The San Francisco call., 1910-12-11
SUIT IS BEGUN
TOOUSTTHES.P.
FROMOILLANDS
Government Attacks Railroads
Title to 6,I00 Acres in the
Midway District
Fraud Is Charged in Patenting
of Property Valued at Ten
Millions
Beginning of General Move to
Reclaim Vast Tracts in
Three Counties
Os ANGELES. Dec. 1O-A suit

I OS ANGELES, Dec. 10.-A suit
was begun by the federal govern
ment in the United States circuit
court here today attacking the title OF
the Southern Pacific railroad to o.1O0
acres OF oil lands in the Midway dis
trict. in Kern county. valued at
Sl0O00O0O Fraud is charged in the
pstenting Of the lands, in that it is
alleged the railroad company patented
the lands with the full knowledge that
they were mineral bearing and could
not be so patented under the land
laws OF the United States.
Other Suits TO Follow
The suit has been anticipated long
as IT Is said TO be only the beginning
of general move on the part of the
government 10 reclaim from the
Southern Pacific thousands of ad-
ditional acres Of oil lands in Kern,
Kings and Fresno counties, valued at
S500O0000 The action is brought
by United States District Attorney 4.
T. Mccormick. and the name Of Attorney
General Wickersham is affixed to the
complaint.
in brief, the suit asks that the pat
ents 10 the lands be declared invalid
and that the defendants be required
10 deed the lands TO the United States
free from incumbrance or question of
title.
The complaint also declares that the
governments own officials were negIi-
gent, as they granted patents cover
ing lands 10 the railroad without an
investigation. relying simply upon the
statements Of the defendant corpora
tion regarding the character Of the
land.
Comes to Gust s. p.
The action was prepared by McCor-
mick and Willis \. Mills Of Washing
ton. T. c., special representative of the
department OF justice. Mills came to
Los Angeles about two weeks ago to
hear the opening arguments in the
cases brought by George D. Roberts
and Edmund Burke against the South
ern Pacific for the purpose of ousting
the corporation from OIL lands held
under the same claim as those involved
in the action filed today.
The suit begun today is similar to
those brought by Roberts and Burke
in that they are based on the construc-
tion OF the act OF congress Of July %.
1855, and a resolution adopted June %,
1870. under which the railroad company
was allowed TO patent every alternate
odd numbered section for 20 miles on
either side Of its right of way, in order
TO encourage the building Of the road.
Mineral Lands Excluded
In this grant mineral lands were ex-
cluded. however. and it is this clause
in the grant which is said to render
the patents invalid. as it is alleged
the lands are patented by the railroad
company with the fun knowledge that
they were mineral bearing
In addition. il is said that maps on
record in Washington show that the
United States surveyor general desig-
mated these lands as mineral bearing
at the time Of making survey in
1902, while the lands were not
formally patented by the railroad until
1904.
Trustees Included
The following defendants are named
IN the action: Southern Pacific com
psny, Southern Pacific railroad com
psny. Homer S. King, trustee: James
K Wilson, trustee; Central Trust com
pany Of New York; Equitable Trust
company of New York, and Kern trad
ing and oil company.
King and Wilson, who are residents
OF san Francisco. are described as sur
viving trustees under deed executed
by the Southern Pacific railroad COM
psny and purporting to secure the pay
n1ent Of $46,0o0,OO0 of the corporate
bonds of the railroad company, which
trust deed is claimed to be a lien upon
the lands involved. The Central trust
company is said to be trustee Of s5s.-
100000 in bonds, and the Equitable
trust company of ssS.5O2.OOo of refund
ing bonds.
OIL COMPANY A DUMMY
The Kern trading and oil company
is declared in the complaint to be a
dummy corporation organized by the
Southern Pacific for the benefit and
use" Of the latter corporation.
After declaring that the described
lands are mineral lands. not subject
TO grant by the government. and that
the railroad company was well aware
Of these facts, the complaint proceeds:
But designing and intending to
cheat and defraud the plaintiff of all
said mineral lands, the said Southern
Pacific railroad company did falsely,
fraudulently. dishonesty and unlaw-
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