Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-06-07

was denounced "as a perfectly out
the United States" resorted to to
"avoid a judicial inquiry into the
validity Of the Sinclair lease"
Discussing the leases as "bar-
gains" the report declared that a
lease under which "the government
receives 6 per cent on the oil in the
ground and the lessee gets a." can
not possibly be in the interest Of,
or just to, the government.
Had the leases been awarded
upon competitive bidding" it said,
there would have been no occasion
to inquire whether they are or are
not fair or just to the government.
The omission invite com
petition casts a suspicion on the
transaction as one in the interest
of the government.
mot only was the Teapot Dome
lease awarded to Sinclair without
competition, but he paid a fabulous
price to produce the elimination Of
a potential rival.
zone seeking only a fair contract
from the government does not buy
off his competitors; neither does he,
when he secures it ordinarily, sub
NIT to blackmail in connection with
it; nor does he, while negotiations
are pending, accommodate the
awarding officer with loans"
Discussing in more detail the evil
dence relating to Sinclair's elimina-
ton of other claimants from Tea
pot Dome, the report related how
Leo Stack, of Denver, associated
himself with T.. l.. Doheny in 1920,
in an effort to obtain lease of some
offset wells along the boundary of
the reserve and how Stack later
made an arrangement with the Pho
neer Oil company, which in turn
made a settlement with Sinclair.
Money flushed Fraud Cries
stack then enlisted the interest
of the owners of a newspaper in
Denver, COL" the report continued,
(which Immediately upon the eXecu-
ton of the lease began the publ
cation of articles denouncing it as
corrupt and contrary to public
policy Suit was started in
the name of Stack against that COM
pany Ghe Pioneer company and Sim
clair, alleging a conspiracy against
Stack. Sinclair settled this
suit by an agreement under which
he paid $250,000 and agreed to pay
$750,000 more. The attacks of the
newspaper thereupon ceased. The
proprietor of a rival newspaper
upon a claim even more shadowy, il
indeed it can, be called claim at ALL
got $92, 500 out of the Pioneer Oil
company as its share of the moneys
yielded up by Sinclair"
On the question of the danger of
drama sc, the report stated that
among biologists, there was no diff
ference of opinion that drainage was
possible between the Teapot Dome
reserve and the Salt Creek oil fields.
although the extent and seriousness
of the drainage was in dispute.
Drainage to an appreciate and seri-
Gus extent was occurring upon the
two naval reserves in California, it
was added.
President Harding was criticized
for signing the executive rider
transferring the leases without hav-
ing documentary support OF any
kind" for his action. The department
of justice also was declared to have
failed to diligently assert and main
tain" the governments title to sec
ton Sc within the confines of naval
reserve number one, in California,
the report stating that had this been
done and three other sections prop
erly protected the problem of drain.
age upon that reserve would have
been relatively simple"