, 1922-10-25
Naval Reserve Number Three.

nuFRE HAS BEEN so much written and spoken
l. during the present campaign with a view OF
making the leasing of naval oil reserve NUMBER o,
commonly referred to as Teapot Dome, a political
football, that a concise history OF the transaction
at this time may serve to correct erroneous impress
sions that have crept into the discussion py reas"n
of misrepresentation.
In consiacring the advantages which VIII re
suit to the people of the State of wyoming through
DEVELOPMENT of the Teapot Dome, there has exist
ed a general failure to realize the primary pur-
poses of the resrye.
The reserve was created by PRESIDENT wilson's
order of April 30, 1915, as a Naval Petroleum Re
Bv the act of congress of June 4, 1920, enacted
during the administration of President wilson,
the Secretary of the Navy was directed to take
possession of the properties within the Naval
Petroleum Reserves, and to develop, use, conserve
and operate the same either directly or by con
tract, lease or otherwise, and TO use, store, ex..
change or sell the oil and gas products thereof
for the benefit of the United States.
This congressional action was taken as the
result of the direct request and recommendation OF
Secretary of. the Navy Josephus Daniels, and OF
the necessity for the development OF the reserves
by contract, lease or otherwise, and the use or sx-
change of the oil and gas therein. Congress recog'
nized the fact that by law the duty was imposed
upon the navy department to determine NOW pes.
to utilize for the needs of the navy. the OIL ana
gas products in our public lands which had been
reserved for that purpose.
The navy department must prepare in the pres
ent for the emergencies of the future; it must recog-
nize the necessities of oil burning warships and
provide storage at strategic points where the stored
fuel oil, Kerosene, gasoline, luDrlcdntS Ii oIhcA
products of petroleum can be utilized
The navy department does not consult the citi-
gems of any municipality or state for the purpose
of determining the plans for national defense-
The government trains experts to determine the
methods necessary for that purpose, and upon the
investigations and decisions of those experts the
people of the United States are JUSTIFIED III plac-
ing their dependence. We do not question the
action of the navy department in proceeding with
inventions for either defensive or aggressive war
fare, we do not demand that there shall be made
public secret plans or inventions relative TO naval
armament, aerial development of military and
naval procedure in time of war.
The navy department determined that the neces-
sity of storage for fuel oil existed upon the Pacific
coast and in our Pacific possessions. The depart
ment, therefore, entered into contracts for develop
ment of our naval reserves upon the Pacific coast.
1t contracted for the sale of the royalty oil coming
to the navy under terms whereby adequate fuel
storage facilities will be provided upon the Paci-
fc coast. in the Hawaiian islands and in the Phil.
lipine islands, and oil placed in such storage. The
character of such storage facilities and their place
of construction has not been made public to this
day. Our national safety makes necessary the
reticence that has been employed by the navy de-
partment in this matter.
The navy department determined that there ex-
listed a like necessity for construction of storag e
facilities upon our Atlantic coast as had been
determined upon for the Pacific coast. Oil must
be furnished by the navy on the coast line of six
teen states where it could be utilized a times of
national emergency. The navy was not justified
in waiting until that emergency existed and then
attempting to construct storage facilities and to
fill such storage. Our coast line covers thousands
of miles and construction takes months and years.
Development of oil properties requires years of
time, millions of expenditures, the construction of
pipeline facilities and creation of trained men
whereby the fuel oil could be properly handled.
President Wilson, Secretary Daniels and the
congress of the United States recognized the fact
that the navy department needed the power grant
ed to it by the act of June a. 1920, and that the
necessity existed for the Development of the naval
reserves. The action taken by the navy depart
ment, in conjunction with the department of the
interior, was directed by specific act of congress
and by the decision of naval experts as to the
necessities for national defense.
The action of individuals in demanding pubiica.
ton of measures adopted by the navy department
for the development and c~onsummation of these
strategic plans, in connection with Naval Reserve
no. 3, IN wyoming, was unprecedented. The con