Evening star., 1933-12-10
Problem of Oil Price
Fixing a Vexing One
By HARDEN COLFAx.

The problem OF price fixing for the
OIL industry remains vexing one.
The advocates and opponents of price
fxing were informed this week by
Secretary lckes Of the Department Of
the Interior, who Is oil administrator,
ment at an early date or the Govern
ment's proposed price schedule, orig
inally set for December /, would Be
put into operation without delay,
Secretary 1ckes expressed the hope
that their agreement would be q real
one, In which case, he said, "the pro-
posed price schedule may be post
poned for q definite period to permit
q trial OF the agreement worked out
by the various elements in the indus
try" He considers the delay IN ar
irving at . decision In this matter rs
having been justified because Of the
necessity for meeting, with the -full-
est fairness and equity" the interests
of the industry and the consuming
public.
Meanwhile 1t seems to be the gen.
eral feeling, in Government circles and
among private interests, that renewed
enorts now VIII be made toward keep
ing crude oil production within con-
sumptive demand In order to maintain
prices OF crude, and that an attempt
may be made toward taking some Of
the surplus gasoline on the market to
give gasoline prices greater stability.
It Is believed that the OIL Administra-
ton will at least concur tacitly In the
plan Of the leaders Of the industry to
keep supply and demand within sn ap-
proximate balance, hoping that zen.
eral business conditions viii determine
the price for oil and its products.
u n u
The chief arguments In favor of
price control came from the inde.
pendent producers, mostly in the no.
called Midcontinent field, and the chief
opposition from the larger companies
and the Grange. The Consumer Ad-
vlsory Board Of the N. r. A. opposed
the proposed price schedules and price
control as whole. - -.
The Planning and Coordination
Committee, representing the industry,
made q strong defense Of Federal regu-
iation OF petroleum prices and con-
tended that emergency conditions which
led to the price-flxipg order by the oil
administrator still exist. The commit
tee insisted that selling below fair
average cost Is destructive and unfair
competition and subversive Of the OBJ
tecttves Of the national recovery act"
Furthermore, 1t contended that oil must
be put on "cost-of-supply basis, with
some increases in price" "Recently
published estimates Of huge increases In
oil company earnings" said the com.
mittee, ARE misleading the public and
should be corrected"
At the same time, at its convention
IN Tulsa, Okla, the Independent Pc
troleum Association urged the national
administration to 60 through with its
announced policy of price fixing. Other
demands included . tariff on foreien
petroleum. . continuation Of the Nm-
tted domestic production to "consump-
tive rather than market demand" the
greater use Of American-made asphalt
on highways and q reduction in Fed.
eral and State gasoline and lubricatine
oil taxes.
Secretary Ickes Is very decided IA
his belief that the oil industry, which
ern ITSELF" should remain under FED.
eral rule.
The decisions Of the United States
courts In the District Of Columbia md
New York City against violators Of the
petroleum code-for unfair CONNIE.
tion"-are regarded by the oil admin.
ttrator Is vindicating not only the
cooe, but the N. r. A. itself. The de-
clsicn BY the court here resulted In
sustaining the constitutionality Of the
oil code and, indirectly, other codes
under the national recovery act.
Previous cases against the OIL aduain-
istrator have been based upon other
sections Of the oct and not On the
oil code"
The Secretary said that the decidou
laid "clear-cut legal precedent, up
holding the constitutionality Of the au-
thortty given the N. r. A. on code to
correct or prevent methods Of compe-
titton destructive to the petroleum In
dustry." Az . result, he said, he was
now free to turn over to the Attorney
General Q mass Of evidence collected
BY the Interior Department, Division Of
mvestigations, on which criminal prose-
cution win be based.
The New York case involved violation
Of the labor provisions Of the Oh code
by the owners Of three gasoline fllling
stetious