Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939 Page: 15 of 263

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tion, the proposed plan, or plans, for regulation of the liquor traffic in
the event the amendment is adopted. I am sure our citizenship on both
sides, those who favor and those who oppose repeal or modification, will
agree that it would enable the people more intelligently and seriously to
cast their votes if they could know in just what manner it is proposed to
deal with this troublesome question.
I suggest, therefore, that proper committees of each House begin an
immediate study not only of the repeal resolutions introduced, but of the
systems of control in other states such as the state monopoly system.
I recommend further that these committees make a study of revenues
that might be reasonably expected therefrom and the problems of collection
with a view of recommending an enabling statute in the event of
adoption of the amendment by the people.
Much confusion has prevailed in a number of states which repealed or
altered their state liquor laws without making adequate provision in advance
for the regulation or proper taxation of the business in the event
of repeal or modification. I believe this Legislature can perform a signal
and a pioneering service in this respect if they will carefully study and
plan for eventualities such as pointed out above, as well as for real protection
of the integrity, in every respect, of dry communities in the event
present constitutional provisions should he repealed or modified.
Oil and Gas Conservation
The oil industry in recent years has grown to vast proportions. Today
it is one of the major ranking industries in the State, employing thousands
of people and contributing substantially to the economic welfare of the
State. It has been the source of much political controversy due to the
unfair practice of both majority and minority groups. Its regulation in
the interest of conservation has been the constant concern of the State
government for the past four years.
Much of the trouble of the oil industry and the official life charged
with its regulation has been due to misunderstandings, misinformation,
and ill-considered criticism by those either unfamiliar or unconcerned with
the magnitude or proper solution of its problem or the practical difficulties
confronting our public officials in this new and unexplored field of regulation.
In the past not a little of our difficulties has been due to the fact
that laws dealing with the production of oil and gas, as well as the
rules and regulations of the conservation commission passed thereunder,
have been enacted under high pressure at a time when, figuratively speaking,
the "house was on fire." Practically all amendments to our laws
dealing with the oil and gas industry have been hurriedly passed, often
while legislative investigations of officers against whom reckless charges
had been made were being carried on, and at a time when feeling was
high. As a result of these conditions and failure to keep in mind the
proper objective, we had too little of cooperative effort between the
several departments of government dealing with these problems. The industry,
and the State as well, has suffered accordingly.
I am sure the citizenship of Texas and all its public officials want to
see the oil industry prosper, want to see it continue as an industry in
which the profit motive and opportunity may still exist, but want it ad