Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-09

The American Petroleum Institute, With SUBJ
stantial and representative membership from
twelve-bon- dollar industry, which has
than two million owners and over 100000 en-
ployees, respectfully petitions Congress to pursue
policies which will permit this industry to take it's
rghtful place in the march OF recovery.
The Institute asks this with full appreciation of
the earnest endeavors which have been made by
the Federal authorities in the past two years, to
speed recovery. These efforts the petroleum in
dustry has generously supported, recognizing that
in time of such emergency it had a patriotic
obligation to cooperate in bringing about re-em-
ployment and restoring the countrys purchasing
power. It's annual pay roll, approximating
S1,5696OOO0O, is practically equal to the 1929 pay
roll and in real wages it is ~ per cent higher. In
fact the per capita yearly wage paid by most OF
the oil companies has always ranked high IN IN
dustry In the past two years the industry re-
absorbed 217,200 persons. Taxes on its properties,
products and operation contribute S1,25O,OOOOOO
annually toward the maintenance OF government.
The Institute believes that the people who de-
pend upon our "a 100000 automobiles for trans
portation the farmers who cultivate the land with
tractor-draWn equipment, the operators OF thou
sands of industrial plants and the many other
users of petroleum products are best served when
competition is free, when the operation of eco
homie law is unhampered and when the profit in
centive stimulates initiative and inspires inven-
tion The free operation of these forces inevitably
tends to insure quantity, improve quality and to
reduce prices. These are the true tests of the
service rendered by any industry to the public
Gasoline consumers can not continue to enjoy
these advantages if the responsibility of manage
ment is transferred from the thousands of indi-
vidual companies to Federal bureau.
These advantages can be assured if the Federal
and State governments will remain each in its own
sphere observing the separation and limitation OF
powers which the Constitution has wisely ordained
and the Supreme Court by many decisions and
precedents has clearly defined.
Legislative uncertainties, threats of govern
mental control and nterferences with the legltl-
mate development of a great industry which has
served the public satisfactorily are handcapping
our business and retarding progress toward a
constructive solution of our problem
Out of an intimate knowledge of conditions and
long experience in serving the American people
we feel qualified to offer program of principles,
which will materially assist in stabilizng condi-
tons under which the oil industry can operate to
the direct advantage of both the makers and users
of petroleum products.
We respectfully submit:
FIRST: That there should be minimum of reg
ulation by government, State or Federal, to the
end that private industry may be free to serve
the public most efficiently and economically.
SECOND: That the State governments, having the
power to regulate production of crude oil and
natural gas to prevent waste and so conserve
valuable natural resource, should be encouraged
in that effort
THIRD: That the Federal government, having the
power to deal with interstate and foreign COM
merce, and to authorize interstate compacts,
should supplement the production control effort
of the States:
By making permanent rgidly enforcing the Connay
Law g. 1907 prohibiting the shipment in interstate and
foreign of oil produced in violation of state laws
By the interstate already
ratified by the legislatures of five of the principal oil produ
ing states;
By directing the u S. Bureau of Mines competent fact
finding agency to ascertain the crude oil production
sary meet the consumptve demand the nation and
make its findings available compact
mission and the respective conservation authorities of the
oil producing states;
By exercising control imports proper domestic
production for such time is necessary.