The Washington times., 1924-02-13
COM MBINE
GOT HIS
LEASE
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Administration and knew the de-
partmental routine"

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Administration ana knew the de-
partmental routine"
Wasn't Business Man." j
''But later found that Creel
wasn't much Of O business man.
couldn't get things through his
head"
Stack described how he had
talked to Creel for hour before
q conference with navy officers,
and then Creel sat there in the con.
ference and never said q word;
didn't help me with the argument"
TO Stacks argument that Teapot
Dome was being drained. he said
Daniels replied ''the Government
IL getting royalty from oil from the
adjacent wells 80 the navy isn't
losing anything"
Stack said he also talked with
Commanders Shafroth and Stewart
but" couldn't get them to see
that the oil was being drained so
I conceived the idea Of going to the
field ITSELF"
Previous testimony indicated that
ShafrOth and Stewart were de-
taehed from duty by Secretary
Denhy because they opposed leasing
Of the reserve.
Contract With DOheny.
Stack testified Creal's connection
ended when Doheny accused him
Of being on his pohsny'N pay
In January, 1891, Stack made al
separate contract with Doheny,
telling him am confident the
incoming administration would
grant a lease"
''on what did you base your
claim to Teapot Dome?"
"On my priority application In
"Do you think that was valid?"
Certainly, priority always is
recognized by the Interior Depart
ment in considering applications. ;"
After his contract with Doheny,
Stack said in the spring Of 1891,
he went Ito Teapot Dome with
consulting biologists and found
that $4,000 acres were on the Salt
Creek structure and subject to
drainage" He remained q month,
mapping Teapot Dome. Doheny
paid the expense he said.
In April or May. Stack instructed
his geologists to submit the report
to the geological survey "about the
danger Of drainage"
Confirmed BY Survey.
"rhe survey immediately sent
two men to Teapot to check up
on our map"
Stack said the survey confirmed
the report land I placed the mat.
ter before the navy"
Doheny was enthused then and
said no sane man could refuse
the lease" Stack said.
Il then went to Secretary DENLY.
He said nothing doing about the
lease. told him about the navy
losing the money on royalty oil.
He said, in view Of this, that
he would look into the matter.
Then learned the Pioneer Com.
pany was trying to get Teapot
Dome under the leasing act Of Con-
gress. I was trying to get a lease
under the navy bill Of 1920. That
caused conflict between US.
I'm view Of this we all tried to
get together. but because Of tho at.
tIttude and dilatory tactics of the
Pioneer Company, Doheny said he
wanted to retire II reimbursed, and
Il the Pioneer gave me q fair con-
Standard OH Gets In.
THAT was agreed to and In De-
con1ber entered q contract with
Pioneer giving me per cent of
profits on offset wells and 8 per
cent on other wells"
Stack said Pioneer was a subsi-
diary of the Standard OIL Of Indiana.
so Doheny stepped out and these
companies gave mo a cashiers check
Iii D
Stack explained later that the
to tho contract.
Before Doheny dropped out you
were interested in getting the Pio-
near and Belgo claims for him?"
Yes. I've always held the Pio-
nSor claims were valid despite what
the Interior Department has said"
How can you say the claims
were valid?" asked Senator Walsh,
Democrat of Montana, heatedly,
declaring that the Interior Depart
ment had twice repudiated the
claims.
because they made application.
took for a fact what the Pioneer
Company told that they had the
claims"
''If they had valid claims why
did you try to get the leases?"
Because since 1890 they had
title to the land"
"Who determines whether the
claims are valid?"
'"The Interior Department"
IF that was final why did you
20 on2"
Because the courts are final in
the determination"
Profit Of 1000, 900.
"I went to California and saw
Doheny and he advised me my con-
tract was worth $1,5OO,O0O.
IF you had no assurances that
the Pioneer would get the leases
how can you say the contract was
would be $30,000,O0O.
IF they got the leases It was,
II not, the contract wasn't worth a
cent"
c..~~n n-nS-E