The Washington times., 1917-01-08
Senator PheIan Demands Pro-
lection for Equities" OF
Private Interests.
OBJECTS TO AMENDMENT
Asserts That Intent OF Con-
gress Is Ignored in construc-
ton by the Courts.

with the navy through Secretary
Daniels appealing to Chairman TIL
man. OF the Naval Affairs Committee
to prevent passage through the sen
ate of the Phelan oil leasing Dill:
which recognizes the "equities OF
certain locators on the LANDS WIN
drawn from settlement and directs the
Secretary of the Interior to make
leases with these interests, ana each
side making charges against the
other and the President being ap-
nealed 70 by Senators to take up the
matter with his Cabinet and stop the
row. the future of the Phelan bill
looks very stormy in the Senate. II
Is expected to come up this week for
consideration. Having made his ap-
peal to Secretary Daniels for the bill.
Senator Phelan came out today in n
statement for the California private
interests that want their equities"
recognized and protected.
"The Navy Department opposes any
legislation" says Mr.. Phelan, be
cause the law as it stands has been
construed against the bona fide opcr-
ators"
Intent Of Congress Ignored.
After pointing out that the construc-
ton by the courts TO which he refers
has been harsh and has ignored the
plain intent Of Congress, Senator Phe-
Ian says: 1T is matter of Importance
to distinguish between the law as II has
been harshiy interpreted and what was
intended by the lawmakers and what
ought to be-"
The amendment adopted by the Senate
committee. according to Senator Phe-
Ian, is the same as the compromise Of
fered 10, the Navy Department by the
Secretary OF the Interior and the oil
interests on the one hand and rejected
by Secretary Daniels on the advice of
the Attorney General. who desires to
prosecute all oil claims under the fav-
orable construction of the act which
he has obtained"
This would give the Attorney Gen.
eral legal victory. but II would work
great Individual hardship and injustice, IS
says Senator Phelan.
Affects About 5000 Acres.
"The whole dispute affects only
about 5000 acres, and the navy is
given by this arrangement a royalty
from a reserve which might otherwise
be exhasuted by constant drainage
by the operation of wells held in pat
ented title by private individuals COW
cring three-fourths of its area" Con
GLIDING Senator Phelan says:
THE navy has now reserved and
available in withdrawn lands 1885,.
0O0. 900 barrels in naval reserve No. i,
and the recent estimates OF private en-
gineers place No. 3 as almost equally
productive, and the shale reserves run
into millions more, and when this law
is enacted there shall doubtless be fur
Their discoveries, so that it is safe to
say that unless it is the policy of the
Government to lock up the entire oil
deposit, present and future, which
seems utterly impracticable, this legis
Iation will have the effect OF greatly
increasing the production of oil and
protecting the navy in an oil supply
and oil reserves, which every one con
eedes 1t should have in abundance and
security.
Under this law the individual citi
zen will not be exposed to the danger
of having explored the barren places
and then finding his property with
drawn from under his feet and his
expenditure of labor, money, enter
prise and skill confscated without
compensation. and be sti6matized as
a trespasser and looter of the public
domain"