Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-26
OIL TRADE LOSES
BY GAIN IN OUTPUT
Prices Reduced as Produc.
ton Totals Show Steady
Increases.
BY JOHN F. SINCLAIR.

BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, May 26.-What's hap
pened to the oil industry The re-
liners are again at their old tricks Of
producing too much gasoline. And so
are the primary producers. The Fed
eral Conservation Board suggested a.
$4,000 barrels per day as a fair pro-
duction for 1890. But now the runs
have increased to 2,700,000 barrels.
With what result?
One writer puts it this way: 1.-THE
oil producers of the country are selling
their product at about 1880, 900 a day
less than they should because they are
producing 100, 900 barrels daily in excess
Of economic requirements.
The future of the business rests with
the producer himself. If he holds down
production he can make better terms
with the refiner and the ref1ner then
can secure a better price for his prod
uct. Simple enough to state, but quite
another job to accomplish.
But when there is no control Of
the production itself-Such as is TAX
ing place at the present ttme-the re-
finer makes his own price, with a
resulting loss all down the line.
Overproduction once again is cauS-
ing havoc. The Cart Creek Field in
Texas is an example. It held its pro-
duction for weeks to 10000 barrels q
day. Something happened. Now it's
giving to the oil world, already flooded
with oil, $4,000 barrels day.
A rise in crude prices for the mid
continent field was expected two weeks
ago. But, confronted with such a coali-
ton, why should crude prices be In
creased?
John Moody, the investment analyst,
has been comparing the present stock
market year with that OF 1908.
Not much impressed with the good
news" stories issued from time to time
Mr.. Moody says that they bear close
resemblance to "the employment
drives" and sunshine clubs" and other
organizations Of 1908.
The stock market rise in 1890 after
the drop Of last Fall was too rapid
50 the natural reaction has been taking
place.
will probably see some further weaken
ing in the price structure of certain
ommodities-steel for example-thiS
New York observer has come to the
conclusion that substantial recovery
may not take place until late Summer
or Autumn. But before long there will
be many real opportunities in the stock
market.
Here's his prediction: Meanwhile,
the dull Summer months, unless am
all wrong, will provide opportunities for
bargain hunters to select good stocks
with care without the stress Of the fast
moving markets to confuse them"
So start checking your favorite stocks
over to see which ones to buy. You
plenty of time to pick, II Mr.. Moody'S
prediction proves to be true,
Lee H Miller, the chief engineer Of
the American Institute of Steel Con-
struction, is out advocating steel floors
for private homes.
From earliest times wood has been
used as a floor base. Not until is or
20 years ago did concrete and steel
come into wide use for ONCE building
floors. The latest now is to construct
homes with steel floors free from
shrinkage, warping and other annoying
features" then cover the floor with
cork tile laid in mosaic pattern, put an
Oriental rug on top for ornamentation
and there you have 1.-THE very latest.
eff a floor area of the average resi-
dence Is 1900 square feet" says Mr..
Miller, at would require a minimum of
tn tons Of steel for each residence, or
Q total Of 100000 tons for the soc, 900
homes built each year in the United
States"
The steel industry sees vast posi-
bilitieS In this new development in resi-
dence building. If it catches on, 1t will
''open the greatest market the steel in
Gustry has ever known"
Paul Whiteman, 80, popular Jazz
leader, who weighs 24S pounds and
earns 100000 a year, pays high wages
90 the members Of his orchestra.
r. l. d. .4aA -
man, he paid $4,000 year. Perhaps
no orchestra in musical history has
been paid more generously than his.
The son of a director of music in
Denver public schools, Mr.. Whiteman
began his musical career playing vio-
lin In Santa Barbara, Calf. He moved
around quite a bit, and finally landed
a job with his little orchestra in the
Ambassador Hotel at Atlantic City.
His aim has been to get the best men
for the different parts, pay them well
and keep them. Most Of them have
been with the jazz king for years.
He Is known not only as a skillful
interpreter Of music Che does not read
music at sight quickly, but as q master
Snowman and very shrewd business
man.
No depoSitor can leave in the Postal
Savings System more than $4,000. A
bill to increase this to SIS 900 has met
with surprisingly little opposition from
the private banking groups.
The Postal Savings System, started in
1911, had $677, 900 deposits on December
81. The next year deposits jumped to
over $20,000,000, and seven years later
they totaled S167 900 900, the highest
point reached until this year.
At the end of March, this year, the
total deposits had moved up to $685.
S26.336, new record. How are these
deposits invested by the Government?
AT the close of 1929, $14,500 900 were
invested in fourth Liberty AZ per cent
bonds, $11.147,000 invested in postal
savings 2l2 per cent bonds, recently
issued TO depositors, but repurchased by
the system, and 1927, 1886 900 deposited
in various bank institutions, distributed
90 far as possible, in the communities
in which the deposits originated, and
protected by liability bonds given by
the local private banks.
The balance, little more than $l5,-
100000, was re-deposited in the Treas
ury Of the United States as a reserve.
When local banking conditions are
not healthy. Government savings de-
posts Immediately rise.
tCopyrisht, 1880. by North American News
paper Alliance.)