The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-07-29
OIL INDUSTRY May
FACE GOVERNMENT
PRODUCTION RULE
Standard of New Jersey Execu-
tive, Who Quit After Fight,
Seen as Boss
CHIEFS OPPOSED TO PLAN
Told Moffett to Refuse johnson
Assignment or Else Resign
Position

washington, July N-(H)-FeQeral
control over oil production under a
special administrative agency Satur-
day was understood In authoritative
sources to be planned by President
Roosevelt, with James A. Moffett ex-
pected to be supervisor.
Moffett resigned Friday as vice
president of the Standard Oil COM
pany Of New Jersey because Of sharp
disagreement with Walter G. Teagle,
president, and other officials over
administration policies for STABILIZE
ing the oil industry.
Whether federal oil administra-
tor would be set up In the recovery
administration under Hugh s. john
son or In the interior department was
subject on which no responsible Of
fetal would comment.
Secretary 1ckes smilingly declined
to answer questions about this, but
1t was said In other official circles
that President Roosevelt wants con-
troll OF production under the general
supervision Of the interior depart
ment along with enforcement Of pro-
duction and refining proposals to be
put forward in a trade practice code
for the oil industry.
Moffett to Be In Charge
There were indications that If en-
forcement should be assigned the in
terror department, Secretary Ickes
probably would be designated the oil
administrator, but that Moffett prob
ably would head the departmental
agency actively in charge.
w. 8. Parish, chairman Of the board
Of the New Jersey Standard Oh, also
differed with Moffett's views. He and
Teagle maintained silence Saturday
on Moffett's resignation.
Those In federal and oil industry
circles In a position to know asserted
that Moffett's resignation was &C
cepted by the Standard board because
of the differences between Moffett
and Teagle over the recovery program.
President Roosevelt, Secretary 1ckes
and Johnson asked Moffett to serve
on the advisory committee aiding
johnson this week.
Teagle was reported to have told
him he either would have to resign
from the Standard company or reject
the committee place.
Arriving at Hyde Park, N. Y, for
his vacation at home, the president
read with interest accounts of Moi
fett'S resignation. It was indicated
the administration has not been sa-
tisfied with the attitude of some of
the Standard Oil of New Jersey Of
ficers as to development of the re-
covery program.
Considered It Command
Moffett told Teagle to accept his
resignation, setting forth subsequent
ly in q statement that he considered
the request to serve on the Johnson
committee as command.
Announcing his hearty accord with
President Roosevelt's policies for stab
ilizing the petroleum industry, Moi
felt added in his statement.
my views as to the policies to be
pursued apparently are not In accord
with those Of the board Of the New
Jersey company"
The quarrel between Moffett on
one side and Teagle and Parish on
the other, authoritative circles said,
arose some months ago when Moi
fett's recommendations on oil were
asked for by the administration.
At that time he proposed federal
control to limit production with price
regulation to protect both the indus
try and the consumer. Teagle and
Parish were understood to have in
sisted there be no stepping into the
oil business by the government.
A showdown between Teagle and
Moffett was reported In oil circles to
have come yesterday after the admin
istration asked Moffett to serve on
the advisory committee, 1t being
planned to make him oil admins
traitor.
The Standard OF New Jersey board
met in New York some hours after
Teagle told Moffett either to resign
or turn down the committee post.
Moffett submitted his resignation
last March when Parish was elevated
to the craftsmanship Of the New Jer-
sey board, but Teagle then refused to
accept it.