Texas Tries

Last month bulky Governor Ross Shaw Sterling called the Texas Legislature into a 30-day special session to enact a new conservation law to curb the State's wild oil production. For 28 days the Legislature shilly-shallied, got nothing done. Meanwhile in Oklahoma Governor William Henry ("Cocklebur Bill") Murray called out troops to shut in oil wells until the price of oil should reach $1 per bbl. (TIME, Aug. 17.) Taking cue from his neighbor, Governor Sterling last week roweled his Legislature into action one day before adjournment with a threat of martial law. To show he meant it he sent his adjutant general into the gushing East Texas fields to find quarters for 1,000 troopers. Twelve hours later the Legislature sent him a bill which he promptly signed as "satisfactory."

Precisely what the new law would do not even its sponsors knew. Broadly it empowered the Texas Railroad Commission to prorate oil and gas production in the different pools and prevent "physical waste." Violators of the Commission's orders may be punished in court. No provision was made, however, for holding down production for economic reasons. Some legislators declared the flow of Texas oil could be cut 50% under the new law. Others insisted no reduction whatever was possible.

Declared Governor Sterling of the new law: "It's got teeth in it but I might still slap on martial law if some of these [East Texas] operators get to acting up." But martial law was no idle threat with Governor Sterling. Many an East Texas producer had begged him to shut in that field by force. After he had perused the new conservation law and received legal advice, he despatched Texas guardsmen under sealed orders to the second richest oil field in the world.*

After they had taken up their posts through the field Governor Sterling proclaimed martial law, ordered every one of the 1,600 flush wells in the 2,815 sq. mi. of Upshur. Gregg, Rusk and Smith Counties shut down. Last week this field, running wide open, produced an all-time record of 738,000 bbl. This week under the Governor's orders they were to produce not a barrel. Proclaimed Governor Sterling:

"Oil and gas supplies are being unlawfully dissipated and wasted and the land and royalty owners are being robbed by unscrupulous and lawless producers, transporters and operators. ... An organized and entrenched group of operators are in a state of insurrection against the conservation laws of the State and are in open rebellion against the efforts of the constituted civil authorities to enforce such laws."

As the troopers arrived and the oil wells were shut down, out of the field like rats scuttled a wretched army of 'leggers, prostitutes, gamblers, dope peddlers, pimps, confidence men and plain bums.

Meanwhile, in Oklahoma, lines held tight in Governor Murray's oil war. After eight days martial law had failed to budge economic law and Oklahoma crude was sellins at 52-c- per bbl. Governor Murray announced that two refining companies (Champlin and Cushing) had offered to pay his price of $1 per bbl. if he would remove guardsmen from their wells. "If I'm convinced the offers were made in good faith. I might allow them to open up," mused he between spits of tobacco juice as he set out for a week-end visit to Texas.

As if to swing in behind Oklahoma and Texas for better oil prices, Kansas, through its Public Service Commissioner, ordered producers to boost crude prices to 60-c- per bbl. or show cause why their wells should not be closed down.

*The richest: Kettleman Hills, Calif.

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