New-York tribune., 1902-07-24
FIGHT OVER OIL LANDS.
SYNDICATES TRYING TO GUST THE
UNION PACIFIC RAILROAD.
MANY MILLIONS INVOLVED IN THE CONTRO-
VERsY-THE INTERIOR DEPARTMENT
ASKED TO ENFORCE THE
MINING LAWS.
[BY TELEGRAPH TO TIE rR1rrxE. ]


Washington. July 23.-The Interior Depart
ment just now is graphing with one of the hard
est questions with which it has had TO deal in
long time. There are involved in the contro-
versy possibly many millions of dollars worth
OF mineral lands which 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 construc-
tion Of the transcontinental railroads. all lands
which contained valuable minerals were to
escheat to the government for entry under the
mining laws. Along a considerable portion Of
the Union Pacific in Wyoming settlers say they
have discovered rich reservoirs of petroleum
that are as valuable the oil fields now being
developed in the region around Beaumont. Tex.
These discoveries naturally have led to the
ganizaton of powerful syndicates for prospect
ing and developing the oil fields and the Union
Pacific Railroad is claiming prior rights to the
property. The syndicates have appealed TO the
Interior Department to enforce the mining laws
against the railroad company. and oust that
corporation from possession of the land One
of these syndicates is operating under the name
of the American Consolidated OIL Company,
and apparently is taking the lead in the fight
against the railroad for the potential wealth in
volved.
In the absence of Secretary Hitchcock his
summer vacation the subordinate officials of
the Interior Department are unwilling to dis
cuss the case in detail. which gives to the sub
ject an interest which perhaps. it would not
otherwise possess, and envelops it in consider
able mystery All that is Vouchsafed on the
subject at the department is that one of the
most experienced special agents of the depart
ment, j. w. Zevely, is now in Wyoming care
fully investigating the counter claims Of the
railroad company and the syndcates TO the
existence of oil lakes and the rights of the rail-
road corporation in the premises Until Mr..
Zevely's report is forwarded to Washington and
approved by the Interior Department nothing
concerning his conclusions will be given out.
Assistant Secretary Ryan, however, said to-
day that ii probable that If Mr.. ZeVely
ported 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. il is
realized that the Union Pacific, which. with its
allied interests is one of the most powerful
corporations in the country, will not easily
render its claims, il is likely that the contro-
versy will soon find it's way into the highest
federal courts for settlement.
Pending a settlement Of the dispute, of course
neither party to the controversy will be al
lowed TO make any use Of the property, which
means that the big oil syndicates will not be
able to proceed with their work Of development
and exploitation until the United States Su-
preme Court has finally passed the question
OF title.