Evening star., 1933-12-10
TEXANS TO WEIGH
BIG OIL PROBLEMS
State Faces Task of Curbing
Flow and Still Meet
Refining Needs.
~ the Associated Press.

AUSTIN, Tex, December 9.-The
Texas Railroad Commission soon will
consider the second of the major prob
lens attending reduction of Texas Pc
troleum production to the alowables
set by the Federal Oil Administration.
The first perplexing problem Is to
keep the Texas oil output within the
prescribed limits. The secondhand no
less vexatious-is to insure supply
of legal oil TO any and all ref1nerles
that need it to meet their market de-
mand.
Just what action the commission will
take is problematical. That it will
endeavor to relieve situation in which
many small reflners assert they are be-
ing economically stifled is certain, Lon
A. Smith, commission chairman, said He
said conferences looking to alienation
of the ills of the small refiners prob
ably would start as soon as E. o.
Thompson and c.. v. Terrell, other
members of the commission, return to
the capital from series of hearings.
Plea to U. s. Likely.
Aid of the Federal Oil Administra-
tion likely will be sought again with
renewed vigor, Smith said. When ini-
t1al complaints of the smaller refiners
were received the case was presented
personally by the Texas Commission to
Harold L. Ickes, Secretary of the In
terror and oil industry administrator
under the national petroleum code.
Much OF the commissions last hear
ing on ALLEGATION of the State allow
able was devoted to discussion of the
problems of the small reflners They
alleged they were unable to obtain a
supply Of oil and were faced with shut
downs and the consequent release from
employment of several men unless
something was done to assure them
enough crude to run to their stills.
Some of the refiners represented
themselves as being in a desperate
plight as a result of the constantly
decreasing allowable In particular
distress are those reflnerieS not located
in or near an oil field and which must
transport their crude several hundred
miles by rail or pipe line.
Smith said it had been reported to
him that a refinery at Waco had been
unable to contract for enough oil to
meet its requirements, even though it
offered bonus of 10 cents a barrel.
Takes Sympathetic View.
j. Howard Marshall, Assistant Sec
retary of the Department of the In
terror and a personal representative of
1ckes in oil matters, has evidenced a
sympathetic attitude toward the COM
plants and said that while it was
primarily a problem for the State COM
mission, he would seek adjustments
that would provide relief.
The commission, Smith said, has felt
little reaction one way or another to
Its latest proration order. Reductions
IN some of the fields, especially East
Texas, were known to have been re-
ceived over protest.
1t was reported East Texas operators
were awaiting decisions of the Federal
court in suits now pending in which
the proration orders of the commission
based on the Federal recommendation
are under attack. In one of the suits
the commission is defendant, while in
the other the commission and the Fed
eral Oil Administration both are
named.
The case against the commission and
the Federal authorities will be SUBJ
mitted to a three judge Federal court
In Houston on December a.