The Washington times., 1924-03-20
REVERSED
PAYNE'S
- Till m
Protest by Daniels Also Over
ridden by Doheny's "oId
Boyhood Friend"
BY JOHN T. LAMBERT,
Cosmopolitan News Service.

ny JOf1N Il. LAMBERT,
Cosmopolitan News Service.
How Albert B. Fall three times
Get aside important decisions by
the Department of Interior and
made enormous grants to private
corporations Of naval oil reserves
worth many millions, was revealed
today in the public records by
John Barton Payne.
Judge Payne was Falls pre-.
decessor. He held the office for
q short time on the tail-end of
the Wilson Administration.
The records disclose a powerful
attempt Of influential corporations
70 gain a vast tract of valuable
oil in each of the three reserves
now brought to public notice by
the Teapot Dome scandals.
Lost BY q Mistake.
In reserve No. l, the Elk Hills
area OF California, Judge Payne
round that the country had lost
possession of the famous Section SO
Dy the mistaken decision that the
And was not mineral.
Inc Standard Oil Company had
gained control of all but 100 acres
there and those 100 acres were held
oy the Doheny interests. Far from
not being mineral land, the tract
was estimated to contain at least
$1OO,OO0,OO0 worth Of oil.
Judge Payne decided that it was
by right the property of the public
and requested Attorney General
falmer to take aggressive legal &C
ton to get it back. That was near
the end of the Wilson term.
Mr.. Fall shortly came into office
and reversed the Payne decision.
told the Land Office to quit, and
allowed the Standard Oil COMPANY
TO retain its grip on the valuable
tract. President Coolidge has now
appointed Attorney knight to re-
gain the property.
In reserve No. 2, he found that
the Honolulu Oil Company had
made claim to about 1000 acres,
containing oil to supply the navy in
time OF national peril, which might
measure the difference between
victory and defeat at the hand Of
foreign foe.
Fall Reverses Daniels.
Secretary Josephus Daniels, pro.
testing the claim, declared the navy
must not be imperilled. Judge
Payne held a public hearing and
decided against the Honolulu Com
pany.
Mr.. Fall. shortly after his as
sumption of the office, OVERRIDE the
decision and gave leases on the oil
lands to the same corporation.
The records show. that Judge
Payne had requested the Attorney
General to regain the vast amount
OF land held In that reserve by the
Southern Pacific railroad. but the
suit was defeated in the courts.
In reserve No. 8, a claim had
been made to the oil lands by
John c. Schafer. Judge Payne held
Schafer's claim 10 be futile and
ruled against it. The recent hear
tngs disclosed that Fall granted the
claim to Schafer, who sold it to Sim
clair and netted probably $4,000 for
himself
Payne Rejected Claims.
Judge Payne granted no claims In
reserve No. /. He left no claims
pending there when he retired from
office. He rejected all claims in
reserve No. 3, and left the Teapot
Dome without the smudge of a
claim.
In reserve No. 2, from which he
0usted the Honolulu and in which
he recommended action against the
Southern Pacific, Judge Payne found
that all but 5000 Of the 80, 900 acres
was In private hands, already an.
proved to private claimants.
The reserve had been entirely
broken up. He leased possibly fifty
wells there, because of the manda-
tory requirement of the law. But
each individual lease was for a
single we'll, offset wells were driven
to overcome possible loss to the rub.
lie and each lease was first an.
proved by the Navy Department.
outside the navy reserves, Judge
Payne made many leases, as re-
CURED by the leasing law. Rules
ana regulations had been issued for
tnat purpose and the amount Of
royalty to be paid the Government
Oy the lessees were duly fixed.
Payne Lost No OIL.
. All leases were made under com.
petitive bidding after public adver.
Using.
Judge Payne declared for conser-
walton. He declared his belief that
the public domain should remain in
the public's hands.
Regardless Of his personal feel.
ings In the matter. the mandate of
Congress, as expressed in the leas.
Ing bill which 1t passed, was def.
nitely In favor Of leasing oil lands
under the terms Of that act and Of
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