The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-04-29
La Toilette Says Interior
Department Reeks
With Corruption.
FALL AND DENLY
ARE UNDER FIRE
Resolution Insisting on
Inquiry Expected to
Be Passed Today.

Sweeping Congressional lnVesti-
CATION of the alleged private ex-
pIoitation of the navalNoil reserves
appeared to be assured; following
sensational charges by Senator La
Toilette in the Senate yesterday.
Senator La Toilette charged that
the Interior Department, which
leased the naval oil lands to pri-
vate corporations, is "reeking with
corruption" He characterized II
as a "sluiceway through which
flows about 30 per cent of the cor
| ruption going on in the govern
ment."
Under the contracts leasing the
naval oil lands, he declared, hun
dreds of millions of dollars worth
of oil reserved for the future use
OF the navy has been turned over
to favored interests" in which the
outstanding figure is II. F. Sin
clair, president OF the Mammoth
Oil Company.
Expected to Pass Today.
At the conclusion of Senator La
Follettes speech Senator Poindex-
ter and Senator McCumber Joined
in urging an investigation. They
declared La Follette's charges were
so grave that all the facts must
be brought to light. Unless oppo-
sition arises from unexpected
source. indications are that the Ia
Toilette resolution will be adopted
today. Several members of the
Cabinet, including Secretary of In
terror Fall and Secretary of the
Navy DENLY, probably will be sum
moncd to testify IL the investiga-
| ticn' IS ordered. --',E 80 ~
La Toilette served notice he will
hght until the investigation is au-
thorized.
We've got to investigate it," he
| said. There will be no peace or
quiet until 1t is done.
BalIInger Row Recalled.
The Ballinger- Pinchot investiga-
ton a decade ago-which broke the
back of the Taft administration
did not proceed upon more damning
evidence that public interests were
being violated than is at hand at
| this time Congress must call. for
an investigation. or by its silence
must share responsibility with the
executive branch for what has hap
pened."
q
naval officers who protested against
the leasing of the oil lands were
ordered to sea. He pointed out that
Secretary Fall had been a conspicu-
Gus opponent of the conservation
policy and that it was almost un-
believable" that Secretary DENLY
should be willing TO turn the navy's
oil lands over to Secretary Falls
administration.
1T is significant" said La Toilette
TO note that every officer of the
navy who had been detailed spe-
cially to investigate the naval re-
serves and who had become well in
formed as to these oil reserves and
supported Secretary Daniels in tha,
contest has been ordered to sea or
to other parts of the world for duty.
l have been informed upon very high
authority that these changes in per-
sonnel detail were made after the
present Secretary had begun his
campaign to secure the transfer of
these naval reserves to the Interior
Department.
Sought "ReasonabIe- Men.
In fact. il was after a stormy
interview with the former Gus
todians of the navy oil that Mr.. FAN
requested the Navy Department to
send more reasonable officers to
represent the navy in conferences
with him. These officers were or
dered elsewhere, and others who
had not been specially associated
with or interested in the former
policy of the navy were named as
a naval oil reserve board"
Senator La Toilette stated that the
value of naval reserve No. 8, better
known as the Teapot Dome Res
ervation, in Wyoming. was con-
servauvely estimated at s5OO,00O, 900.
The lease between the government
and Mr.. Sinclair was signed on
April and was publicly announced
April 81.
During the time between Apr.
and 81. when this mystery sur
rounded the public business. specu-
lation in Sinclair Oil jumped on the
New York Exchange. in three days
trading, over s30,000,0OO.
Claim Is Disputed.
The Interior Department has
stated that an expert of this de-
partment' has found that the Tea
pot Dome was menaced by drain
age. This claim, made by one lone
expert of the Interior Department, is
contrary to nearly all opinions of
geological experts who have here
tofore examined and are intimately
acquainted with this field"
The Wisconsin senator produced
kilograms from Gov. Carey of Wy
oroing, Republican, q. B. Morgan,
state Geologist of Wyoming, and
numerous other authorities, insist
ing that there was no danger of
outside drainage of the oil in Tea.
pot Dome.
President Harding, IT is under
stood, is interesting himself in the
controversy. He is reported to
have sent a request, to the Interior
Department for all correspondence.
contracts, and other data bearing
on the leases. 1t was recently
stated at the White House that the
contract for. the Teapot Dome Re-
serve in Wyoming, was made with