Show Whirligig Shady Deals In Oil Lands Are Exposed B By Ray nay Tucker WASHINGTON Revelations of a a. year 15 oil all steal that was put over on thousands of midwest midwest midwest mid mid- west and southern farmers may provoke a major senate Investigation investigation gation gatlon of agricultures agriculture's handling of or the nations nation's petroleum re resources resources resources re- re sources which it acquired in farm foreclosures from 1934 to 1949 Besides nicking the taxpayers millions of dollars donars these deals have deprived former and present present present pres pres- ent property owners of large sums and cast a cloud on their titles There arc are also signs of collusion between certain inside parties and purchasers of land which began to produce oil immediately immediately immediately im im- im- im mediately after the sales at bargain bargain bargain bar bar- gain rates The details aroused considerable considerable considerable consider consider- able indignation when submitted to the senate by Sen John J. J Williams of Delaware who had conducted a quiet one-man one in inquiry inquiry inquiry in- in for many months before he could obtain confirmatory facts from reluctant and evasive officials However official re reports reports reports re- re ports and admissions bear out his findings and charges No Recourse Indeed the policy was renewed almost as soon as he began asking asking asking ask ask- ing questions about the situa situa- tion But the reversal was not ordered until 19 19 15 years after the questionable program was inaugurated during the Henry Wallace regime The farmers who lost out have no recourse Sen Williams is especially in interested interested interested in- in in the fact that property property property prop prop- erty sold for a song by the government government government gov gov- immediately assumed a afar afar afar far higher value because of the discovery disco and actual production of oil He expects to have more complete information for his as astonished astonished astonished as- as associates when congress congress congress con con- gress reconvenes in November The process of siphoning petroleum petroleum petroleum pe pe- pe- pe profits from distressed farmers and subsequent buyers was amazingly simple as explained explained explained ex ex- by spokesmen for such various agriculture agencies as the Farm Credit administration and the Federal Farm Mortgage Corp lick Held Mineral Rights During the depression these organizations acquired thousands thousands thousands thou thou- sands of farms throughout the country but particularly in the midwest and south When the government subsequently disposed disposed disposed dis dis- dis- dis posed of these properties by resale it reserved to itself 50 of the subsurface mineral rights But the administration salesmen salesmen salesmen sales sales- men did not notify the new buyers buyers buyers buy buy- ers of this reservation Even worse it sold these rights in large and small percentages to outside speculators without giving the new owner a chance to buy them In short the underground underground underground un un- with its possibly valuable valuable valuable val val- deposits was sold from under under under un un- der th the farmer I a In several ways this withholdIng withholding withholding withhold withhold- ing of a purchase price and in information information information in- in formation has serious consequences consequences consequences conse conse- for present owners At any time derricks and other drilling rigs may be erected in inthe inthe inthe the middle of a field he has planted to his money crops Since subsoil rights have been sold in amounts of 1 l 1 l and other fractional percentages percentages percentages per per- it might cost him more than his land is worth to clear the title if he should want to sell Officials Involved Incidentally several officials of the St. St Louis office of the Farm Credit administration have been discharged for forming an investment pool to buy up these mineral rights But they were not ousted until Mr Williams questioned the propriety of their engaging in m such transactions Incidentally all these sales of subsoil rights were negotiated rather than effected by competitive tive public c bidding Thus the outside speculators in many cases seems to have been insiders insiders insiders in siders Not Even Smart The governments government's real estate men were not even smart oper oper- For instance on a acre farm near Scottsville Mich the they sold quarter one-quarter of the federal mineral rights for seven days before a discovery well drilled by the Roosevelt Oil Co had been completed Two months later after this sign of oil the government sold another quarter for 2500 Three months later after considerable oil activity Uncle activity Uncle Sam signed away the last of his mineral rights for These sales disposed of land landIn landin landin in the midst of a proved pool Today there are 10 production wells on that one farm There has not been a dry hole on it And this is the only one of many similar examples Incidentally the farmer who lost this land to the government in the first place got only from the deal Note Equally peculiar handling handling han han- of oil resources has been discovered in other departments especially interior |