Evening star., 1934-02-04
.|CKES WILL URGE
HOT OIL STOPPER
Interior Secretary to Go Be.
fore House Ways and
Means Group.

In the interest of legislation to pre-
vent illegal withdrawal of oil, or the
hot OIL practice prevalent in some
of the producing States. Secretary OF
the Interior Ickes will appear before
the House Ways and Means Commit
tee tomorrow.
Mr.. Ickes. who also is Federal oil
administrator. will be requested to
submit information of the possible ef-
fectiveness of an amendment proposed
for the tax bill being considered by
the committee to reach the illegal
procedure by way of income tax laws
and at the same time collect taxes
probably avoided by the hot OIL
practice.
The amendment, sponsored by Rep
resentative McClintic. Democrat, of
Oklahoma, provides for payment of
informers on hot oil" distributors SO
re-examination may be made Of in
come tax returns Technically, hot
oil" is the amount of the product
Withdrawn and distributed over and
beyond the amount permitted in the
various States and production areas
which by law or agreement restrict
the amount marketable in given
periods.
Claims Code Evaded.
For the purpose Of assuring ade-
ouate supplies to small retiners. and
at the same time preventing with
drawals of crude oil from storage. Ad
ministrator Ickes yesterday Cancelled
section 3 of article of the code for
the petroleum industry which per-
mitted refners without permission to
withdraw crude oil from storage when
supplies were not available within eco
nomic limits.
That provision" said Admins
traitor IckeS, led to evasionS Of an
other section of the code which re-
qures Withdrawals from storage to
be approved by the Planning and Co
ordination Committee of the industry.
Under section 3, refners were not re-
quired to notify regional committees
of the planning group until after
they had Withdrawn the oil. Reflners
frequently made excessive with
draWalS in violation OF the provisions
limiting Withdrawals, and reported
them later
COTSlUeT IL necessary lIIdl
shall be closer supervision over such
Withdrawals from storage to prevent
supplies obtained in this manner from
upsetting the general program for bal
ancing production with consumptive
demand, and l feel this will be i'm
possible without eliminating section 3
of article 4.
Names to Be Public.
ut is of paramount importance,
particularly to the small, independent
refiners. To insure to these and other
refiners ample working stores. l have
issued regulations. under section 2 of
article g. permitting Withdrawals when
authorized by the Planning and Co.
ordination Committee. The committee
will make public the names of persons
or companies withdrawing crude from
storage, and the amount withdrawn" p"
The administrator also added a
paragraph to rule 25 of article of
the code to require manufacturers Of
used or reclaimed oil to brand their
products so as clearly to show that
they were made from used oil.
He announced appointment of j.
Howard Marshall, member of the
Petroleum Administrative Board, and
r. Gordon Lowe. an attorney on the
staff of the board, as his representa-
tives on the Board of Governors and
Executive Committee, which will
supervise operation of the gasoline
stabilization pool provided for in the
recently y-approved purchase agreement
submitted by the industry.