The Washington times., 1905-02-25
PREPARING BRIEF
Upon OIL LEASE
Interior Department to Send
Report to Congress.
HISTORY OF PROCEEDINGS
Facts in Case Show That Government
Reversed Itself Upon Main
Questions Involved
HISTORY OF PROCEEDINGS

Questions Involved.
The Interier Department is preparing
for the Information of Congress brief
OF all the proceedings by the depart
nient concerning the Foster lease of oil
lands in the Usage Indian reservation
Most of this inferma ton was already
at hand. and lad been subject to ex-
animation by persons Interested in the
lease. The statement to be sent to the
Capitol is expected to follow this out
lire:
Negotiations had been pending for
some time in the matter Of issuing the
first oil lease on the Usage reservation
to Edwin r. Foster, when, in March,
1926, the Commissioner of Indian At
fairs sent 8 long letter to Holze Smith,
then Secretary of the Interior. explain
ing in detail the propositions made by
Mr. Foster, and reviewing all points in
the case from the standpoint of the Of
fee of Indian affairs.
The letter had passed through the
n5 Office. and accompanying it came
OF the Foster lease and bond
ed In the sum of sfe0oo by Edwin
ter. The lease was returned TO
as dsice of the Commissioner OF Indian
on account of protests received
srtain osages.
an Inspector and an officer of the
United States army, both OF whom were
on the ground, were asked TO make caro-
ful Investigations in the matter.
Word was received some time after
ward that a majority of the Usage tribe
had held several councils and were In
favor of the lease Consequently. in
April Of the same year, the Cornmis-
sioner of Indian Affairs returned the
lease and accom- panying papers with the
recommendation of immediate approval
of the Foster lease. The lease was APP
proved the same day with the signature
OF John NJ. Reynolds, acting secretary.
Indians File Protest.
Henry ". Blair. attorney for people
of the Usage country. wrote a letter re-
questing Secretary Hoke Smith TO re-
open the matter of the oil lease and hold
it up until there could be a Congress
sienal investigation,
Mr.. Blair's letter was referred 10 the
Commissioner of Indian Affairs for re-
port with the result that the Govern
ment officials on the reservation Were
again requested 70 look into the matter
In August Colonel Freeman submitted
his reply, which was TO the effect that
the lessees We're apparently going ahead
in good faith and that local agitators
were responsible for all the trouble
After going through the office OF the
Secretary of the Interior the papers
were sent TO the Indian Office and moth
ing further on the subject came up dur
: ing the Cleveland administration.
More than year later all the papers
were again sent through the office of the
Secretary of the Interior and submitted
tosthe Assistant Attorney General of the
department for opinion as t. the author
ity of the Secretary to reconsider and
revoke the approval Of the contract.
No Power to AnnuI.
First Assistant Attorney F. L. Camp
bell, now Assistant Attorney General for
the Interior Department, wrote long
and careful opinion, reviewing the whole
case. and stating that all facts were be-
fore the department at the time the
lease was made; that there were no ell
legations Of fraud that would Justify the
annulling of the contract, and conclud-
ing with the opinion that the Secretary
did not have the power to do So
Another agitation OF the oil lands trou-
bic came short time later. when IN
spectcr Nesler wrote report asking
that Foster be required to show cause
why the lease should not be vacated
because Foster had not reported the dis
covery of oil and gas within the required
time of eighteen months. Foster re-
piled that he had reported the discovery
months ending December 81. 1897. Colonel
Freeman supplemented this with stat
fnent that Foster had paid some royalty
TO the Indians and the lease was not
Cancelled.
Lease Is Hereby Cancelled
In June OF 1898 u letter was prepared
in the Indian Office for the signature
OF the Secretary, reviewing the entire
history of the lease and recommending
that 1t be Cancelled. Secretary Bliss did
not sign the letter at the time but re-
ferred 1t to the Assistant Attorney Gen
eral Tor the department. The opinion
OF the latter was to the effect that the
lease might be Cancelled en- the ground
that the required work had not been
dene within the time set. but that the
contract was between Foster and the
Usage Indians, and that the latter
should take the initiative.
Some time between then and Novem-
Der II. 1882. the Usage council took ac~
ton recommending that the lease be
declared forfeited. and on the date men,
TONED the lease was Cancelled the fol-
lowing Endorsement being written across
the back:
The within lease is hereby Cancelled
vacated, and held for naught
THoS. RYAN, Acting Secretary"
Department Reverses Itself.
Assistant Attorney General Willis
yandeventer prepared another opinion
on the same matter in the succeeding
tiiDHltis the Opif4tOlit DttIlS Dy sec
retary Bliss. stating that il had been
shown satisfactorily that the Secre-
tary's action of November II was held
UP on The erroneous assumption that
Mr. Foster had received the citation of
October 4, 1898. and had failed TO re-
spond thereto. but that 1t had since been
shown tnat the letter of citation to Mr.
Foster was returned by the postonice
authorities undeliVered
The opinion concluded with the state
nnent that the action Of November II.
having been taken under a misapprehen-
sion. is now recalled, vacated and set
aside" The opinion also directed that q
full investigation be made 10 see wheth-
er the Foster company was in default
IN any particular.
Nothing further appears until May
when-apparentiy after an investigation
extending from December till May-the
Commissioner Of Indian Affairs wrote to
the Secretary of the Interior recon-
nnending that Mr.. Foster and the Phenix
Oil Company be permitted to continue
IN business. and corresponding action
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