At the close of the fiscal year, 638 civil cases and 174 cases wherein criminal prosecution was recommended were pending before the Department of Justice.

Effective July 1, 1915, a consolidation of the field service was directed; the Los Angeles field division was abolished, the State of Arizona being consolidated with the Santa Fe (N. Mex.) field division and the Los Angeles district being placed under the jurisdiction of the San Francisco field division. The Duluth (Minn.) field division was also abolished; the State of South Dakota was placed under the jurisdiction of the Cheyenne (Wyo.) field division, and the administration of the work in the States of North Dakota, Minnesota, Wisconsin, and Michigan was placed under the chief of field service of this office.

By these changes the expense incident to the maintenance of these two headquarters is saved, without impairment of efficiency in the administration of the work.

THE OIL LAND SITUATION.

The investigation of locations and filings on lands withdrawn as oil in California, Wyoming, and Louisiana constitutes one of the most important and pressing branches of the work of the field service.

All these filings, entries, and selections must be investigated to determine the rights, if any, of applicants and locators. As to those who assert claims under the mining laws, the investigation must go, not only into the bona fides of the locations and applications for patent, but also into the question as to whether or not the claimants were in diligent prosecution of the work leading to discovery prior to the withdrawal of the lands. It is important that the rights of all who assert any claims in these withdrawn areas be promptly determined in order that the lands may not be drained of their petroleum contents by those having no rights thereto, and in order that it may be definitely determined what lands remain subject to disposal by the Government.

In California alone there are over a million and a half acres within the withdrawn area, of which about a million acres are patented lands. More than one hundred thousand acres are embraced in pending filings, selections, or entries, and there are over four hundred thousand acres for which no filings have been presented to the local land office, but which are doubtless covered by mineral locations recorded in the various mining districts.

During the year, 11 mineral and 44 agricultural claims, embracing 7,060 acres, have been patented; adverse proceedings have been instituted challenging the validity of 41 mineral and 42 agricultural claims, with an acreage of 14,803; 15 mineral and 39 agricultural claims, embracing 10,887 acres, have been canceled; there are now

pending, under various stages of investigation and action, 145 mineral claims, embracing 34,547 acres, and 340 agricultural claims with an acreage of 54,029.

While I anticipated that at the close of this fiscal year practically all the investigations in California on pending applications would be completed, my hope has not been fully realized. However, the most recent reports indicate that in a few months we shall be in a position to take action on nearly all these pending cases. Much has been accomplished during the year, considering the magnitude of the work, the difficulties involved, and the necessity for exhaustive investigation of intricate details; the cases are being closed up and reports are now coming in which will afford a basis of action. The investigating force has been still further increased over that which operated last year and the chief of field service is in San Francisco in personal supervision of the work.

In addition to the examination of claims pending before the Land Department, the investigation of lands and securing evidence to predicate action by the Department of Justice to recover by suit valuable oil lands the title to which has been secured by fraud, has been pushed. As the result, four suits have been instituted against the Southern Pacific Railroad Co. to recover title to 56,579 acres. With those already instituted, there are now eight suits pending in the Federal courts in California, involving 159,580 acres.

Six suits, involving 877 acres, have also been brought to recover for trespass committed in violation of the Executive withdrawal orders. In most of these cases operations have been continued under receiverships ordered by the court in order to conserve the property pending definite determination of title.

In Wyoming there are about 600,000 acres now under withdrawal, of which about 65,000 acres are patented. Since September 27, 1909, the date of the first withdrawal, 11 mineral entries, embracing 1,500 acres of withdrawn land, have been passed to patent after investigation by the field service. Three of these entries were canceled in part as the result of investigations which disclosed the use of 'dummy" locators, the area canceled amounting to 290 acres. Investigations have been made of a number of pending applications, and also of locations for which no applications for patent have been filed.

The situation regarding the lands withdrawn in Wyoming is quite different from that in California, for the reason that Wyoming is the newer field and there are very few locations on which operations are being conducted for which application for patent had not been filed. In California, many locations are held under the possessory title only without steps being taken to procure patent. The situation in Wyoming is complicated by reason of the fact that while active

operations in the field are comparatively recent, yet a considerable number of locations were made many years prior to active operations, and adverse claims under section 2326 of the Revised Statutes have been filed against most of the applications for patent. Thus all action looking toward the issuance of patent is stayed pending determination of the possessory title.

Three trespass suits, involving 680 acres, have been brought by the Department of Justice as the result of investigations made by the field service in the withdrawn areas.

The area of unpatented lands embraced in the withdrawals in Louisiana is relatively small and the interest of the Government in these areas is largely involved in the proceedings known as the Ferry or Caddo Lake case which is dealt with in another part of this report. The general situation has been greatly clarified by the decision in the case of the United States v. Midwest Oil Co. (236 U. S., 459), which upheld the power of the Executive, in the absence of specific authority from Congress, to withdraw lands from appropriation and to reserve them for public purposes. The decision of Judge Bledsoe, rendered in July, 1915, in United States v. Pacific Midway Oil Co. et al., in the southern district of California, was the first judicial expression as to what constitutes diligent prosecution of work leading to a discovery so as to except a claim from the force and effect of an Executive withdrawal.

OIL CONTRACTS.

The act of August 25, 1914 (38 Stat., 708), affords temporary relief to applicants for mineral patent for lands valuable for oil and gas which are embraced in orders of withdrawal. Under this act, the Secretary of the Interior is vested with the discretion of entering into contracts providing for the disposition of the oil or gas produced from the tract embraced in the application for patent, or any portion of it, upon such terms and conditions as he may prescribe.

After careful consideration of the situation in the various oil fields a form of contract was drawn up which is clear in its terms and free from hampering and technical restrictions, yet withal, due regard is had for the interest of the Government.

It was concluded that one-eighth of the gross proceeds would be a fair and just proportion to be placed in escrow, to be paid over to the United States in case the application for patent was denied. The seven-eighths allowed to the operator is regarded as equaling the expense of operation plus a fair return upon the investment. However, the right is reserved to increase the royalty exacted at any time, should it be deemed proper and advisable to do so.

During the year 15 applications for contracts have been considered and allowed. The present prospects are that a considerably greater number will be presented during the coming year.

"SUNK LANDS" AND "LAKE LANDS" IN ARKANSAS.

The legal status of the cases involving the "sunk lands" and "lake lands" in northeastern Arkansas has not been changed since the previous annual report. An appeal was taken, however, by the defendants in the test suit of the United States v. Lee Wilson & Co. et al. (214 Fed., 630). The appeal has been argued and a decision is expected during the early fall. Five similar suits, involving so-called Buford, Clear, Flat, Grassy (including Campbells' Old Field Lake), and Walker Lakes, have been prepared and are now being prosecuted by the Government. It has not been definitely determined whether or not it will be necessary or advisable to institute other suits to quiet title to all of the various tracts of the "sunk lands" and "lake lands" in northeastern Arkansas, claimed by the Government. That question will probably be determined soon.

On November 18, 1914, supplemental plats of townships 12 and 13 N., range 9 E., and of townships 11 and 12 N., range 10 E., were approved. Approximately 8,822 acres within those townships, situated in Mississippi county, had been erroneously shown upon the original plats as Carson, Hickory, and Tyronza Lakes. The lands within those so-called lake areas were opened to homestead entry February 10, 1915.

The supplemental plats of townships 15 and 16 N., range 6 E., of townships 15, 16, and 17 N., range 7 E., and of township 17 N., range 8 E., were approved May 24, 1915. Approximately 16,990 acres, situated in Craighead and Greene counties, erroneously shown upon the original plats as "St. Francis River sunk lands," "waters of the St. Francis River," and "Bagwells Lake," were opened to homestead entry July 16, 1915.

In the completion of the surveys of the areas above referred to, the promise made in the report of last year that the work of surveying, which had then been directed, would be finished this year, has been fulfilled. The surveys of the "sunk lands" and of the above mentioned lake lands have been completed, and all of the lands within those areas, comprising approximately 87,000 acres, of what will be, when developed by cultivation, among the most valuable lands in the State, are now either embraced within homestead entries or are subject to entry.

On May 1, 1914, the Department of the Interior rendered a decision in which it held that portions of sections 1 and 12, township 8 N., range 8 E., and of section 7, township 8 N., range 9 E., comprising about 571 acres of the eastern end of the area shown upon those plats as Wappanocea Lake, are public lands which were erroneously omitted from the original surveys. Those areas were surveyed during the past year and supplemental plats were approved on July 21, 1915.

The statement was made in the report for the fiscal year ended June 30, 1914, that on July 16, 1914, the Department of the Interior had rendered a decision in which it held that the title to the lands within the areas of so-called Big, Brown, and Round Lakes, is vested in the Government, and that the survey of the public lands within those areas had been directed. Since then the surveys of those so-called lake areas have been made and on July 21, 1915, the supplemental plats of township 11 N., range 8 E., and of township 14 N., range 11 E., within which the lands in so-called Brown and Round Lakes are situated, comprising approximately 1,033 acres in Crittenden and Mississippi counties, were approved. The supplemental plats of townships 14, 15, and 16 N., range 9 E., and of townships 15 and 16 N., range 10 E., within which so-called Big Lake, comprising approximately 22,513 acres of public lands in Mississippi county, is situated, have been nearly completed. It is expected that those plats will be ready for approval within a few weeks. The public lands within the areas of so-called Big, Brown, and Round Lakes will be opened to homestead entry at a comparatively early date.

The permanent water area of Big Lake is said to be, without exception, the finest refuge for ducks and other wild fowl in the Mississippi River Valley. Many persons, locally known as "market hunters," have engaged for years in the practice of annually shooting vast numbers of the birds and of shipping them to the markets in the neighboring States. This practice has threatened the extermination of the birds, and as a result stringent State and Federal laws have been enacted, and the conditions have been improved somewhat. In order that the above referred to bird refuge shall not be further disturbed, this office recommended that a strip of land bordering upon the water area of Big Lake, together with all islands within the lake, be set apart as a bird reserve. The recommendation met with the approval of the United States Biological Survey, and on August 2, 1915, the President issued an Executive order creating the Big Lake Bird Reservation.

Hearings have been held at which testimony was taken for the purpose of determining the question of title to the areas locally known as Dismal, Hudgens, and Mills Lakes. Similar hearings have also been ordered involving the areas locally known as Barfield, Carters, Cypress, Golden, Long, Swan, Youngs, Grassy, and Round Lakes (there are two so-called Grassy and Round Lakes in northeastern Arkansas, and the Grassy and Round Lakes mentioned in this paragraph are different areas from those referred to as Grassy and Round Lakes in the preceding paragraphs), and certain fragmentary tracts within "Little River," "Left Hand Chute of Little River," and "Right Hand Chute of Little River." Those hearings will be held during August, 1915. Decisions involving the question of title to all