The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-08-26
Editorial Comment
Editorials printed below show tho
trend Of thought by other editors.
They are published without regard
to whether they agree or disagree
with The Tribune's policies.
The Oil Code
New York World-Telegram)

tNeW 4Ork WOrld-Ielegram)
No code signed by the president
represents a more revolutionary cir
cumstance than the oil code, which
permits for the first time the ma
tional planning and control of this
vital natural-esource industry.
This industrys undeniable peculi-
arities, demonstrated sensationally as
courts, militia, and great companies
endeayored and failed to control price
and production, have resulted in NRA
price fixing. This was a compromise
on the part Of the president and Ad-
ministrator Johnson, but it demon
strated once more that the govern
ment Is actually In partnership with
business, not It's car.
The oil industry, or rather a large
and vocal part Of 1t, argued that
while 1t was willing to assume the
increased labor costs, estimated by
some as $300,00O,00O annually, it must
have IN return a guarantee that the
prices OF crude and refined products
would be stabilized. Administrator
Johnson, with the presidents back
ing, at first refused.
The compromise code is intended
for a 90-day test period, to ration
alize the prices Of crude at the well
and gasoline at the filling 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 its face this appears to be the
intelligent compromise between the
two extremes Of complete price fix.
ing and no price-fixing at all. Care.
full utilization OF this power by Presi.
dent Roosevelt, in consultation with
the NRA committee representing con.
sumers, should result in protection
to all motorists.
But II this fixing provision
leads to or promotes speculation i,
oil stocks and upSetS their real val
ues, the president need not utiliz,
the authority granted him.
The production control provision
leave within the jurisdiction of tn,
state governments the regulation o
output. If these states fail to sta,
within production quotas recon
mended by the United States gov
eminent, 1t will then use its author
ity over interstate commerce to fore
cooperation. This means stabiliza
ton Of oil supply; it also means con
servation Of oil resources, a para
mount consideration.
This code does not impose contro
from above. from Washington;
seeks cooperation Of the states.
As distillers and brewers in pre-
prohibition days controlled corne
saloons, 50 large petroleum refiner
have been exercising control of fill
ing stations by the 'lease and agen
cy" and lease and license" method.
The legality Of these methods is be
fore the federal trade commission 70
a ruling, and at least until its de
cision is handed down these meth
DDS are prohibited.
The oil code is not the imposition
of the will of NRA upon the oil in
dustry. President Roosevelt has nc
enforced arbitrary ideas willy-nill
on this $4,000, 100000 business.
/ Instead, he and NRA. in consulta
ton with the industry, have set on
means for cooperative control.