Omaha daily bee., 1908-10-10
FACTS OF OSAGE OIL LEASES
Official Statement Of History Of
Matter in Controversy.
FIRST CONTRACT BY DEMOCRATS
Congress, By statute, Ordered Part OF
it Renewed and President ROOse-
Welt Increased Royalty Twen-
ty-Five Per Cent.

WASHINGTON. oct. 9.-Another chap
ter IN the controversy over the charges
regarding the action of the government
in the matter Of oil land leases in the
Indian Territdfy. TO which correspondence
President Roosevelt. Governor Haskell Of
Oklahoma. Secretary Garfield and others
have contributed a formal statement. was
furnishe ed today when Acting Secretary
of the Interior Pierce issued a supple
mentary statement In regard to the Usage
oil land leases.
In this Mr.. Pierce says that as there
has been considerable discussion concern
ing the leases Of these Usage lands,
coupled with charges that the present adj
ministration failed to safeguard the in
terests Of the Indians and in fact sacrl-
ficed their interests. he thought It we'll
to set forth I'm skeleton form the exact
truth about this matter"
The statement adds:
Text Of Statement.
In 1896, during a democratic admlnistra-
ton. the entire Usage reservation, 1,4f0.0O
acres Of land. was leased for oil purposes
70 a certain F. b. Foster for ten years
from March Is, 1896, the rate of royalty
being fixed at 10 per cent. on. March g.,
1906. a year before the Foster lease would
terminate, congress provided definitely by
statute (3 Stat. 1917 for a renewal of this
lease as to $4,000 acres Of land, with the
provis1 that the president of the. United
States shall determine the amount OF
rovslfy to be paid for OH. said determina-
ton shall be evidenced by filing with. the
secretary Of the interior. on or before De-
cember 81, 1905, such determination.
II should be noted that congress left the
president and the secretary absolutely no
power or duty with regard to the lease ex-
cept that when the lease was presented ito
determine the royalty to be paid for oil. "
Congress determined the fact that there
wa sto be a lease and also determined the
area of the lease and the term for which
It was to run. At that time 1t was not
known that the leasee was allied to the
Standard Oil company and the department
has reason TO believe that there is now
such alliance, but has no certain knowledge
as 20 this matter, which, so far as the de-
partment is concerned, is wholly immaterisl
as in any event the secretary of the in
terior would treat all oil companies exactly
alike as long as they obeyed the laws.
Moreover in this especial case the depart,
ment had power to do nothing except
recommend TO the president the rate of
royalty.
Royalty f. Increased.
The commissioners of Indian affairs In
Vestigated the question of what would be a
reasonable and adequate royalty for oil and
recommended to the secretary an increase
from 10 TO l214 per cent. The secretary APP
proved this report and forwarded It to the
presid mt June 3. 1908. The president on the
same date approved the re concentration OF
the secretary and thus fixed the roy atty Of
l2h per cent instead of 10 per cent.
It Is to be noted that this was an increase
Of % per cent in royalty in force before
that time, also that at that time and until
May !, 1905. the rate allowed for leases
In the FIVE Civilized Tribes was 10 per
cent, having been Increased last spring to
12h per cent by Secretary Garfield IN con-
formity with the presidents previous action
the Oh fields Of Texas? Kansas and the
east the rate of 10 per cent is the usual
one, and rates above I'm per cent are sell
dom obtained even by land owners OF bust
ness acumen.