Higher Gasoline Prices
Forecast For This Year
Some Sort of Control Would Be Big Boon To Industry
and Federal Government May Step Ip, Babson Says
In Discussing Return To Better Conditions
By ROGER W. BABSON
(Copyright, 1934, Publisher* Fi
iincial Bureau)
Babson Park Mass., May 4.—Condi
tions iii the oil industry today present
;l striking contrast to those of a year
;*,) Last May crudeo il production
w;l s running wild; crude oil prices
near all time lows; producers
w ,. r e piling up big losses daily; oil se
curities were severely depressed. In
tin* short space of 12 months the pic
ture has completely changed. Produ®.
non is now fairly well in hand; crude
nil prices ares irm; oil companies are
making good profits; and oil Securi
tas are again in demand.
A Unique ndustry
As readers know oil is found in
huge pools which extend for mile*
underground. These pools are tapped
by hundreds of wells which are own
ed by a number of Individuals or
companies. The oil in each pool is the
common property of all well-owners.
Naturally, unless some type of control
is exercised, each producer attempts
to outstrip his neighbor and get a
higget shares tom the pool. This has
two very bad effects. First, it im
mediately creates over-production of
crude oil with a resultant decline m
prices; and second, when the wells
jit- allowed to run too fast the pres
sure m the pool is reduced and mil
lions of barrels of oil, which other
wise could be recovered, arel ost.
Back in pre-depression days, pro
duction was controlled through volun
tary proration agreements among the
operators. Wliilep rices wereh igh and
demand for petroleum products brisk,
the majority of producers respectea
their quota agreements. Wlith the
coming of hard times and the dire
reed for cash, many producers vio
lated their quotas. This was a pro
gressive malady which quickly spread
throughout the entire industry. In
late 1931, production ran wild and
crude prices crumbled to the lowest
point on record. The industry tem
porarily stabilized in the fall of 1932,
but last spring production again got
out of hnd pushing the industry back
into chaos.
Production Control Necessary
The fundamental purpose of the Na
tional Recovery Act of last June was
to give the Federal government power
to control production, wages and
prices in certain industries. Oil was
a shining example of an Industry
which needed powerful centralized
regulation. After years of instabill
Relieves Headache
Due To Constipation
“Thedford’s Black-Draught has
been used in my family for years,”
writes Mrs. J. A. Hightower, of
Carthage, Texas. “I take it for sick
headache that comes from consti
pation. When I feel a headache
coming on, I take a dose of Black-
Draught. It acts and my head gets
easy. Before I knew of’ Black-
Draught, I would suffer two or
three days—but not any more since '
I have used Black-Draught.”
Thedford's BLACK-DRAUGHT
Purely Vegetable Laxative
“CHILDREN LIKE THE SYRUP”
I ' v&Xv
g^ L jrL * # J9 jj^
\jtim
---n hoist the l
99 Million Foot-Pounds
/4CLoJ Per Gallon
_ Remember that riddle of the ages, the
Sphinx in Egypt? Its estimated weight is
14,630 tens. Heavy as is, the Sphinx could
A 9 vT be lifted 3% foot by a single gallon of the
/fl ■ V MAY \\ powerful new Sinclair H-C —provided H‘C*s
H _ 9 jt energy could be fully utilized.
H H 1/ Here’s new power for your car - quicker
/ pick-up, knockless hill-climbing. Ask the
U Sinclair Dealer for a folder explaining the
\JC\ power in the new H-C and try H-C for 30
& - • d,,y ‘ y ° ur eor ’
B ■ | W>y Copyrighted 1934 by Sinclair Refining Company (Inc.)
Ihi W t S ? pparent the only wav
this .business could be nut
was under Federal Version Th"
ed dr r' u *
ed for an oil administrator to fix pro
duction quotas. Based on a caref^
dlit' it ‘ St ir- Adml ">s‘ra.-Yc*e U ‘
foi thJ V CrUde oil Production suoia
for the entire nation. This allowable
now stands at 2.366.200 barrets pel
day Production today i s very close
to this maximum.
in T tht r oii ar V h r e im P or tant factors
out Th f * ‘T today which stan *
the a ? d m ° St s, S n iflcant ls
the Ightenlng of production control m
Texas where the chief trouble has
previously existed. Several new taws
and recent court decisions have mads
he control in Texas fields stronger
today than ever before. Federal con
trol under the oil code, however, has
received several set-backs. The legal
ity of certain phases of the cooe
awaits a final decision before the
supreme Court. Because it is so es
sential to hold down production, i
feel that sooner or later some Fed
eral control method will be found
which the Supreme Court win up
hold.
Strike Would Boost “Gas” Prices
The second factor is the tnrear of
labor difficulties. This would be un
fortunate. Wells would have to me
capped over. Many of these would
have to go “on the pump” to start
producing again. This would increase
production costs. A strike in the in
dustry at present would, however,
solve the production problem once and
for all. For this reason I feel that a
strike would prove bullish on oil se
curities. From a comparative stand
point labor in the oil fields has al
ways been treated well. But .because
the consumer would eventually pay
the cost of the strike many times over,
I believe the government will do
everything in its power to prevent oil
labor troubles, and that any serious
strike at this time is unlikely.
The third big factor in the outlook
today is the possibility of refinery
control. Theoretically, if production
at the well could be strictly governed
there would be no need for refinery
control, owever, at the present time
there are about 600,000,000 barrels of
petroleum, or about 350,000,000 bar
rels of crude oil, In storage in this
country. Roughly, this supply is suf
ficient to meet consumption require
ments in the United States for six
months. So while production is being
cut down, oil companies are refining
crude taken out of storage. As a re
sult, gasoline stocks on hand have re
cently been at theh ighest level in
the history of the industry. Gasoline
tank wagon prices have .been tempor
arily weak, but they should soon re
cover if a refinery control law were
placed on the books.
Earnings Now Excellent
Meanwhile the price of crude oil ls
sensitively reflecting the better pro
duction situation. The average month
ly price per parrel is now around sl,
compared witfh a low of 42 cents in the
summer of 1963. Crude actually drop
ped to less than 10 cents per barrel
during the depression. Due to current
higher crudep rices oil companies*
profits in thel ast half of 1933 were
more than sufficient in most cases to
offset the big losses of the first half
of the year. Actually the situation
is so strong that the major companies
are active in bidding for prperties and
are conducting “wildcat” operations
in territories that have been idle for
years.
In fact, prices and earnings were so
satisfactory that an average of 2u
leading oil stocks in February of this
year sold 11 per cent above their 1933
peak while the industrial averages
broke their 1933 top by less than one
per cent. Several oil stocks have re
cently made all time highs while eight
have gone into new high ground ror
the recovery periodd uring the lasi
month. Not only are holders of oil
eternities benefiting from improved
security quotations but their income
has been substantially augmented. Os
25 leading companies, 14 have increas
ed, resumed or inaugurated dividends
in the> ast six months. This is the
best record of any major group or
companies.
Outlook
ence managements, as well as stock
traders, evidently believe that the oil
1 industry, is now definitely working
back into prosperity. The near-term
outlook for the leading oil stocks k*
especially attractive. It seems to me,
however that the oil companies as
well as the utilities railroads packing
companies dairy companies and com
munication companies will'eventually
be publicly owned. Accordingly I am
not hazarding a forecast at this time
on the very long-term outlook for on
securities.
Business as estimated by the Bab
sonchart though still 21 per cent m
low normal is now 25 per cent above
ay car ago.
NUMBER OF LOCAL
STUDENESAT WAKE
Summer School at Baptist
College Draws Many
From City, County
(Special to The Daily Dispatch)
Wake Forest, May 4.—A check up
of the alumni files at Wake Forest
College preliminary to the celebration
this month of her 100th birthday
shows that Vance county had 11 stu
dents enrolled in the last Wake Forest
Meredith summer school held at Wake
Forest.
These students are J. H. Bunn, Ji-.,
Henderson; R. W. Bunn, Henderson ,
Mrs. J. R. Carroll, Middleburg; Grace
Gooch, Dabney; William Massenburg,
Henderson; Lola Maynard, Henderson,
J, R. " Nixon, Henderson; Mary Eliza
beth Tunstall, Henderson; Mrs. F. B.
Woody, Henderson; and Ruby E. Mc-
Cann, Dabney.
The school will open this summer
on une 11, the six-week session end
ing July 20 and the nine-week session
August 10.
The college will continue its co-op
erative policy of allowing students
certain considerations in deferrmg
payment of part fees. There will he
no tuition charges to any group of
students this summer, the only cost
required by the college beieng an en
trance fee of $22.50 for nine-week stu
dents and sls for six-week students.
Courses of instruction will be offered
which lead to the Bachelor-s and
Master’s degrees and to all types of
North Carolina teachers’ certificates.
HENDERSON, (N. CJ DAILY DISPATCH, FRIDAY, MAY 4, 1934 1
TOBACCO PUNTING
NOT YETSTARTED
Hardly Time for Much, But
Ground Must Be Pre
pared for Setting
With the time at hand for trans
planting of tobacco from seedbeds to
the growing fields, very little of that
has been done as yet in Vance county.
Actually, no transplanting has been
done that has been reported here.
Lateness of the spring and continu
ed cool weather has been the cause
of the delay. There have been a few
spring days but no protracted warm
season that would permit or activity
on a major scale on farms.
Frequent heavy rains up to a week
or ten days ago furnished abundant
moisture, but ground that had been
plowed at intervals has since become
so hardened as to make it unsuited
for transplanting of tobacco in many
instances, and much plowing will yet
have to be done before the young
plants are set
The weather has been so cool that
fires in homes and business places
have continued to be necessary and
farmers have gotten behind in start
ing all of their crops.
Tobacco plant-beds have developed
to the point where there is every indi
cation of an abundance of plants be
ing available for the reduced acreage
that will ibe planted this year. Nearly
all growers have signed the reduction
contracts with the Federal govern
ment, and that means the acreage wfH
be around 30 per cent less in this
county than the general average for
the past three yeaers. So that there
will hardly be any scarcity of plans
for the year’s crop.
By hard work and a lot of it, grow
ers will probably be able to overcome
the effects of the late sprmg, provid
ed the weather from this time on is
favorable for work and for the growth
of the young plants, once they have
been set in the fields.
hnaiMriai
Sermon on That Day; Leßoy
Martin Finals Speaker
On Next Friday
Commencement exercises at Epsom
high school, a stone’s throw over the
county line in Franklin county, will
begin next Sunday afternoon with the
baccalaureate sermon at the school
auditorium at 3 o’clock by Rev. R. L.
Randolph, of Franklinton. The full
commencement program was an
nounced today by Prof. Julius A.
Woodward, principal.
On Tuesday evening at 8 o’clock a
music recital will be given.
The class day exercises and the re
citation and declamation contests will
be held next Thursday evening at 8
o’clock, also in the school auditorium,
where all of the exercises will be held.
The commencement address will be
delivered by Leßoy Martin, of Raleigh
secretary of the State School Commis
sion, at 11 o’clock Friday morning of
next week, May 11. The address will
be followed by the presentation of dip
lomas, medals, prizes and awards.
The commencement play, a comedy,
will be given Friday evening of next
week. It will be entitled, “Aaron
Slick from Punkin Crick.”
AROUND TOWN
. Court Still Idle. — Again today there
was no session of recorder’s court, no
cases being set for trial.
No Deeds or Marriages.— Yesterday
saw no marriage licenses issued and
no real estate deeds filedw ith the
register of deeds, the records showed
today.
No Appointment Yet.—No appoint
ment to the postmastership at Kitt
rell has been made as yet, nor has an
eligible list been certified from the
civil service examination recently held
here. Just when some action may be
expected is not known here.
Pay Is Delayed. Although the
school term is ending, teachers will
not get their pay checks just now. but
Will have to wait two or three weeks
until the State furnishes the money,
since some of it is being obtained from
the Federal government.
Truck Not Moved.—Although re
moval of one of the firetrucks from
the fire house to the eastern aide oi
the railroad, has been authored by
the City Council as a temporary mat
ter, the truck has not yet been movetr,
and Chief Shepherd thinks it will be
some weeks yet before it will be nec
essary to make the transfer because
of the advance of the paving crews on
Garnett street.
Committeemen In
Rural Schools To
Be Named Monday
One committeeman in each district
served by the five consolidated schools
of the county is to be named by the
Vance Board of Education at the
board's regular monthly meeting next
Monday, according to a decision
reached by th eboard at its last reg
ular meeting the first Monday in
April. Each school has a local com
mittee of three, and one is named
each year byb the county education
board. Other than that, it is expected
the Monday meeting of the board will
be largely of a routine nature.
MRS. S.T. ADAMS IS
CLAUD DY DEAIH
Funeral at Holiness Church
Saturday, With Burial at
Rock Bridge
Mrs. S. T. Adams, 74, died at 9
o’clock Thursday evening at the
home of her daughter, Mrs. Sam Par
rish, after being in failing health sev
eral years and being confined to her
bed for the past three months. Death
was caused by a complication of dis
eases.
Funeral services will be held from
the Holiness church at South Hender
son, of which she had been a mem
ber 20 years, tomorrow afternoon at
2:30 o’clock, with the pastor, Rev. E.
G. Parrott, in charge. Interment will
follow in Rock Bridge cemetery.
Surviving are the following Chil
dren. E. R. Adams, M. W. Adams,
Mrs. W. H. Johnson, Mrs. Lela Glenn,
'Mrs. Sam Parrish and Mrs. Ervin
Kelly, all of this city or county, and
one brother, Zeb Turner, of Wake
county, and two sistres, Mrs. Lula
Parrott, of Durham county, and Mrs.
®. M. Adams, of Wake county. Her
husband has been dead 18i years.
Mrs. Adams was a native of Wake
county, and was born in 1860.
Active pallbearers for the funeral
were announced as follows: Ed White
Ernest Hoyle, Charlie Catlett, I. G.
Hedgepeth, Walter Dloyd and John
Hicks.
In addition to her immediate chil
dren, 34 grandchildren and 17 great
grandchildren also survive.
Five Girls and Six Boys In
Speaking Competition
At Central School
Declamation and recitation contests
for boys and girls of the seventh
grade of Central school will be held
in the school auditorium tonight in
exercises that promise a program
quite different from that of former
years.
The speakings will be heard, the
judges will render their decision and
the- medals will be presented all at
tonight’s exercises. Hitherto the
medals have been presented at the
high school graduating exercises,
but not so this year.
“Grandfather’s Clock” and “Mid the
Hills of Carolina” will be sung by the
seventh grade pupils, after which the
readings bby the girls will be held. The
seventh grade girls will then sing
“last Night,” to be followed by the
declamations by the boys. The judges
will retire to make up their decision
and announcements will follow.
Mrs. S T. Peace will present the
Board of Education Medal to the win
ning Kiri, and Dr. L. W. Gerringger
pastor of the First Mlethodist Protes
tant church, will present the D. Y.
Cooper Medal to the boy who is de
clared the winner.
The, whole class will sing “Farewell
to Central.”
Marshals for the evening will be
'Jaiie Newell, chief, Dorothy Brinkley,
/Esther Mitchell, Elsie Fuller, Berl
Oser.
200,000 Acres In Burned
Territory in Two Counties
(Continued from Page One.)
have turned in the Stone Mountain
fire. Refugees from the latter section
said the fire "swept in suddenly: One
man, an invalid, barely escaped with
his life when friends carried him out
of the path of the fire.
Hundreds of volunteers fought to
check the firel ast night, but none of
the three major blazes was entirely
under control early today. More than
100 Elkin residents joined the forces
combatting the Stone Mountain con
flagration.
George P. Dowling
Dies Os Injuries
(Continued from Page One.)
wife and their daughter were patients
in Maria Parham hospital here follow
ing the wreck. News of his death
came today in a telegram received by
Mrs. C. H. Lewin, registered nurse
who attended them during their ill
ness here, and who made the trip
home with them and remained there
a week or more.
The wreck which occurred a mile
or two south of Kittrell, proved fatal
to Mrs. George Beaumeister and Mrs.
'George Breslin, sisters, of State Is
land, N. Y., one of whom lived only a
few hours and the other passing away
before, the next morning. They were
traveling southward in a coupe, which
caught fire and was destroyed on the
hgihway. The mayor and his family
were traveling northward.
Several weeks after the tragedy,
suit was brought by the husbands of
INSECT
POWDER
the two women against the mayor
and the Philadelphia department store
company of Strawbridge & Clothier,
for whom he worked. An aggregate
of SIOO,OOO is sought in the litigation
which has not yet been brought to
trial, but which is expected to be tried
in Wake Superior Court at Raleigh.
Mayor Dowling’s death is the third
to result from the collision, one of the
worst ever to occur on a highway
near this city.
U. S. Chamber Criticizes
Varied Aspects of Laws
Os This Administration
(Continued from Page one.)
committee that looked into anti-trust
and price aspects of the NRA. It was
expected to be unfavorable, outp übli
cation was withheld.
Senator Clark, Democrat, Missouri
was at the time proposing a Trade
Commission investigation into other
price ranges in the lumber code. His
resolution had to wait. On top was
more debeate on easing corporate
bankruptcy proceedings.
Simmering, too, was agitation for
mandatory silver price help.
And many eyes were on a luncheon
engagement between President Roose
velt and two of his original “brani
trust” advisors —Raymond Moley and
Charles W. Taussig.
New Theories
and New Plans
are being developed in half a
dozen countries ~ in the effort to
restore national prosperity.
There is still only one sure way,
however, to enduring PERSON
AL prosperity: to spend less thah
you earn and to put the balance
to work earning interest.
The Citizens Bank and Trust
Company is helping many hun
dreds of business men, farmers,
wage earners and others in this
section of the State to follow this
plan successfully.
Let us work with and for YOU. .
Citizens Bank & Trust
Company
HENDERSON, N. C.
Since the Year 1889
Let Us Tone-Up
and Tonic-Up
Your Car
for Spring
Maybe you’re been look- We’re
ing with longing eyes at Experts On
Some Os the new Cars but Motor Repairs
can’t see your way clear Paint . Jobs
to make the grade. Let
us prove to you that your . Repairs
old car isn’t down and Repairs'
out yet, even though it Batfery
may look that Way. Service
Tire
Get our estimate on re- 'servicT
pairs or overhauling. Fender Repairs
Parts and Accessories for
AH Makes of Cars
Motor Sales Co.
Henderson, N. C.
i
PAGE THREE
Three Minute Relief j
From Your Headache j
When you have one of those violent,
nerve-racking headaches, from inor
ganic causes, you can get soothing
relief in three minutes with “B. C.” a
reliable, pleasant-to-take remedy. “B.
C.” is prepared by a registered phar
macist, compounded on a different;
principle from most relief-giving
agencies in that it contains several
ingredients, so blended and propor
tioned as to accomplish in a few min
utes what we believe no one drug for
mula can do in so short a time. “*i.
C.” should also be used for the relief
of muscular aches and pains, com
mon colds and neuralgia; for reduc
ing fever and quieting a distressed
nervous system without opiates, nar
cotics or such habit-forming drugs.
Get “B. C.,” in 10c and 25c packages,
wherever drugs are sold.—(Adv.)
Louis P. Dunn Co.
Insurance Real Estate Loans.
Phones:
Office .. 289; Residence .. 716-W