Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-03-20
TWO Views ARE PRESENTED
DELEGATION FROM TULSA DI-
VIDE IN THEIR POSITION BE-
FORE MIR. ADAMS.
ROYALTY TO Be ONE sixth
Some of Proposed Leases May Include
10000 Acres-Secretary Has Not
Committed Himself.

WASHINGTON, d. C.. March 10
! (Special) To-day at o'clock, L. j..
Martin mayor of Tulsa; Frank Giles
pie, of Tulsa, and G. W. Marland Of
/ Ponca City Okla, representing one
| faction of the Independent oil produce
ers of Oklahoma, and =. j. White,
Henry Sinclair +. b, Ufer, II. r..
Kemp ard j. A. Hull all of Tulsa,
Okla, and David Gunsberg, of Buffalo,
n. Y. representing another faction,
appeared before Samuel Adams, first
assistant secretary of the interior.
Mayor Martin and delegation, advo-
Gated the leasing of the Usage nation
for oil and gas development, under
rules and regulations under which
each person could obtain leases upon
not more than $500 acres In one
tract. Under this system, 1t was con-
tended, that every one would have an
equal opportunity, and the producer
with limited means, would have
chance as well as those Of great finan-
cial strength 1t was also contended
| that this system would promote the
development of both the oil industry
and the country in general more than
any other system suggested.
fIcy Propose Blanket Lease.
The allegation, led by P. ]. White.
maintained that they We're representa-
tives of the purchasers who had de-
veloped the oklahoma field and that
those Independent purchasers had
formed an association, and that the
association desired a blanket lease
covering the entire unleased portion
Of the Usage nation. Many good argu-
ments wer eadvanced by this delega-
ton, showing chat if the association of
independent oil producers would be
given a lease on the entire Unbiased
portion of the nation. that 1t would
nlace the Independent purchasers in
a position where they could practically
control the oil market in Oklahoma by
controlling the production, and in that
manner would keep w the price OF oil
and thereby insure royalties on priced
oil to the Indians.
1t was evident from the outset Of
the meeting that the secretary did not
take kindly to the blanket lease sys-
tenn. The secretary also received a
great number of kilograms from pro-
ducers In Oklahoma requesting that
no blanket lease be approved.
Blanket Lease Not In Favor.
1t is safe to conjecture that no blan-
ket lease will be approved by the Sec
retary, and as the oil producers have
disagreed among themselves as to the
method In which the land should be
leased, 1t is probable that the plan
suggested by Happier and Mirrilat, at
torneys for the Usage nation, will be
adopted.
The system suggested by Happier
and Merrillat is that the lands be Of
fered for lease ntracts not to exceed
30, 600 acres. and also on fractional
parts thereof, of not less than GAO
acres each; that if the bids on the
tracts of $40 acres each should be in
the aggregate exceed the sum offered
for the entire tract Of 10000 acres.
then the bids on the fractional parts
would be accepted and the bid on the
whole rejected But II the bid on the
tHllTe tract eAteeueu tHe amount Oh
the aggregate Of the bids on the prac-
tional parts of the tract, the bid on
the entire tract would be accepted.
May BE Exceptionally Large.
1t was also suggested that some
leases in the northern part Of the ma
tion might be offered on tracts as
large as $4,000 acres, all leases to con-
tain a drilling clause to insure devel-
opment and to carry a one-sixth roy
atty. Under this system. the oil pro-
ducers of small means would have an
opportunity to make bids on frac-
tional parts of all leases. and in case
the bid on the fractional part exceeds
the amount offered for the lease on
the entire tract. the bids on the frac-
tional parts will be accepted.
The secretary has not committed
himself to this system. but It is be.
lieved that since the Independent pro-
ducers have not agreed on a system,
that this system will be closely fol-
lowed. IL not adopted.
The significant feature OF the whole
proceeding Is that the government has
placed the royalty to be paid the In
dians at one-sixth. whereas the estab.
lished rate Of royalty In Oklahoma
heretofore has been one-eighth.
WASHINGTON. March 1e.-The
house today passed the River and