, 1922-04-22
CRAVE MISTAKE
MADE IN TEAPOT
PLANS--BR00KS
Policy Of Fairness Not
Followed in Contract
Award to Sinclair


Registering severe arraign-
ment of the governments re-
pudiation of fair treatment
and business-like methods in
the handing over the Teapot
oil field to the Mammoth Oil
company, a child OF Sinclair Oil ana
Standard OIL company parentage. Ex-
Governor b. g. Brooks, in a statement
written to Senator John B. Kendrick.
sefutes many of the basic reasons a
vanced by the government bureaus
assuming to show the necessity for
making such a contract at this time.
The letter. dated april Fl, which
eomrend5 tho fight being waged by
Senator kendrick, follows in fun:
Hon John B. Kondrick.
Omitted States Senate,
washington, d. c.
MY Dear Senator Eendrick:
Your telegram Of April 20 stating
that rot had written President Hard.
ing a letter requesting that the inde-
pendent operators be given a hearing
before final action was taken on the
Teapot lease is received. In reply. I
wish to make a few comments on tn,
contract made by the government for
the opening OF this naval reserve. Yes
terday's Denver Posi- published an AS
sociated Press dispatch giving detaiis
Of this contract upon which I base my
comments
In the first place, I think a very
clear distinction should DO drawn be
tween the naval oil reserve in Call.
fcrnia and the one in Wyoming. Cali
fornis is a great resourceful state and.
with its important harbors, derives
many direct benefits from the navy
which, of course Is not the ease in
wyoming. Our state has no precious
minerals, only coal and oil. These.
together with our forests and public
lands, make up h bulk of our natural
and should the government
receive the bufk Of the income from
our uaturai resources, we arc going
TO have a hard time to maintain the
standard OF our public schools, keep
up our roads and run the state al 1t
should be run II people expect to mako
ffseir homes here
There is no sfmfIsrfry between the
California oils AND the on in Teapot
one is black, the other hight; one has
an asphalt base and is suitable for
fue oil purposes. the other has a par
affin base. is high in gasoline content,
lubricants and other valuable ingredf-
ents, which make the Teapot oil vastly
mere valuable than an equal quantity
of California oil. One can be used for
the navy fuel Oh; the other cannot.
One IS near the ocean: the other in
the mountains. In a few years Sthe
Industries of this mountain section of
America win be sadly in need Of the
products of our light OIL right hero at
home; and at this distance from water
transportation, we cannot TAX advan-
tage of new discoveries in foreign
lands.
The royalties in Teapot range from
12h per cent to so per cent. Now. in
the sale OF the Salt Creek edge lands
at Douglas last year, the royalty was
80 Is per cent and the few acres sold
brought a bonus of over 5000 900.
This contract completely reverses the
former established rule OF competitive
bidding and fairness in disposing OF
one Of the most valuable oil domes in
tho world.
ct have already seemed to prove
that there is no possibility OF outside
wells draining this Teapot dome; and
this government drainage argument,
which probably applies In California.
falls fiat here. The fact as stated that
the navy department buys its gasoline
and lubricating oil at market prices
is no argument in v Of tho Teapot
lease, as the navy, like everyone else,
always had this privilege The pipe
line, which is to be built, viii follow
as a matter of course but the opening
of the Teapot dome han little tnffu-
ence in his because h pipe line
would have been built in any eyent-
Yesterdays dispatch states that
the new scheme will Immediately open
the Salt Creek field and take all the
production therefrom. This. OF course.
IS ridiculous. because the present pipe
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