Evening star., 1924-01-28

! leases. and particularly the Teapot
Dome lease, and the reasons that slc-
tuated the action taken.
We have il upon the word OF
Secretary Fall. continued Senator
Walsh that before the leases were
executed the lea es themselvs not
ionly became a subjct of cabinet dis
cuSsion but the question OF their
LEGALITY became Il subject OF debate
in the cabinet"
Reads Harding Letter.
Senator Walsh also read the letter
OF President Harding transmitting
the Fail letter. which concluded with
: this sentence:
81 think it is only fair to say in
this connection that the policy which
has heen adopted by the Secretary Of
! the Navy and the Secretary OF the
anterior in dealing with these mat
,ters was submitted to me prior to the
adoption thereof, and the policy de-
ci6ed upon and the subsequent acts
/ have at all time had my entire APP
|proVal"
| Senator Walsh then called up the
Caraway cancellation resolution. say
! ing he desired TO offer substitute,
! but Chairman Lenroot objected until
he could make a statement.
! FIRST Mr.. Lenroot had read into the
|
! ident Coolidge Saturday midnight,
outlining the administrations de
! termination TO proceed with court ac-
| tiou 10 aunul the leases.
; He then denied a statement issued
last night by Senator Walsh saving
I that in view OF the statement by the
President. obviously information had
Ebeeu transmitted 10 the Executive
iabout confidential agreement of the
tSenate investigating committee ap-
N in, tNrin al. h. I..h
! stitute resolution. This measure
would direct the President to bring
court action and to employ special
counsel to prosecute the cases.
The plain Inference is that the
Presidents action was actuated by
what the committee did in executive
session last Saturday. / visited the
! White House at 1890 o'clock Satur-
iday night at the request of the Presi-
dent. When / reached there the state
ment had been prepared substantially
. in the form in which il was issued
The President had no information
| from me and, l am advised. from no
other person, before he prepared the
statement.
Rear Admiral Gregory and Rear Ad-
miraI Latimer. judge advocate gen
eral of the Navy, appeared before the
| House naval committee TODAY pre-
! pared to discuss the naval oil reserve
; leases. but the committee decided, at
the last minute, not to question them
! at this time.
| Chairman Butler explained that he
! thought It would be better. in view
; of developments in the Senate in
/ Nestigation and the announced in
! tention Of President Coolidge TO insti-
tute court action to pursue hands
off policy, at least for a day or 50.
! Wanted Details of Lease.
| Some members of the committee
had expressed a desire to obtain in
| formation from the Navy Department.
; particularly as to the requirements
! in the Doheny lease for the construc-
| ton of oil tank storage facilities at
Pearl Harbor. Hawaii. They had
! planned TO question the naval officers
as to how much had been expended
| from royalties for improvements
! there and to determine the status of
! the work.
Several members of the committee
! were determined, despite the reIuc-
tance of Mr.. Butler. to proceed with
! an examination of Admirals Latimer
and Gregory, but just before the COM
mtttee session there was a hurried
! conference, at which 1t was decided
! to call off today's hearing. The COM
! mtttee then proceeded with other
business.
| Senator Walsf's substitute resolu-
| ton was offered, applying only to the
Teapot Dome lease. Senator Lenroot
/ submitted a letter from E. L. Dohenv
| personally offering to return the Cali
| fornia lease if the government will
reimburse the Pan America Petroleum
and Transport Company for funds
spent in developing the government
! oil reservoir at Pearl Harbor
| No Offer on Teapot.
! Senator Robinson OF Arkansas, the
democratic leader, asked If any sim
iilar offer had come from the lessee
| of Teapot Dome, and Senator Lenroot
replied in the negative.
! Senator Norris. republican. Ne
/ braska. declared that the Dohenv
contracts should have been included
! in the resolution.
| u don't think we ought to accent
the Doheny Offer" he said. 1--WE
! ought not to make two bites at this
! cherry"
| Senator Heflin, democrat, Alabama
| also argued against accepting the DO.
/ beny offer. He charged that both
leases were obtained by fraud and
| corruption" and declared they should
/ pt CdlIStltu' duUeu lndC the
! federal departments of the govern
4 ment are honeycomber with corrup-
! ton and gorged with graft"
Text of Resolution.
J The text of Senator Walsh's substi-
| tute resolution for the annulment of
! Teapot Dome lease follows:
| Joint resolution to procure the an
nulment of the lease to the Mammoth
| Oil Company.
/ Whereas. it appears from evi-
\ dence taken by the committee or
! public lands and surveys of the
| United States Senate that that GER
| tain lease of naval oil reserve, No. 3
! in the state of Wyoming, bearins
date April z. 1922. made in form: by
the government Of the United States
! through Albert B. Fall, Secretary o,
! the Interior. and Edwin DENLY, SEQ.
| retary OF the Navy, as lessor, to the
Mammoth Oil Company, as lessee
| was executed under circumstance
! indicating fraud and corruption; and
! Whereas, The said lease was en-
| tered into without authority on the
| part of the officers purporting to act
| in the execution of the case for the
United States and in violation of the
! laws of Congress. and
| Whereas, Such lease was made in
| defiance of the settled policy of the
| government adhered to through three
| successive administrations, to main.
| tain in the ground a great reserve
| supply of oil, adequate to the needs
of the Navy in any emergency threat,