Evening star., 1924-03-13
Rear Admiral Strauss Chosen
for Government; A. E.
Watts to Act for SincIair
interests Under Ruling.
DEFENDANTS ARE GIVEN
80, DAYS TO MAKE PLEA
Federal Counsel Charges Fall and
Sinclair Conspired to Defraud
Nation in Leasing of Reserve.
Ask Contracts Be Cancelled and
That Reserve Be Returned.
BY the Associated Press.

By the Associated Press.
CHEYENNE, Wyo., March l5.-
Federal Judge T. Blake Kennedy to-
day granted temporary injunction
falting further development work by
the Mammoth Oil Company on the
Teapot Dome oil reserve
Judge Kennedy named Rear Ad-
miral Joseph Strauss OF the United
States Navy and 4. L. Watts, vice
president OF the Sinclair Consoli-
dated Oil Corporation, as joint re-
ceivers for the Teapot Dome prop
erty pending the final outcome of
the litigation.
Granting of the injunction and ap-
pointment of receivers followed the
filing by Atlee Pomerene and Owen
J. Roberts, special government coun-
sci, of bill in equity seeking annul-
ment of the Teapot Dome lease to
Harry F. Sinclair and the Mammoth
Oil Company on the ground of fraud
and irregularity.
Judge Kennedy granted the de-
PENDANTS thirty days in which to
plead in answer to the government
complaint.
No date was set for further hearing
In the case. Opposing counsel stated
that on account of the involved ma
ture OF the action 1t would be impos-
Sth g.,
would be ready for further hearings
Details of the injunction and re-
ceivership will be set forth in an or
der requested by government counsel
ana which Will be signed by Judge
Kennedy after it's revision in part.
Pipe line and storage facilities and
the pump station and workingmens S
quarters, property Of the Sinclair
storage tanks belonging to the Sim
clair Crude Oil Purchasing Corpora
ton, are excepted from the terms of
the receivership.
L. s. Asks Exclusion.
Government counsel asked that
these. properties be excluded. as
operation of some of them would be
essential to disposal of oil impounded
by the receiverShip.
The temporary injunction halts the
drilling OF new wells, and the re-
ceivers will be directed to continue
the operation of the wells and equip
ment only to such extent as they shall
deem necessary to prevent loss or
damage.
The governments special counsel pc
titioned the United States district court
to do three specific things:
i. Issue temporary injunction stop
ping oil production.
2. Appoint a receiver to take charge
OF the properties.
3. Enter final decree canceling the
leases and contracts, returning the
properties to the government and en-
forcing an accounting.
Former Secretary Fall was charged
with making false representations to
the late President Harding, which re-
suited in the transfer of the lands from
the Navy to the Interior Department
The government denies that there was
any warrant Of law for leasing the lands
Al all.
Sinclair Accused.
The bill further alleges that Fall and
Harry f. Sinclair, the latter acting for
the Mammoth Oil Company, did COM
bine. conspire and confederate to de-
fraud the United States.''
The result Of these alleged acts, the
governments bill recites, was to lease
the Teapot lands to the Mammoth Oil
Company "at an inadequate, improper
and fraudulent consideration"
Former Secretary DENLY, in connec-
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