Evening star., 1933-03-26
PRESIDENT SEEKS
CURB ON OIL FLOW
Governors Conference In
tended to Bring Closer Unity
for CurtaiIment.
Nv the Associated Press.

Old Mother Earth is yielding alto
Eether too much oil to suit the new
administration.
On this account President Roosevelt
himself, through cooperation with the
States Governors, is to take hand
in attempting to shut off at least a part
of the daily oil surplus flow which has
caused the petroleum industry difficulty
for years.
This is a part of the White House
scheme for establishment of normal
business throughout the country.
To bring about closer unity of all
concerned in curtailment of petroleum
products is the prime object of the
Governors Conference which is to as
kemple in Washington tomorrow.
1t Is bootleg" oil chiefly which
has been causing much Of the trouble.
Mo one Of the petroleum-producing
States is held entirely responsible for
the situation. There are six or seven
States, 1t appears from Government
Fecords, which have their oil moon
sinners" who have long been doing
thriving business at night in defiance
OF laws, regulations and gentlemen's
agreements.
Heart to Heart Talks.
The aim of President Roosevelt,
through Secretary Icks, in bringing the
oil States Governors together is to pro-
mote heart-to-heart talks among them
and possibly conceive some new system
of keeping down oil production to some
thing like the Nations requirements.
Previous meetings of the Governors
The last in 1929-in efforts to arrive at
conclusions which would limit output
brought few permanent results. Too
Pnany complicated interests and systems
In the States concerned were involved.
Should the Governors SO decide at
the Washington meeting, Government
assistance would be offered to bring
about some unified method to deal with
The petroleum problem in it's entirety.
There has never been Federal con-
trol Of the flow of OIL Authority rests
alone with the respective States.
Secretary Ickes will preside at the
conference. 1t will be through the
cabinet member that the President will
hear what the Governor of Texas says
to the Governor of Oklahoma about oil
Mr. Roosevelt also is eager for the opin-
ions of the Governors of California,
Colorado. New Mexico, Wyoming, and
Kansas in the matter of curbing the
everlasting ooze Of petroleum which has
long been a question of agitating not
only the States executives, but like
wise is causing considerable concern
In Washington.
The President knows, as do the Gov
ernors themselves, that it is the boot
legged" oil which has been largely re-
sponsible for destroying the economic
factors in the oil industry. The illegal
ly produced products escape all taxa
tion. Consequently, the "moonshine"
produce, which moves at night not only
t,U nf nLc 6,1t n,Yey1,
certain pipe lines as we'll, eventually
reaches the retail trade at what corpor-
Rtions consider "cut-throat" prices.
Huge Daily Production.
Present production in the dominant
producing States ranges from q
250,000 to 2,500,000 barrels per day, it
has been estimated by Government ex-
perts. The country's daily needs are
approximately 100000 barrels.
system OF national planning in the
oil industry was advocated first in 1880,
by the Federal Oil Conservation Board
In cooperation with the War, Navy and
Commerce Departments. A foundation
was laid for an interstate compact to
put the work under auspices of the oil
producing States on a permanent and
effective basis
The oil States appointed an Advisory
Committee, which calls for an inter-
state agreement IN four essentials. It
is something like this which the Gov
ernorS may consider:
First, creation of joint Federal and
State fact-f1nding body to forecast de-
mand, recommend crude-oil production
and allocate it among producing States.
Second, commitment by each produc-
ing State to adhere to its quota. Third,
Federal regulation Of imports to keep
them within the prescribed quota.
Fourth, formulation by this interstate
body Of uniform conservation principles
to be worked into local legislation CEN
tering around unit operation and the
preservation of reservoir energy.
All of the Governors of the States
chiefly concerned have accepted Secre-
tary Ickes' invitation to participate in
Mondays conference either in person or
through personal representatives. The
meeting will last several dove