The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-08-21
MONDAY. AUG. 81. 1893.
THE OIL CODE
"a sCRIPPs-HowARD NEWSPAPER

MO code signed by the President represents
more revolutionary circumstance than
the oil code. which permits for the first time
the national planning and control of this vital
natural resource industry.
This industrys undeuiable peculiaritles,
demonstrated sensationally as courts, militia
and great companies endeavored and failed to
control price and production, have resulted in
NRA price fixing. This a compromise on
the part Of the President and Administrator
Hugh Johnson, but it demonstrated once more
that the government actually is in partnership
with business. not IFS car.
The oil industry or rather large and vo-
cal part Of it. argued that while 1t was willing
to assume the increased labor costs estimated
by some as $780, 900 900 annually. it must have
in return guarantee that the prices of crude
and refined products would be stabilized
Administrator Johnson. with the Presi-
dents backing at first refused. The conpro-
mise code is intended, for a ninety-day test
period. to rationalize the prices of crude at
the well and gasoline at the filing station,
with the President empowered TO fix at the
outset the base gasoline price. To buy or sell
gasoline below this base price IS declared an
unfair trade practice and prohibited under
the code
on it's face. this appears TO be the intel
gent compromise between the two extremes
OF complete price fixing and no price-fxing
at all. Careful utilization Of this power by
President Roosevelt, in consultation with the
MIRA committee representing consumers,
should result in protection to all motorists
But if this price, fixing provision leads to,
or promotes. speculation in oil stocks and up
sets their real values the President need not
utilize the authority granted him.
The production control provisions leave
within the jurisdiction of the state govern
ments the regulation of output. If these states
fail to stay within production quotas recon-
mended by the United States government. it
then will use its authority over interstate COM
merce to force cooperation.
This means sterilization Of oil supply; it
also means conservation of oil resources.
paramount consideration Fortunately. in this
provision NRA and the oil industry have not
tried to apply the principle which failed so
utterly in The application Of the prohibition
amendment This code does not impose con-
troll from above. from Washington; it seeks
cooperation of states.
There is another parallel with prohibition.
AS distiers and brewers in pre-prohibition
DAYS controlled corner saloons so large pc
troleum refners have been exercising control
of filing stations by the lease and agency
and lease and license" methods
The legality of these methods IS before the
federal trade commission for ruling. and at
least until its decision is handed down, these
methods are prohibited
The oil code is not the imposition of the
will of MIRA upon the oil industry. President
Roosevelt has not enforced arbitrary ideas,
willy-nilly on this sI2OOOoOOOOO business
Instead. he and MIRA, in consultation with
the industry have set out means for CO.
operative control