The Elk Mountain pilot., 1924-03-20
By JOHN GUNN, in Labor.


sprang from the oil investigation last
Friday, when members of the COM
mittee charged that the deliberate
failure of Attorney General Mitchell
Palmer to appeal suit against the
Southern Pacific Railroad company
resulted in the permanent loss of
public oil lands valued at $421, ,OOO, 900
which otherwise might have re-
manned in the governments posses
sion. The lands comprised 100000
acres in California, including large
area of the Buena Vista naval re-
serves.
The colossal stature of the trans
action may be measured by compari-
son with other transac tions under in
vestigation. Teapot Dome. which was
leased to Harry Sinclair contains
$500 acres, and Elk Hills, leased to
E. L. Dohney, contains $4,000 acres.
Palmer, although former Democrat
ic cabinet officer, received the sever
est grilling from Senator Walsh and
Dill, Democratic members of the
committee, with Chairman Lenroot
actively supporting their attack.
During the present inquiry Palmer
has represented Edward B. Mclean
before the committee, in presenting
McLean's explanation of the 100000
loan to Albert B. Fall. In fact, he
was described in kilograms to Me-
Lean as law partner of 2. w. Zevely,
Sinclair's personal attorney but Palm
er denied this. He said, however, that
he and Zevely are old friends, and
that they had conferred on the ques-
tion of the committees power to
make Fall and Mclean, testify.
History of Southern Pacific Case
In the matter of the Southern Pa
cific suit, he took the stand that he
had acted upon the advice of his sub
ordinates and in accordance with his
own Judgment, in deciding not to ap-
peal, and that the differences between
himself and the members of the COM
mittee was simply dissent between
legal opinions. 7,s-
The history of the case, as revealed
by the testimony, lis as follows: Sew
eral years ago the Southern Pacific
laid claim to. vast area of public
land, under grant from the state of
California. Some of the land was
in what later became the Elk Hills
and Buena Vista naval oil reserves,
and the remainder was in various
parts of southern California.
At the instance of Secretary of the
Navy Daniels, suits to oust the COM.
pany were filed by Attorney General
Gregory. One suit, involving the
lands in the Elk Hills reserve, was
known as the Elk Hills suit, and the
other involving the remainder of the
lands, became known as the Southern
Pacific suit.
The Elk Hills case was tried first,
and the lower courts decided against
the government. The suit was ap-
pealed While it was pending the
Southern Pacific suit came to trial,
and the court following the deci-
sion in the Elk Hills suit, also de
cided against the government. Then
the United States Supreme Court re-
versed the lower court in the Elk
Hills case, and permanently awarded
the lands to the government. Palmer,
who had succeeded Gregory as Attor-
ney General, never appealed the
Southern Pacific case, although it
was shown that plenty of the time
to perfect an appeal after
the Supreme Court decision in the
Elk Hills case. AS result of this
failure, the time allowed for appeal
expired, and the Southern Pacific's
title became permanent.
"These two cases stood on precisely
the same footing" declared Senator
Walsh. 81 would like to know, Mr.
Palmer, why, with decision of the
Supreme Court to support your posi-
tion, you failed to appeal the second
case"
81 don't agree that the cases were
alike" Palmer replied. ""In the Elk
Hills case the lower court decided
against the government upon the
point of law involved. That left the
way open for. appeal and a review by
the Supreme Court. In the Southern
Pacific case, the lower court decided
against the government on the law
and the facts, which left no recourse
to the higher court"
Senator Walsh .Grills Palmer
"Do you mean to say" Walsh ex-
claimed. "that in your opinion the