Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-30


alleged stock market speculati0ns.
------------------------
to issue leases, in accordance with the
general oil conservation policy, and in
Sisttng on strict compliance with the
old mining laws by locators claiming
the benefit of those laws, will continue.
So much Of the field work of posting as
Is not completed this Summer will be
carried on during the next open season
until all defaulted claims have been
posted.
Statutory rights must necessarily be
recognized wherever they are shown.
Applicants for patent dissatisfied with
the departments action will be afforded
every opportunity TO prove their cases
in court.
would welcome the fullest investigation
OF the whole oil shale question"
Text Of KelIey's Letter.
Mr.. Kelley's letter Of resignation, dated
September %, as received at the De-
partment Of the Interior, follows in full
text:
MY Dear Mr.. Secretary: For more
than rs years I have been connected
with the Department of the Interior
engaged in field work, and for the past
six years as chief of Field Division of
the United States General Land Once,
with headquarters at Denver, Colo, /
have had; direct charge of important ac-
Invites of oil companies engaged in sys-
tematic efforts to obtain title by viola
ton OF the United States mining laws
to an immense oil field upon the public
lands Of the United States in Colorado.
The public may not know that there
Is situated upon the public domain in
Western Colorado an immense oil re-
serve embracing an area of approx
occurs in rock called shale.
The amount Of commercially re-
coyerable oil In this field is so stupendous
as to be almost unbelievable. According
to conservative estimates Of the United
State Geological Survey, and other au-
thorities. this oil field contains more
than A. 000. 900 900 barrels OF petroleum,
Of potentisl value, even at the present
low price OF crude oil at around 81
barrel, In excess of $40 900 900 600. equal
to about one-tenth of the entire wealth
of the United States.
This is the huge prize to which the
large oil Interests are endeayoring TO
secure titles by fraud and failure TO
comply with the requirements Of the
United States mining laws. These Oil
interests are thoroughly organized and
act concertedly in bringing pressure to
bear upon the Department Of the In
terror TO induce it to give them these
valuable OIL lands, but to which they are
not rightfully entitled.
Among those in this combination are
several Of the very concerns whose
fraudulent practices have so recently
been exposed In the investigations and
trials Of former Secretary OF. the Interior
Albert B. Fall, Harry r. Sinclair and
others.
Activities Of Companies Shown.
although during the past five years
my once has submitted to the Interior
Department large number Of oxhaus-
tive reports, showing in great detail the
activities OF these large Gil companies,
yet I can scarcely recall an instance
during that period that the demands of
the Oil men have not received favorable
consideration by the Secretary of the
Interior, nor instances in which the
rights Of the public have been upheld.
Concession after concession has been
granted the Colorado oil applicants, not
because they were rightfully entitled to
such consideration, but purely and sim
ply as conciliatory measures because Of
great political or other pressure brought
to bear upon the Secretary.
My continued protests urging that
the interests Of the American people in
this great oil field should receive pro-
lection have been ignored or overruled.
II had high hopes that your admins
tration Of the affairs of the Interior
Department would result in such a
change Of policy that the rights of both
public and private interests In this oil
field would receive equal consideration,
but regret to say that so far as can
observe, attempts to placate and ap-
pease the oil interests at the expense
OF the rights Of the public have been
as noticeable since March 4, 1929, as
heretofore
Pew conciliatory acts OF the ONCE of
the Secretary Of the Interior have gone
so far as TO grant all that the oil in
terestS want, but each recession has
been followed by another and then an
other until, eventual, the entire dis
lance has been traversed and the public
left holding the bag.
I'm my opinion, the adjustment of
the titles Of these Oil lands in such
manner that the rights of the public
therein shall receive adequate protec-
ton tIanscends in importance any other
matters pending before the Interior De-
partment for many years.
In the face OF encouragement due to
continued non-co-operation and active
Opposition on the part OF the Secretary
OF the Interior IN the work of my ONCE
We have nevertheless carried on, but ]
now see that our efforts have been and
will continue to be wasted unless public
opinion can be focused upon the prac.
tees by means of which the titles Il
billions Of dollars of Colorado oil prop.
erty have already wrongfully passed out
of the hands of the Government Il
those who wish to exploit them for then
own private gain.
Il reg: etfully tender my resignation
effective at the close of business Sep.
TENDER is, $780,"