New-York tribune., 1919-08-30
Southern Pacific
Stock Leaps High
On Denial OF Fraud
Decision IN Federal Court
Regarding Oil Lam d
Grants Highly satisfac-
tory 10 Officials of the
Company

Southern Pacific shares advanced
spectacularly on the Stock Exchanro
yesterday upon the onueuncement "a
the Federal District Court at Los
Angeles had rendered decision in
favo- of the company in the famous oil
land suits. which have been the subject
% litigation for I've years The aim Of
the government. as the plaintiff in the
action, settled BY the decision Of Judge
Bleisoe. was to cancel for fraud pat
ents issued by the government to the
railroad company by an act Of Con
gress Of July p. ls66, granting land to
aid in tae construction of railroad and
telegraph Anes from the States Of Mis-
sour ana Arkansas to ,he Pacific Coast.
Selling "ez" the quarterly dividend
O. u. per cent, Southern Pacific had
picturesque opening. Orders were in
the hands Of brokers' to buy 10000
shares before 10 O'Clock. and The initial
sales registered were between 10S and
los, VI rs to sis points over Thurs
DAYS las sale Profit taking carried
marke- session. o THAT az 10- ysre
was q ne. rlso Of points.
Officials Are Jubilant
South6rn Pacific officials and attor-
neys we've ..4nt over the outcome OF
the case. tealr opinion beng reflected
IT Jae fc on ~ statement by julius
KsU-sceH r-. president cf the read:
The decision Is. Of course. source
rf . 10
sud tt l-s -tocslo. .crs, not only be-
Cause Of The as s-lues involyed, buC
becaus the n'eYa' I the stigma O +
fraud we ch -ne government's aLtor-
Ieys attempted to 5asten on the
Memol IS u men defence.ess In their
grave.
Invoked In the government oil suits
Sgalns- .he So-'l leru Pacific were 80
oetaldar-s a1d some I'LL Ota.l persons
claimed i.-ere II te lands Iii is ~e.
- ca a.a..eo 41ar0y nGtelv lJl.00l
acres. .atel ir the oil territory on
Ire wes. side of the Sac Joaquin Val
.ey il California. the va Ue Of 1he
land hsen etlnatc5 a the way
iron Sd aNfle9 ID Sa3QO9U.Qaa.
In ais opinion. t4c TAI yeN1 ol rnlch
Has made pub IL W tee dc1cnGaa, fal.-
road company, Judge D.elsoe said ln
par
stripped 70 The core. the claim Of the
government that tho dependent COM
p1ny. knowing tae lands were mineral
ah1 c.4t trele t9re Il vas rOt entitled
10 tn5m, r4vartne ess deliberately CON
eeived and p-r iat0 successful opera
tion the fraudulent plan or acquiring
such lands tc lis -wn use and benefit
sua III complsre disregard OF the gov
ernments rights The case as devel-
oped 5y the COVE 1ment on the hear
Ing am through the contentious Of
lts co-rrel i 80 the effect that the
- 9ur Owners al the Central and
Southern tae ac crm9 9auie IS. the original
inltial ov that great unified ell
tsrprise, StaH ord Drockcr, Hunting
ten and lfnrklne together With sew
era lesser Ghts Occupying positions
q resnoas bDltv and Prominence, we're
al parties -o DE-. 0erate, long en-
during and vide embracing scheme to
acquire from the government wrong
tl-iy Vas- areas is.ag on the west slde
g the san Joaquin Valley. involving
sume Of she richest OIL lands that the
world has ever known; chat this
Ecneme was conceived al some time II
tie iys. or possibly early sos, and
continued TO flourish unintcrru0tedly
D. all the time cancelled. either nat
u-lly or -1ro1el the arit ces Of IT'S
hsugators. until it's accidental dis
covery Ay tile e~nmert through the
Ning of The Burke suit iu 1910.
lu ~ eI words, that through Q
period, e.. sag, q lrty years, the most
promlneLl, laosr forcefal. most far
seeing mea tcat California has pro
duced We're engaged i'm the diabolical
plan ot sons1m mating one Of the
ereates1 lreaja eli the age. and not
only thai, bat thst during the course
o. the perperration of that fraud, and
prevlous to cue realization OF any APP
preci~o.o proat Cr substantial reward
from i's attempted consummatIon
practically all the original parties tc
;ne granite conspiracy had gone tc
their graves.
h seer handy within the realms
o. pos oilty shat such could be the
ease, and j feel sure that me requisite
Nfoot III such aD oaormity by thai
eiaea OF evidence which commands re
spect ana that amount. OF 1t whic.
produces cenNicuou) has not been ad
eaced aere.
Grants IS Contemplated
"Seem .Hgiy insofar as can deter
Ainc isom the record al lands in
vowed here Mese returned ~ the gov
e'Hia aent surveys as agricultural, j. @.
sooN-nilr slsl, a4i ir c9nseqlencl
M was prima facie showing sui
ne'ent At least 80 cast tue burden o
Proc upon any possible coy 9ctor 10 th'
eNec5 That the lands were Of the scr
"hu Aind contemplated by the grant.