The Washington times., 1924-02-15

36 were mineral In character and
were 30 known to be at the time
OF approval Of the survey.
On January IA, 1914, the commits
sioner sent q letter directing the
register and, receiver Of the local
land office at Visalia, California, to
issue notice Of charges and hold
hearings.
The ordinary and almost universal
practice from thenceforward would
have been for the local officials at
Visalia to conduct the hearings and
forward them with their recon.
mendations to the commissioner for
approval, which he would give un-
less one or more parties to the con-
test appealed. when he would set a
date and himself conduct further
hearing in Washington II he con.
sidered the grounds for appeal well
taken.
From him an appeal would lie to
the Secretary, whose findings Of
cept upon proof Of fraud or plain
and serious error.
His Order Goes AstFay.
Somehow the commissioners or.
der Of January IA. 1914. went astray,
and the entire matter lay in
allegiance until February 2, 1921,
when it was discovered in the
CLOSED files" Of the San Francisco
field division office and reported to
he commissioner.
The commissioner Immediately
ordered the charges amended to
Ibring them up to date and hearings
instituted in the local land office at
Visalia, as in the ordinary course Of
lsuch transactions.
However, as 1t was also reported
to him that development of Sec-
ton 36 was already well underway,
with the Standard Oil Company
having down nineteen producing
wells and the Pan American COM
pany six producing wells, altogether
taking out from three to four
thousand barrels a day, Secretary
Of the Interior John Barton Payne
and Secretary Of the Navy Daniels
were at once notified OF the situa-
ton. On March 2, Mr.. Payne
notified the Attorney General and
asked him to take steps necessary
to protect the Governments in
terest.
ran TakeS Full Cn9fgo.
This was just at the time. Of the
change in administration and the
matter lay in allegiance for the next
two months, though there was con-
siderable correspondence. On June
8, 1921, Secretary Of the Interior
Albert B. Fall personally conducted
q hearing, taking the case over
direct without the customary hear
lngs or appeals.
Though this is a most unusual
) proceeding, for which there seems
to be no discoverable precedent ex
cept In cases where the establish
ing Of a general policy Is concerned
there is a method for bringing hear
ings directly to the Secretary.
Rules of practice, effective Feb
ruary /, 1911, reprinted in 1921 and
still In force, provide, in Rule IS:
Motion for the exercise of super
visory power Cby the Secretary will
be considered only when accom-
: panied by positive showing o.
extraordinary emergency or exigency
demanding the exercise Of such au
thority."
Oscar Sutro, attorney for thu
Standard Oil Company, appeared a.
LuO uCdEAIlB OL June D, 1871, HHS
presented oral arguments for th'
company.
Counsel for the Interior, Justic'
and Navy Departments also wer,
present, but so far as appears II
the record made no arguments ant
presented no case for the Govern
ment.
Fall Dismlsses Proceedings.
Mr. Fall verbally directed tha
proceedings be dismissed, thereb.
quieting the Standard Oil Company
title to Section 36.
Whether or not this decision oper
ated also in favor of Edward L. Do
henys Pan-American Oil Company
forty acres, there seems to be NJ
record. In the light Of later devel
opments, 1t probably is of little i'm
mediate consequence.
Section 36 is located as nearly a.
possible in the center Of Naval Pc
troleum Reserve No. /, and it wa
upon the expressed theory that tn
entire oil reserve Of the field woul'
be drained that former Secretary Q
the Interior Fall and other official
urged the necessity Of the lease O
the balance of the 38,0O0-acre n
serve to Edward L. Doheny,