The Washington times., 1935-01-08
DISNEY FRAMES
NEW MEASURE
At D ONCE
CompaCts by States Seen as
One Way Out Of Difficulty;
House Survey Started
By International New. Service

Cne supreme court decision hold
ing the oil production control Sec
ton of MIRA unconstitutional.
While the decision admittedly
was a severe blow to the program
Of Secretary of Interior Ickes, the
coil czar," he expressed hope the
oil industry will cooperate to main.
tain stabilized conditions.
Control Of the industry
depends entirely on new Federal
legislation, Mr.. IckeS, said today.
The Federal tender board,
which was knocked out by the
Supreme Courts decision has
been ordered disbanded as a
result of the decision, Mr.. IckeS
said. The board had five mem.
bers and IL Investigators, all
working in efforts to stop "hot
oil'' production in Texas.
Board Transferred
Mr.. Ickes said the tender board
organization would be transferred
to the Petroleum Administrative
Board, and would be assigned to
duties in Texas, to carry out
operations under the oil code. He
added:
1--WE have not as yet decided
what further steps can or will
be taken under the production
sections of the code regarding
interstate shipment Of illegal
oil out of East Texas. But the
Petroleum Administrative Board
will discuss this question with
the Department of Justice
Immediately.
"NOw we have to 90 back to
powers given us under the
code. Those powers did not
enable us to control the Situa-
ton in the Texas field.
II don't think the country
will ever be able to control the
oil situation without Federal
legislation. 1t is absolutely
inevitable that we will revert
to conditions which existed be-
fore the oil administration
came into office, without new
legislation"
Mr.. Ickes said that he had no
particular legislation in mind, but
expected to confer soon with the
oil committee of the House on new
legislation. He said:
"The section which was held
unconstitutional might be more
carefully and skillfully drawn.
We did not draw it. The oil
situation in the United States
yesterday and for some time
past, before the Supreme Court
opinion was handed down, was
better than it had been since
this Administration came into
office, and for many years be-
fore that"
CONGRESS TO ACT
He said the situation in Cali
fornia was not affected by the
decision, because operations are
being conducted there by "gen-
tleman'S agreement" and that
there is no difficulty.
New legislation to permit Gov
ernment control of oil production,
to meet the objections raised by
the Supreme Court, already is un-
der consideration by members of
Congress.
Representative Disney 3D. of
Oklahoma announced he was
framing a measure to revise those
portions of the law which the
court held unconstitutional.
Speaker ByrnS said today:
"The Supreme Court decision,
as I understand it, was based
upon a delegation of congress
SiOnal power. We had an oil
bill at the last session in which
Congress would specifically legiS-
late to control oil production.
Il think such a bill will be
passed at this session. 1t ought
to pass"
House Survey Due
Meanwhile, the special House
committee investigating all phases
of the petroleum industry met to
study the Supreme Court decision.
Chairman Cole (DD, of Mary.
land, said the group has withheld
definite legislative recommends.
tionS until the Supreme Court de-
ciSion together with the reports
of the conference of oil state
governors at Ponca City, Okla,
and of the national resources
board have been placed before it.
The governors conference was
held earlier this month and re-
suited in the drafting Of a regu-
latory bill providing for State
compactS. This bill, proposed by
Governor Marland of Oklahoma,
was approved by the conference
by a vote of S to 3.
Kansas, Oklahoma, Illinois, New
Mexico, and California voted ap.
proVal, while Texas, Louisiana and
Arkansas expressed opposition.
Up to Legislatures
The bill would set up a joint
interstate fAct-finding agency
composed of State representatives
and representative of the Fed
eral Government. 8
This committee would canvass
the petroleum situation and rec
ommend to the compacting States
voluntary production control, uni
form conservation and tax laws
The compactS would be ratified
by the State legislatures. The
measure also calls upon Congress
to limit petroleum and natura