present field season unless you are assigned one or two additional mining engineers, has received careful consideration. While this office is desirous that the examination of these State selections be completed at an early date, yet the general condition of the field work throughout the entire service is such that no additional mining engineers are available for the purpose of assignment to your division at the present time.

Very respectfully,

THOS. C. HAVELL,
Acting Commissioner..

(August 11, 1930-September 6)

STATEMENT OF F. D. WHITE, GENERAL MANAGER, THE WORLD, FOR THE SENATE COMMITTEE ON LANDS IN THE MATTER OF RALPH S. KELLEY

NEW YORK, February 11, 1931.

I had never heard of Mr. Kelley prior to an office conference held about August 11, 1930, when Mr. Lippmann and Mr. Renaud reported that they had had a meeting with him in the office, in which he outlined his proposed statements for publication.

Some weeks after this date, Mr. Renaud reported that he had made a compensation agreement with Mr. Kelley, and later called me to his office where Mr. Kelley was present for the purpose of putting the verbal agreement in written form. When this was done, it was forwarded to Mr. Kelley at his He suggested some unimportant addition which was made, and the amended contract was signed.

Washington address.

The signed contract, and the checks paid to Mr. Kelley in accordance with the terms, together with a photostat of the check-book stubs are forwarded to the committee with all other papers relating to the matter.

I never discussed or communicated with anybody outside the office, concerning the arrangements for the proposed publication.

Return to duty must be noted immediately and signed and returned to chief clerk.

Leave without pay is approved for---‒‒‒‒‒‒_days.

Address while on leave____

Chief Clerk, Department of the Interior.

19-- to

(To be filled out when leave is for more than one day) I solemnly swear that my absence from 19, was entirely due to personal illness; that I employed no physician, but during said period was wholly unable to perform official work or to be present at my post of duty, and was confined to my residence at street during said period.

Subscribed and sworn to before me this

(Signature)

day of

19__.

Notary Public.

CERTIFICATE OF ATTENDING PHYSICIAN

(To be filled in by physician)

I hereby certify that I am a duly qualified practioner of medicine and that I personally attended Ralph S. Kelley in my professional capacity from September 8 to 26, 1930; that during said period I treated him on September 8, 12, 15, 19, 23, 26, and during 24 days was actually physically disabled for the performance of his official duties.

MY DEAR MR. COMMISSIONER: As I have to-day tendered my resignation as chief of field division to the Secretary, I am inclosing herewith request for annual sick leave, September 5 to 15, inclusive, and also the following Government property:

General Land Office telegraph code No. 99; identification card No. 4; transportation identification card No. 1499; book No. B 1647, containing 10 unused transportation requests, I-83961 to I-83970, inclusive.

Will you kindly mail me to the Ambassador Hotel, Washington, D. C., a blank upon which I may make application for return of retirement deduction? Very truly yours,

RALPH S. KELLEY.

(September 8, 1930: Kelley to White)

SEPTEMBER 8, 1930.

Mr. F. G. WHITE,

General Manager the World, New York City.

DEAR MR. WHITE: Receipt is acknowledged of two copies of proposed contract. May I offer the following suggestions:

The contract as framed, seems to set forth our tentative agreement in a satisfactory manner with one or two exceptions. May I invite your attention to the first paragraph on page 3.

At the conference in Mr. Renaud's office on the last day of my recent trip to New York, I obtained the understanding that the contract should contain a provision that upon the acceptance and publication of the first 10,000 words submitted the Press Publishing Co. would be obliged to pay the entire consideration of the contract upon receipt by it of the additional words, no matter whether the additional words were accepted or rejected; and that such acceptance would be as of September 20 or at the time the first 10,000 words were approved and accepted.

My recollection is that I stated that the additional words would be of the same general character and merit as those approved in so far as I could possibly make them. I still wish to reassert my intention to do this and even more. However, I am sure you will appreciate that I can not guarantee the subsequent words will be of as much merit as the first, although I really think they will be and more so, but how can I guarantee it?

I also recall stating to Mr. Renauld, and I think also to yourself, that so far as I could outline the situation in advance I might not be able to prepare more than 20,000 words altogether and would not wish to be obligated to do more than I could do. Were it a commodity I was agreeing to furnish the conditions would be different.

I am sure you would not want me to manufacture material in order to make up a certain number of words. It is my belief that the additional 20,000 words required in the contract will be supplied and will all come up to your requirements. Very likely there may be more. I agree to furnish

you all I can, but I can not very well, as I believe you will agree, obligate myself to furnish more than I may have.

I am inclosing a paragraph containing the suggested changes for paragraph 3 to follow the word "thereafter" on the seventh line.

The only other changes are on the first page, where the words "second party" and "first party " are reversed, and I would also suggest the elimination of the phrase about taking leave of absence as there are special reasons why it is inadvisable to place this in the contract.

I know you will receive the foregoing suggestions in the spirit of cooperation in which they are written. I wish to express my appreciation for the kindness shown me by you and your associates, while I was in New York.

Very truly yours,

RALPH S. KELLEY.

(September 9, 1930)

[From Commissioner Moore's diary]

September 9, 1930: Obenchain was in telephonic communication with Kelley and learned that he was under the doctor's care and not able to work. Notation made by Secretary to Governor Moore. Note: Governor Moore in the West.

Mr. RALPH S. KELLEY,

(September 10, 1930)

SEPTEMBER 10, 1930.

Ambassador Hotel, Washington, D. C.

DEAR Mr. KELLEY: I send herewith the revised copies of the contract.

Mr. Renaud consents to make the balance 12,000 words, or even 10,000, if that is all you need to fully present the facts. I have made the changes accordingly in the contract and initialed them on the margin. You can, on signing, initial the changes likewise below my initials.

Yours sincerely,

(Undated memorandum)

General Manager.

FROM THE WORLD, 63 Park Row, New York.

Conditional contract of Ralph S. Kelley and Press Publishing Co., effective on acceptance of first 10,000 words by Ralph E. Renaud, managing editor, within four days from September 16, 1930.

F. D. WHITE.

(Undated memorandum)

By agreement date of Mr. Renaud's decision deferred September 26, 1930. Copy of Mr. Renaud's acceptance, conditions, and Mr. Kelley's acknowledgement attached.

(Contract, September 11, 1930)

Whereas Ralph S. Kelley, now chief of field division, Department of the Interior, hereinafter referred to as the party of the first part, feeling it to be his duty to advise the public of conduct of the department prejudicial to the public interest, is convinced that he can do nothing effective to this end under existing conditions so long as he continues in office and proposes to resign from the service, September 21, 1930.

Whereas the Press Publishing Co., a New York corporation publishing The World and Evening World newspapers in New York City, party of the second part, proposes to cooperate with the party of the first part so that the public may be fully informed of a situation affecting its interests.

Now, therefore, in consideration of the undertakings and agreements hereinafter set forth the parties hereto do agree each with the other as follows: I. This agreement shall be effective on the date of the resignation of the party of the first part from the Department of the Interior, now contemplated as of September 21, 1930, but only if the matter submitted by the first party on or before September 16 as provided hereafter is accepted by the second party. If that is not accepted, this contract shall be null and void whether the first party resigns or does not resign his position.

II. The party of the first part agrees to furnish to the party of the second part a complete statement of his contentions and investigations relative to the oil-shale lands of Colorado as verbally outlined to it and to supply to it on request any letters, documents, plates, or copies thereof, which he may legally supply, and not subversive of the public interests, for the information of the party of the second part and through it the information of the public by publication in the said newspapers of the party of the second part, or any papers or periodicals to which the party of the second part may sell or syndicate the same.

The party of the first part agrees to hold himself and his proofs referred to at the service of the party of the second part, or any court or congressional investigation in any proceeding growing out of such publication.

III. Subject to the terms and conditions hereinafter set forth, the party of the second part agrees to purchase and pay for the above as follows:

It will guarantee to the party of the first part the sum of twelve thousand dollars ($12,000), one-half to be paid on the publication of the first ten thousand (10,000) words of the series and the balance on the publication of the last article or not later than 15 days after the first payment. It is understood and agreed, however, that at least ten thousand (10,000) words of the series shall be submitted to the party of the second part by September 16, 1930, and prior to the resignation of the party of the first part, also a brief summary of the balance of the series, and if found satisfactory to the party of the second part accepted by it within four days thereafter. And upon such acceptance and the receipt of the balance of the series which shall consist of at least an additional twelve thousand (12,000) words devoted to the same subject and which the first party agrees shall be of the same general character and merit, in so far as he can make them so, and shall be submitted to the party of the second part as follows: At least ten thousand (10,000) words on or before September 23, 1930, and the balance on or before September 30, 1930, the party of the second part shall, subject to the provisions of Article V, of this agreement, become obligated to the party of the first part for the full amount provided herein, even though such additional twelve thousand (12,000) words shall be in whole or in part rejected. Said articles and all rights thereto shall be the property of the second part and the party of the first part hereby covenants and agrees that he will not furnish or sell any articles or material of a similar nature or referring to the same general subject matter to any other corporation, firm, association, or individual prior to the 15th day of March, 1931.

It is understood that the essence of this contract is the granting to the party of the second part under the terms aforesaid of the first and exclusive use for newspaper and/or periodical publication of the aforesaid articles and that if this condition be violated by the party of the first part all obligations of the party of the second part hereunder shall forthwith terminate and be at an end.

IV. In addition to the compensation hereinbefore referred to the party of the second part will pay to the party of the first part fifty per cent (50%) of the net of the syndication revenue in excess of the above sum of twelve thousand dollars ($12,000). The net proceeds of the sale of said articles shall be established by deducting from the receipts of syndication of said articles the sum of twelve thousand dollars ($12,000) and the cost of syndication; provided, however, that said cost shall not exceed 10 per cent (10%) of the receipts therefrom.

V. If the party of the first part is discharged from the service before his resignation is tendered or his resignation requested before he voluntarily sub46780-31-21

mits it, the value of the series shall be revised pro rata by mutual agreement to a figure not to exceed six thousand dollars ($6,000). If, however, it is established that his discharge prior to resignation is the result of any employee of the party of the second part directly or indirectly communicating to the department the plans of the party of the first part, then and in that event this revision shall not be made.

VI. It is further understood and agreed by the parties hereto that all matter contained in said articles may be submitted to counsel of the party of the second part for advice and the party of the first part agrees to be guided thereby. The party of the second part shall have full and uncontrolled right to edit, eliminate, or change said "articles as it shall deem best, subject, however, to the right of the party of the first part to pass on the factual presentations under his name that are published by the party of the second part.

In witness whereof the party of the first part has hereunto set his hand and seal and the party of the second part has caused these presents to be executed by its duly authorized officers this 11th day of September, 1930.

Attest:

RALPH S. KELLEY [L. S.]
PRESS PUBLISHING Co.

By F. D. WHITE, Vice President.

A. S. VAN BENTHUYSEN, Treasurer.

(Kelley to White, September 11)

SEPTEMBER 11, 1930.

Mr. F. C. WHITE,

General Manager the World, New York City. DEAR MR. WHITES The contracts, duly signed by me, are inclosed in duplicate. Perhaps the wording of the contract in so far as it refers to the minimum number of words I am to furnish, may not be very clear. As I understand it, I am to have in your hands by September 16 articles containing a minimum of 10,000 words. There are to be placed in your hands by September 23 articles containing, with those theretofore furnished, a minimum of 20,000 words, and articles are to be in your hands by September 30 containing, together with all those theretofore supplied, words amounting to at least 22.000.

However, I want you to know that I have no intention of limiting myself to the minimum requirements of the contract. It is my belief that I shall be able to supply a much larger number of words, if not by September 30, then within a few days thereafter.

With regard to the clause concerning my resignation, it is slightly changed from the wording in the first contract. I believe the first contract contained the provision that the contract would not be affected if I was discharged after my resignation had been tendered. You will note this provision has been changed. It might well be that the Secretary, after receiving my resignation, would not accept it, and would fire me, in which event Article V would not protect me. Can you not insert the following phrase after the word "service in Article V "before his resignation is tendered." Very truly yours,

(Kelley to White, September 16)

RALPH S. KELLEY.

SEPTEMBER 16, 1930.

Mr. F. D. WHITE,

The World, New York City.

DEAR MR. WHITE: As requested in your letter of the 12th instant, receipt is acknowledged of copy of the contract duly signed by you. With kind regards, I am,

Sincerely yours,

RALPH S. KELLEY.