New-York tribune., 1922-06-09
Harding Stands
By Oil Reserve
Concessions
President Tells Senate Tea
pot Dome and Other Deals
We're Made With His
knowledge and Approval
Independents Consulted
Stocks Designed for Use of
Navy Were in Danger of
Depletion by Drainage

F,o-, ne T-sbares Wash'ncfo- Bursou
WASHINGTON. June s.--In letter
20 the Senate to-day President Hard
ing takes upon himself responsibility
for the policy which the government
has adopted with reference 20 the
naval oil reserves. including the Wyo-
ming reserve. known as Teapo. Dome.
The President says the policy adopted
by the Secretaries Of the l'avy and
Of the Interior was submitted % him
prior 70 adoption and both the policy
and the subsequent acts at all times
had his "cntire approval
The letter Of the President was sent
70 the Senate in transmitting the re-
Dor. OF Secretary Of the Interior Fall
In response 10 the Senate resolution
inauiring into the leasing Of the
enormously valuable Teapot Dome 20
the Mammoth Oil COMPANY. headed by
II. r. Sinclair, and also inquiring into
the policy in the California naval oil
reserves. The report Of Secretary Fall
includes a sixty-two-page report or
letter 70 the President under date Of
June 8. with a large number OF copies
Of documents attached as exhibits.
Secretary Fall, though he says his
report Is rot q defense. enters into
long discussion OF the law and the
facts with relation . the three naval
oil reserves as justification Of his
H. s..tst. tLat Tacnnf nnFnO
was in danger OF being depleted
through drainage. and in order TO avoid
the heavy losses such as we're suffered
from the California reserves the plan
Of making a lease was decided or. he
asserts tina: before making the lease
he freely consulted other Independent
concerns than the company headed by
Mr. Sinclair. He says Standard Oil
subsidiaries were not consulted
How the Deal Originated
Il appears from the report that Mr
Sinclair visited Secretary Fall At the
latters home AZ Three Rivers. y. NJ.
in a private car on another proposition
and there made inquiries about the
leasing Of Teapot Dome. He made
these inquiries after visiting for two
or three days with Secretary Fall and
the Secretsrys family. With Mr. Sin
clair on the trip vas J. ". Zevely, a
we'll known oil man Of Oklahoma.
The letter Of the President and the
report of Secretary Fall we're referred
20 the Public Lands Committee Of the
Senate, which is TO make the invcStiga-
tion into the Teapot Dome lease under
the Senate resolution. The resolution
- - - ~ IL
La Toilette and Kendrick. Following is
President Hsrding's letter;
ITO the President Of the senate:
ION April 20 the Senate adopted =
resolution directing the Secretary OF
the Interior 20 furnish the Senate with
certain documents. correspondence pa.
pers. files. executive orders and all
contracts for drilling oil wells on naval
oil reserves Of the United States, with
oil detailed information relating there
20. I am to-day IN receipt OF a letter
from the Secretar OF the Interior IN
which he advises me of his compliance
with the resolution Of the Senate, and
in which he makes 70 me full and
comprehensive report, probably not
contemplated IN the resolution, IN
which he gives 20 me the details Of the
handling Of all naval reserve petro-
leum matters up 10 the present date.
including full explanation OF the con.
tracts for the disposition Of oil and
the necessity for such action as has
been taken. The report, with the ex-
hibits thereto attached. ! am sending
20 the Senate herewith, with the hope
that they may be referred 10 the Sem
ate Committee or Public Lands for
such ready reference and information
a. they will afford the committee in
making the investigation contemplated
by the Senate.
President Gave Approval
u am sure am correct in constru-
ing The impelling purpose q the Sec
retary Of the Interior in making 20 me
this report. Il is not 10 be construed
as a defense Of either specific acts or
the general policies followed in deal
ing With the problems incident TO the
handling Of the naval reserves, but is
designed 10 afford that explanation to
which the Senate is entitled. and which
will prove helpful 70 the country SEN