Evening star., 1933-07-26
ATTACKS OIL CODE
OF INDEPENDENTS
Titus Fears 0verproduction
Under State ALLEGATION
Plan.

By the Associated Press.
Louis Titus, Washington attorney ap-
pearing in behalf of the oil trade prac-
tice plan advocated under the auspices
of the American Petroleum Institute,
today told the Industrial Recovery Ad
ministration that to allocate production,
as proposed by group of independents,
would mean East Texas alone would
supply 40 times as much Oil daily as
the market demanded
The attorney appeared after K M.
Simpson, deputy administrator, allotted
advocates of each code 30 minutes in
which to sum up the arguments in be-
half Of their proposals, as the hear
ings drew to a close.
Jack Blalock of Marshall, Tex, was
ready to follow Titus with a statement
for the code presented by the inde-
pendent faction and to urge rigid Fed
eral regulation of pipe lines.
Seeks Equal Output.
Titus explained the code for which
he spoke sought to allocate production
eQuitably. whereas the independent
code proposed to allocate it according
to States ability to produce adding:
THE East Texas field under an open
flow has potential production of
1l2000,000 barrels daily as compared
with a demand of two and half mil
lion daily. This field alone could pro-
duce 40 times as much as the days
demand"
Texas potential production from all
its fields, Titus said would be approx
mately 10000 900 barrels daily. He
said If production were allocated to
meet demand on this basis Texas
would get at least 800, 900 barrels daily
and possibly 100000 barrels"
He called to Simpsons attention that
Pennsylvania produces $4,000 barrels
daily and that under such a system of
ALLEGATION would be cut to 300 barrels
daily adding that these were the strip
per wells on pump taking out the last
gallons of oil in pool
The institutes advocated code seeks to
protect these wells. Titus explained
while the independent code asked that
they be conserved within reasonable
economic limits" The independents.
he said. did not say what they meant
by economic limits.
Montana. Titus said. with a produc-
ton of 5000 barrels daily from its
flush fields and not stripper wells.
would be cut to so barrels day and
Wyoming with production of 10000
barrels daily, also from flush fields,
would be allowed only $50 barrels day
under the independent proposal.
The oil industry was in tentative
agreement on that portion of its code
fixing the maximum working hours and
minimum rates Of pay.
Committees representing the industry
and the National Recovery Administra-
tion compromised last night on wage
scales of from 40 to At cents on hour for
workers engaged in refining and mar
keting and from As to 50 cents for en-
ployes in production. Hours were fixed
at sc for production and refining en-
ployeS and 40 for those engaged in mar
keting.
The agreements must be accepted by
Administrator Hugh S. Johnson before
they are incorporated in the code. The
figures on hours and wages represented
a compromise between the code pro-
posed under the auspices OF the Amer
lean Petroleum Institute. independent
producers and the demands of labor
SpokeSmen.
Meanwhile. representatives of the
Governors of the oil States and their
State regulatory commissions bespoke
approval of President RooSevelt's indus
trial rehabilitation program. particularly
in so far as 1t affects oil. Their resolu-
ton follows:
BE it resolved by the several official
representatives of the States-le., OF the
Governors and of the State regulatory
bodieS-that the States go on record as
unanimously indorsing and approving
the action of the President. the Secre-
tary of the Interior and the national
administrator, in adopting program of
rehabilitation and stabilization of indus
try, with particular reference to oil and
the conservation of this important natu-
raj resource, and that We tender to the
President and his official advisors our
heartiest cooperation in the general
program for social and industrial well
fare. incident to the rehabilitation of the
oil and other industries of this Nation" -"