Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-08-03
LOWER PAY ASKED
IN OIL INDUSTRY
Chiefs Want Filling Station
Workers and Many Others
Under Blanket Code.
Continued From First Page.)


could submit them for the next week,
and asked that committees representing
the various factions in the industry re-
main around the Capital for consulta-
ton as necessary
Sutro, general counsel and vice
presidents of the Standard Oil Co. of
Califor1ia, today told the Recovery Ad-
ministfation that a trade code for the
oil industry presented by Hugh S. John
son, the industrial administrator lis no
answer to the induStry'S problems"
Appearing as the spokesman for all
the forces demanding price regulation,
Sutro asserted:
This code increases the burdens OF
the industry and does nothing. as we
see 1t. to carry out the liberal views OF
liberal administration.
L think you have finched on the
| economic question which the admins
traitor should face and solve-price
fixing"
Brings Up Price Regulation.
Sutro brought again into the fore
ground Of efforts to formulate code for
the industry the bitter question of price
regulation, against which several COM
panies, including the Standards of New
Jersey and Indiana, the Texas Co., the
Royal Dutch Shell and other interests,
are fighting.
Sutro, hammering for price control
told K. NJ Simpson, deputy administra-
| tor presiding over the hearing, that re-
cent statements of oil companies showed
heavy losses and asked:
will you tell me where we are going
to get the money to pay the labor hiIl?"
Referring to statements by admins
tration officials that price fixing would
be difficult question, Sutro said:
The Supreme Court held that the
Federal Government could not inter-
fere IN child labor. Did that stop Gen.
johnson from stopping child labor?
Happily it did not
We have not heard any question Of
constitutionality raised where it was
wanted TO do something"
Abiding to a statement by johnson
| In effect that if production is brought
under control prices will take care of
| themselves. Sutro continued:
J do not tell us that when YOU balance
| production you solve our problems In
| California We have had our production
balanced. complete and perfect. to de-
| mand for two and one half years and
during that time We have had almost
| quarterly the most destructive price
wars.
Franklin for Price Control.
'In the face of that do you expect us
to have any faith in your dictum that
when you have balanced supply and
demand you have solved our problems"
Writ Franklin, president of the In
| dependent Petroleum Association, car
rying on the campaign for price regu-
lation, told Simpson that ANY code that
leaves out the fixing of fair and euuit-
| able price will be a dismal failure and
a disappointment to the administra-
ton"
Franklin urged that provisions be put
into the code to permit supervision OF
| development of newly discovered areas
! Jack Blalock of Marshall, Tex.
leader Of an Independent faction oppos-
ing price control, opposed efforts to
restore to the code a provision ono
! eliminated by committee of IS from,
the industry which would give tn
PRESIDENT authority to allocate produc
ton within State If the State did no
Blalock said this provision was sd-
Vocated by groups seeking to bring VI
factional fights within States, adding
If the Federal Government is going
to take sides in the factional fightS
within the State We cannot accept
| the code"
States Rights Involved.
c. B Ames of the Texas OIL Co. told
simpson the committee had agreed to
recommend elimination Of the section
to bring about closer cooperation with
the States, as he and several others
1elt 1t would encroach ON State rights.
| Inc committee Of IS agreed to recon-
mend elimination of the section but
the members representing the Emer-
gency National Committee of 81 set I'D
under the auspices of the American
Petroleum Institute iast night withdrew
Their agreement under orders from the
Emergency Committee of "a.
! A. T. Fame, representing Gov. White
OF Ohio, told the administration Ohio
mad no body to regulate oil production
and favored Federal rather than State
| control.
The committee of Is had under con-
sideration with expectation of agree
ing upon it a refining section intended
to provide full protection to the small
independent ref1ners and to assure
them Of adequate supplies
Meanwhile James A. Moffett, former
vice president Of the Standard OH Co.
OF New Jersey, began his work Is a
member Of the Advisory Committee as
s1sting johnson. of which Walter c.
Teagle. president Of the Jersey Stand
| ard, is chairman.
Disagreed With Teagle.
Moffett last week resigned from the
company after disagreement with
Teagle and other officials announcing
he favored President Roosevelt's re-
covery progrsm. but that he apparently
was not in accord with other company
officials.
Private discussion Of q number Of oil
leaders here disclosed today that the
marketing code as 1t now is pending
before johnson will prohibit credit sales
of gasoline to automobile owners and
other consumers.
The code stipulates service stations
may make deliveries only for cash or
coupon books in denominations Of not
less than $40.
The coupon books would be sold at
face value without discount for cash,
amount OF credit IN buying coupon
books.
Dealers and distributors who Alc-
ceeded in aetting this provision into
the code sid 1t was Intended 10 cut
down operating costs Of the stations
by reducing their accounting REQUIRE
nents and expenditures % that they
would be tn . better position imam
cially TO meet Increased costs for labor.
Could BE Redeemed Anywhers.
Under the coupon cash provision
coupon books issued by any company
could b redeemed at any retan out
let where the trade married products
of that company are sold
The hearing yesterday brought clash
between j. +. Faulkner Of Baltimore,
reprs0enting a group Of independent re-
tall dealers, and Philip Kemp, q depu-
ty administrator, In which Kemp threat
| ened to call a guard to put fsuilsner
out unless he sat down,
Faulkner demanded that he be heard
IN opposition to the lease and agency
| practice Of binding dealers 10 handle
exclusively the products Of one dis