Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-08


it?" There is absolutely no dificulty
whatever in getting into the oil fight,
no matter how pacific ones intentions
| may be! Yet the situation of the oil
| industry Is one that urgently needs pub
| lie understanding, in the interest of the
general welfare; and to state the es-
| sential facts seems to me to be duty
When the welfare of great and basic
| industry is seriously involved, there is
also involved the general welfare of the
| whole Nation.
In the first place, I conceive it to be
my duty as a public official, sworn to
serve and uphold the interests of the
people of the United States, to deny
| positively and unequivocally, that the
oil resources of the Federal Govern
ment are being 'given away" as so
often recklessly charged. l shall cite
only one fact in support of that state
ment-but it is fact indicative of the
whole attitude of the present admins
tration. When President Hoover as
sumed Office there were outstanding
1880 permits covering oil rights on
Governmental owned land. That num-
Der has been reduced to practically
5000 very fair indication of the ex-
tent to which the present administra-
| ton has conserved the Nations own oil
resources. And further issuance of per-
mits, except where equities required it,
was ordered stopped on March IL, 1929,
eight days after this administration
took Office.
National Responsibility.
1t would be fairly easy for the ma
tional administration to "sidestep"
any responsibility in connection with
the welfare of this great and essential
industry aside from that of the public
domain. The limited number of States
having under the surface of their soil
the great oil deposits on which the
country relies might be left wholly to
their own devices for disposing of the
difficulties of the industry. The Fed
eral Government might in effect say:
This is a problem for the States; we
are not concerned about it." Such
policy would avert considerable criti-
cism. 1t would not, however, reflect
any lasting credit or evidence any real
craftsmanship on those who are at the
head of the Nations Government.
The fact is that basically, the main
tenance of an adequate oil supply and
reserve is vastly important national
responsibility and problem.
The problem of national defense is
one Of paramount importance to every
nation. There must be maintained, for
the possible use of fleets in time of
grave national danger, adequate re-
serves Of fuel oil. Nearly so years ago
Admiral Lord Fisher of the British Navy
said: 1.-THE use of oil adds SO per cent
to the value of any fleet" In times of
peace, the nation which has ample sup
plies of oil for all the many uses of in
duStry has a tremendous advantage
over nations not so situated. There may
be exaggeration, but there is truth, also,
in what Henry Berenger said: He who
owns the oil will own the world, for he
will rule the sea by means of heavy oils,
the air by means of ultra refined oils
and the land by means Of motor spirit
and the Illuminating oils. And, in adj
dition. he will rule his fellow men in an
economic sense. by reason of the fantas-
tic wealth he will derive from oil"
Other Nations Active.
Our own National Government can
not be unconcerned and Indifferent to
the situation of its oil industry when,
looking abroad, we see all the other
great nations of the world doing their
utmost to acquire, use and conserve
great petroleum resources.
The British government, for instance,
is said to have a controlling interest
in the Anglo-Persian Oil Co., with
It's monopoly of the Solomon's Temple
and other fields in Persia. That gov
eminent even appoints two of the COM
pany's directors. From It's investment.
the government has reaped huge divi-
dends, not alone in money, but in trad
ing power and control of markets.
The German government, limited as
its finances are, nevertheless has found
funds to invest in petroleum producing
property, for the protection OF national
interests.
The national interest of the United
States was recognized more than six
years ago by President Coolidge and
led to the establishment of the Federal
OIL Conservation Board. What he said
in 1924 is as applicable today: ut is
evident that the present method Of cap
turing our oil deposits is waSteful to an
alarming degree, in that 1t becomes i'm
possible to conserve oil in the ground
under our present leasing and royalty
practices If neighboring owner or
lessee desires to gain possession of his
deposits. The problem of a fu-
ture shortage in fuel and lubricating
oil, not to mention gasoline, must be
avoided or our manufacturing produc-
tivity will be curtailed to an extent not
easily calculated"
I repeat now what said more than a
year ago: Conservation of the Nations
remaining mineral resources presents a
problem in administration of the pub
lie domain second only to the conSer-
walton of water. Petroleum is our fast
est-dwindling irreplaceable asset. We
cannot afford to waste it-and yet we
are wasting vast quantities.
This is a national problem. But its
control under our legal system rests
primarily in the States; and it is a
problem of the oil industry itself-of |
the men and the companies engaged |
in petroleum production and distribu-
ton.
reported "Gusher Roars in With, Riches |
for Vaudeville Team" and told of an |
actor and his wife whose anticipated |
royalties were STA 900 day from sem |
sational new oil we'll in the South Okla |
homa City oil field. Yet the sudden |
wealth that such discovery wells" may |
bring few individuals is often far out |
weighed by the loss occasioned hun
dreds of Others through oyerproduc- !
ton and subsequent curtailment when |
pipe lines and storage tanks can take |
no more. We had sad evidence of this |
only a short time ago when thousands |
OF owners Of small oil wells in Kansas |
were threatened with ruin because the |
pipe line company which had been TAX |
ing the flow for years ceased buying.
"Shut Down" Damaging.
There is no real profit for the State |
or the nation in the continued drilling |
OF "gusher" after "gusher," merely to |
prevent the owner of the adjoining oil |
lease from draining what lies beneath |
the surrounding surface, when the ulti-
mate result Is an order by State au-
thority to shut down all wells to basis
Of four hours open flow each u days.
The result may be the ruin of wells, and
their owners also. The owner of a shoe
factory can close it when too many
shoes are on the market; or he can
suspend the operation of some of the
But curtailment of oil pro-
duction Is not so easily accomplished;