The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-08
HARDING 5
OK. HELD
LACKING
Democrats on Public Lands
Committee Plan Court
Action
BY KENNETH CLARK,
International News Service.

Court action by the Government
20 recover 3,O57 acres in the
Buena Vista, CAL, naval oil re-
serve, leased by ex-Secretary Of
Interior Albert B. Fall to the
Honolulu Consolidated Oil Cor
poration, loomed as a strong pos
sibility today.
Following a report by E. C..
Finney, Assistant Secretary Of
Interior, that he was unable to
ind in the Departments files any
record that Fail obtained the ap-
proval of the late President Hard
ing to lease the reserve, Demo-
cratic members Of the Public
Lends Committee indicated they
would ask that prompt steps be
taken to regain the land.
Authority In Question.
The law specifically provides that
leases upon the public domain must
receive the approval Of the Presi-
dent. Senator Walsh Dem.) Of Mon.
tAna pointed out.
Ex-Governor j. v. Gillett, Of Cali
1ornia, counsel for the Honolulu
company, In q brief filed with the
committee today. declared that Mr..
Harding gave Fall blanket au-
thorlty to lease naval reserves. He
further said that the validity of
the lease had been contested in
court in 1922 and that a decree
fAvoring the company was handed
down.
In a private conference with
Walsh, however, Gillett, said he
did not know whether the court
had been advised that the depart
ment could not find authorization
for Fall to grant the lease, which
was executed after Ex-Secretary of
Interior John Barton Payne. with
the SANCTION Of the late President
Wilson. had denied the company
patents upon the oil land.
II this were not done, Walsh
declared the Department of Justice
should take the case to higher
courts upon appeal.
Explained BY Gillett.
For relinquishing all its rights in
the reserve to the Government,
Gillett said Fall granted the COM
pany a lease. The company has
already spent more than $1,000, 900
IN development work there, he
added.
Under this lease" Gillett's brief
AHAfAA "ontfncD In thA hast 0f
the company has drilled wells and
further improved the property at
great expense. It's right to this
lease Is now challenged, even after
q decree Of a court has confirmed
Il. When will this prosecution
cease? When will the company be
permitted to go forward un.
molested2
ut has been said that there
cannot be found in the records any
evidence showing that the Presi.
dent Garding) approved the lease,
but the Honolulu Consolidated Oil
Corporation always understood and
believed 1t had been. 1t believed so
when the lease was executed and
believes so now"
Quotes Letter BY Harding.
Gillett quoted a letter which Mr..
Harding wrote to the Senate on
June Z, 1922, in support Of his con-
tention that Fall had authority to
grant the lease. President Hard.
ing said In part:
II think it is only fair to say
In this connection that the policy
that has been adopted by the Sec
rotary Of the Navy Denby) and
the Secretary Of the Interior Fall)
in dealing with these matters Oeases
upon naval oil reserves) was sub.
mitted to me prior to the adoption
thereof, and the policy decided upon
and the subsequent acts have at all
times had my entire approval"
In addition to investigating the
Honolulu lease, Walsh said the
committee would make inquiries
into leases upon the Salt Creek
field in Wyoming, and the Cat
Creek field in Montana. To carry
out these Investigations, Walsh de-.
clared he would ask the Senate
to give the committee authority to
conduct hearings during the recess
this summer.