Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-12
Operators of $4,000 Plants
Agree to Producers Strike
as Drastic Remedy.
10000 MEN LOSE JOBS
THROUGH SUSPENSIONS
10 to 90 Cents a Barrel Below Cost
of Product.on-"Stupid Con-
gress" Blamed for Ills.
By the Associated Press.

By the Associated Press.
WICHITA, Kans., July 11.-Imme-
diate shutdown of Kansas oil wells, esti-
mated to number $4,000. was agreed
upon by more than 800 independent
operators at q conference here late to-
day to consider a remedy for low prices
for crude.
Speakers declared that present prices
of from 10 to % cents barrel posted
by purchasing companies were under
the cost of production.
In joining the producers strike under
way in other States of the midconti-
nent area the operators estimated the
suspension in Kansas would throw
10000 men out of work.
The wells affected by the shutdown
agreement have daily production of
approximately 10000 barrels. with a
potential of more than 100000 barrels.
Will Pump Water.
The suspension will not apply to wells
subject to introduction of water. They
will be permitted to remain on pump to
prevent destruction.
Although the suspension agreement Is
to become effective at once, another
meeting of the producers will be held to
complete final arrangements Of details.
The vote followed a speech by Thur
man Hill, member Of the Kansas Public
Service Commission. blaming stupid
Congress" for the plight of the industry.
Perhaps the proration law could be
strengthened" he said. But would
that benefit producers without a tariff
and limited embargo? The first remedy
is a special session OF Congress"
Hill praised the Kansas operators for
their orderly production, adding they
should have been rewarded with a
price increase rather than having their
bread and butter taken away"
Today's action in Kansas followed
a proposal made yesterday by operators
of the Oklahoma City, Okla. field that
wells be shut down in the six principal
producing States of the midcontinent
area.
Shutdown Opposed.
Operators in Texas, Louisiana, New
Mexico and Arkansas, the other four
States concerned, have not held meet
ings. Executives of the four States,
however, today said they did not be-
,ieve the shutdown plan to be feasible
It was the concensus of opinion that
the Governors did not have authority
to order the proposed action, as sug-
gested by Oklahoma producers.
Operators pointed out that Louisiana,
which consumes most of its own oil /;
Arkansas, which buys considerable oil
outside Of the State and the States
where proration regulations are in eff
feet, did not have so much bearing
on the situation as Kansas. Oklahoma
and Texas, where pools are flush and
overproduced
Further Curb Looms.
The entire situation is believed to
hinge Immediately upon conferences
scheduled next week between operators
in Kansas, Texas and Oklahoma and
on an appeal which is expected to
be taken to the Oil States Advisory
Committee, Of which Cicero Murray,
Oklahoma City. is chairman.
Thirteen companies with a potential
OF more than 100000 barrels daily
production already have closed down
in the Oklahoma City field Tonight it
was announced that the Indian Terri
tory Illuminating Oil Co. and Phillips
Petroleum, holding the balance of power
In the field. had agreed to shut down
all their $50 wells with an additional
1000, 900 daily potential. provided they
be allowed to open any of their wells
which are ofsetting producers.