The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-07-03
BLOCK OIL TRUSTS
LAND GRAB SCHEME
President and Secretary Hitch
cock Halt Attempt to De-
fraud Government.
GOVERNOR HIGGINS THE
SPOKESMAN OF PLOTTERs
New York's Executive Saw the
President in Interests of Trio
of Politicians.
journal Special Service.

journal Special Service.
Washington, July 3.-EXtraordinary
revelations, involving fraud and de-
ceitful practices and the use Of politi-
cal influence in connection with the eff
forts of the Standard Oil company to
obtain possession of immensely valu-
able oil and gas lands in Indian Terri
tory and Oklahoma, became public to-
day.
Secretary of the Interior Hitchcock
has been engaged for months in strug-
gle to prevent the oil and gas lands
owned by the Usage and Cherokee In
dians from passing at a rldiculously
low figure to the control of the great
oil octopus.
pal actors in the fight against the pol
icy the secretary has pursued are T. \.
Barnsdall of Pittshurg, Pa, a we'll
known gas and oil man; James n. Gut
fey, democratic leader in the state of
Pennsylvania, and a Mr.. Galy, proml-
nent democrat of Texas.
Governor Higgins Their Envoy.
Mr.. Barnsdall succeeded in inducing
Governor Higgins of New York to com
plain to the president about the attl-
tude of Secretary Hitchcock. Governor
Higgins claims to have 70 personal in
Oklahoma or Indian Territory, but new
ertheless, as he himself stated, is 'in-
terested in the largest development of
the national resources OF our country"
He came to Washington early in
May to see the president, ostensiblv in
connection with the reorganization of
the republican party in New York. but
it now appears he came to say that Sec
retary Hitchcock, in his treatment of
the oil and gas situation in Indian Ter.
ritory and Oklahoma, was governed
more by prejudice against individuals
than practical, knowledge Of the sub
ject in hand. -
Following his letter the governor
wrote to the president in which he re-
ferred to Mr.. Barnsdall's projects, say
ing he had been one of the principal
developers Of the oil and gas sections
of the southwest and that he had or
ganized the Kansas National Gas com
pany which is now supplying $50, 900
people with gas at prices ranging from
25 to 80 cents a thousand feet, and this
in places where artificial gas formerly
was sold at from 81 to $1.25 thousand
feet. The average rental for gas wells
paid to landowners is about 1926 a
year, which is $25 more than is paid
by the Union National Gas company in
Ohio, West Virginia and Pennsylva.
MIA.
Mr.. Barnsdall desired to build line
to St. Louis, Mo-, to supply at least
1000 consumers there Governor
Higgins said the gas pipelines coulc
not be financed for a city as large az
St. Louis unless the company absolute
ly owned or controlled from 100000 te
100000 acres of gas rights. Secretary
Hitchcock had asked that 21b per CEN
dams and that a meter be put on every
we'll: Governor Higgins thought thes.
conditions impracticable.
Standard Oil Plot.
Secretary Hitchcock, in letter t.
the president, replying to that of tn
New York executive, said the govern
or's "political friend Nh. Barnsdall ,
had wilfully forfeited by his deliberat
and gas contracts the consideration t.
which he would otherwise be entitled
Secretary Hitchcock called attention
to the fact that the Illuminating Oh
company, large proportion if not
majority of whose stock is controlled b.
it was further stated Mr.. Barnsdall ha
exceedingly close relations, had az
quired contract for mining and flo
the production Of petroleum and nat
ural gas covering the entire territor
known as the Usage nation in Okla
homa, and amounting to 10000
acres.
The original contract had bee
granted in 1896 by the secretary Of tn
interior of the Cleveland administrs
ton. Strenuous efforts were made g
the close of the fifty eighth congres
to have the lease extended for tie
years, but the department resisted wit
the result that the arrangement we
reduced to 100000 acres
Under tho original lease Barnsdal
Guffey and Galy obtained large acr
Sc. age, which subsequently they endea7
ored to increase.
Secretary Hitchcock, who early too
deep personal interest in the oil an
gas situation upon the Indian lands, d
rected thai leases be granted only II
der the following specific conditions:,
That the acreage leased to any OF
person or corporation should not excet
4,SO0 acres, the purpose Of this restri
ton being directly to prevent conbin
lions looking toward monopolles.
- That each lease should be support.
by a cash deposit of not less than S;
900 as guarantee that the less
would operate the leases in good fai
and not hold them for speculation.
That at least one well should be
veloped on each lease within twel
months, with the further object of Oh
venting speculation and the tying I
Of lessers' property. m
..... No More Big Leases.
It was further stipulated and print
in large type at the beginning of ca
lease that the lease was transferat
only with the consent of the secreta
of the interior, and the lesser was
CURED to file an affidavit swearing tn
he was not directly or Indirectly
terested in any oil and gas lease with
the Creek and Cherokee territories, t
lands embraced in which, with the ira
covered by lease Herewith presentt
would make more than 4,S00 acres.
The result Of the secretary g attitu,
which has received the cordial approx
of the president, is that no person
corporation hereafter can have any
terest, direct or indirect, in any oil a
gas lease of more than 4,S00 acres.
pipe line company may buy up the
after it leaves the wells and the depa
ment will have nothing to say, but
secretary is determined that every lie;
shall be bona fde, and that the oil a
gas lands of this immensely valua
81 rauion oil not bp Centralized hy