Evening star., 1922-06-09
PRESIDENT BACKS
NAVAL OIL LEASES
Sends Message to Senate
Including Fall Report
Giving Reasons.

The policy of the Interior and Navy
! departments in dealing with the naval
oil reserves, including private leasing Of
| these properties. was given approval by
President Harding yesterday in a spe-
cial message to the Senate.
A voluminous report on the leasing OF
the oil reserves, made by Secretary Fail
Of the Interior Department was trans
mitted by the President to the Senate.
Secretary Fall. in a letter to the Presi-
dent. which the President also sent to
the Senate, declared that he believed the
policy adopted with regard to the naval
oil reserves would be a credit to the
administration.
The President in his message said
| that the report was transmitted, not as
defense Of the administration. but for
| the information of the Senate. com.
mittee of which Is to investigate the oil
| leases.
Trucklond Of Data.
| The Presidents message was referred
| to the committee on public lands. wnlcn
| also received yesterday truckload OF
| data in regard to the leasing or pro,
| posed leasing of tracts on the naval Oil
reserves covering a number Of years.
| Il am sure l am correct, the Presi
| dent said, ''in constituting the impel-
ling purpose of the Secretary OF the IN.
! terror in making to me this report IL
i is not to be construed as defense. put
| is designed to afford the explanation 10
which the Senate Is entitled. l think
| it is only fair to say in this connectioi,
| that the policy which has been adopteo
by the Secretary Of the Navy ana the
Secretary of the Interior in deaiihe Witn
these matters was submitted 10 me piioi
; to the adoption thereof and the poncy
decided upon and the subsequent acts
have at all times had my entire ap-
i proval." 49,
| Secretary Fall in his report to the
| President stressed the loss OF mlillohs
of barrels of naval oils by drainage
through adjacent drilled wells. he
estimated the loss sustained in this
manner from the three reserves and
prior to the present administrator az
! s 500. 900 barrels. valued at $s,eoo'oVo
| Mr.. Fall attached a report made IN
1916 by Mary l.. Reaua;; chiei OF .ne
oil division Of the fuel administra- l.
tion under the Wilson administration;
urging protection Of naval OILS. ano
! referred to a letter in the same tenor
from Secretary Lane to his fellow
cabinet members.
| Warns OF Danger.
| There will be no oil there of any
magnitude in few years, Mr. Lane
! wrote. :. =.
| In July, 192l, ne oeciaieu' -
| came evident to the Navy ana lnte,
! rior departments that II the Navy oi.
was to be preserved the government
should undertake more active drlii-
| ing campaign, and he then sussesteo
! the desirability of "effecting an eA-
change of crude oil received as roy
atty for naval fuel oil, to be stored
Epited States through such
| legislation: that the Navy should Sc
| cure containers (eithter cement OF
| metal tanks) for the storing OF such
! fuel oil, as we'll as the oil itself, the
| general suggestion being along the
! line that the parties with whom such
! exchange should be effected should
| construct such storage tanks at
| points designated by the navy at a
! cost in oil to be agreed upon by the
Navy officials, such tanks to be turn
! ed over full of naval oil at such
points for the use of the Navy.
| Reciting his authority from the
President to act for the Secretary OF
| the Navy in the matter. Secretary
Fall then traced the steps that led
, up to contracts made with the Sin
! clair Oil interests for development OF
, the Teapot Dome, Wyo.. reserve, com
| prising naval reserve No. 3. and with
| the Pan American Oil Company of
| California for the California naval
reserves, Nos. 1 and 2. and to con-
] tracts for storage tanks at Pearl harbor
| in exchange for oil.
! The first contracts were made for
construction of tanks for 100000
| barrels Of fuel oil for the Nays
! base at Pearl harbor. Hawaii. This
project involved s6,ooo.0oO.