The San Francisco call., 1910-05-04

government to use the lands for any
such purpose, I do not think the de-
partment of the interior had the power
to so withdraw the lands in question as
to inhibit mining operations to await
the problematical action of congress,
repeating or remodeling the existing
| mining laws.
"The passing of the Legislation above
referred to will probably validate the
Withdrawals as of their respective
dates. At least this is the effect which
the governments advisers claim should
! be given to the retroactive features of
the bill.
MUCH DEVELOPMENT WORK
1T is well known that many mining
/ locations were made in the oil belt
prior to the withdrawal and without
discovery. Discovery has since been
made on some. On others active work
was in progress. and vast amount of
money was spent prior to the with
drawal. Other locations were made
after withdrawal, and subsequently dis
covery has been made. In others work
is still in progress.
"A few words may be said in behalf
of some of the California delegation
with regard to their attempts to amend
whole, designed to give some relief to
the prospector and miner.
Mr.. Englebright of California en-
deavored to amend the measure so as
to permit prospecting and locating
of metalliferous mines within the with
drawn areas. The amendment was de-
feated.
Representative Smith of California
sought to amend the bill so as to bring
within the saving clause rights of
claimants who had made valuable i'm
provements after the Withdrawal. The
amendment of the representative from
California was rejected
Il wish to call attention to one eco
nomic fact in this state which stares us
in the face, and which ought to be Sc
riously and promptly considered by the
United States senate in its Forthcoming
considera tion of the withdrawal bill
1T is well known that the oil deposits
occur in horizons of some considerable
area; that in pumping from one we'll
you are practically drawing upon a
source common to the entire horizon.
The multiplicity of wells in the produc-
ton of oil decreases the common supply.
1t is for this reason, and to prevent ad-
jacent oil operators from getting more
than their share, that in every lease in
the OIL regions it is incumbent upon a
tenant to vigorously prosecute the work
and produce the maximum quantity of
oil, so as to get the full share coming
to the proprietor of the leased land.
Suspension of work on one location
gives to the adjacent operating propri-
etors that much advantage as against
the common source of supply.
SITUATION IN CALIFORNIA
considering these we'll recognized
facts, let us look at the situation in Cal
ifornia and the effect of the present
withdrawal act upon the general oil in
dustry.
There are now under temporary
Withdrawal. validated by this act, in
California 2,400,453 acres of land sup
posititiously oil producing, in an active
ly worked oil region. In this region, in
checker board fashion, there are today
in private ownership 20 per cent of oil
producing lands. operated, owned and
controlled directly or through subsi-
dary companies. by the Southern Pacific
and the Standard oil company.
1T would seem apparent, consider
ing this economic fact which | am
quite sure is substantially correct, the
conservation theories applied to the
serve the oil for the use. not of the ul-
! innate consumer not of the general
public, but of the Standard oil, South
ern Pacific and allied interests. This is
a conservation which does not con-
serve according to the ideals of the
sponsors for the measure.
IF these government lands adjacent
to the actively worked oil lands and in
the same oil horizons, owned by these
corporations and their subsidiaries are
to be maintained in a state of with
drawal until the government at it's
leisure Classics the lands and con-
gress at it's leisure makes provision for
70 ;nf
at present In control of oil production
in this statt may operate without re-
straint and draw from the great COM
mon RESERVOIR from their own and
governmeht lands to the fullest extent
that mech nical power will permit
I'VE nj, y admit that If the theory of
conserv; tion as. advocated by its spon-
sors WI lid accomplish what they hope
for tho might be some reason in our
Suppol tfng their theory. But when IT
becon IS obvious that any measure for
whic, the avowed purpose is the pro-
tectjsn of the ultimate consumer and
the prevention of monopoly operates in
a Atametrically opposite direction and
fe as. nourishes and encourages the
w rst kind of monopoly, that some
fIception f should be made from the
| General sweeping withdrawal provi-
<ions, so as to prevent such a vicious
result.
Il certainty SUBMIT tnat, consider
ing the situation ia the oil regions an
exception should be made from the
withdrawal act as to oil lands, so that
they may be entered upon, prospected
and worked.
IF this course is not pursued by the
time the government formulates its
policies, if they are to be crystallized
along present lines and become oper-
ative, there will be no oil to be gained
or to be won from these Reserved