Omaha daily bee., 1922-04-30
Probe Into
Oil Leases
- ':;,,,,:ass:;;'s::ssyrdered :: s. s.
Senate Adopts Resolution for
Investigation Of Charges
Against Secretaries
DENLY and Fall.
Billions Are Involved

today ordered thorough investigation
of the charges that Secretary OF the
Interior Fall and Secretary OF the
Navy DENLY have turned the naval
oil reserves with an estimated value
running into billions OF dollars. over
to favored interests for private ex.
ploitaiion.
By unanimous vote. the senate
adopted the resolution OF Senator
Ia Toilette. Wisconsin. which pro-
yided Tor the inquiry. The La Fol-
lette resolution is a double-headed
measure. In the first place. II d.
reefs the secretary OF the interior 10
send to the senate all leases. data
and papers OF all kinds related to the
leasing OF the naval reserves, and III
tho second place it ins,ruets the seu-
ate committee on public lands TO be-
gin at once. an investigation OF the
entire subject, with particular refer.
ence TO the protection OF the rights
and equities of the government and
the preservation OF lis natural re-
sources"
Amendment Adopted.
At the suggestion of Senator Poin.
dexter, Washington, member OF the
naval affairs committee. an amend
ment was adopted calling upon the
secretary OF the interior Tor informa-
ton concerning the reported drilling
OF wells on private lands adjacent
to the oil reserves. The Interior de-
partment claims that it leased the
oil reserves because there was danger
OF the fields being drained by wells
on adjoining property.
Adoption OF the La Toilette resolu-
ton was no surprise, but the unan-
imous character of the vote was
somewhat unexpected. Advocates OF
the resolution declared that the
unanimous vote clearly indicated how
grave the senate considered the
charges made against the secretary
OF the interior and the secretary OF
the navy.
Vice President Coolidge laid be-
lore the senate copy OF the Teapot
Dome lease sent to him by the In
terror department. The contract is
signed by Secretary Fall, Secretary
DENLY and H. F. Sinclair, president
OF the Mammoth OH company. The
goverament !, will receive. roy albiee.
ranging E'om II l.2 to 50 per cent.
Opponents OF the transaction say
that the so per cent royalties will be
few.
Hitchcock Shocked.
In today's debate, Senator Hitch
cock, Nebraska, declared that the
leasing of the naval reserves con-
sttuted radical change of policy"
and came as a distant surprise to
those who were under the impression
that the conservation policy was fix
ed by law which could not be chang
ed, except by act OF congress.
Il am shocked" said Senator
Hitchcock, that in the administra-
ton two departments of the govern
ment should apparently conspire
secretly, without any notice to the
public or any advice to congress,
to throw them open to private ex-.
plQitation." n
Senator Borah. Idaho, declared
that the existing leasing law opened
the way for the leasing of the oil re-
serves and unless it was radically
changed the public could not be pro-
tected." Senator Hitchcock there
upon declared that congress should
get busy and amend the leasing law
without delay.
Senator Poindexter told the SEN
ate that there was considerable dan
ger of the draining Of the oil from the
California reserves and that millions
of barrels already had been lost there.
Senator La Toilette insisted that this
was true of only portion of the
reserves and that the Teapot Dome
reserve, which is located in Wyom-
ing, "was as safe from drainage as
if it we're in an iron BASIN"
Scores DENLY and Fall.
Senator Hitchcock scored Secre-
tary DENLY and Secretary Fall for
negotiating the leases in secret. Con
tracts have been let to favored cor
porations," he said, "and the public
is not informed of it until the trans
action is closed"
Senator King, Utah, assailed the
leasing bill. 1T promotes scandal"
he said. 1T is an impediment to
proper and legitimate development
and it should be modified, if not re-
pealed."
Senator Lodge, Massachusetts, re-
publican leader, took issue with DEM
ocratic senators when they undertook
to claim for the Wilson administra-
ton all the credit for conserving navy
oil.
Secretary Daniels made staunch
fight" he said, but don't overlook
the fact that the senate naval at
fairs committee had something to do
with stopping the raids on the Cali
fornia fields"