The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-12
: JOKER MAY COST
j. S. S5OO,0OO,0OO
Act Found Which Cinches the
Railroads Right to Coast
Oil Lands.
BIG INTERESTS INVOLVED
Railroad Relies on Statute of Linn
itation to Defeat Any Suit
for the Land.
Special to The Tribune.

SpeClal TO Inc IrlDunc,
WASHINGTON. d. c.. June 11.-Just
as the government is sitting In for the
biggest legal game 1t ever played the
discovery Is made that it Is bound to lose
and the Southern Pacific to win s50o.00O,-
600 IL the play goes on.
The stakes are a great area of Califor
MAS richest oil lands, They were granted
to the railroad with clause In the grant
expressly excepting all mineral lands save
those containing coal and iron Most of
these lands were patented to the grantee
more than six years ago.
The Joker In the situation is special
statute Of limitations. slipped through con-
gress in an act Of March 1891 and per-
fected by another act of March 2, 1896
Effect to Bar Proceedings,
The effect OF these acts. as construed
by the United States supreme court. is
absolutely to bar proceedings by the gov
ernment to annuI patent Of land TO
land-gra railroad after six years from
the issuance of the patent Until these
acts are repealed the government has not
Announcement has been made that
within a few weeks the government will
file suit to these lands with Special
Assistant Attorney General Townsend in
charge The oil men of California are
thoroughly aroused and alarmed by the
discovery OF the joker.
They are advised by some OF the ablest
lawyers in the state the suits can result
only In confirming the railroads title,
and SO they are appealing to Washing
ton with all the force they can command
to hold off the litigation until the joker
act can be repealed, This they believe
congress will not hesitate 10 do. once 1t
knows tie lnwardness and gravity OF the
situation.
Suits already have been instituted with
respect TO lands patented 10 the railroad
company less than SIX years ago. and as
10 these there is no question. The spe-
cial statute OF limitations cannot affect
these proceedings. AS 10 the contem
plated actions touching lands patented be-
fore June. 1905, there is certainty that to
1901 and 1906. would be 10 make a pres
ent TO the Southern Pacific OF about half
billion dollars.
Involves Vast Territory.
The magnitude of the issue may be ap-
preciated when 1t is explained that the
slope ranges from Portland. Ore. south
ward to Yuma. Ariz., and from Sacra-
mento. Cal, eastward to Salt Lake City.
1t Is composed of land grants made by
| congress to numerous railroad companies
| which have since become merged IN the
Southern Pacific system.
| BY acquiring ownership or control Of
these various railroads and their land
grants the Southern Pacific company has
! become the largest and wealthlcst land
| holding corporation In the world.
| The area OF land bestowed upon these
railroads and now claimed by the South
er0 Pacific reaches the enormous total
of 2617T.51S acres. principality carved
from the richest section OF country on the
globe
| Forfeiture of Title Contended
! II Is contendcd by the discoveries that
| make the land so valuable. the railroad
| has forfeited title. II was definitely stip-
ulated that all mineral lands. except coal
and iron. were 10 be eliminated from the
grant,
| 1t was on the declaration OF the rail-
road alone that the lands were not min
| eraI that title was bestowed. IL Is TO cam
| eel these titles the government is now
| acting.
| The value Of these mineral lands has
| been estimated from 5000 600, 900 upward.
| II may he twice as great.