Palatka daily news. [volume] (Palatka, Fla.) 1919-1994, 1922-10-20
WASHINGTON NEWS
SAYS WATCH OIL
CRAFT At TEAPOT
Spot Again Being Turn
ed on Crime of Great
:,
Oil Steal
Especial to The News.)

ulation in the shares of the Nam.
moth Oil company, to which Score.
tary Of the Interior Fall secretly
leased the Teapot Dome naval oil
reserve Tin Wyoming) has already
renewed the demand for an investi-
CATION of this questionable transae-
ton. Senator La Toilette (repub-
lican, wisconsin,, and Senator Ken
drick democrat, Wyoming), have
urged the senate to conduct an in
quiry, but the resolution introduced
by the former has been pigeonholed
by Senator Smoot republican, Utah) r,
chairman of the committee on public
lands.
The Washington ID. c. News, in
an editorial, gives some of the de-
tails by which the spectators who
got control of the stock of the Mann
moth company are capitalizing the
public wealth for their private gain.
The News says:
watch Teapot Dome.
Remember Teapot Dome, about
which this newspaper had consider
able to say some months ago? Leas-
ed by Secretary of the Interior Fall
to the Sinclair Oil company, thus
giving up to private interests of
probably the greatest reserve supply
of fuel for the navy, caused an in
quiry to be started in the senate by
La Toilette and Kendrick. The in
quiry was sidetracked at that time,
but the beneficiaries seem bound to
bring it down on themselves in due
time.
Teapot Dome has now passed into
the control of the Mammoth Oil
company, a subsidiary of the Sinclair
people, who are in turn subsidiaries
of the Standard. And today, in 300
daily newspapers of the country, ap-
pear great advertisements announc-
ing that the company has leased
1920 acres known as Naval Petro-
leum Reserve No. 8 in Wyoming
"The announcement states that
wells flowing 10000 to 10000 barrels
a day are being brought in from a
depth of 1900 feet; that the Salt
Creek field, of which this is a part,
is now capable of producing 100000
barrels per day from existing wells.
A great pipe line is to be built, and
to crown all, limited number of the
2,0O5,OOO shares is now being offered
to the public.
"These shares, of no par value,
were thrown on the curb market of
New York Monday, October 9. That
same afternoon the shares, which
had had opened at SO, jumped to 43,
and the next day to as.
CAT 45 the outstanding shares of
this one corporation, having merely
a lease on Teapot Dome-they don't
own it yet, mind you-are worth on
the market the not inconsiderable
sum of $9O,0O0,000!
"There are those in Washington
who intend to keep their eyes on Tea
pot Dome"
Senator Kendrick charged that
Secretary Fall executed the lease to
the Mammoth company in "a secret,
non-competitive way" and declared
that the government had lost be-
tween $15,0O0,OOO and $2O,O00,000 by
reason of tn Glow rate of royalties
stipulated in the contract. Secretary
Fall authorized a statement to be
published in The Boston Transcript
by way of rejoinder to Senator Ken
drick. The reply that Secretary Fall
made to Senator Hendricks charge
of secrecy in the execution of the
lease was this:
Numerous interviews with the
leading oil companies convinced Sec
rotary Fall that Sinclair promoter
of the Mammoth company was the
only man in a position to make a
suitable contract. This point never
has been understood and Secretary
Fall has been too proud to explain it;
hence the charge that the contract
was negotiated 'in secrecy 1t was
in the sense that the secretary did
not advertise for bids"
No explanation has ever been made
why these great deposits of oil here
tofore held as reserves for the oil
burning ships of the navy and the
merchant marine should be turned
over to private interests for their ex-
ploitation. All experts are agreed
that the best place to store the oil
was in the ground until such time as
should be needed.