New-York tribune., 1920-01-10
Pinchot Calls
On Palmer to
Fight Oil Case
100000 Acres, Said To Be
Worth $5OO,OOO,OOO,
Conceded to Southern Pa.
cific Too Easily, He Saws
Product Needed for Navv
Attorney Generals Opinion
That Appeal Would Be
Futile Declared an Error
Neec York Tribune
LH1oht~rYa D.

Nesc York Tribune
Washington Bureau
WASHINGTON, Jan 9.-Gifford Pin
chct, president of the National Conser-
vation Association, in a letter to A
Mitchell Palmer, Attorney General.
made public to-day, protests against
turning over to the Southern Pacific
railroad 100000 acres of government oil
land, which are said to be valued at
$500, 100000.
The Attorney General on December
! announced that he would not take an
appeal from the decision of a lower
court.
Mr.. Pinchot challenges the Attorney
Generals stand that the government
could not win on an appeal, and calls
upon him, if he would not be "dere
lict" in his duty, to reverse his deci-
sion and appeal the case to the Su-
preme Court within the two months
time limit still remaining.
Text of Pinchot Protest
Mr.. Pinchot's letter follows, in part:
"As president Of the National Con-
servation Association, l enter a formal
protest against your abandonment of
900 acres of oil lands in California
to the Southern Pacific Railroad Com M
pany without carrying the case to the
Supreme Court of the United States.
'Ihe lands in question have been
estimated to be worth $500,0OO,00O. The
value of your action to the Southern
Pacific in this, when it became known
on the morning of December 6 last,
was detected by jump of ID points
in Southern Pacific stock in one of the
most violent f1urries seen in the stock
market for years. "The New York
Sun" estimated that the total gain due
to your action would more than double
the market value of the entire stock
of the road
The grant to the Southern Pacific
specifically excluded lands containing
OIL. When it became known that the
Southern Pacific had obtained this val
liable oil land in spite of the law, and
especially when its claim was seen to
endanger the navy's petroleum reserves
IN California, your predecessor, Attor-
ney General Gregory, with the earnest
support and assistance of Secretary
Daniels, came vigorously to the defense
Of the public interest.
OcCAsIOu w Oh ny GregOfy
"Mr. Gregory was bitterly opposed
by great oil interests, such as those
Tor which you yourself have been en-
ployed as an active attorney before the
government departments. But in spite
OF opposition Mr. Gregory stuck to
his. guns and appealed an adverse de-
cision to the Supreme Court and won.
This decision against the Southern
Pacific (the so-called Elk Hills case)
IN November II, 1919, was clear-cut
victory for the government. 1t was
widely accepted, even by Southern Pa
c!hc attorneys. as presaging another
victory for the government as to the
lands which you have since abandoned
to the railroad.
Il am informed that this momentous
action on your part was taken without
consulting Secretary Daniels, who had
said of the naval petroleum reserves,
which your action would seriously i'm
pair or destroy, that some day they
might turn the tide of war; and even
without notifying him of your inten-
ton. You have given as your defense
for abandoning these enormously val
liable oil lands your belief that you
could not win the appeal and that you
were not justified, therefore, in con-
suming the time of officials of your
department or of the court in the
preparation and trial Of the case
Argues for Final Appeal
II have neither the desire nor the
qualifications to argue with the Attor-
ney General of the United States the
legal subtleties Of this or any other
case. But of one thing am convinced:
that nothing less than the decision of
to give the Southern Pacific Railroad
public property which 1t was the clear
intention of the law should never come
into its possession.
"Your judgment can be no more than
the judgment Of one man, however
learned in the law. 1t may be right
or wrong. You may or may not be
sound in your opinion that on appeal
you would lose the case. But you are
undoubtedly derelict in your duty if
you fail to use every effort to save the
colossal values which are here at stake.
1t is no disgrace to be beaten in
good cause, but what shall be said of
the public servant who, in a public
issue SO great as this. refuses to fight
at all?
1.-THE reasons why you should fight
this case through are briefly as fol-
lows:
"The land turned over to the rail-
road is admittedly oil land-yet the
| RI6Ht W tuc OOuLHcIu IdCiuC clearly
and specifically excepted and withheld
oil land from the kinds Of public land
the railroad could take. 1t is of i'm
mense value.
about $4,000 acres are within the
petroleum reserves set aside for the
protection Of our navy against the
possible exhaustion Of commercial oil
and are absolutely essential to its fu-
ture security.
"The larger part of the lands you
have abandoned lies outside the pavys
reserves. If it were saved it would not
only bring large revenues to the gov
ernment, but would be q powerful
means Of limiting and controlling
monopoly in oil, and to that extent
would help to hold down the high cost
1.-THE decision in the case which
am urging you to appeal was made in
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