Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-06-05

I1c SHOWS THAI lllS III SoiuSHl ~Nao
fully apprised Of the lease before
it was made; that had it not been
made, private interests drilling in
the vicinity would have drained the
dome of its oil; that the navy will
have stored for emergency vast
quantities of oil for defense of
United States interests on both the
Atlantic and Pacific coasts and OIL
islands.
More Income Assured.
The secretary also shows that by
the construction of new pipe line,
the mid-continent price Of oil will
be obtained in the Wyoming field,
instead of the Midwest company's S
price, alleged to be now sixty cents
u barrel too low. He shows that a
vastly greater income will be Sc
cured both for the royalties that
accrue to the United States gov
eminent and to the state of Wyom-
ing by breaking the Midwest mo-
nopoly. The Midwest company Is
q. subsidiary Of the Standard OIL
company.
Mr.. Fail Said.
with reference to the Teapot
Dome contract" said Secretary
Fail, mot only was the president of
the United States informed of the
action of the secretary of the navy
and myself, but was further in
formed by me personally that as
soon as it was given publicity many
newspapers and individuals would
criticise, and that such criticism
would possibly amount to storm
\ like proportions until the matter
was thoroughly understood.
Course is Approved.
This understanding is beins
reached rapidly" the secretary con-
tinued, "and | am glad to say that
the local papers Of wyoming and
tributary sections are now approv-
ing my course; that the independ-
ent oil operators are approving in
dividually; that congress itself.
with the exception of one or two
members, is apparently satisfied.
II am more than willing to leave
the verdict to the people, and |
consider this contract and that re-
Iating to the naval reserve in Cali
fornia, as q consummated policy
which, IL / were seeking personal
credit and approval, would aid more
in securing the same than anything
else which l might do, even If
should hold my present position in
definitely.
Data Prepared.
"Under my instructions the diff
ferent bureaus Of my department,
particularly the general land Of
flee, the bureau Of mines and the
geological survey, and staff Off
GERS cooperating with the navy de-
partment have prepared all the data
including every scrap of paper re-
lating to the reserves, from the
earliest days of Taft's Withdrawal
of oil lands for naval purposes
down to the present moment. This
embraces every letter, telegram OF
scratch of a pen concerning leases
contracts, and everything pertain
ing to the matter.
II have included in this report
which Is now ready for transmits
sion to congress, detailed
statement of all transactions with
which have had anything to do, OF
OF which l have knowledge.
"ff the president acquiesces, the
public will be informed that naval
plans contemplate, through con-
tracts 7 have entered into, the con-
struction of steel storage tanks
for 100000 barrels of fuel oil
at one point in our Pacific posses
sions. This will involve the ex-
penditure of approximately $6,O00,.
900, to be paid for without a cent
of direct ppropriation. It will
come out of oil exchanges effected
Under the contract.
Construction of Tanks
Further plans have been formu