The Washington times., 1915-03-09
Interior Department to Decide
Whether "Foster Lease"
Shall Be Renewed.
INVOLVES 100000 ACRES
Richest Petroleum Producing
Region Owned by Usage
Indian Nation.
By JUDsON C. WELLIVER.


Interior Department this week.
Secretary Lane and Indian Commits
sioner Sells are sitting on the question
Of whether the Foster Lease" Of lands
in the Usage Nation. Oklahoma. shall
be renewed.
The Usage Indian tribe. now number
ing about 1000 souls, has long been
tabled as the richest people in tho
world. The nation owns $1,000 acres of
land which not improbably is the richest
oil-producing region in the world.
Although it is only partially developed
and its ma ximum is a long way ahead.
this region has produced already about
100000 barrels Of petroleum.
Held For Indians.
The biggest possible series Of problems
in Government policy relating to oil
lands command attention and decision
in this connection. While the lands be-
long in fee to the Indians, and while
their surface has been distributed
among the tribe, the mineral, oil and
gas rights are still u::der the supervis-
ion Of the Government as trustee for
the Indians.
In this trusteeship. the Government
owes an obligation to do as we'll as
It can for the Indian owners, and at
tho same time to conserve the interests
of the nation In connection with It's
supplies of oil.
There has been no little speculation
about the desirabilitv Of the Govern
ment refusing to make any lease at ALL
but keeping these oil rights. operating
them under royalty contracts. and
keeping its own grip firmly on this i'm
lnense supply of OIL
Especial interest attaches to this pro-
posal al present. because Of the active
efforts Of the great powers of the world
to get control of oil resources. Among
the 100 to 200 oil operators: capitalists;
here in connection with the hearings
this week are very possibly agents OF
several foreign financial groups which
are closely associated with government
efforts to secure great oil supplies.
Nothing Is more imperattvely impor-
tant to naval and military powers nova
days than assurance OF petroleum sup
':'petrol." for battleships. for cruisers.
for aoroplanes. for Zeppelins. for motor
cars. for about every form Of power
that war demands.
No Report Made.
Recognizing the importance of this as
pect. Congress a year or two ago ini-
tiated an inquiry as to the desirability
Of the Government building a great pipe
line Of its own from the mid-continent
fields to tidewater on the Gulf of Mex
leo. That inquiry is understood to have
been prosecuted with much detail.
though no report upon it has yet been
made.
There is some impression among in
terested people that the Government Is
keeping the Usage lease and the Gov
min lima
pretty close together In its considera-
tions Of tho oil situation. and that some.
thing revolutionary may come out OF
the present situation.
The investigation was initiated with
view to determire whether 1t would De
important to the American navy to nave
absolute Government control OF facli-
ties through which ample oil supplies
could at all times be insured, and hy
way Of emphasizing this naval phase
naval officer Of high rank was made one
Of the Investigators.
1t would be hard to overstate the I'M
portance that the oil interests Of the
country attach to this proceeding: It
involves hundreds OF millions. perhaps
and 1t may mean the creation Of
precedent that will be quite MS i'm
portant as the financial aspect.
There are about l,5oo 600 acres acres o, isn the is
acres are covered by the Foster lease .
which Is to expire year hence
The original lease in this region was
made by Congress in 1895. for ten years; i;
then in 1906 the present deal followed It..
The Foster lease lands have been sublet
to a great number of people. among
whom the biggest holding Is that OF
the Barnsdall Oil Company Of Bartles.
N. IN Barnsdall. OF Pittsburgh. and the
Standard OH interests are interested
with the Barnsdall group in It.
ss bere behalf IF Ssw St another eG1k
sublessee 1t was declared today by a
man familiar with the whole proceed
ing and all the array of interests. that
probably more wealth was represented
in this contest over control of the Usage
lands than had ever been brought to
Washington in a single business affair
in the history Of the Government.
Last year the Usage Indians received
81, ,GS7. 900 In royalties; their royalty being
one-eighth Of the value of the oil taken
from their lands. The Secretary of the
are especially determined to know the
exact financial interests concerned III
the various subleases.
To this end they sent out a series ol
searching questions to all sub-lessees
asking the owner nominal and actual
of the lease: any other interests. direct
or indirect. by mortgage or otherwise
detailed facts about the capitalization
OF leaSe-hOlding companies, orig ma
prices at which their stock was fioated
names and addresses OF all stockholders
and intercOrporate relations among per-
sons. firms, or corporations operating
under the lease.
Further. lessees were required to show
what was paid TOR their leases and II
paid in property 10 give its valuation
to state total production under the lease
its value, and the royalties paid on 1t
whether production is under contract Il
anybody, and to whom, and on wha
terms. Every lessee was required t
Furnish very detailed map of MS hold
ing, showing wells, transportation IA
ciiities, and production.
All this material has been coming into
the department. for preparation. 'ii
gestion and summary: and huge maj
of the whole region has been prepared
covering the side of a room, In ordel
to make the most graphic presentation
of all the facts.
The questions involved in the whole
situation are almost endless. In the
first place lessees have invested grea
amounts of money improving, borint
wells creating tankage to store oil, anC