Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-12-20
PLAN TO SETTLE
OIL Land CASES

| Perhaps explaining the recent
strength OF Honolulu Oil stock, which
| in the local stock market followed an
earlier advance in San Francisco,
comes an article which appeared in
| the San Francisco Examiner OF De
cenber II. received by the last mali.
! This article indicates an early set
| Element OF oil land troubles with the
| government. which. il is believed,
would be upon permanent basis. In
I the article the Examiner says:
CALIFORNIA; oil land troubles viii
be settled, for ell time, il the CON-
promise proposed by the Oil Indus
try League Of California is accepted
by the federal government.
This proposed compromise was
sent TO Washington yesterday by Roy
" Bishop, president OF the Oil Indus
try League, and was considered infor
nally by the senate lands committee
+ THE plan Is to have the Standard
Oil Company and the Associated Oil
Company relinquish, without remuner-
alton. holdings in the center of what
IS known as Section OF the Califor
MIA oil tract, consisting of $4,000 acres.
In return for this the claimants
have been promised that the navy de-
partment would withdraw all opposi-
ton to the Phelan amendment, which
provides for much needed relief TO the
oil producers of this state.
"The amendment provides that oil
producers shall be permitted to Sc
cure patents on their lands, and that
thsse TO whom patents cannot be
granted will be permitted to work
their holdings on leases.
Both Corporations Willing
when Secretary Daniels made his
stipulation TO the Oil Industry League,
Bishop began WORKING to secure the
consent of the Standard and Asso-
ciated companies TO the compromise.
Officials Of both notified him yes
terday that they would consent to
deed their lands in Reserve No. ! if
Congress passed the relief measure.
The deciding of these lands TO the
government will mean that oil which
the geological department says IL
sufficient to supply the navy depart
ment for 80 years will be conserved.
Will Leave Reserve No. 2
THE compromise will enable unre-
stricted operation under patents and
leases en- Reserve No. 2. upon which
there is so much patented land that
its use for a source of oil supply for
the government is precluded. Bishop
said Yesterday: .....
THE compromise clears up situa-
ton that has been the subject of inter-
minable controversy. Both the Stand
ard and the Associated companies
agree to make over their lands to the
government without remuneration, as
they will be able to obtain oil from
producers of Reserve No. 2, with the |
relief designed for the latter by the |
.Pheland amendment
Ewing Confirms Compromise.
FRESNO, Cal, Dec. lid. S. Ew-S
ing, a member of the executive COM
mittee of the Oil Industry Associa- |
ton of California, said tonight that
he had received a telegram earlier
in the day from the Standard Oil Com
pany, stating that it would agree to
deed its holdings in Section l to the |
government if the remedial legislation |
passed Ewing has been correspond |
ing with both the Standard and the
Associated on behalf of the Oil In !
dustry Association in an effort to get |
them to deed their holdings in Section |
to the government"