Arizona republican., 1922-06-05

projects. 10 per cent in cash to the
treasury, and the remainder to the
state of Wyoming. This from the
Salt Greek field now amounts TO loO.-
600 barrels a month and have pref
erential rights through the pipe lines
when constructed, even over the de-
velopment company, for transporta-
ton to competitive points, including
Chicago, and the east coast II de-
sired,
"There Is a further contract TO put
mid continent prices into effect IN
the Salt Greek field. The Mid west
company now has a monopoly OF the
sale OF oil and it is unable take and
use more oils from lessees of govern
ment lands: The consequences has
been a loss of an average of 60 cents
per barrel in cash values,
ytsThis means that the government
is losing $4,000 month, and, with
production taken to capacity by the
Mid West pipe lines. it would mean
a loss of more than $1S0,000 a month.
Wyoming is losing today more than
$4,000 a month, and under fun pro-
duction would lose double that
amount.
"Of course the new leases are
made under such conditions as TO
change all of this. As soon as the
Teapot Dome is opened and the pipe
line even partially completed, the re-
suit to the state of Wyoming will be
the difference between Mid-Conti-
nent prices and the now prevailing
prices paid by the Midwest monop-
oily. The increase will be at least 60
cents a barrel to the state OF Wyorn-
ing and a correspondingly large in
crease for the reclamation fund OF
the federal government and for the
treasury.
Dome Drainage Threatens
Experts in oil said unhesitatlngly
that IL the dome had not been leased,
the oil would be drained out of ii by
wells drilled near 1t. A little more
than 80 days ago a we'll drilled in the
saddle of the Teapot Dome came in
with 1000 barrels. and last week the
daily flow had increased to $500 bar
reis, Our department geologists and
biologists of Wyoming and others
confirm my judgment that the dome
would hav been drained. This new
we'll is only a quarter of mile from
the Teapot Dome"
Turning from the Teapot Dome and
the wyoming oil prices, Secretary
Fall said relative to the proposed in
quiry by the senate:
"a few days prior to the execution
and delivery OF the contract Senator
LaFollette addressed a letter to the
state department which he evidently
thought was the custodian of execu-
tive orders requesting copies of all
such orders. including the order of
the president directing me to take
over the handling of the naval oil
land reserves, and the coal fields of
Alaska.
"The senators's request came from
the state department to me on April
12. just as / was transmitting for
the naval files their copy Of the con-
tract executed by Secretary DENLY
and myself, together with a full me-
norandum, and brief of just what
the contract embraced in detail.
II Immediately, on the same day,
forwarded to Senator LaFollette, all
of the executive documents called for
in his letter to the secretary OF state
as Well as other information. I gave
him to understand fully the policy
was pursuing in handling oil matters.
/ enclosed for him a copy OF the me-
morandum and brief just transmitted
to the secretary of the navy, and
stated to him that the memorandum
had not been given publicity but that
he might make it public if he desired.
j also stated that I would give any
informa tion he desired. upon request,
except that ] could not go into the
naval plans of storage as he we'll un-
derstood that this was a military
matter 10 be handled by the COM
nlander- in -chief of the army and
navy. / sent this communication to
Senator LaFollette by special mes
senger and have his receipt for the
same. He introduced his resolution
and did not refer to the fact that he
was In receipt of the information and
and had been authorized by me TO
make it public.
II can only conclude that the in
formation given and the policies out
lined were not such as the senator
cared TO use. He did not refer TO
them nor has he acknowledged the
receipt Of them"