The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1912-12-21


This announcement follows the re-
cent exclusive prediction of The Call
that the suit would be filed in the
Fresno division of the United States
district court. the clerks office of
which is in Los Angeles. and the sub
ject matter of the bill of complaint
bears out The CadEs~sfatement OF de-
tails
VALUE EXCEEDS $250,000,0oo
The present value of the lands in
volyed in this suit is stated to be in
excess of s25o,oOO,oo
The defendants named are: South
ern Pacific company, Southern Pacific
Railroad company. Kern Trading and
Oil company, Associated Oil company, I
Southern Pacific Land company. Cen
traI Trust company OF New York,
Equitable Trust company OF New York.
Homer S King. St. Paul Consolidated
Oil comnanys zier Oil company. Fresno
San Francisco Oil company. Penn-co-
aiinga Petroleum company. coa1inga
Pacific Oil and Gas company. CONNER
cial Petroleum company, Aztec Oil COM
pany. Guthrie OIL company, Confidence
Oil company, Maine State Oil company.
Associated Pipe Line company Section
Briner. julius Fried, J. ]. Vincent, G.
K. Shore Oren G. Myers, w. S. Porter,
o. Scribner. C. A. Murdoch, George w.
c. Baker, w. w Machem, NJ L. Woy
and NJ. Madsen.
REVERT TO GOVERNMENT
On account of the great scope of the
suits there has been some delay in
filing until the details could be COM
pleted. but the present complaint as
fled gives a complete statement Of the
governments intention. If the pro-
gram Is carried out at least 125,000
acres of the very richest oil lands in
the state OF California will revert to
the government. These are included
in the Kern river, Sunset Maricopa,
McKittrick, Midway. Elk Hills, Devils
Den, Lost Hills and Coalinga fields.
The ground on which the suit is
filed is the alleged violation by the
defendants of the clause of the pat
ents granting the railroad alternate
odd numbered sections to the extent
of 10 sections on each side of the road,
provided, however, that mineral lands
were to be excluded from this grant
PROSECUTION CHARGES FRAUD
The Southern Pacific Railroad COM
pany, 1t is charged, accepted the pat
ent, containing the exception, and in
serted in all sales of these granted
lands this same exception, from 1866
until some time subsequent to 1903
Later. however. approximately 45,726
acres Of valuable mineral land were
listed with the United States land Of
fee at Visalia, with the secret and
fraudulent purpose of inducing the
department of the interior to issue
patent for these lands, with the fur
ther fraudulent intention subsequently,
of denying the validity of the excep-
tion of mineral lands as stated in the
original grant. according to the bill
The railroad further intended to
conceal from the government the facts.
1t was charged, until six years had
elapsed from the date Of the issuance
OF the patent, to the end that the gov
ernment should be so delayed in in
stituting legal proceedings that the de-
lay itself might be set up as a defense.
Further to enjoy the fruits of the
fraud and at the same time conceal the
facts the railroad caused the Kern
Trading and oil company to be organ
lied as a dummy corporation to extract
minerals. In 1906, it was also de-
clared. the Southern Pacific Railroad
company acquired controlling inter-
est in the Associated Oil company. The
Southern Pacific Land company was
likewise organized as a dummy COR
poration, but with the purpose this
time OF holding the legal titles to the
lands for the use and benefit of the
railroad company.
In addition to the mineral lands be-
fore referred to, approximately 1906
more acres were once Southern Pacific
railroad property, but have since been
sold.