The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-12-27
rIIE CASE or rnACr 10. osAGr.

Tho case being made out Of the sale Of tract
10, Usage county, is attracting great deal Of
attention. Not 30 much because OF the known
instrnsic worth OF that particular tract. but
because Of the larger principle involved and
the effect likely to be had on future sales Of
Usage lcascH
The outlines OF this case may be briefly stated
as follows:
on December 12 1921. when oaage loases at
public auction brought something over seven
million dollars, tho Marland interests OF Ponca
city bid $4,000 for tract 49, which being tho
high bid offered resulted In the auctioneer
knocking the tract down 10 the said Marand
interests.
on December II, the Marland interests were
advised that tho Usage council had, advice
of government geologist, refused to approve
the sale and that therefore the Marland inter-
csts were denied the object OF their bidding. II
was further stated that the government geolo-
gists objection based the prices paid
for other and adjoining tracts and not on any
known or oven suspected value OF the tract IT.
self for he was quoted as saying to the Usage
council, compared with the prices paid for ad-
Joining leases this bid Is absurdiy low"
II is not difficult to understand why the oil
fraternity is considerably exercised over this
very unusual action by both the Usage and fed
eral authorities. Because IL when n bidder has
lease knocked down to him he has In reality
bought nothing unusual precocity %
sary to arrive at tho conclusion that In future
sales the bidding will be vastly less competitive.
& than IN the past while there will DO lacking that
element OF security In property purchased
which will detract from tho value OF the thing
bid on
The bidders at the sale December 12 had no
yIady uhnt haf ba haA
fixed minimum price on any tract offered II
indeed the government had fixed such a price,
then every tenet Of fair play and the practice
OF auctions everywhere required that announce
ment OF the fact be made, This he's been the
practice in other government lard sales And
all public sales by public outcry require that
all terms of the sale be announced in advance.
II has been the custom at Usage lease sales TO
permit the natural competition between the yarf-
Gus producing factors TO Fix the Value OF the
tract offered. These various factors are ia
mlar with the terrain involved. while their
various geologists have been permitted to run
out the Geological Indications and trend Ger
tainy the experience OF the past has abundant
ly proven the wisdom Of this. for the osaga
lease sales have become the gaeatest auction
events In the history of the world. Never be-
fore have men, courageous sporty individuals,
ton to spend still greater sums in prospecting
the lands purchased.
Nor can It be said that all has been gold to
the bidders, Marland and his various inter.
ests nave been among the most outstanding de.
veloping factors OF the Usage country. without
knowing precisely. will venture the assertion
that in many instances the Marland companle,
have lost hundreds or thousands of dollars II
carrying out their obligations under the termi
OF previous auctions, OF course In stlil othe,
= instances they have proflted But the point Il
that the purchaser discharges his obligation
under the terms Of the sale without welchng
and surely both the Usage council and the fed
eral government should with equal honor dis
charge their obligations to the men who hav'
made these sales the huge success they
In the case of tract 10. 1t Is matter Of rec
ord that with all producing factors bidding
Marland ana his associates fixed the highes
value upon the tract. Not another OF the grea
producing interests, with intimate knowledge OF
the territory involved, thought the tract wa,
worth more than $4,000. Yet because other
tracts nearby had gone for a very much greater
figure, the government permits itself 10 be put
In the light of being exceedingly poor bust
ness agent by permitting its wards, or encourag 2
ing them, the case may be, to welch on this
high bid
We do not think either the Usage Indians or
their guardian the department OF Indian af-
fairs can afford to be put in any such light
No man at the moment knows whether trac
10 is worth a million dollars Ia worth the s34,
600 bid or Is absolutely svorthless for the pur
pose It was sold for n the government 1
ayowedly operating to- soak the producer at a
costs If it is unwilling 90 give him sportln
chance for profit then the. OH producers. VIII
are al once the salvation OF the government
rs oaaee lease sales and the backbone OF ser
eral prosperity in the saH'ssr s. par. oi oklah9m