Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-12-06

workable and practical its use should
be provided for specifically by statute.
The question as to how great an
area ought to be included in lease to
one individual or corporation is not
free from difficulty. but in view OF the
fact that the government retains con-
troll as owner l think there might be
some liberality in the amount leased
and that $500 acres would not be too
great maximum. The leases should
only be granted after advertisement
and public competition
By the opportunity to readjust the
terms upon which the coal shall be
held by the tenant either at the end of
each lease or at periods during fhe
term the government may secure the
beneht Of sharing in the increased
price of coal and the additional profit
made by the tenant. BY imposing con-
ditions In respect 80 the character of
work to be done in the mines the gov
eminent may control the character Of
the development of the mines and the
treatment of employees with reference
to safety, By denying the right to
transfer the lease except by the writ
ten permission of the governmental au-
thorities 1t may withhold the needed
consent when it is proposed to transfer
the leasehold to persons interested in
establishing a monopoly of coal pro-
duction in any state or neighborhocd.
AS one-third of all the coal supply is
held by the government, it seems wise
that it should retain such control over
the mining and the sale as the relation
of lessor to lessee furnishes.
The secretary of the interior thinks
there are difficulties in the way of leas
ing public coal lands. which objec-
lions he has set forth in his report,
the force of which l freely concede. I
entirely approved his stating at length
in his report the objections in order
that the whole subject may be present
ed to congress, but after Il full consid
Grafton. for the reasons 1 have given
above, I favor a leasing system and
recommend it.
Oil and Gas Lands.
= In the last administration there were
withdrawn from agricultural entry
$500. 900 acres of supposed oil land in
California; 1,451.52O acres in Louisi-
ana, of which only $500 acres were
known TO be vacant unapprOpriated
land; 74,4S9 acres in Oregon. making
a total of 4.346369 acres. In Septem-
Der, 1909, l directed that all public
oil lands, whether then withdrawn or
not should be withheld from DISPOSE
ton pending congressional action. for
the reason that the existing placer
mining law, although made applicable
to deposits of this character. is not
suitable to such lands. and for the fur
Their reason that it seemed desirable to
reserve certain fuel oil deposits for
the use of the American navy.
Accordingly the form of all existing
Withdrawals was changed, and new
Withdrawals aggregating 2I5OOQO
acres We're made in Arizona. Califor-
mia. Colorado. New Mexico. Utah and
Wyoming. Field examinations during
the year showed that of the original
Withdrawals 2.19O.424 acres were not
valuable for oil, and they We're re-
stored for agricultural entry. Mean
time other Withdrawals of public oil
lands in these states were made. so
that Nov. 10, 1910. the outstanding
Withdrawals then amounted to 1854
600 acres.
The needed oil and gas law is es-
sentially a leasing law. IN their nat
ural occurrence oil and gas cannot be
measured in terms of acres. like coal,
and il follows that exclusive title to
these products can normally be Sc
cured only after they reach the sur
face. Oil should be disposed of as a
commodity In terms of barrels OF
transportable product rather than in
nP &c Of
the reason for the practically uni
versal adoption of the leasing system
wherever oil land is in private owner
ship. The government thus would not
be entering on an experiment. but
simply putting into effect a plan sue
cessfully operated in private contracts.
Why should not the government as a
landowner deal directly with the oil
producer rather than through the in
terventiOn of middleman to whom
the government gives title to the land?
The principal underlying feature of
such legislation should be the exercise
of beneficial control rather than the
collection of revenue. AS not only the
largest owner of oil lands, but as a
prospective large consumer of oil by
reason of the increasing use of fuel oil
by the navy. the federal government
Is directly concerned both in encourag-
ing rational development and at the
same time insuring the longest posi-
BILE life to the oil supply.
The royalty rates fixed by the gov
eminent should neither exceed nor fall
below the current rates. But much
more important than revenue IS the
enforcement of regulations to conserve |
the public interest so that the COW
enants of the Iessees shall specifically |
safeguard oil fields against the penal |
ties from careless drillings and of pro- |
duction in excess Of transportation IA |
cllitfes or of market requirements.
One Of the difficulties presented, espe- |
c1aIy in the California fields. is that |
the Southern Pacific railroad owns ey-