South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-03-15
RULINGS ON
STATUTES ARE
IN CONFLICT I
Asst Atty. Gen. Kearful De-
cIareS Department of In
terror Has Not Safeguard
ed Public Interest.
International News Service:

International News Service:
WASHINGTON. March 10
sharp denial was made today by
sec'y Of The Interior Franklin K
Lane to charges by Asst. Atty. Gen
Francis j. Kearful that he failed
TO safeguard the interests of the
public" and had violated the
statutes" in his administration Of
the public lands. The result has
been TO bring into sharp outline the
fraction which long has existed be-
tween the interior department and
the department Of justice.
IIearfuI. in testifying befo-s the
house public lands committee, IN ef-
feet made the broad charge that
SeCy Lane was protecting fraudu-
lent claimants 20 government oil
lands through entering agreements
With these men that barred prose
cution by the department of justice
and further. that when the oil leas-
ing bill was enacted. the secretary
permanent, allowing the claimants
20 escape with the fruits Of thejc
frauds This testimony has not yet
uecn made public, but viii be short
Is.
Makes Detailed Denial.
Sec'y Lanes answer was a detail
cd denial lnasmuch as Kearful has
the support of Atty. Gen. Gregory.
thc controversy thus started will
have far-.eaching consequences.
The fundamental difficulty -
that. instead of passing a perma-
nent leasing bin four years ago.
The fundamental difficulty is that.
Instead OF passing permanent
leasing bill four years ago when the
proposal was FIRST made, congress
adopted "a temporary eXpedient,"
Sec'v Lane explained today. Aug
ust %. 1914. il passed "a temporary
relief act under which the secretary
of the interior was authorized to
make operating agreements with oil
men who were at work ON the lands
iu California and Wyoming with
drawn from public entry by Pres't
Taft. i'm 1910 This relief act which
had as its purpose Keeping the oil
wells I'm operation 10 prevent dam
age through disuse was intended to
be iu effect only until the next ses-
sion of congress when a permanent
policy was to Toe decided upon.
No Permanent Policy.
But tina. was four years aeo and
"a permanent leasing policy has not
yet been decided upon" the secre-
tary said. I'm the meantime two in
terpretations of the temporary re-
lief act have been made; one by the
department OF justice and one by the
department OF the interior Since
NE have the best land lawyers in
the world in our land office it is
natural that I should accept their
view and act upon IT,"
Kearful pointed out that I'm the
fields where Sec'y Lane had operat-
ing agreements there was a total
production TO Nov. 80. 1917. OF Sc
S49.SO7, OF which amount only one
eight or SS76.674 had been i'm
pounded for the protection OF the
government The position OF the
department OF justice. was Kearful
explained. that IL was improper and
not within the intention OF the act
20 make operating agreements in
cases where fraud was charged
whereby. ia the event it should De
finally determined that those charges
OF fraud were sustained. that the
operator should have seven -eightns
of the fruits OF his fraud"
Brought salt I'm some Cases.
In cases where the department OF
Justice was not barred from bringing
suits by Sec'y Lanes operating
agreements. Kearful said, suits were
brought and receivers appointeG.
These receivers impounded the
whole production OF the wells. less
the operating costs This. he held.
was the proper method.
"I have applied simply the rule OF
commercial royalties" Sec'y Lane
answered. 'I have gone on the as
sumption that the lands belonged 20
the government and have regulated
the royalty accordingly. In wyom-
ing and California the owner of oil
lands iuvaria bly, leases them %
operators o. the one-eighth royalty
basis II a hig',,r royalty Is charged.
our experience has been production
always drops In tuis crisis the
government needs an the oil Il can
get Not,1ln< should be done 10
.imit production.