The Washington herald., 1922-04-30
Senate Directs Secy. Fall
To Show Contracts
To Congress.
LANDS COMMITTEE
TO START INQUIRY
Excuse of Tapping by
Private Interests
Is Flayed.


thorough Investigations Of the
charges that Secretary of the In
terror Fall. and Secretary~-of the
Navy DENLY have turned the naval
oil reserves with an estimated
value running into. billions of dol
lars, over to favored interests for
private exploitation.
BY unanimous vote, 58 to 0, the
Senate adopted the resolution of
Senator La Toilette, of Wisconsin.
providing for Nthe inquiry. The
La Toilette resolution directs the
Secretary Of the Interior to send
To the Senate all leases, data,
memora ndum and papers OF all
kinds related to the leasing of the
naval reserves and it instructs the
Senate Committee on Public Lands
to begin at once an investigation
of the entire subject with particu-
lar reference to the protection OF
the rights and equities of the gov
ernment and the preservation OF Its
natural resources"
At the suggestion of Senator
Poindexter, of Washington, MEM
Der Of the Naval Affairs Committee
an amendment was added calling
upon the Secretary of the Interior
for information concerning the re-
ported drilling of wells on private
lands adjacent to the oil reserve
The Interior Department claims
that II leased the oil reserves be-
cause there was danger OF the oil
being drained by wells on adjoin-
ing property.
Advocates of the resolution de-
clared that the unanimous vote
clearly indicated how grave the
Senate considered the charges made
against the Secretary Of the In
terror and the Secretary of the
Navy.
Vice President Coolidge laid be-
fore the Senate yesterday a copy
of the Teapot Dome lease sent To
him by the Interior Department
The contents of the lease were an
tnounced about week ago. The
contract is signed by Secretary
Fall, secretary DENLY and II. F
Sinclair, president of the Mammoth
OIL Company. The government will
receive royalties ranging from 12h
to so per cent. Opponents OF the
transaction say that the so per cent
royalties will be few.
In yesterdays debate Senator
Hitchcock, of Nebraska, declared
that the leasing of the naval re-
serves constituted radical change
of policy" and came as a distinct
surprise to those who were under
the impression that the conserva-
ton policy was fixed by law which
could not be changed, except by
act of Congress.
"I am shocked" said Senator
Hitchcock, that in the admins
tration two departments of the gov
ernment should apparently conspire
secretly without any notice to the
public or any advice to Congress
to throw them open to private
exploitation.
Senator Borah. of Idaho, de-
clared that existing leasing law
opened the way for the leasing OF
the oil reserves and unless it was
radically changed. the public could
not be protected" Senator Hitch
cock thereupon declared that Con-
gress should get busy and amend
! the leasing law without delay
Senator Poindexter told the Senate
that there was considerable danger
of the draining of the oil from the
California reserves and that millions
OF barrels already had been lost
there. Senator La Toilette insisted
! that this was true of only a por-
ton of the reserves and that ths
Teapot Dome reserve, which is To-
Gated in wyoming, was as safe
from drainage as if it were in ar
iron basin"
Senator Hitchcock arraigned Sec
retary DENLY and Secretary Fall
for negotiating the leases in secret
Contracts have been let to favored
corporations he said, "and tho
public is not informed of it until
the transaction is closed"
Senator King, of Utah, assailed
the leasing bill. TT promotes
scandal" he said. 1T is an i'm
pediment to proper and legitimate
development and it should be modi-
fed, If not repealed"