Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-04-30
THE FAIL-sINCLAIR TRANSACTIONS.

:, New Mexico will watch with special interest the
fight being launched in the senate against secretary
of the Interior FAN. our people will not hasten 10
tumn 10 any conclusions. An investigation is about
to begin. This will develop the facts only with
the facts before us can any of us form more than
a tentative opinion.
Secretary Fall has made leases TO a Sinclair cor
marathon upon very valuable naval oil lands,
especially in Wyoming. These leases have been
assailed as being against the public interest,
The public is aware that the Journal has Grill
cised Mr.. Fall with some Vgor In the past ihese
criticisms have been based upon his political RECORD
in New Mexico In doing this we know with GER
tainty what we were talking about We cannot
know with regard these leases until the facts de-
velop Therefore we withhold criticism.
The journal knows the character and pubic
policies of Mr. Fall. We know that he has a 'spe-
cial interests tendency. We do not know that ne
has INDUCED that tendency in this matter we &c
know enough feel that Investigation is desirable
The Journal also knows Harry Sinclair He
would not be averse to getting what he COULD any
way he could within the law He is plunger WIN
the courage to take any chance. We have known
him in poverty and in wealth. He would work
Mr.. Fall if he could.
Presumably the investigation will assume TWO
angles One will be to the policy of leasing pub
lie oil reserve lands to individuals familiarity
over several years with the highly speculative chaf-
acter of oil operators does not lead us to THINK
very favoraby of the government going into the
oil producing business. AS the government needs
and desires oil production it is not unwise gem
eral policy to allow private concerns to take the
hazard of producing it. The restrictive clauses Of
any leases made would be large factor in decid-
ing upon their fairness
Whether the royalty to be paid the government
is adequate and the leases are fair, Is the second
question. Press dispatches say that in some of the
leases in question the royalty is fifty per cent of
the oil produced. That is abnormaly high roy
atty and can be paid proftably only upon proven
and highly productive leases. Mr.. Sinclair Is not
beating the government out Of any royalties Oh
fifty per cent contracts. No one would do more,
However, other leases or other provisions of these
leases may prove contain "joker" Perhaps
on the other hand they may prove to be satisfac-
tory.
The circumstances surrounding the giving OF
these leases may open interesting field of inves-
tgation. Harry Snclair's reported presence in New
Mexico when Mr.. Fall bought the Harris ranch and
other property short time ago, may receive atten-
ton Mr. Fall was presumed to be hard up" at
the time he is said to have paid cash for these
properties. Who If anybody. loaned him the
money! The whole matter is hearsay and conjec-
ture at present.
The Journal intends to be Just toward Secretary
Fall. If these oil lease transactions prove to ap-
pear reasonable and SOUND In principe, we VIII
cordially defend his action. If the contrary is
shown to be true will condemn vigorously as
the occasion demands.
We fear that Mr.. Fall is in for repetition OF
the Pnchot- Balllnger controversy, The question OF
policy involved will make nation wide storm
without regard to the details OF the leases. MI
Fall should have foreseen this. Probably he did.
The secretary may prove his course to be wise
and his transactions to be beyond criticism. We
will wait to see. Were Mr.. Falls New Mexico rec
ord a little less selfish and a trife less given to
aiding special interests, our confidence in his
course would be greater. On the surface this whole
matter looks somewhat Falesque.
On the strength of procuring these leases Sin.
clair stocks advanced about $50, 10000. While
an investigation is it might be we'll to learn just
who had "tip" and got In the ground floor
and 'got out on the roof"
The insiders have won to the tune Of $4,000
900 if Sinclair consented cancel these leases
tomorrow. Senator La Toilette is justified in urg
ing smelling" committee.