TO REGULATE COMMERCE IN PETROLEUM WEDNESDAY, MAY 30, 1934 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The committee met at 10 a.m., in the committee room, New House Office Building, Hon. Sam Rayburn (chairman) presiding. The CHAIRMAN. The committee will come to order. We have met this morning to consider H.R. 9676, a bill introduced by Mr. Disney on May 17, 1934, relating to regulation of commerce in petroleum and for other purposes. (The bill above referred to is printed in the record as follows:) [H.R. 9676, 73d Cong., 2d sess.] A BILL To regulate commerce in petroleum, and for other purposes Be is enacted by the Senate and House of Representatives of the United States of America in Congress assembled, FINDINGS AND DECLARATION OF POLICY SECTION 1. Excesive supply of crude petroleum and products derived therefrom has injuriously affected and now injuriously affects commerce in petroleum Besides the results usually coincident with excessive supply and, in addition to distress sales and dumping, the effect here is to render unprofitable the operation of wells of small but settled production and cause their abandonment before the maximum economic yield is obtained. Premature extraction of petroleum from the natural reservoir, induced by the absence of restrictions upon the quantity which may move in commerce, results also in waste and inferior uses. To remedy existing evils and recurrent evils and properly to regulate and coordinate commerce among the several States and with foreign nations, it is essential that restrictions be placed upon the quantities which may move in commerce when excessive supply exists, and that fair and equitable apportionment be made among the States and among the different operators and sources of supply. This commerce, a large portion of which is interstate or foreign, is found to be of such nature that any regulation herein contemplated, to be effective and fair, must regard commerce as a unit and establish quotas therein, irrespective of whether transactions are in interstate or intrastate commerce or whether there is exportation or importation, except as otherwise provided in this Act. INVESTIGATIONS AND REPORTS SEC. 2. The Secretary of the Interior is authorized and empowered, when, in his judgment, it is necessary to effectuate the purposes of thise Act, to make investigations and collect data necessary to carry out the purposes of this Act, and to this end may require periodic and special reports relating to the industry from persons engaged in the petroleum industry, and may examine and inspect their books, records, papers, and properties for the purpose of verifying such reports. 1 |