Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-16
OIL FARLEY RESULT
REMAINS IN DOUBT
Observers Believe Basis Has
Been Laid for Future Con-
servation Plan.
pecial Dispatch to The Star.


sNEw YORK, June i5.-Oil executives
who have taken the time to weigh the
proceedings of the Colorado Springs,
Colo, conference held In the last week
agree that results were about as ex-
pected.
It had not been anticipated that
President Hoover's efforts to reconcile
the conflicting elements in the oil in
dustry, and obtain 100 per cent CO.
conservation and greater efficiency
would find all parties In harmony. SO
when cleavage developed between the
politicians on the one hand and Pc
troleum leaders who are charged with
the profitable management of business
which in the aggregate exceeds $10,-
900 900 900 in invested capital on the
other, the general public failed to
register surprise.
Basis for New Farley.
Briefly summarizing the results of the
Hoover conference Of governors of the
oil States and oil leaders, 1t Is noted
that a basis for further negotiations
was laid in the resolution Of adjourn
ment. This calls for further study and
another meeting later at the call OF
the President, probably In Washington
during the congressional recess. Texas,
California and Oklahoma, representing
seven-eighths of the country's Oil pro-
duction, urged study by commission
to be named by the President and the
governors of the States, before pro-
posals for interstate action to control
production were carried further.
The governors, in a statement issued
at the close of the conference, issued
a eto Nf m
oil situation. This stressed the need of
sound general policy, cooperation
and coordination of State and National
authority; adequate regulation of pro-
duction methods in all fields limited
to the economic necessities of any par
ticular region or period; the elimina-
ton of waste and the reduction OF
production costs and continuation OF
unlimited exploration to locate addi-
tionai oil supplies providing no waste
or oversupply of the product Is in
volved."
Political Note Struck.
There was nothing contentious or new
in these expressions. They are, In fact,
the very things the larger producers
have been striving for. They consti-
tute the basis of the Federal admins
tration's declared policy with respect to
rearranging the industry in the best
interests Of the companies, investors IN
oil securities and the American people
as a whole.
But the political note had to be
struck, for, after all, the governors are
dependent on the votes, and, inserted
in the statement is a paragraph which
saws that present conditions JUSTIFY
consideration of the effect of order 1888
of the Department of the Interior, to
determine the ACCESSIBILITY OF substan-
tial modification"
This order cancels exploration permits
on Government land and, in the opin.
ion of many authorities on the oil
situation. removes from political hanos
in the various States, rich source OF
reward for those influential persons who
deliver the votes at election time.
The action of President Hoover and
his administration In refusing to cotirl-
tenance further exploitation OF Gov
eminent lands, Is a severe blow to the
State politicians and has done much
to restore public confidence IN Wash
ington after the debacle Of the Teapot
Dome and Elk Hills incidents.
Ax-Grinding.
So while the evidences Of complete
cooperation in the Oil industry itself
was quite reassuring at the Colorado
Springs conference, 1t was just as APP
parent that the axe-grinding was going
on In political circles. In Congress
Senators from some OF the lesser OIL
producing States, had already had
great deal to say in criticism of the
Interior Departments order in cancel
ling exploitation and exploration per-
mits on Government lands.
So. with another session Of the gov
ernors and oil leaders in prospect, the
question arises: Can the President
reconcile the incompatible elements of
politics and sound businessP
Meanwhile, students of the oil stu
alton believe that solution of the in
dustry's problem will be reached ulti-
mately as result Of regrouping and
Encouragement of all units under APP
prevail of a government alive to the
changed needs of the business. con-
tingent upon vast domestic develop
ment snd competition from foreign
sources.