Evening star., 1932-05-02
HUGE OIL THEFTS
HOLD z IN TEXAS
40 May Be Arrested as Probe
of Pipe Operation in Pro-
rated Field.
BY the Associated Press.

BY the Associated Press.
LONG VIEW, Tex, May 2.-The al
legged theft of 100000 barrels of oil
from the gigantic prorated East Texas
oil field is being investigated.
Nearly nine months ago overproduc-
ton of this new field was credited with
unsettling the price structure of the
entire industry, and Gov. Ross S. Ster-
ling ordered National Guardsmen to
enforce a controlled output.
One of the eighteen men against
whom charges of theft have been filed
is E. M. Daniels. a deputy supervisor
Of the State Railroad Commission, which
supervises proration. Another Is Paxton
Gray, former deputy supervisor and
brother-inlaw of Fred Upchurch,
assistant attorney general. Six of the
eighteen have not yet been arrested
Twenty-Five to 40 more arrests are con-
Sidered
Inquiry Covers As Days.
The arrests climaxed a 45-day in
veStigation by civil and military au-
thorities. Three members of the Ma
tional Guard were used to obtain evil
dence.
The oil was said to have been taken
by means of by-passes, a pipe passed
around meter in such a way the
entire flow of oil was not recorded
The huge quantity was alleged to
have been stolen from five Gladewater
Townsite wells in the last seven months.
Investigators said the illegal flow
from one of the producers was SO large
pressure of offset wells was reduced Is
pounds In 10 days. Military authorities
said the stolen oil had been shipped to
reflners in Waco, Dallas, Eagle Ford and
Chalmette, La.
A Gregg County grand jury planned
today to begin an investigation of the
thefts. Arrests also were expected to
be made on Oil theft or theft conspiracy
indictments returned Saturday by the
Rusk County grand jury against the
other men.
Most of the IL under arrest were
taken into custody late Saturday night
or early Sunday morning, and three of
the group, including Gray and Daniels,
made bond. Texas Rangers and troop
ers made the first arrests in Giadewater,
mushroom oil town. Others were ar
rested here.
Declared Just Beginning.
John E. Taylor district attorney, as
serted the investigation merely was be-
ginning and promised that it would
shake the foundations of East Texas
before completion. Reports that oil was
being stolen from the great field re-
Cured with increasing frequency the
past few weeks.
The East Texas area, now limited to
a production of 325 900 barrels daily, or
about so barrels per well, is less than
one and one-half years old. Due to
its tremendous potentiality, it threat
ened to demoralize the oil market.
Gov. Sterling declared martial law and
sent troops to the field.
A Federal court decision a few
months ago restrained the Governor
from using military force to interfere
with reasonable production. Since then
the Railroad Commission has resumed
jurisdiction over the area, with a skele-
ton force of GuardSmen remaining to
assist in carrying out its orders.
Col L. S. Davidson, in charge of Ma
tional Guard troops aiding in the en-
forcement of proration, said today be-
tween 25 and 40 more arrests would be
made. He inferred that prominent
men would be involved.
District Judge w. c. Hurst charged
the Gregg County grand jury to spare
neither time nor expense in running
down every clue to bring the culprits
to justice if you find that men of posi-
tion and influence, whether they oper-
ate as independents or for large COM
panies or corporations, have allowed
greed and avarice to take from our oil
field that which does not belong to
them"