Omaha daily bee., 1918-05-11
POTASH LEASES
AGAIN DRAW FIRE
IN STATE BOARD
Governor Declares Nebraska
Lost 100000 by Reason
of Position Taken by
Treasurer Hall.
tFrom a Staff correspondent.) }


Lincoln. May lO.-(Special. )--That
Nebraska has lost 100000 OF more OF
revenue as the result of State Treas
urer Halls contrariness was asserted
by Governor Neville at the Friday
morning session OF the educational
lands and funds.
Other features or the row between
the democratic officials was the re-
quest by Land Commissioner Shum-
way for an investigation by the State
1 Council OF Defense to discover
whether anybodyis delaying the pot
ash production in Nebraska for the
purpose of interfering with the prose-
! kcution of the war and the denial by
3 Hall of the charges of the governor.
Goes Into Court.
Copies of the restraining order
siened. by District Judge Flansburg
Thursday afternoon, forbidding men,
bers of the board to take any steps to
renew old potash leases knocked out
by the supreme court without first
9 calling for bids and awarding the
: leases on a competitive basis, was
ssserved Friday morning before the
sboard convened.
Because the suit will serve as q
means OF having the new potash law
construed by a judicial authority,
Governor Neville announced that he
welcomcd the action.
Some sharp comments were direct
.std at Treasurer Hall by Land Com
Inissioner Shumway and Secretary of
State Pool on account OF his lengthy
Statement of Thursday in which he
declared that il the board persisted
jim its course the state would lose from
$500, 900 to $500,000.
One of .Shumway's remarks was
that "if George saves the state $780,
200 on the leases it will just about
make up for what he lost the state in
the Standard Oil case"
Loss by Delay.
Declaring that every days delay
means loss Of money to Nebraska and
prevents the production Of potash
that would otherwise be available to
fcrtiIizc land for this years crops.
Commissioner Shumway suggested
that the bond given by T. L. Briggs,
plaintiff in the injunction suit be
raised from $1,000 to much higher
amount.
Shumway's letter. which he read to
The board. is as follows. directed to
the State Council OF Defense.
The urgent necessity of potash
production for munitions and fer
4ilizN'ion. and the persistent and suc-
'ccssfui efforts OF certain individuals
10 delay production from known de-
posits in Nebraska leads me to re-
quest that you make an investigation
Of the motives behind these efforts
for delay. | request that you sum-
mon before you all parties who have
been responsible for the delay, and
such witnesses, officials or others, as
- your opinion may be able to throw
light on the purpose.
Il will assist in any manner ]
can. Lhope you may arrive at con-
xlusion as to whether the motives are
merely mercnary, or part OF
systematic endeavor OF German
propagandists to delay and hamper
Americas part in the great war.
i urge that the council recommend
10 the proper department of the
United States the taking over Of Ne
braska potash plants, and the pro-
duction Of potash in Nebraska as a
war emergency"
What Governor Said.
After a heavy interchange OF re-
marks following the introduction OF
this letter Governor Neville inter-
I posed with the following on Hall
4 and the oil fees: "This whole affair
probably grows out of the fact that
MI. Hall gave out statement to thu
Newspapers which 10 unfair in some
Particulars to the other members oI
the board. Mr.. Shumway was prob
ably stirred up TO write his lettcl
because Of Mr.. Halls action. Mr.
Hall has frequently disagreed witt
this board and with previous boards
and has had habit of going to th,
courts and newspapers with his sid,
u ! controversy when he happened
b be in . minority.
As an instance OF this, he refused
several years ago to permit the fQos
I commission TO use the oil inspection
fees which it had collected. A sui
was ncccssitated thereby, the resui
of which was that, while Mr.. Hal
vas subsequently shown to be wrong
n his contention, the state was com
PEELED to refund about Sl50,000 o
fees it had collected and the mex
legislation had to reduce the inspec
tion fee from 10 to 6 cents, so tina
the state has lost more since thei
than It did in the first place
Denial that he was responsible TO
The loss of this revenue was mad
By Hall. who insisted that the foot
Commission was at fault because i
&dvcrtised the fact that il was collect
ing excessive fees from the oil com
paries
Governor Orders Return