The New York herald., 1922-04-20

Congressional criticism of Secretary
of the Navy DENLY and Secretary Of
the Interior Fall for turning over naval
oil reserves in Wyoming and Califor-
MIA to private companies for develop
ment has not been silenced by the ex-
planation made public yesterday by
Mr. DENLY.
When official replies have been re-
ceived to the resolution introduced by
Senator Kendricl1 (Wyo.) and adopted
by the Senate asking for full informa-
ton about the transactions, it is likely
that criticism will be openly expressed
in debate on the floor.
Secretary Denby explained that the
oil lands have been leased on royalty
basis that is very advantageous to
the Government and that the plan will
provide large oil reserve for the
navy without the expenditure of any
Government funds. He has said, also.
that oil from these fields is being
drained away by wells operating on
private property adjoining the naval
reserves. which necessitated quick
action to save the navy's oil.
Several Western Senators say Sec
retaries DENLY and Fall have been mis-
informed about the alleged draining OF
oil from the naval reserves by outside
wells and that money making scheme
is behind the deal. The Mammoth Oil
Company, a Delaware corporation. of
,.,h; ;rb tc
has contract for taking. oil from the
Teapot Dome in Wyoming and the Pan
American Petroleum Company from the
naval reserves in California
To Create Huge OIL Reserve.
Rear Admiral ]. X. Robinson. chief
of the bureau of engineering, ir de-
Tending the contracts to-day said the
completion OF the development plans
will convert an unknown and unavaila-
BILE national oil storage into an actual
oil reserve available where the navy
wants and needs it, and without the ex-
penditure of a nickel from the Treas
ury.
"All the high ranking naval officers
in the councils of the Secretary are
strong for the plan" he continued. "and
] am proud of what little part had in
its contamination. II there are officers
of the navy who do not agree that II is
wonderful accomplishment for the navy
and the people of Wyoming" he said.
1T is because they do not understand
what has been accomplished or because
they are interested in some of the oil
companies which have gained through
the fact that the navy has never opened
its own wells in this recarve
Pipe 10000 Barrels a Day.
According to Admiral Robinson. he
will have within a year and a half suf-
ficient oil stored where he wants ii to
operate the ships of the navy for
months. He wants 10000 barrels day
piped and stored at suitable fuel bases
where the ships can get it when it is
needed Probably about twenty wells
will be opened and piping laid at no
cost to the Government to storage
places on the coasts. Formerly the oil
was merely a vision; now. the Admiral
asserts. IL will soon become a reality.
Great quantities will be stored at Pearl
Harbor. Puget Sound. and in San Fran
cisco Bay. Storage tanks and facilities
are TO be established at San Diego.
Panama and perhaps Alaska. where
practically no oil is available to-day.
The naval oil fields of California arc
counted on to supply the west coast sta
tions OF the navy.
The navy has preferential rights to
the entire product of the Wyoming re-
serve yield at favorable rate. and has
a right to sell I'm excess of the rates
obtaining at mid-continental fields. Il
Is said. For this oil the navy should
receive about 60 cents royalty on a
barrel. The royalty rights are said to
approach 80 per cent. the highest roy
alties ever paid to the navy