Evening star., 1943-04-16
0PA Held Up |ekes'
Oil Price Hike Plea,
House Unit Learns
April 7 Recommendation
Come at Bod Time
Agency Official Says

agency OffIcidl Suys
Continued From First Page)
In general an increase OF around
IS cents a barrel.
"On an average" Mr.. Ickes
prompted.
Ickes Receives No Reply.
Asked by Chairman Patman
whether he had received an answer
to the letter, Mr.. Ickes said he had
not.
Mr.. Pike said considerations given
for the increases in Mr.. Ickes'
letter were to keep stripper wells in
production, spur secondary recovery
and possible drilling on marginal To-
cations and encourage wildcatting.
He added that, without chance to
give the recommendation and con-
siderations thorough study, since Mr.
Brown soon was leaving town, he
had dictated few brief comments
for the price administrator, but
made no recommendations.
My first statement" he told the
committee, was that I felt that an
increase at the time when there was
q question what to do about coal
prices and the farmers were in the
air was pretty bad time"
Representative Patman asked If
he had recommended that prices be
dealt with in individual oil situa-
tions and Mr.. Pike replied in the
negative.
Price Seen Pretty Good"
He said he had suggested that in
the cases of fields away down." it
might be well to have special prices
to meet hardships where there was
special difficulty meeting lifting
costs, but he proposed no general in
crease to help few situations. He
added it was his opinion that the
present price Of oil is "a pretty good
price
Numerous witnesses representing
independent oil producers from all
sections of the Nation had testified
earlier this week before both the
Small Business and the House Inter-
state Commerce Committees that a
crude oil price increase is necessary
II production is to keep up with con-
sumption and explorations are to be
continued for new fields.
Mr.. Brown testified there is mo
doubt that. if it becomes necessary
to lift crude price ceilings to assure
delivery of petroleum products to
the fChfJy,o f0rccc srro I,
the legal duty to increase the price"
During his testimony the OPA
chief elaborated on his duties and
said his agency under the Presi-
dents hold the line" order had the
authority to lift ceilings whenever
it becomes apparent that failure to
do so would hamper the war effort.
Earlier Testimony Cited.
Chairman Patman remarked that
numerous previous witnesses at the
hearing have testified that one to
two years would elapse, even after
any price increase is allowed, before
Its effects would be noted in an up
ward trend in discoveries of new
wells. Mr.. Patman then asked Mr..
Brown whether the OPA had con-
sldered that fact in celebrating
whether to increase the crude price
structure.
Mr.. Brown replied that this par
tlcular angle had not been studied.
but that it would be taken into con-
sideration.
A general discussion of price
ceilings and rationing arose during
the hearing, and Mr.. Patman asked
If 1t were not true that the OPA had
declined to grant the crude oil in
crease because of its possible inf1a-
tlonary effect Mr. Brown agreed.
and Mr.. Patman followed with the
observation that it probably would
increase the cost of gasoline by
about l cent a gallon.
The chairman then observed that
approximately the same number of
newspapers are sold daily in the
Nation as gallons of gasoline are
consumed. saying the former total
around A 100000 circula ton and gas
sales approximate $4,000, 900 gallons.
Laws Provisions Discussed.
"Yet, there is no restrictions
against any or all of the newspapers
increasing the cost by a cent" con-
tinued Mr.. Patman, asking Mr..
Brown for comment
The OPA chief replied that. in the
first place, the law specifically ex-
empts newspapers from price con-
troll regulations, and in the second
that they are not an essential COM
modify such as gasoline. That led
him to remark that it is the OPA's
policy now to eliminate from COW
erage of price control and rationing
regulations as many commodities
as possible which are not highly
essential.
He said that on his desk now for
his signature is an order exempting
such articles as bookends and Ger
tain glassware products, which
heretofore have been under price
control The object of eliminating
such articles, he added, is to make
1t possible to devote more attention
to things vital to the civilian econ-
omy and prosecution of the war.
Wnr Ronde