Evening star., 1933-08-01
OIL. PRICE CONTROL
BATTLE FORESEEN
1eagIe Victory Predicted in
Code Submitted by John
son to Industry.


A victory for Walter C. Teagle and
forces aligned with him against specific
governmental regulation Of oil prices
was seen by leaders of the industry to-
day in the oil code which Hugh S.
johnson, the industrial administrator
told them he wrote in submitting 1t
last night.
Advocates Of Federal supervision over
prices were quietly gathering their
strength for an attempt to write in
some price control which is favored by
the numerical majority of the industry
Teagle is chairman Of the Advisory
Committee aiding Johnson and presi-
dent Of the Standard OF New Jersey.
His position in the price controversy
was supported by the Standard OF In
diana, Gulf Oil Co.. Texas Oil Co. and
q Traction of the independents. led by
Jack Bialock of Marshall, Tex.
Favor Price Control.
K r. Kingsbury. president OF the
Standard of California; Harry F. SIN
clair of Consolidated Oil Corporation,
and q wide section of the industry
contend price control is necessary X
the companies are to increase employ
ment and wages.
The code did not fix prices, propos-
Ing as the only regulatory provision
that petroleum and its products should
not be sold at less than cost Of produc-
tion and a reasonable pront, including
taxes and inspection fees
The battle within the business, going
on more or less under cover for weeks
is expected to reach the open tonight
or tomorrow as representative groups
take up the tentative code with john
son.
Those urging rigid price regulation
were hopeful that if Johnson cannot be
persuaded to write in some regulatory
provisions in the final draft, President
Roosevelt will do so.
Break Attributed to Fight.
The break between Teagle and James
A. Moffett, leading to Moffetts resigna-
ton as senior vice president of the Jer
sey Standard. was attributed by those
inside to Months advocacy of Federal
price regulation and supervision OF the
industry.
Moffett is expected in authoritative
circles to be actively in charge of ac-
tivities under the code when finally
written. as he is held in high regard
by President Roosevelt and Secretary of
the Interior Ickes. each of whom has
asked for his recommendations.
He resigned as vice president OF the
Standard of New Jersey to accept ap-
pointment to the Advisory Committee
aiding johnson, after Teagle was re-
ported to have told him either to turn
down the committee place or get out
Of the company.
Provisions of the code for Federal
supervision of production through au-
thority for the President to regulate
shipments out of an oil State If 1t
exceeds its allocated production formed
4 focal point for another scrap over the
code. with many opposed to Federal
control of the fiow of crude oil to mar
ket.
See Pface for M0ffett.
In the section Of the code authoriZ-
ing an administrative agency to be des-
ignated by the President to work with
three from the administration and six
from the industry. oil circles saw the
place for Moffett.
The general expectation was that
the Interior Department would be
designated by Mr.. Roosevelt as the
agency which would allocate production
quotas to the States, and that Ickes
would rely on Moffett to be actively in
charge
Whether he would be alone or head
Q small committee of three or five was
0 moot point. There were reports
that committee Of three might be
set up by Ickes If he Is charged with
enforcement Of the production section,
with Moffett as chairman, NJ l..
Benedum OF Pittsburgh as member
and some one from the Southwestern
Oil area
Labor provisions Of the code, stipu-
lating a 40-hour week for clerical en-
ployes in the production. refining, pipe
line and drilling divisions, at scales of
from As to SIS cents an hour. and a
36-hour week for other employees in
these divisions at the same scales were
considered acceptable to the industry
Approval likewise was expected for
the marketing sections labor code
calling for a 40-hour week and pay
rates of from 40 to Al cents an hour
Approximately 80 per cent of the
loo, 900 employees of the industry are
In the marketing division