Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-01
Oil Conservation Proposals
Believed Feasible by Nation

There is much public interest in the
proposals from several oil-producing
States for restriction Of output of this
natural resource, which might in the
future be in danger of being exhausted.
Pro-rating among the States involved,
in cooperation with the Federal Gov
eminent, is thought by some observers
to be in the interest of the industry
as we'll as of the public.
IF the plan works-if the States do
not quarrel among themselves over
their production allotments." says the
Milwaukee Sentinel, 1T will not only
save tremendous amount of Gil but
will indicate a means for controlling
other natural resources. Moreover, its
successful operation should GLADDEN. the
hearts of all champions of States rights,
for it would demonstrate that the
States are able to perform major
economic operations without the inter-
ference of federal specialists and with
out further burden of Federal legis-
lation End regulation
I'VE shall soon see," advises the st.
Louis Times, whether the oil industry,
well organized, and with its resources
in the United States relatively we'll
localized in about ten States, will sue
coed any better than the agricultural
industry in curtailing production. The
oil producers are in more favorable
situation than the farmers i'll that the
idea OF allocating output among the
producing States originated with them
and is promoted by them. On the
other hand, against this we must count
the human inclination to do whatever
seems for the time being to be profit
able. 1t is possible that the
States concerned will pass laws, but, if
legislation is followed, all will have to
proceed in concert. And if foreign con-
Germs undertake to ship petroleum into
the United States, it may be necessary,
as the Standard Oil Co. hints, to fall
back on tariff schedules. However, the
petroleum interests have. it. must be
conceded, made material progress. They
realize that there cannot be stability
without equalization of production and
consumption. They have adopted
recommendations providing for self
control of production. They may be
supposed to be at least on the way 70
success with conservation and stabiliZa-
ton
"The plan is unique" thinks the Oak
land Tribune. las a whole, it contem-
plates, first. that each oil-producing
State-TexaS, Oklahoma, Kansas, Cali
fornia and some six others-shall
fields and companies within the State.
The prorating in practice is done by
the Railroad Commission or other
agency of the State government. The
second step is that all the States thus
prorating within their own borders shall
enter into a compact, which compact
must be authorized by the Legislature of
each State. The compact would constitute
an agreement to set up a superState
L1oo Oh
to 'prorate' production as amongst
States. The final step is that the COM
pact must be ratified by Congress. The
plan is feasible as respects the legal
aspects of it. 1t has the benevolent
approval of the administration, acting
through Secretary of the Interior Will
bur. who gives earnest cooperation and
assistance so far as the Federal Gov
eminent may legally do So"
Grave questions of public policy" in.
the opinion of the st. Louis POST
Dispatch, ARE involved in this oil
problem. The problem itself is. mani
testify. international in scope and
seemingly calls for international admin
istration in some degree. AS such.
perhaps, 1t is an integral factor IN TINS
entire economic crisis Here again we
face necessity for the scientific treat
ment of which public opinion is now here
sufficiently advanced. Perhaps the most
we can do now is permit the oil pro-
ducers to undertake their program of
curtailed production and importation
and observe the results. But If raid
on the consumer in the way of inflated
prices should appear among the results
regulation by the Government must, it
seems to us, inevitably follow"
Somehow the oil industry must be
stabilized" declares the Lexington
Leader. This means, too, curbing the
evils of wildcat drilling, of waste such