The New York herald., 1922-06-09
Says Secretary's Document
Is Not Defense but an
Explanation.
ALL "DETAILS EXPLAINED
Conditions at Tea Pot Dome
and Negotiations With
Sinclair Told.

speciai Dispatch to THE NEW YoRK HERALD
New York Herald Bureau.
Washington, ID. C.. June 8.
President Harding assumed full re-
sponsibility to-day for the much criti
cized lease negotiated recently by Sec
retary Fall, giving to the Mammoth
Oil Company, headed by Harry F. Sim
clair, the privilege of removing the oil
from the Government iowned Teapot
Dome in Wyoming. He knew Of the
whole proceedings in advance, he told
the Senate to-day, and approved the
action.
Mr.. Harding revealed this in let
ter he sent to the Senate accompany
ing a long report made by Secretary
Fall in response to Senate resolution,
outlining the whole Government oil
policy. He declared that the report
should not be construed as defense
of Secretary Falls action. but as
stateme.d of the general policy in
handling Government oil properties,
facts TO which the Senate was entitled.
Mr. Falls report covers sixty-two
typewritten pages and goes into detail,
not only regarding the laws applying to
the oil reserves, but to the problems and
policies of past administrations. The
reasons advanced for entering into the
lease for the Teapot Dome are the same
as those presented by the Navy and In
terror departments from time to time,
that leakage and the failure to drill Off
set wells made such an arrangement
necessary II the best interests of the
Government were to be protected.
Presidents Letter.
Mr.. Hardings letter of transmittal.
which was read in the Senate. although
the Fall report was not, is as follows:
"On April 20 the Senate adopted
resolution directing the Secretary of the
Interior to furnish the Senate with GER
tain documents, correspondence. papers,
files, executive orders and all contracts
for drilling oil wells on naval OIL re-
serves OF the United States with all de-
tailed information relative thereto.
am to-day in receipt of letter from
the Secretary OF Che Interior in which
he advises me of his compliance WITH
the resolution of the Senate, and IN
which he makes to me full and coIn~
prehensive report, probably not contem-
plated in the resolution, on which he
gives to me the details Of the handling
of all naval reserves. petroleum matters
up to the present date. including full ex-
PLANTATION of the contracts for the dis
position of the oil and the necessity for
such action as has been taken. The re-
port, with the exhibits. thereto attached,
anr sending to the Senate herewith,
with the hope that they may be referred
to the Senate Committee on Pubic
Lands for such ready reference and in
formation as they will afford the COM
mittee' in making investigation contem-
plated by the Senate.
II am sure I am correct in constituting
the impelling purpose Of the Secretary
of the Interior in making to me this
report. 1t is not TO be construed as
defense of either specific acts or the
general policies followed in dealing with
the problems incident to the handling Of
the naval reserves. but Is destgned to
afford that explanation to which the
Senate Is entitled. and which will prove
helpful to the country generally In ap-
praising the notwithstanding OF these
matters of great public concern. think
II is only fair to say In this connection
that the policy which has been adopted
by the Secretary OF the Navy and the
Secretary of the Interior in dealing with
these matters was submitted TO me prior
20 the adoption thereof, and the policy
decided upon and the subsequent acts
have at all times had my entire ap-
proval.
"wARREN G.. HARDING