View source for Connally Hot Oil Act of 1935

{{Short description|Law to regulate oil production and transportation to stabilize prices}}
{{Use mdy dates|date=February 2014}}
The '''Connally Hot Oil Act of 1935''' was enacted in the wake of the [[Supreme Court of the United States|Supreme Court]]'s decision to strike down Section 9 (c) of the [[National Industrial Recovery Act]] (NIRA) in ''[[Panama Refining Co. v. Ryan]]''. The act gave the president authority "to prohibit the transportation in interstate and foreign commerce of petroleum&nbsp;... produced or withdrawn from storage in excess of the amount permitted&nbsp;... by any State law."<ref name=kjmn>{{cite web|url=http://www.ourdocuments.gov/doc.php?flash=true&doc=66&page=transcript |title=Our Documents - Transcript of National Industrial Recovery Act (1933) |publisher=Our Documents |access-date=February 13, 2014}}</ref> The act was named after Senator [[Tom Connally]].
It revived the provisions of Section 9 (c) of the NIRA and added procedural safeguards, which, the Supreme Court argued, were constitutional.<ref name=pokm>{{cite web|url=http://supreme.justia.com/us/293/388/case.html |title=Panama Refining Co. v. Ryan - 293 U.S. 388 (1935) :: Justia US Supreme Court Center |publisher=[[Justia]] |access-date=February 13, 2014}}</ref>  Ostensibly enacted to protect the industry from "contraband oil", it was mainly a way of [[cartel]]izing the industry to stabilize falling prices. The new law reestablished the NIRA's original provision that violators would receive a maximum jail sentence of six months<ref name=kjmn /><ref name=oijm>{{cite web|url=http://www.tshaonline.org/handbook/online/articles/mlc03 |title=Connally Hot Oil Act of 1935 |work=The Handbook of Texas Online  |publisher=Texas State Historical Association|access-date=February 13, 2014}}</ref> but also increased the maximum fine penalty from $1,000-which was enacted in the NIRA-<ref name=kjmn /> to $2,000.<ref name=oijm />
Though the legislation was intended to expire on June 16, 1937, it was maintained afterwards as a permanent law.<ref name=oijm /> There was some debate as to the law's effects on the transport of other fuels such as coal and timber, and many independent oil producers vehemently opposed the government regulations.<ref name=oijm />
In 1937, four federal courts upheld the Connally Act, which was later administered by the Federal Petroleum Board, also created by the law, within the [[Department of the Interior]].<ref name=oijm /><ref>{{cite web |url=http://federal-circuits.vlex.com/vid/kilgore-nat-bank-federal-petroleum-board-36646143#fn3 |title=Kilgore Nat. Bank Et Al. v. Federal Petroleum Board., 209 F.2d 557 (5th Cir. 1954) - Federal Circuits - Docket Number: 14679 - March 28, 2008 - January 15, 1954 - vLex |publisher=vLex  |access-date=February 13, 2014 |archive-url=https://web.archive.org/web/20131204204917/http://federal-circuits.vlex.com/vid/kilgore-nat-bank-federal-petroleum-board-36646143#fn3 |archive-date=December 4, 2013 |url-status=dead }}</ref>
==See also==
*[[New Deal]]
*[[Corporatism]]
==References==
<references />
{{refbegin}}
* {{cite book
| last = Armentano
| first = Dominick T.
| title = Antitrust and Monopoly: Anatomy of a Policy Failure
| publisher = The Independent Institute
| year = 1990
| location = Oakland
| isbn = 0-945999-62-3
}}{{page needed|date=February 2014}}
{{refend}}
==External links==
* [http://www.tshaonline.org/handbook/online/articles/mlc03 "Connally Hot Oil Act of 1935"]. ''[[Handbook of Texas]]''.
* [https://web.archive.org/web/20100826065328/http://www.time.com/time/magazine/article/0,9171,848031,00.html "Business: Again, Hot Oil"]. ''[[Time (magazine)|Time]]''. April 4, 1938.
[[Category:1935 in American law]]
[[Category:Acts of the 74th United States Congress]]
[[Category:United States federal commerce legislation]]
[[Category:National Recovery Administration]]
[[Category:New Deal legislation]]
[[Category:United States federal legislation articles without infoboxes]]
[[Category:History of the petroleum industry in the United States]]
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