Evening star., 1928-05-27
SALT CREEK LEASE
VO|D|NG FORECAST
Former Assistant to Attorney
General Says U. S. Could
Cancel Agreements.
By the Associated Press.

By the Associated Press,
Confidence that investigation Of the
Midwest Oil Co. leases in the Salt
Greek, Wyo.. field would warrant Gov
ernment suits for cancellation. was eX-
pressed to the Senate public lands COM
mittee yesterday by Robert c. Bell
former special assistant to the Attorney
General.
Bells report after an investigation
made IN I9ls-ie2o charged dummy
locations and that interlocking stock
ownership gave the Midwest interests
actual benefit OF acreage in excess of
l@~al limits. The presentation of this
:~por: IN the Senate and similar ind
.1g by A. c. Bouton. also a former
Department of Justice agent, prompted
the resolution under which the COM
mittee is acting
Holds Contracts Known.
At yesterdays hearing. Bell did not
materially amplify his original charges,
which were considered by the Depart
flent of the Interior before the chal-
lenged leases we're authorized in 1921
hv the then Secretary, John Barton
Fayne. He argued that the existence
cf record of contracts between William
q. HenShaw and William ~ FitZhugh,
controlling the group making the
original locations later acquired by the
fIidwest interests, under which Hen
shaw was to receive three -fourths of
the property for financing the work.
was sufficient notice to their aSsignees
that the other names used in the loca-
lion filings in order to obtain large
acreage were in reality dummies.
Carl c. Schuyler and former Gov.
Oliver Shoup of Wyoming. who organ
lzed the Midwest Oil Co. and the Reed
investment Co. and negotiated the
transfer of the FitZhughH Henshaw loca-
tons TO those companies, had full
knowledge of those contracts, Bell said
Mr.. PAYNE. who was before the COM
mittee during the week. told it that in
hearings he held personally while In
terror Department head and at which
both Bell and Bouton presented their
views. it had been found that no suf-
acient showing of guilty knowledge or
reasonable ground to have knowledge
Of fraudulent locations on the part of
me lease applicants had been made.
Senator Pittman Queries.
Senator Pittman. Nevada. asked II
the Bell charges did not come down tC
The one question of reasonable ground
Tor the lease applicants to have knowl-
edge of fraud.
Il had the impression that the Fitz-
hugh -Henshaw contracts were evidence
Of dummy locations" Bell said.
Personally. I don't believe it has
been proved that the applicants had
y should have had such knowledge"
senator Pittman said adding that the
alleged dummy" locators had been
brought into a suit in California. Bell
saio ne had vague recollection only as
TO that.
Senator Walsh Montana, asked II
there was any suggestion in Bells mind
d corrupt action by Government Of
neials IN connection with the making
Of the leases.
am not making any such sugges-
non. Bell said. II have no inforrna-
ton of that kind"
Have you any information that any
sums were paid to locators for use of
their names as dummies?" the Senator
asked.
The testimony viii show that small
sums we're paid"
Some evidence of that kind would
oe persuasive
II think it could be found in the
files Of the land Office" Bell answered
At the close. Bell touched on his
charge Of interlocking stock owner
ships
one concern is getting all the oil
u the Salt Greek field and that is the
standard Oil Of Indiana" he said. "It
mas practical monopoly of the OIL
business in Wyoming and adjacent ter
ritory and the Government is largely
responsible because of its method OF
leasing the Salt Greek field. Then IL
finished the job By leasing the Naval
reserve"
Bel was told by Walsh that the COM
r1ittee was planning TO scan closely how
7 happened that the Indiana company
through the Midwest Refining Co came
70 enjoy any sort of oil monopoly.