Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-30
PROBE by CONGRESS.
SEEN IN OIL CHARGE.
AccuSer of Wilbur Declares
He Is Ready to Appear
Before. Committee.
Continued From First page.l


inKton to take charge of the very work
he criticized The Secretary said Kelley
had never reported to him for this as
signment, but had worked in the Land
once here for about q month after
August S, during wilbur's absence.
Commenting on Wilburss statement.
Kelley said much of 1t was correct, but
that q great deal of 1t requires clarifi-
cation"
Full Text of Statement.
The full text of the statement issued
at 1.-THE Department of the Interior
follows:
secretary Wilbur stated today (Sep-
TENDER 29) that the resignation Of Mr..
Ralph Kelley from the General Land
once, accompanied by general letter
criticizing the departments administra-
ton of oil shale lands, had come as a
surprise in view of the fact that Mr.
Kelley, on July z, was ordered by the
Secretary to Washington from Denver
to take charge of this very work, and
has not yet reported to the Secretary.
His offer of resignation first reached
Secretary Wilbur through the news
papers.
He reported for duty at the General
Land once about August 5 and worked
approximately a month, during the Sec
retary's absence. Secretary Wilbur has
declined to accept the resignation in
view of the seriousness of the charges
made and has directed Mr.. Kelley to
Immediately file the names Of the COM
panies referred to in his letter with the
dates and nature Of the transactions
mentioned. Mr.. Kelley has been
suspended. >
that no leases for oil shale have Ssen
= IL. 1T ~.
Presidents oil conservation policy vas
carried into effect by order Of the De-
partment on March Is, 1929, as to both
oil and shale, although oil shale has
only q potential value until some eco
nomical process for extracting the oil
Is discovered.
However. the Secretary's discretion
10 refuse to issue leases does not, I'M
der the law, extend to claims located
under the old mining laws before the
mineral leasing act came into effect, in
1920. The mineral leasing act left in
tact such claims so long as they were
maintained In accordance with the for
mer law.
prior to 1920 several thousands of
these claims had been located in Colo
RADIO. Utah and Wyoming, covering in
excess Of 100000 acres. The depart
ment, under Secretary Work and Secre-
tary wilbur, followed the policy of in
sisting on performance by these locators
Of 500 assessment work per year on
penalty Of defaulting their claims. 1t
was the departments construction of
the mineral leasing act that such assess
nent work, prescribed by the old mining
laws, was required in order to keep the
claims in good standing under the new
law. This position was contested by the
various oil shale claimants, who car
ried the case Of Krushnie vs.. Wilbur,
Secretary, TO the United States Supreme
Court.
Court ReverSes Decision.
'The Supreme Court, in deciding the
case, reversed q decision by the de-
partment The department had held
that an oil shale location was forfeited
to the Government for failure to do as
sessfnent work, even though work had
been resumed before the forfeiture was
claimed. The Supreme Court decision
required the withdrawal of the depart
naents adverse action against a consid-
cradle number Of applications for pat
emit, and since then 81 applications, in
volving approximately o,100 acres, have
gone through to patent, in consequence
Of the Supreme Court decision.
However, because the adverse Krush-
mic decision left open the question Of
whether the department had the right
70 declare these claims forfeited II such
forfeiture was demanded before the 10
Gator had resumed his assessment
work, Secretary Wilbur, Immediately
after the Supreme Court decision came
down, directed that action be taken
against all claims then In default upon
which work had not yet been resumed.
Accordingly, practically every available
man in the General Land Once field
force was assigned to the duty of post
ing notices on oil shale claims that the
Government claimed the land for de-
fault. approximately $500 notices
were posted during the current season
and these claims now await adjudica-
ton. In addition adverse proceedings
were directed against 3,0s1 other Oil
shale placer locations.
"Of this number, 2,07e have been adj
Indicated as null and void by the de-
partment after notices we're served on
the claimants Of default, in assessment
and failure to resume work. OF the
S.700 oil shale claims that have been
posted, there are included about $4,000
acres, and in the 30el additional
been instituted, approximately 492, $50
acres, making Q total Of ]. 404 $50 acres
involved in such claims against which
challenge has issued on the orders of
Secretary Wilbur.
Claims have been allowed to 60 TO
patent only in cases where the Krush-
ME decision declared the rights Of the
claimants still in good standing and
then only after careful field examina-
ton as to compliance with the laws
requirement of $500 worth Of develop
nent work. The department has tnsti-
tuted charges Of default in assessment
work against so applications for patent
and charges Of insufficient patent ex-
penditures against 1877 claims. One
hundred and seventy four claims now
up for patent have been rejected by
the department on the basis Of lack of
good faith on the part Of the locators.
These challenged patent applications
have not yet been adjudicated.
Contest Right 20 Challenge.
'The right of the department to chal-
leng locations, as well as patent appli-
cations, for failure to do assessment
work has been vigorously denied by oil
shale claimants. Secretary Wilbur,
however, has declined to recede from
the requirement that such work be done
and there are now pending in the de-
partment test cases which the locatorS
asserted they plan to take into court.
bills were introduced in the House
at the last session Oh. r. 3754. H. r.
1902, Il. II. l3l1B1) 10 compel .modi-
ficatien OF the conservation policy re-
specting oil shale. Secretary Wilbur
appeared in opposition to the legisla-
ton and IN favor of conservation. Hear
inRs on all three bills have been pub
lished None OF these bills was enacted
1.-THE majority Of oil Shale claims
stand in the name of individuals or as.
sociations of individuals, made uT
largely of local people in the imme-
date vicinity. Whether so-calleC
large oil companies purchase these
claims after patent is a matter ovel
which the department has no informa.