Arizona republican., 1922-06-08
FALL SUBMITS OIL
LEASE REPORTS To
PRESIDENT HARDING
fRepublIcan A. p. Leased Wirel

|
WASHINGTON, June q ---Secre-
| tary Fall today personally submitted
TO President Harding a report con-
| cerning the contract made by him for
Secretary DENLY with Harry r. Sim
clair for the development of the Tea
pot Dome, Wyoming Naval oil re-
serves, whereby the navy would OBJ
tain fuel and other oils with storage
facilities, above ground in exchange
for the crude product.
At the same time Mr. Fall sent to
the senate copies of all contracts.
documents and letter files bearing
on the nations petroleum reserves
bith naval and those in other lands
which were called for in a senate
resolution The documents, number
ing $500 separate volumes were sent
to the capitol in truck In the re-
to have covered the entire subject OF
oil reserves, beginning in the first
petroleum Withdrawals in 1909 and
the naval reserves Withdrawals in
1912 and 1915. After an historical
review he was said to have reviewed
the policy of Secretaries Lane and
Daniels with reference to the naval
reserves pointing out their plan for
storage under ground. Then taking
up the question of loss of oil through
drainage as reported by geologists of
the interior department Secretary
Fall pointed out the necessity for a
change in policy, not of reservation.
but IN method of storage. This. he
was said to have pointed out, in
volved developing Teapot Dome by
private enterprise so that the navy
would receive permanent storage
facilities in exchange for the privi-
fege of drilling wells. The Teapot
Dome. 1t has been asserted was be-
lieved to be sealed until geologists
discovered oil was being drained
from the reserve from adjoining
wells OF private companies. Going
into specific leases and contracts,
Secretary Fall was said to have given
the President "a full, frank and free
explanation of the whole transac-
tion." The President 1t was under
stood at the White House, will send
the report to the senate.
In letter to Senator Smoot chair
man of the senate public lands COM
mittee. transmitting the mass of
documents to that committee, Secre-
tary Fall said that an estimate so
far made showed that the cost to the
interior department In compiling the
data In response to the senate resolu-
tion was more than $4,000 Accom-
panying the documents was an index
of 249 pages.
CHEYENNE, Wyoming. June T.
Harry Sinclair oil magnate, and
sportsman, and one of the leading
independent oil producers of the
United States today replied to the
broadside that has been levelled
against himself, his company and
Secretaries Fall and DENLY since the
now famous Teapot Dome contract
was entered into with the govern
ment this spring. He intimated
that a refinery or refineries might
be built in Wyoming to handle the
production of the dome, declared he
was as anxious as any one to help
Wyoming become an industrial
state. and expressed the opinion that
when the public understood the
terms of the agreement they would
appreciate what a tremendous po-
tential value the project has Mr.
Sinclair arrived here in his private
car and spent the day in Cheyenne.
1--WE are in Wyoming and want to
be a part of it." he said 1--WE are
pleased to find for instance. that
this state viii be able to get royalty
of 25 per cent out of crude oil
brought forth from the dome. We
are going to be quite some tax pay
ers in this state and the more royalty
that is obtained the less tax we shall
have to pay. In my opinion, 1t is
only a question of time when the
people of Wyoming will see the sit
uation as we see it. / believe they
will find the government got good
bargain and that the development of
the Teapot Dome viii be wonderful
thing for this state"