, 1922-04-20
REPUBLICANS To
JOIN IN DEMAND
i : DETAILS OF
CONTRACT
Or Negotiating
Secret Agreement For
Oil Reserve Develop
ment Wanted by Many

ON, April 20.
Especial to The Tribune.)
Several important develop
ments occurred yesterday in
connection with the leasing of
the Teapot DOME" naval oil
reserve No. ) to n New York syndi-
cte financed by II. F. Sinclair ana
Harry Payne Whitney, operating as
the Mammoth on Company, They
were:
F1rst-Government officials let II be
known that the lease to the Mann
moth on Company for development
or the tract viii not be rescinded.
SccondHSenator John b. Kendrck.
declaring his worst suspicious had
been confirmed" by the disclosure that
the lease has been signed.
that he is considering introducing a
resolution for n congressional Inyesti-
CATION Of the whole transaction. tnciud.
Ing tho necessity for development OF
the dome ut this time and the terms
of the governments contract with the
Sinclair syndicate.
Tiiird-wyoming on interests nled
n frosh protest in tho form of a teie-
gram to Senator Kcndrick. character.
king as absurd the contention of
private biologists that the Salt Creek
field Is draining the oil from the Ma
val Reserve.
Fourth-Republican senator's dis
played acute interest IN the contro.
vcrsy with the result tina a demand
for n congressional inquiry may en-
anate from n Republican source in the
next few days. as well as from Sem
ator Kcndrick.
In response to the Kendrick resolu-
ton calling for the facts concerning
h transaction. Acting Secretary of
the Interior Frank c. Ffnney called
at senator Kendrick's office and left
a memorandum outlining the terms of
the contract n explaining the de-
partment's position. The statement
was prepared after an exchange OF
kilograms with Secretary Fail I'm New
Mexico. who signed the contract for
the Interior Department, and is gen.
orally understood TO have engineered
the deal.o It is re-emphasized tina the
advantages of the arrangements as
viewed in official quarters. but SON
tanned no new facts and offered no
explanation OF the secrecy with which
the deal was surrounded up to and
even after its contamination.
A telegram received by Senator
Kendrick from the Rocky Mountain
on and Gas Producers Association
today declared II physically impos-
sfbie for wells in the Salt Creek field
to draw oil from the Teapot Dome
The message ~sasscrted tina test wells
drilled in the saddle between the Salt
Crock field and the naval reserve
proved conclusiveiy that the sals
Creek saddle contains water" and
shows the absurdity Of the govern
ment's contention"
To this, Senator Kendrick added his
own observation hat officials here,
including Secretary OF the Navy Den
by and Secretary Fall are uniustihed
IN holding hat Salt Creek Is draining
the dome to the detriment OF the gov
eminent interest.
Under all the circumstances. Il is
unnecessary and uneconomica to de-
velop the Teapot Dome at this time"
Senator Kendrick asserted. at does
not appear on its face that the Navy
needs the oil. Moreover. the Salt
Creek field already has an over-pro-
duction. It is preposterous TO propose
that the oil in the Teapot Dome, safer
than anywhere else. should be piped
hundreds OF miles and impounded in
artificial reservoirs or tanks. To carry
out the contract in its present form
would disturb the oil industry. rob the
state OF revenue TO which II is justly
entitled. and offer no am~pensatory
advantages either to the state or the
nation. These facts will be laid be-
fore the government officials, and. IL
necessary, before Congress.
MY first interest in this matter. OF
course. is to preserve for the State of
Wyoming a royalty interest in the
Teapot Dome. No one. I am sure, will
dispute The principle that the State
should receive some compensation for
the loss Of the taxable value OF his
land.
Contrary to statements In the New
Continued on Page Four,)