Evening star., 1939-08-20
State Oil Officials,
Fearing U. 5. Control,
Hif ckes Statement
Ii Is Interference and
Wholly UncoIIed For,'
Texun Declares
By the Associated Press.

By the Associated Press
TULSA, Okla, Aug. 19.-Words
spouted where oil didn't today over
the always hot question whether
there shall be State or Federal con-
troll
AS oil men, tagged out by the
hubbub of crude oil price cuts, six
State shutdown and dwindling
stocks, were looking to week end of
rest, Interior Secretary Ickes in
Washington issued statement
which touched off new fireworks.
Mr.. Ickes said should there de-
velop a lack of parity between total
supply and consumptive demand the
prohibition against interstate ship
ment could be made imperative dur
ing the period of shortage"
The Connally Hot Oil" Act pro-
hibits shipment in interstate or for
eign commerce of petroleum and
petroleum products produced in vio-
lation of State law.
Jerry Sadler of the Texas Railroad
Commission which regulates the oil
industry in that State, Immediately
fired a telegram at Mr.. Ickes as
serting, his domination or inter-
ference in the present situation is
completely, wholly and entirely un-
called for"
Since State regulatory bodies
"have successfully met the attack of
the Standard Oil Co. and its affiliates
in their vicious attempt to rule or
ruin the industry, it strikes me your
statement is poorly timed and un-
called for" Mr. Sadler added.
Estates Doing Very Well"
Ernest o. Thompson, chairman of
the Interstate Oil Compact Com
mission, insisted the oil States are
handling their problems we'll with
out Federal control"
It's just case of using the power
that is theirs without running to
Washington for everything under
the SUM-" he said
At Cheyenne. Wyo.. Senator j. C.
OMahoney. chairman of the fact
finding temporary National Eco
nomic Committee, expressed hope
that hearing opening September
IS in Washington would produce
facts necessary for recommending
congressional legislation to untangle
the oil problem
Any one can see by these recent
events that the oil industry is in a
deplorable condition." the Demo-
cratic Senator commented regarding
the recent shutdown.
Most of the business on which
full employment depends is ma
tional business, and there has been
no formula by which business can
be adjusted to local conditions.
Not Covered Adequately.
This is illustrated in the oil in
dustry where large companies which
carry on the industry seem to oc-
cupy field which is not adequately
covered by either State or national
law.
The antitrust laws, whether
State or national, never have been
effective in preventing price fixing
and it has seemed to make no diff
ference who happened to be enforc-
ing the law.
1T is because of this condition
that I sponsored the resolution
which created the Monopoly Com
mittee"
Mr.. Ickes said the Inferior De-
partment had no reports of Con-
nally Act violations incident to the
production shutdown.
In the face of the crude oil STOP
page. reserves were falling, how
ever, especially at the small refin-
cries, and jobbers scrambled for
gasoline to protect their territories.
Michigan Joins Shutdown.
Adding support to the shutdown.
Michigan announced a temporary
reduction in withdrawal limits, cut
ting its yield nearly fourth.
Texas, the Nations largest oil
producer, led the shutdown this
week after Sinclair Prairie Oil Mar
ketlng Co. had slashed its crude
purchasing price by 20 cents bar
rel and other companies had fol-
lowed suit. Oklahoma, New Mex
leo. Kansas, Arkansas and Louisiana
Joined Texas quickly in turning off
the SplgotS on tWo-tnirdS of the
Nations oil production.
The Lion Oil Refining Co., after
successfully resisting for one day
efforts of the Arkansas Oil and
Gas Commission to force a shut
down of its 50 producing wells in
the Shuler fields Jones sand near
Ell Dorado, agreed voluntarily late
today to suspend operations in the
area until pm. Monday.
The surprise move interrupted
hearing by Chancellor w. A. Speer
OF the commissions petition for a
court order to force the Lion Co.
to abide by the general shutdown
decree that went into effect on all
Arkansas controlled fields Thurs
day.
The Lion Co. yesterday obtained
an injunction preventing State DO
lice from inforcing the shutdown.
Aoen;tnI kArdo TkA