Arizona republican., 1922-06-05
FALL STATES
LEASE Of OIL
LANDS SAVES
u. S. RESERVE
Secretary Of Interior De-
fends Lease Of Teapot
Dome Field To Sinclair
Dohney Interests
TRepubIican a. p. Leased wlre1

IFepupiiCan a. r. Leased Wire
ALBUQUERQUE n. NJ, June A.
The Albuquerque Morning Journal
Monday morning will print under a
Washington, d. G. date line. a resume
OF the report which it says Secretary
of the Interior Fan will hand to
President Harding of how and why
the Ieapot Dome in the oil fields
of Wyoming was leased to the Sim
clair -Doheny interests by his depart
ment, acting in harmony with the
navy department..
The dispatch says the report de-
clares that the President was fully
apprised of the lease before it was
made: that had it not been made,
private interests drilling in the vicin-
lty would have drained the dome of
its oil: that the navy will have stored
for emergency purposes vast quaint
ties Of oil for defense of United
States interests on both the Atlantic
and Pacific coasts, and on Islands.
The secretary also is said to assert
that by the construction of a new
pipe line the mid continent price OF
oil will be obtained in the wyoming
field, instead of the present price.
alleged to be now so cents a barrel
too low. He is said to declare that
vastly greater income will be Sc
00i Ed b0Sli LOi tic dlllSS lfldI az
crue to the United States government
and to the state Of Wyoming by
breaking the Midwest monopoly.
Secretary Falls report, according to
the dispatch. will say:
With reference to the Teapot
Dome contract. not only was the
President of the United States in
formed of the action of the secretary
of the navy and myself. but was fur
ther informed by me personally that
as soon as ii was given publicity
many newspapers and individuals
would criticize, and that such criti-
cism would possibly amount TO
storm-like proportions until the mat
ter was thoroughly understood.
This understanding is being
reached rapidly and l am glad to say
that the local papers of Wyoming
and tributary sections are now ap-
proving my course; that the indepen-
dent oil operators are approving indi-
vidually; that congress itself. With
the exception of one or two members,
! is apparently satisfied.
Accept Popular Verdict
Il am more than willing to leave
the verdict. to the people and / con-
slider this contract and that relating
to the naval reserve in California as
a consummated policy. which, IL |
were seeking personal credit and APP
proval, would aid more in securing
the same than anything else which [
might do, even if I should hold my
present position indefinitely
Under my instructions the differ
ent bureaus of my department par
ticularly the general land office, the
bureau of mines and the geological
survey, and staff officers co-operat-
fF7ov xt-ff1, ffa no do.aa arfy 7ovsf h1r
prepared all the data. including every
scrap of paper relating to the re-
serves. from the earliest days OF
Taft's withdrawal of oil lands for
naval purposes down to the present
moment. This embraces every let
ter. telegram or scratch of pen
concerning leases. contracts and ev-
erything pertaining to the matter.
II have included in this report.
which is now ready for transmission
to congress. a detailed statement of
all transactions with which / have
had anything to do. or of which /
have knowledge.
IF the President acquiescex. the
public will be informed that the navy
plans contemplate. through contracts
| have entered into, the construction
of steel storage tanks for 100000
barrels of fuel oil at one time in our
Pacific possessions This will in-
volve the expenditure of approxi-
mateIy $6.000,000, TO be paid for with-
out a cent of direct appropriations.
1t will come out of oil exchanges af~
fected under the contract.
Plan Huge Storage
Further plans have been formu-
lated for the construction OF steel
tanks for a similar amount of OIL to
be stored on the Pacific coast. These
tanks, when completed. will be turned
over to the government full ot fuel
OIL so enclosed that it will not evap-
crate. for the use of the navy only
in case of emergency. This viii not
cost the government a penny.
Emergency oil for the navy will
be stored at points in the Atlantic
territory and for the defense OF the
Panama canal.
These plans have been worked OUT
by experts. The fuel oil so stored.
ii has been determined by actual
tests covering a number of years. viii
be subject TO loss of less than one
per cent during long period OF stor-
age.
THE royalty oils now being re-
ceived and the proceeds distributed
are handled in the following way:
Fifty per cent for reclamation