Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-10
OIL INTERESTS SEE
GAIN FOR INDUSTRY
Recent Price Advances May
Be Followed by Further
UpSWing.
BY OWEN L. SCOTT.
Special Dispatch to The star

Special Dispatch to The star.
CHICAGO, November 1o-A note OF
cheer is heard among leaders in the
Nations $4,000 100000 petroleum in
dustry, here for the opening today OF
the annual sessions of the American
Petroleum Institute.
Oil is the third of hte commodity tri-
umvirate that recently has thrilled
much of the world with its price ten
denotes. Along with grains and with
silver. crude oil has moved sharply
higher in the price scale since Midsum-
mer. after nearly two years OF steady
defiation.
Advance Has Been Rapid.
With nearly billion-barrel annual
production, the price improvement
that has carried crude oil from approx
mately 40 cents to a top of 85 cents
means scores of millions to the South
west ar 4 Pacific Coast production areas.
At the same time IL saves oil companies
frOrl ,nc necessity of setting down in
'c. Try losses that would have played
c with 1881 earnings statements.
Dut while happy over these impor-
tant developments, the industry S
leaders remain cautious about the flu
ture They are awaiting the decision of
the United States Supreme Court on
appealed cases involving the legality of
prorating agreements to control pro-
duction.
Likewise there is concern among
executives of some of the largest con-
Germs over the attitude taken by the
coming Congress on oil tariff proposals
Independent producers are demanding
tariff protection against Mexican and
South American oil.
Likewise, the spectacle of military
control still being exercised over the
East Texas oil field is described as
rather calling to the pride of the in
dustry. Martial law has ruled the oil
fields Of both Oklahoma and Texas dur
ing portion of the year in order tc
force producers to curtail sufficiently
10 bring prices from 25 cents barre
to approximately an 80-cent top.
Amendment to the Sherman anti
trust law to permit consultations or
broad scale in basic commodity in
dustries, means Of fostering unit de-
velopment OF oil fields in place of pres
ent wild drilling orgies with attendant
waste, wider application of the in
dustry'S code of ethics as means o1
better regulated distribution, and gaso-
line tax evasion problems, are subjects
receiving much attention.
Gasoline Taxes.
The oil industry, which has seer
gasoline taxes increase in size until
they now yield approximately $500O00,-
600 a year, with tax of z cents a
gallon applied in Florida and Scent
taxes becoming not uncommon. now is
becoming aroused over the situation
Until now declining gasoline prices
have kept the public from feeling the
effect of increased gas taxes. but with
q period of advancing prices in sight
the tax will be felt more poignantly
and, the industry's leaders think, may
affect consumption.
During the past year. with the use OF
gasoline and other oil products run
ming ahead of a year ago, and at a
record high level, the industry has seer
its profits shrink to the vanishing
point The present meeting of the
American Petroleum Institute is con.
cerned with remedytng some phases OF
that situation.