Evening star., 1925-11-29
INTEREST in OIL LEASES
! REVIVED BY NEW i. S. SUIT
Denial of Federal Injunction Against
Standard Oil Righ to Section So Shows
l. Whole Program Closely Linked.

1 who, in turn, directed hearing in the
matter. and that the State Of Cali
fornia and the Standard Oil Co. be
called. But there the matter rested
! for years. 1t was in 1920 that 1t was
called to the attention of the interior
| Department. and Assistant Secretary
of the Interior Finney and the Com
missioner of the General Land Office
| agreed that the proceedings go for
ward. They turned the file over to the
} Department of Justice March 3. 1921
| and suggested a suit to enjoin the
Standard from taking the oil out OF
| section Sc.
| The upshot of the matter was that
counsel for the Standard Oil Co. wen,
before Secretary Fall of the Interior
| Department and Secretary Fall dis
| n,..sed the proceedings, holding that
the title had passed to the Standard
| Oil Co.
Probe Brought Suit.
The present effort of the Govern
ment to establish its claim to section
sc grew out of the Senate investiga
| tionS of the leases of the naval oil re.
serves made to Doheny and Sinclair.
| The other oil Sui-s in connection with
those leases hay Z moved along apace.
The Government won its case against
Pan-American Oil. the Doheny inter
ests, in Los Angeles. where Judge
Paul j. McC Ccrmick held there had been
fraud in the lease by Fall of Naval
Oil Reserv" No. l. An appeal of this
case to tie Circuit Court sitting in
San Francisco was argued October 5.
and q :ciSion in that appeal is eX-
pected il December. Whichever way
1t goes, an appeal to the Supreme
Court IS in prospect.
On the other hand, the Government
lost its case against the Mammoth
OH Co, the Sinclair interests, in which
1t sought to show fraud in the lease
OF Teapot Dome, the naval oil
reserve in Wyoming. Judge T. Blake
Kennedy held in this case that fraud
had not been shown and that the
| lease was beneficial to the Federal
Government. The Government has
filed notice of appeal in this case to
the Circuit Court of Appeals, and 1t
| probably will not be heard until the
| court meets in st. Paul in May.
The Government lost. too, in its
case against the Belridge Co. to
which Secretary Fall had leased a
small strip of Naval Reserve No. l in
California to drill offset" wells so as
| to protect the oil in the reserve from
drainage. This company drilled a
dozen wells. Judge w. b. Sheppard
in Los Angeles held for the company.
Cases on Calendar Here.
The courts of the District Of
Columbia still have several other oil
cases before them. On April 3, 1925,
Chief Justice Mccoy dismissed the
indictments brought against Fall and
Doheny charging bribery and con-
spiracy to defraud the Government.
and the indictment of Fall and Sin
clair, charging conspiracy. on the
ground that an agent of the Depart
ment of Justice had been in the
grand jury room when the indict-
ments were obtained.
Because of the statute of limita-
tions. 1t has been impossible to in
dict again Fall and Doheny on the
bribery charge. However. indictments
have been found again in the con-
spiracy charges against Fall and Do
heny on the one hand and Fall and
Sinclair on the other.
The Government has appealed from
the decision of Chief Justice Mccoy
dismissing the indictments of Fall
and Doheny on the bribery charge,
and the appeal was argued Novem-
Der 3. The Court of Appeals will
either hand down an opinion in this
case December 7 or the matter will
Arguments Due Soon.
The defendants in the conspiracy
cases have entered demurrers and
their arguments will be heard in the
District Supreme Court December 4.
Since the institution of the various
suits relating to the leases Of the
naval oil reserves to Doheny and Sim
clair such operation of the oil wells
as has been under way has been
under receiverShip representing the
Government and the lessons. with the
idea that there may be an adjust
ment made finally of the equities
OF the Government and the lessons
in the event the properties are turned
back to the Government. New wells
have not been drilled. At the same
time further development by the
Standard Oil Co. of section So has
been halted, pending the final dispo-
sition of the proceedings now under
way.