regional
committees reported to the general COM
n1ittee this morning that the 1928 pro-
duction basis could be put into effect
The efforts of the industry to curb over
production, he said, had been made
with the full knowledge of Federal and
State authorities, and constitute the
logical step that can be taken to bring
about economical stabilization.
The final plan of action will be SUBJ
n1itted to the Federal Oil Conservation
Board, appointed by former President
Coolidge in 1924, for approval and then
submitted to the State authorities Of
the principal oil-producing sections.
DR.. Smith Represents United States.
The Federal Oil Conservation Board
was represented by DR.. George Otis
Smith, director of the United States Ge-
ological Survey and chairman of the
advisory committee of the board.
e. B. Reeser, president of the Pc
troleum Institute; Sir Henri Deterding,
managing director of the Royal Dutch
Shell group, and E., ]. Sadler, president
of the Creole Petroleum Corporation,
representing Mexican and Venezuelan
producers, were present in addition to
about so officials of the foremost Amer
Jean companies.
The meeting of the general commit
tee was followed by session of the di-
rectors of the American Petroleum In
stitute to whom recommendations Tor
the conservation plan were submitted.
In some quarters here and abroad
statements have been published alleg-
ing that today's meeting constituted a
conclave of the worlds ''oil kings" In an
effort to gain control of output and
price of gasoline at the expense OF the
consumer, but this has been officially
denied.
Sir Henri Reveals Start.
Sir Henri arrived from abroad yes
terday on the ship that brought Jonn
D. Rockefeller, jr. but Mr.. Rockefeller
said that, although they had me0so-
cially on board, there had been no dis
cussion of oil.
Sir Henri indicated that his visit was
one of the fruits Of a conference he
had last Summer in Scotland with Wal
ter Teagle, head Of the Standard OH Co
of New Jersey. and Sir John Cadman OF
the Anglo-Persian Oil Co. At the time
for p
ing, fishing and forgetting about OIL"
I'VE didn't do anything but exchange
views at that time" Sir Henri said
s'but we agreed that oil production
ought to be curtailed. There remained
to be considered how curtailmen'
might be reached. Certainly it must
be arranged in such way that ne
one group shall profit by the sacrifice
of another.
81 understand that what heard anc
discussed with other oil men is con-
tinuation of the movement which be-
gan then. Everybody today is agreed
That conservation of oil is immensel,
important, both to the industry anc
the public"
States TO Be Notified.
The proposal OF the general commit
tee would cut approximately 178,46
barrels from the average production
thus far in 1929. Total production il
1928 was S97,8I6,793 barrels, a dali
average of 2,453,o51. Daily average t
last March l6 was 263l.5l9 barrels
Territories affected would be the Unite,
States, Mexico and Northern Soutl
Africa.
Directors of the Petroleum Institut
were here for meeting this Afternoon
at which the report of the general com
nlittee will be considered. If 1t is &C
cepted, 1t will be forwarded to the Fed
eral Oil Conservation Board, which Il