The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1918-03-19
STATUS Of OIL
COMPANY IS TOLD
History Of Famous Litigation
Which Resulted In the Nam
ing OF Receiver

Honolulu Oil Company y status is told
in an article which appeared in the
Los Angeles Times of March Q when
that paper told Of the announcement
| of the appointment of Gratz Helm as
receiver tor the company.
with the exception of the fact the
article does not make clenr the point
that not all Of the lands Of the com
pany are affected by the litigation it
appears to cover the situation pretty
clearly. The article is here reproduced:
| 4, Word was received at the Federal
! Building yesterday that United states
District Judge Frank R. Rudkin, of
Washington, has appointed Gratz Helm,
who was formerly in charge of the field
division Of the land office in this city,
as receiver Of the Honolulu OIL Com
pany.
Brief History
! The Honolulu Oil Company is a
| $2,OOO,OOO corporation, with headduar.
tiers in San Francisco, thRt went into
the business Of prospecting for Oil in
Kern County, originally, to secure fuel
to be used on steamers in the Hawaiian
trade. The land involved in the case
consists of 1920 acres of land in the
richest section of the Kern County field.
The government is seeking to recover
the area, claiming that 1t had been
| withdrawn from all forms of public en-.
try. by President Taft, September 81,
1909.
When the case was heard in this
city, some weeks ago, before Judge
/ Rudkin, the statement was made IN
court by Willis Mills. then chief coun
sci of the Honolulu Oil Company, and
not disputed by Henry +. May, who
represented the government. at the
hearing, that the Honolulu Oil Company
had won its case at every stage of the
litigation. 1t was also stated at that
time that the patents had been actu.
ally granted to the company, but had
ibeen held up by the interference OF
President Wilson, himself, who insisted
that the case should be heard by the
courts. At that time an application
was made for the appointment of a re
ceiver, and the hearing on that bill wal
held in this city and San Francisco
there being over 700 exhibits in the
case.
| The record shows that the Honolulu
Oil Company won its contention as Il
its right to patent to the land before
the land office at Nisalia, before tn,
General Land Office at Washington; be
fore the secretary of the interior, ant
before the law board connected will
hthe interior department, Secretary
Lane was firmly of the opinion that thu
company was entitled to the land un
der the law, it is asserted by the con
eern's attorneys, and it was only a;
the, direct request Of President Wilson
that he again admitted the issues !,
his law board, and for second tim,
that board reported in favor Of the Ho
nphlp Oil Company, Then it was tina
the case was sent back to the courts
and the appointment Of receiver fol
lows. whose duty it will be to cOnseryl
the assets of the corporation, take car
of the property, and conduct it as
growing concern, awaiting the outcom
of the final litigation.
/ At the hearing in this city and Sal
Francisco, the Honolulu Oil Com pan
was represented by A. 1. McCormic1
of Los Angeles, and by Morrison, DUN
& BrObeck, of San Francisco.