Evening star., 1933-10-17
.|CKES SEEKS CURB
ON OUTPUT Of OIL
Will Curtai| Shipments il
States Where Specified
Cuts Are Not Made.
By the Associated Press

BY the Associated Press.
Secretary Ickes also said he would
act November to stop oil overproduc-
ton by curtailing shipments from
those States which have not cut pro-
duction to the amounts allocated.
In a statement released at his press
conference, he said he would move
under the powers granted him by the
oil code to prevent disruption of the
program by a small majority of the
industry which has not reduced pro-
duction sufficiently The action was
taken as part of the Secretary's pro-
gram to perfect the price structure an
nounced yesterday.
Immediate steps will be taken to ad-
Just current crude production to the
allowables effective September and
October l." the Secretary said.
Should Be Adjusted Now.
Sufficient time has elapsed for the
industry to adjust itself to the new rate
of operations and full consideration has
been given to the difficulties of conform
ing promptly with the prescribed allo-
cations.
"A proper balance of supply and de-
mand is essential to stabiliZation Of the
petroleum industry under the oil code.
"The industry and the public expect
production allowableS to be rigidly en-
forced and I shall take every step nec-
essary to that end" Ickes declared.
IT am confident that a vast majority
Of the units in the industry as we'll As
all State regulatory bodies, will CO.
operate fully in this effort.
Will Cut Shipments.
"To prevent a disruption of the pro-
gram by a small majority. the an
nouncement is made now that on No
vember l, 1888, the authority vested in
me to curtail shipments in interstate
commerce will be exercised with re-
spect to such States as have not cut ac-
tual production since September down
to the permissible quotas
II should regret the necessity for TAX
ing this step, but deem it essential to
preserve the stability Of the industry a:
a whole. and to safeguard the rights Of
those States and those producers who
have complied with the ALLEGATIONS.
1.-The several State regulatory bodies
that assign quotas to the respective
fields. leases and companies have the
power to control offending units.
II hope they will take immediate &C.
ton against those who are producing ir
excess of their local quotas in order tt
prevent production from exceeding the
State quotas"
Price Schedule Fixed.
An elaborate schedule of minimum
oil prices today launched the Govern
ment on its first N. r. A. price fixing
effort.
Secretary Ickes, oil administrator
ordered the minimum levels which be
come effective December l. Some OF
sources Immediately forecast gasoline
prices one to two cents higher.
In approving the recommendations o
the industry's Planning and Co-ordina
ton Committee, 1ckes said "competitiv
abuses have created an emergency whicl
threatens the stability of the interstat
market for petroleum and the product
thereof" He added:
| Their continuance and further sprea,
viii make it impossible to fulfill the pur
poses of the N R. A. and the code o
fair competition for the petroleum in
dustry"
Will Hear Directors.
Ickes said objectors will be given
hearing.
The base level for SO gravity mid
continent crude, in which class falls tn
bulk of the domestic production, wa
set at Sill barrel, while the price