The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-05-14
GUARDED FOR YEARS
But Administration Claims
slO,OOO,OOO Has Been Lost
BY Not Leasing Place
DRAINAGE THEORY LIBELED
Prominent Oil Authorities
Say Teapot Is Separate
Structure

Overnight what Is known to the
oil world as the Teapot Dome OF
wyoming" has become a matter Of
congressional controversy which
threatens to assume major propor-
lions. The Teapot Dome field was
one Of three great western oil areas
taken over years ago by the govern
ment to conserve an adequate supply
OF oil for the navy in time of ma
tlOnal stress. The two great Cali
fornia reserves were leased to priv
ate interests some months ago. and
now the Teapot--the last and the
richest OF the trinity--is about TO
pass from federal to private control.
Many are the charges whispered
IN the corridors of the senate and
house. Secretary of the Interior
Fall and secretary OF the Navy
Denby, the two cabinet officers who
signed the lease, insist that the geo.
logical structure of the dome Is such
as to permit its pools to be drained
by wells in the Salt Creek area,
which adjoins the government reser-
yation, and that by leasing the field
the government did not lose but
made a bargain that will mean the
saving OF millions OF dollars to the
nation.
Senator's and representatives de-
handing an investigation of the oil
policies and transactions of the gov
eminent contend that the Teapot
Dome cannot be drained by wells
drilled In the Salt Creek field be-
cause OF water line that extends
TO depth of more than $500 feet
In what is known as 1.-The saddle" q
formation which IS the boundary
line between the government and
privately owned fields. This fact.
they maintain, has been borne out
|, by biologists OF the highest standing
who have studied the geological for
nations In the Natrona county oil
country, BY the governor OF Wyo-
ming and host OF other authorities
IN official and private life, who say
mat the government has entered
into an unwise bargain whereby 1t
has deprived itself OF one of the few
oil fields in the world which cannot
De drained by wells In contiguous
territory.
Taken Over by Taft
During Mr.. Taft's administration
he California and Wyoming naval
OIL reserves were taken over. In the
! TWO Wilson administrations the Taft
FNN'N''o were COnllHutu anu every
effort on the part OF private inter-
ts's 10 lease these fields met with
ueieat. Former Secretary of the
navy Daniels, who exercised control
lor the government, said again and
again that 1t would be nothing less
than criminal" for the government
70 let go of these properties. which
.n the event of war, might mean the
VERY existence OF the United States.
mn 1921 Mr.. Harding entered tho
Nhlte House and, according TO those
S'aBlng the fight against the Teapo'
tase' the same private interests re-
neWed their efforts for control. Tho
pVhcies or the Taft and Wilson ad
nNnistrations were reversed and thu
Naltornia reserves leased. 1t wa,
a,u mat through drainage into ad
,,sSeent and privately owned fields
,ne government had sustained a losi
,n .ne millions. one estimate beinl
nigh as Sl0.000.O00.
., WIN the California fields leased
ne teapot Dome in Wyoming alon,
.smalned An official documen
signed by Secretaries Fail and Denb,
tIrns that "a careful geologi
study recently made by a govern
%snt expert resulted IN the discover!
NAY the Teapot Dome was menace,
drainage similar TO that .experi
RESERVATIONS '"o ''o' "''
IN me accuracy OF this statemen
.. e IiSht that looms ahead in con
v.l,fs largely will be decided. Thel
psn,. ~ come the struggle over the leas
,SH independent OF the merits O
lion. p''aSe ot the silua
MA
DI the government make a goo
,oS pad bargain? That is the aues
ans, opponents will insist must b
ds,oW d,WWyred completely and TO the las
n, ~ otflclals OF the department
wos, ne interior and navy are now a
wesiS. and soon, probably within
the OF ten days, will transmit I
pec, senate a report which they ex
ha VIII Vlnd,cate the position O
V" TWO departments.
toai me major issues involved in thi
UOn'roversy therefore become III
ssrn rance OF an adequate oil re
gono lor the navy in time OF emer
e,n ana whether the Teapot Dom
ion,u aralned< by wells In the ad
ana salt Creek area. The thIr
thA sast Issue involves the lease /
lsasnS sinclair oil interests. Was tha
van, 10 the advantage or the disad
"se OF the government?
sre.,5lf MT. Daniels. in a report I
tbs tbStdent snt Wilson. called attention I
psssaet taet that the day OF coal ha
of I,n oI, INTO history and that the er
tbs vi tuel was at hand so far g
navy was concerned.
lsls 'eanceforth," said Secretary Oar
are ,sl all the fighting ships whic
ana a,poed to the fleet will use OF
viii me transition from coal to O
velonnark an era in our naval d,
cont coMrn,t almost comparable wit
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