The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1912-08-15
BIG RAILWAY OIL
GRAB TO Be AIRED
Finder OF $1,000 900 Prop
erty Alleged To Have
Been Swindled.

Washington, Aug. i2.-.An astounding
story of duplicity and fraud. In which
a poor prospector. 1t is alleged. was
betrayed by a secret agent of the
Southern Pacific Railway company and
deprived of oil lands now worth at
auction more than $1,000, 900, will be
told in a suit which Attorney General
Wickersham has directed Special AS
sistant Attorney General Willis N. Mills
to file against the railroad company,
according to q telegram to the New
York American.
The discovery was made while TAX
ing testimony In the $751; 900. 900 action
now pending against the Southern Pa
cilc, the Kern Oil and Trading COM
pany, and the Equitable Trust com
pany, of New York. for the recovery
Of 6,1O0 acres Of oil lands in the Kern
river district in California.
The facts, as charged by the depart
ment OF Justice, are these:
In 1911. John Jeans. an oil prospec-
tor, discovered an oil seep in the Elk
hills in California. where the sands
were so impregnated with oil that they
could be lighted with a match and left
burning for days.
Confided to Friends.
The odor of gas was so strong that
Jeans could spend only a few minutes
at a time on the scene of his discovery.
Excited by the prospect for an immense
fortune, Jeans took a few friends into
his confidence. They were l.. g. Sar-
now Division Superintendent Burk-
haller, of the Southern Pacific at Bak-
ersfield, and ]. b. Treadwell. an oil ex-
pert.
Although Jeans did not know 1t at
tho ftyon rNrooIrtolt rr.o q tha oaoyaf Nf1
agent and expert OF the Southern Pa
cific Railroad company. He had on de-
post in three different banks In Cali
fornia more than 100000. furnished to
him by the Southern Pacific to cover
the expense OF his secret oil operations
in the railroads behalf.
jeans discovery was in township 30
~. about four miles east of what is
now Eastlands, in the McKittrick dis
trict. Adjoining it there is now a pro-
ducing well of the Associated OIL COM
pany. which is declared to be the great
est oil well yet found In any country
His Bonanza Grabbed.
At the suggestion Of Treadwell
Jeans tool him and Sarnow to the
scene Of his bonanza. Treadwell, in hi.
own handwriting. prepared location no.
tees, and claims were filed in tht
names OF Burkhaller, Sarnow, Jeans
Treadwell and T~readwells wife
ana SOnlnlaW, ana the SOM
inlaw's daughter.
Location and assessment work wa.
begun by the locators, each paying
pro rata Of the expense. They con
tinued their work until the amour
necessary to give them patent right!
was completed and they were ready t,
apply for final patents.
Through Treadwell the Southern Pa
citic knew Of the find and it's value
and while the propspectors We're en-
gagged in completing their title to tn
lands under the mineral laws, tn
Southern Pacific slipped through tn
land office at Washington patents Of
the and under the agricultural indem
nifty clause of the land grant act o
1866.
Obtained Surrounding Land.
Treadwelrs dupes continued worl
and expended money on the lands 70
weeks after the railroad patents wer,
granted, in ignorance Of the fact tina
their fortune had been wrested iron
them.
In addition to the lands embraced II
the Jeans discovery, at the same tim
the Southern Pacific obtained agricul
tural patents on other sections of OF
land in the same district, adjoining tn,
ground worked by Jeans and his asso
GATES.
All the foregoing is stated by tn
department Of justice officials to b
based on documentary and other rec
ords giving the fullest proof of tn
facts charged.
In addition, it is declared tina
Treadwell's name appeared on nearl,
one-half of the land locations on tn
even numbered sections in the Ker.
river and other California oil field
and that wherever his name appeare
the real owner was the Southern Pa
cific.
Under the land grant act of 1866 tn
railroad received no interest in tn
even numbered sections along til
right of way, whether agricultural O
otherwise.
Special Assistant Attorney Geners
Mills Is now preparing the complain
in the new action, and it will b file
shortly in California.