The Washington times., 1915-12-23
LOSSES TO COUNTRY LARGE,

These persons or companies, in the
view of the department, are made tres
passers under present law. The depart
ment's statement on the subject declares
that IL the trespasses were merely tech
nical a temporary suspension of prose-
cutions might be excusable; but II Is
declared that some Of the trespasses in
Volve continuing, enormous, and trrep-
arabic losses to the country.
There Is a sharp conflict between the
views of the Oil Industry Association
Of California and those of the depart
ment concerning the results to be at
tanned through the prosecutions. The
oil people have argued that continued
prosecutions, compelling the suspen-
sion OF operations, might result in let
ting water into the oil-bearing strata
and ruin the field by drowning" 1t. On
the other hand the department just as
vigorously insists that I'm many in
stances only through the Intervention
Of the courts can the disposal and waste
of oil. and the damage to remaining
deposits due to negligent operation, be
in any wise checked or mitigated."
The Oil Industry association petitior-
ed the Attorney General to make pub
lie announcement that would be re-
assuring to the oil and general business
interests of the coast. Referring to the
suits already begun. it asked the At
torney GChy"al to announce that 'cN-
cept in such special instances as ave
unavoidably necessary. no further suits
will be brought or receivers appointed.
pending a settlement Of the difficulties
in this situation by Congressional legis-
lation." This. the department felt NJ
able to promise: and it's explanation
of its reasons indicates that there VIII
be vigorous opposition to what the oil
men regard as absolutely necessary re-
lief legislation.
Legality Not Doubted.
The Department of Justice insists that
the Withdrawals of 1909 and subsequent
ones are of such established legality
that there can be no question on this
point 1t argues thus:
The first withdrawal was in Septem-
Der, 1909. But many companies and
individuals declined to respect this ac-
ton, and entered upon the lands and
began taking oil. Others, who had
planned to explore some of these with
drawn lands, deferred their operations
and treated the Presidents order as
valid. Some of these were superseded
and. II the departments information is
correct, were ousted by more adven-
| turous competitors who were willing to
stake their Investments on the specula-
tive hope that the withdrawal would
be held void
| But the Supreme Court. In the Mid
West OIL case, held that the Withdrawals
were valid; while Congress in June. 1910,
|
| thorizinR the President to make such
withdrawal. Immediately after this
| passed the President made new orders
| withdrawing more lands and reaffirm-
ing the former orders.
To complete the showing of Congress
! sional intent, II Is pointed out by the
department that ONLY last March Con-
! gross appropriated $50. 900 Ito enable the
! Attorney General to represent and pro-
| tect the interests of the United States In
! affaRftn0 yifhdFa y
oil lands" AS the Departments views II.
| this is tantamount to a direction that
| the lands be protected from unlawful in
| tr1lsion. and is the latest expression of
| Congress on the subject An Attorney
| General who remained passive under
such circumstances and failed to protect
the interests Of the Government would
| he subject to proper and severe criti-
Cism."
Question Concerns Merits.
| Thus, from the technical legal side. the
Government Is in a position that the law
officers consider unassaiIable. The real
| question concerns the merits. and the
| public and private interests involved.
| In a single year the California oil pro-
| duction has fallen from 102. 900, 900 to
80. OO0. 900 barrels; and this at time when
| there was demand for a largely in
creased quantity OF oil. The present
consumption of oil from the California
! fields is stated as 100000 barrels a
month in excess OF production. which
means that stored reserves are being
California's need for an early adjust
ment that will permit the continued
development of its OIL is emphasized
bv the fact that oil Is practically the
only fuel used there now. Callfoi MA
is one Of the few states in the Union
that have no coal st all. TIE whole
| Industrial and economic fabric OF the