The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-07-28
FIGHT OVER OIL LANDS.
Syndicate Trying TO Dust the Union
PACIFIC Railroad.

washington Special TO \. Y JribuEe.)
Washington. July 25.-The interior
department just now is graphing with
one OF the hardest questions VITA
which it has had 10 deal in a long
time. There are Involved in the con-
troversy possibly many millions of
dollars worth of mineral lands. which
are included in the original land grant
of the Union Pacific railroad, and are
principally in Wyoming. Under the
plain provisions of the act Of congress,
which aided by grants of public lands
the construction of the tTanscontinen-
tai railroads, all lands which contained
valuable minerals were TO escheat to
the government for entry under the
mineral laws. Along considerable
portion of the Union Pacific in WyO-
ming settlers say they have discovered
rich reservoirs of petroleum that are
as valuable as the oil fields now being
developed in the region around Beau
mont, Tex. These discoveries natural
~ have led to the organization of
powerful syndicates for prospecting
and developing the oil fields. and the
Union Pacific railroad is claiming prior
rights TO the property. The syndicates
have appealed to the interior depart
ment TO enforce the mining laws
against the railroad company, and Gust
that corporation from possession of the
land. One of these syndicates is oper-
ating under the name of the American
Consolidated Oil company, and appar-
emily is taking the lead in the Eight
against the railroad for the potential
wealth involved
In the absence of Secretary Hitch
cock on his summer vacation the sub
ordinate officials of the interior depart
ment are unwilling TO discuss the case
in detail. which gives TO the subject
an interest which perhaps ii would not
otherwise possess. and envelopes it in
considerable mystery. All that is
youchsafed on the subject at the de-
partment is that one of the most 'ex-
perieneed special agents of the de-
partent, ]. w. Zevely, is now in
Wyoming carefully Investigating the
counter claims of the railroad COM
pany and the syndicates as TO the ex-
istence of oil lakes and the rights of
| the railroad corporation in the prem
| Uses. Until Mr.. Zevelys report is for
warded to Washington and approved
! BY the interior department nothing
concerning his conclusions will ba
given out. Assistant Secretary Ryan,
however. said today that ii was prob
able that If Mr.. ZeVely reported
against the Union Pacific the lands in
dispute would have TO be surrendered
| by the railroad company and then
would fall under the mineral land laws.
AT the same time, it is realized that
the Union Pacific, which, with its al
lied interests, is one of the most power
| full corporations in the country VIII
not easily surrender its claims. so il
| is likely that the controversy Will
find it's way into the highest fed
eral courts for settlement.
Pending a settlement of the dispute,
| OF course. neither party TO the con-
| troversy will be allowed to nsecze any
use of the property. which means that
the big oil syndica.e viii not be able
! to proceed with their work of develop
ment and exploitation until the Unit
ed States supreme court has finally
passed on the question of title