Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-03-15

. UPON
But that was four years ago and a
/ permanent leasing policy has not yet
been decided upon. In the meantime two
/ iutcrpre .ations of the temporary relief
act have been made one by the Depart
, ment of Justice and one by the Depart
/ mc%lt Of the Interior. Since we have the
/ best land lawyers in the world in our
| land office. It Is natural that should
/ accept their view and act upon It,"
Resrfui's Bombshen
Assistant Attorney General Kearful
| threw a bombshcll into the Public Lands
/ Committee hearing when he answered "A
question by Representative Lenroot.
"You have no idea" said leuront
chat the Secretary of the Interior in
/ the exercise of his discretion tundcr the
/ proposed Oii-leR-iug him would grant
leases where actual rnmd was proven,
have Sou?"
/ yves, think lie would" Kearfui an
I swered.
| The committee stared IN amazement.
/ "You think he would?" 1.enroot re-
/ peatcd.
/ "Not where actual fraud was proven"
/ Kearful corrected himself, "but where
/ charses Of fraud had been made I have
| no doubt he would--and without lnyesti-
CATION"
Chairman Ferris expressed the SUR
/ prise of the committee
| "Now TO me-" he said, this is very
/ amazing statement. What grounds have
YOU for such statement as that? II
is the most amazing statement ever made
before this committee since | nave sat
here"
Kcarrul said he based his statement
on the action taken by Secretary Lane
. - /.
the temporary relief bill In spite Of the
fact that charges of fraud and viola
/ tiors Of the withdrawal order were
/ made by special agents after investiga-
/ fious bv the land Office and hearings
were ordered to determine the truth ot
| the changes" operating agreements were
entered with these men by secretary
| Lane Kearful said That he believed,
justified his statement that under the
House bill the same thing would be
done"
Lane Explains Course
Nothing to it," WAS Secretary Lanes
answer TO this charge. "In no case
has the department entered agreements
| where the present claimant Is charged
/ with fraud" he said "Thcr" may be
| cases where men have taken over IN
good faith tracts whose previous claim
ants were charged with fraud and they
! therefore are technically guilty. But
| morally they are not guilty ana there
| is no reason why operating agreements
| should not be entered with them pend
ing final decision as to title by the
| land office"
Linked with Kcarfuls first charge
. was one that the Secretary Of the In
terror had failed properly to protect the
! interests of the Government ana had
| violated the law" in impounding only
onc-eighth of the output of the wells
whose title were in question for the
protection of the Government in the
event the decision should be adverse to
the claimant
him to make agreements which would
permit continuous operation of the prop
critics and enable the operators to dis
pose of the proceeds pending the deter
mination of the'titlc whether 1t belonged
to the Government or the applicant,
Kearful told the committee. 1T is for
the protection of both the Government
and the applicant, so that in the event
: It should be decided in favor of the APP
plicant he would suffer no loss, and ir
} the event it should be decided in favor
5 of the Government Il should not suffer
loss. In ORDER to do that there was only
one rule that could be followed. and tha
rule Is the one applied by all courts o
> equity in cases Of this kind. The entir
output, less the cost of production, shoul'
be impounded."
Kearful pointed out that in the field!
= where Secretary Lane had operating
: agreements there was total produc
tion to November 80, 1917, Of $G,S49,S07
of which amount only one-eighth, ol
> SS76673. had been impoundcd for th'
1 ,,f. H.. - ,n,,t
tion of the Departm, nj of Justice was
X arful explained, that it was "im
I pr per and not within the intention o
, the act" to make operating agr acment
: in cases where fraud was charged
n whereby, in the event 1t should b.
= finally determined that those charges o
e fraud were sustained, that the operate
!, should have seven-eighths of the fruit
of his fraud"
In cases where the Department Of Jus
L tice was not barred from bringing suit
q by Secretary Lanes operating agree
= ments, Ksarful said, suits were brough
e and receivers appointed. These re
:. ceirers impounded the whole produc
! ton of the wells less the operating
o costs. This, he held was the prope
$ method.
= 81 have applied simply the rule o
commercial royalties" Secretary Lam
u answered. Il have gone on the as
sumption that the lands belonged to tn
I Government and have regulated tn
: royalty accordingly"
= Rounding out his general charg
j that Secretary Lane intended to max
permanent the operating agreements
even in cases where charges of fraut
, We're brought, under the oil-leasing bill
/ Kearful said, 1T is perfectly clear an,
understood in the Interior Department
S that those operating agreements shall
4 continue in anticipation of a genera
: relief provision which shall, in effect
permit them to be made permanent"
: Those members Of the Public Land
Committee who have taken sides in tn