Los Angeles herald., 1910-11-23
GOVERNMENT OPPOSES
S. P. IN OIL DISPUTE
Assistant Attorneys General Will
Argue Case Against Railroad
at Request of WiCkerSham

That the government is acting in
god faith in the peoples claim that
the Southern Pacific has no right TO
the oil contained in it's grants in Cali
fornia became more probable yester-
day upon the arrival from Washlng-
ton of B. ID. Townsend and w. N
Mills, special assistant United states
attorneys, who will assist I. 5. Minet
of San Francisco in arguing against
the railroad in the case of George d.
Roberts and others versus the South
ern Pacific company of Kentucky.
In this case 1t is alleged the rail-
road has no right to the oil in its
grants. The case will be heard before
Judge Ross in the federal court next
Monday. In a telegram received sew
eral days ago from Mr.. ToWnsand Mr.
Minot was infor. ed that the case was
highly satisfactory to the government.
This. with the coming here OF Mr.
Townsand, would imply that the gov
ernment wished to make of the matter
a test case and see Just how far the
Southern Pacific can go in its de-
fense. a defense said to be based upon
a few technical points at law.
At the Angelus hotel last evening"
Mr.. Mills gave out the following state
ment: -
s'I have been directed by the attor-
new general to attend the hearing Oh
the case of George d. Roberts VS.. the
Southern Pacific company Whlcn is
to be presented in the United States
courts here on demurrer, for the pur-
pose of determining the nature OF the
status of that suit.
''I am here because the department
of Justice has for some time peeh
making Investigations in regard TO
the Southern Pacific land grants IN
California, with the purpose of ascer-
FaN4b
over those grants should pc asserteo
by the department.
During the course of this lnvestl-
cation the attention of the attorney
general was called to the Roberts
case. It appears to the department
that, If this suit If well founded, the
government, on similar grounds, mas
interests in the grants, ana these, II
any exist, will be protected by proper
judicial proceedings. L am, however,
not prepared to state whether such
proceedings will be taken l am SIM
ply to gather all possible information
from the case as tried and to pre-
sent it in Washington as incidental
information to the investigation spoke
of.
"I will say this much, however. II
the government has any rights in the
land grants, prompt and appropriate
action will be taken by the department
which / represent"
1t is claimed the Southern Pacific has
committed itself in writing in effect
that 1t has no title to the oil content
of the grants; that its deeds, patents
and contracts have specifically stated
the reservation made by government
to the oil and all other mineral con-
tent, except coal and iron.
COVERED BY STATUTE
In a recent patent signed by Presi-
dent Taft there was no exception made
to the mineral content, this phase of
the patent being excluded on the
ground that 1t was already coVer-d by
statute and could not be disturbed by
an executive official.
This patent caused much comment
and complaint and the tendency was to
believe that the president was over
stepping himself, if not playing into
the hands of the Southern Pacific peo-
pie. But, according to the ruling of
Secretary Hitchcock, the provisions of
this patent are fully covered by law
and for that reason the Southern Pa
cific has no more right to OIL in its
grants under that patent than under
previous patents all of which are open
to attack in court.
From a source directly connected
with the opposition to the Southern
Pacific it is learned that Secretary Bal
linger has urged ruling that VIII re-
verse the Hitchcock ruling, based
on the we'll known land case OF the
Northern Pacific. Ballinger Is said
to contend that in the Northern Pa
cific land grant there is no joint reso-
luton authorizing the insertion of the
exception ii. the patent. In the South
ern Pacific grant there is a joint reso-
luton, enacted June %, 1870, cuthoriz-
ing the insertion of the exception in
1ofA is
Hoke Smith followed that statute in
inserting exception to the patents.
EXCLUDES MINERALS
The exception is that which specifies
oil among other minerals as not be-
ing a part of the property included in
the patent. That President Taft did
not include the exception in the re-
cent Southern Pacific grant does not
mean the Southern Pacific has a right
to the oil contained in the land, for
provision to the contrary is fully COW
cred by statute.
Mr.. Townsand has had wide expert
ence in fighting corporations, especial
ly railroads. He has charge of the
Oregon land grant case of the United
States VS.. the Oregon California Rail-
road company which is still pending
before Judge Charles r. Wolverton.
He comes to Los Angeles in a private
ney General Wickersham, who, it.
is understood, wishes in behalf of the
government, to sift this Southern Pa
cific oil problem to the bottom. 1t is
the belief of the opposition, now allied
with the government that this case,
taken as test, if decided inN favor
of the plaintiff, will cause the lands
containing oil to revert to the people,
to be disposed of to locators Under
some law, to be enacted later, this
law being in all prbability based upon
a straight leasing system.
Il. s. Minot, the attorney for the op-
position, has been before Ballinger
and stated his case and his bill has
been presented to President Taft. There
are several cases now pending before
the federal court, all of which hold the
Southern Tactic has no right to the
oil lands. The Roberts case win be
the first on the docket and will begin
in Los Angeles next Monday before
Judge Ross.
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