The Washington times., 1922-04-23
TEAPOT DONE
OIL CONTRACT
ST|RS SENATE
Administrators Gigantic Deal
With Sinclair interests At
tackled on All Sides.
BY WILLIAM X. HUTCHINSON
international News Service.

1 international news SerNccs
An avalanche of criticism struck
the Harding Administration last night
in the wake of an Official explana-
ton" for the leasing of Teapot Dome
the $500 10000 naval oil reserve in
Wyoming, to private interests, headed
by Harry r. Sinclair.
Party lines were abandoned by the
opposition when Josephus Daniels,
former Secretary of the Navy, Joined
with Senator La Toilette Repub-
lican) Of Wisconsin in planning an
attack upon the lease. La Toilette
announced he would open ilsht
upon the contract from the Iloor OF
the Senate Monday Both condemned
the lease as an exploitation OF ma
tional wealth for private gain.
DENLY Explains Lease.
The clash between Daniels and
Secretary of the Navy Derby over
terms OF the lease developed vester-
day when both issued statements
outlining their views. DENLY, along
with Acting Secretary of the Inte-
rior Finney. issued the official eS-
planation," which declared the lease
had been awarded Sinclair to pre-
vent the footing" of the Govern
ment reserve by private operators
on adjoining lands.
Daniels, however declared the
contract an Outrage" and declared
the Government shoul1 hold the re-
serve inviolate "even through the
use OF marines"
Opposition to the lease i'm the SEN
ate came from both sides. Senator
Poindexter Rep) OF Washington and
Senator Kendrick Dem.) of Wyoming
Joined with I.aFollette in condem-
ing II. Poindexter declared the huge
naval reserve should be held with
out drilling for future emergency
use" Kendrick assailed the lease as
exploiting the Governments holding
| for private use.
LaFollette, II was learned, was in
touch last night with oil men from
every section of the West. He was
obtaining their opinions for use in
an attack in the Senate tomorrow.
The opposition. however, will be
handicapped In any attempt to set
aside the contract as existing laws
/ will protect II unless fraud and
conspiracy" are proven. Under such
circumstances, Congress could order
the contract revoked or an executive
order could set II aside.
Secretary DENLY, in upholding the
contract as a means OF conserving
4 the field for future use' declared il
had been awarded to the Sinclair
| interests.
After full consideration OF all
offers submitted" DENLY declared
the Government had lost millions Of
barrels Of oil" I'm it's California fields
by private drainage" and faced the
same danger at Teapot Dome.
VIII Drill 20 Wells.
Under the terms of the contract,
DENLY declared, the Sinclair in
terests would drill twenty wells
within a limited time" and con-
struct a $4,000, 900 pipe line from
the field to Missouri to connect
with other Sinclair pipe lines.
This connecting pipe line, II
was shown, was the backbone of
the contract, as II would provide
heretofore unavailable facilities iUr
the movement of fuel oil from Tea
pot Dome to every naval base along
either coastllne. A section of the
contract specifically provides that
SinclLIr shall deliver fuel oil to the
navy at any point from "Guantan-
amo, Cuba, to the northeast corner
of the United States"
This pipe line and royalties run
ming up to so per cent" form the
compensation received by the Gov
eTnment for permitting private OPP
eratbn of it's reserve. The Gov
ernment will maintain rights 10 the
pipe line and will also use 1t to fur
ther the development of the Salt
Greek field, which adjoins Teapot
DONE.
Former Secretary Daniels charged
the lease was simply outrageous
and indefensible.
There is absolutely, no excuse
for this leasing of Invaluable Gov
ernnent reserves to private inter
ests' said Daniels. I"The reserves
should be safeguarded for future
interests" said Daniels. The re.
serves should be safeguaTded for
future emergencies and not be per-
mit'ed to be drained away by prI.
vatt interests"
I Daniels advised the use of ma
rine to prevent ''looting' Of tho
reserve by operators on adjoining
contracts. II the marines failed, he
added, the Government should OBJ
L