The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-05-06
BY WILLIAM KENT

| Former Congressman from California
The story of American petroleum is
varied and interesting. From the
standpoint of conservation, the ideal
of use without waste and a spreading
Of benefit to the people-the primary
owners-the tale has been a night
mare.
1t may be that we are now awaken
ing with a snort. 1t is more probable
that we are merely rolling over and
grumbling in our sleep.
| The first petroleum was discovered
! in Pennsylvania, where there were no
| Federal lands and, therefore, no Fed
eral responsibility. There were no
mineral laws to curtail the unlimited
title Of landowners to the center Of
the earth. With the discovery of the
value of oil there came an era of
gambling and speculation. This was
quietly squashed by the growing
weight Of the Standard Oil trust,
which resulted in elimination Of waste,
in steady improvement of product,
but did not result in properly sharing
with the public the profits.
Terrible Waste of Oil
AS the discoveries moved west, they
were made largely in territory belong
ing to the Federal government, and
were prosecuted in many cases under
! the pretense Of mining lew. Oil, I'M
| like coal, win not stay pui. and
owners or claimants were forced to
spread production, trying to get ahead
of some one else who otherwise would
drain the land which they occupied.
Thus vast quantities Of crude pc
| tToleum were wasted.
In 1908, President Taft withdrew
from entry for exploitation, certain
large oil tracts for our Navy. These
Withdrawals melted piracy and served
| to encourage poaochers. There were
continuing invaslons and drillings in
| these areas, and insolent claims of
rights evolved from active wrongs.
| After years Of controversy. after &C.
! QUESTION by private interests Of the
greater part of the oil fields, a leasing
law was passed, providing for com
| petitive bidding, and a percentage Of
the enluent oil. This was far better
| than the previous system, though not
at all adequate.
/ It is Of interest to recall that dur
| ing the reign of Attorney General
/ Mitchell Palmer the policy VI Greg
/ DRY. his predecessor. was 4eversed
and In place Of following through a
bona fide attempt to establish Federal
ownership Of oil on the immense land
kgrant given the Southern Pacific Rail-
way, Palmer refused TO carry the case
| to the Supreme Court and thereby
! cleared the railway company's titlo
to oil probably worth S500,000,000.
The controversy now blistering the
public life Of the country arose from
an extremely modest attempt to seq
regate and TO hold certain public
property for public purposes.
The Story Today
The old gang hooters found in Sec
rotary Fall and instrument to their
hand In spite Of Vigocou. notice
drawing attention 20 the situation, a
secretary Of the navy was induced to
turn those matters over 10 Fall. Fail
also endeavorcd to obtain the cession
of control Of the forest reservations
from the secretary Of agriculture, but
in this case he ran into a man who
knew his duty and proposed to see 1t |
through. The rest OF the story is be-
coming common knowledge.
Basicauy and legally the whole
neffable scandal, the terribly serious
waste Of oil, the extravaganza OF its
production, and practically the entire
sum looted from the public by
fraudulent oil promoters, find their
foundations in the fact that short
sighted government overlooked from
ignorance, selfinterest and wickedness
the essential fact that such public
assets should be held and leased under
terms beneficial to the public, only to
those who were capable of sanely and
responsibility producing, manufacturing
and distributing