Evening star., 1933-09-08
PRESIDENT TALKS
TO ICKES ON OIL
REDUCTION PLAN
Continued From First Page.l


costs but to make profits. Reduction
Of production in line with demand Is
the first step in the price direction.
Thereafter, as soon as the effect OF
ALLEGATION can be determined, prices
probably will be set. not for the pur-
pose of fixing high price but for the
double purpose Of preventing excessive
rises and to provide stable price
structure In the industry by eliminat-
ing cut-throat price competition.
After yesterdays reports that q
Standard Oil of New Jersey had de-
clined to cooperate in perfection Of
the oil code, Parrish replied with q
statement saying:
I'VE shall be glad to supply any data
desired and will, of course, abide by
any and all decisions made under the
code. but do not wish to be placed
in the position Of helping to frame a
policy which I do not favor but for
which would inevitably be held re-
sponsible."
The report purported to describe a
telephone conversation between Charles
F. Roeser, Texas oil man and member
Of the committee. in Washington, and
Parrish, in New York, in which Roeser
asked for certain facts.
Parrish, it was said, not only declined
to furnish these facts but also said the
planning committee was not represent
ative of the industry, that 1t had no
legal right to fix prices, that ALLEGATION
would have to be cut from the official
2,400, 900 to 100000 barrels a day and
that he hoped the committee would
make a~mess" Of its efforts to erect a
crude oil price structure.
Secretary Ickes at once took q hand
in bringing about peace with the
statement that Il am unwilling to be-
lieye that any responsible officer Of
the Standard Oil Co. Of New Jersey
would make any such statement.
Work Out Price Schedules.
MY understanding is that Standard
Oil Co. of New jersey subscribed to the
code" he added, land my only informa-
ton is that it is going along loyalty
and enthusiastically, cooperating with
other producers and the Government
IN carrying out the, spirit Of the code"
Reports in oil circles ever since the
work on the code began some weeks
ago have aligned the Standard Oil Co.
of New Jersey against price fixing,
which not only is permitted by the code,
but which Ickes said might be used at
ally tLIlC IL ucCCSSd1y. TOI IAAC paot
few days the Planning Committee has
been attempting to work out schedules
and differentials which the administra-
ton might employ If prices were finally
fixed.
Also in the background was the fight
which ousted James A. Moffett, now ad-
wiser on the oil code, from the vice
presidency Of New Jersey Standard. In
resigning, Moffett said he could not
comply with orders from the company
not to accept the N. r. A. post on the
ground that it was patriotic duty to
accept the work. Moffett since then
has been one Of the most important
workers on the code.
Price Fixing Seen.
While no reason was assigned today
by Washington distributors for the in
crease In prices here, the orders COM
ing from headquarters" it is believed
that the price boosts Of the past two
weeks reflect the imminence Of price
fixing under the code.
In informed oil circles 1t was stated
recently that an increase of about two
cents in the price of gasoline when 1t
was selling at liz cents minus the
three and q half cents Federal and
District tax, would about bring the
District fuel price in line with the base
price which the OIL Administration
plans to set under the code.
The three increases have brought the
price here up just that amount, with
the straight fuel selling today at 49,.
cents, plus two cents District tax and
one and half cents Federal tax.