The New York herald., 1922-06-09

competitive bidding. competitive prices.
competitive pipe lines and water COM
munication through such pipe lines. In
the other. Wyoming, no competitive
bidding, a geographical monopoly. no pipe
line, except to a railroad and that OF
insufficient capacity to convey the then
daily production by so per cent. of the
total being produced. no pipe lines from
the railroad, no pipe to the water and no
possibility OF the navy using the oils
except through the sale in such up-
restricted and non-competitive market,
with the proceeds to the miscellaneous
fund or some exchange to be worked out
based upon the low price of the crude
oils In the Salt Creek field and the
acquisition of naval fuel oils when
needed"
Mr.. Fall tried. he explained. from De-
cemher, 1921. to interest various indie
pendent oil companies in the project, out
lining what he had in mind, to obtain
the, construction of pipe line from the
Tea Pot Dome and the Salt Creek oil
field TO connect with the great pipe lines
reaching. Chicago. the Gulf ports and
the east coast of the United States. The
length OF the pipe lines that had to be
built was estimated at between 500 and
1000 miles, costing between $4,000. 900
and $20,000.000.
In referring to; the negotiations with
Fl. F. Sinclair. who is the head of tho
Mammoth Oil Company, which obtainedl
the lease for Tea Pot Dome. Secretary
Fall said: nr
"On or about January I, while at my
home in New Mexico spending thesholi-
days with my family, 1 received a tele-
gram from J. w. Zevely asking If I
would remain there few days longer
as Mr. II. F. Sinclair and himself de-
sired to meet me Immediately and pre-
sent to me an application for a ruling
with reference to deferred payments
upon Indian lease lands In Oklahoma.
Within the time limit Mr. Sinclair and
Mr.. Zevely, with their respective wives.
in private car. REACHED Three.
Rivers. They presented their particular
problem for my consideration.
'The day that Mr.. Sinclair left Three
Rivers he for the first time asked me
if were contemplating the opening up
of the Teapot Dome. / answered i'm
mediateiy that 1 was considering the
matter but was awaiting final reports
from the Bureau Of Mines experts In
that field upon the danger of immedi-
ate drainage. I was then informed that
il the policy. OF the Navy and the In
terror departments was to open up, this
field he would be glad. to consider max
ing proposition to the Government. /
detailed to Mr.. Sinclair exactly what
have heretofore. set forth, and which had
been communicated to two
or three oil men, as have stated"
Secretary FAN then says that after his
return to Washington on February
Mr.. Sinclair and his attorney visited
him i'm his office and outlined a propo-
sition for a contract for development of
Teapot Dome. He details various con-
ferences leading up to the acceptance of
the Sinclair proposition.
"The royalties offered by Mr.. SIM
clair" says Secretary fall, were more
than those offered by either or any
other party during these discussions"
Secretary Fall expresses. the view that
the criticism of the leasing Of Teapot
Dome may have been lareely brought
about by parties interested in their own
financial welfare in forcing, not from
the Government but from their parties.
some financial concessions"