The Monmouth inquirer. [volume] (Freehold, N.J.) 1865-1933, 1924-06-12
SAYS OIL LEASES
DISREGARD LAW
President Harding's Order Is De-
cIared Illegal and Falls
Course Corrupt.
FINDINGS SENT TO SENATE
DENLY and Roosevelt Exonerated;
Secret Negotiations Called Fraud
on Government-FaIl, Sinclair
and Doheny Condemned.

Washington. Fragrant disregard OF
the law in negotiation of the Sinclair
and Doheny oil leases was charged in
a report to- the senate, prepared for
the oil committee by its prosecutor,
Senator Walsh of Montana.
The executive order by which Pres
ident Harding transferred the oil re-
serves from the navy to the interior
department was held in the report to
have been illegal.
The manner in which the leases
were negotiated secretly by former
Secretary Fall was described as in
disregard of the statutes.
The leases themselves were declar-
ed "indefensibly wasteful' and based
on a policy which Congress alone had
authority to determine.
Falls acceptance of 100000 from
E. L. Doheny was characterized as IN
the last degree reprehensible," al
though no opinion was expressed as
to whether the payment was in fact
loan.
Shipment by Harry F. Sinclair OF a
consignment of blooded cattle to
Falls New Mexico ranch and Sin
Glars subsequent employment of Fall
after he left the cabinet were cited
without comment.
Likewise without comment the re-
port related how Sinclair expended
$1,000, 900 to clear Tea Pot Dome Of
conflicting claims, some of which at
least were "shadowy"
Former Secretary DENLY of the ma
Wy department and Assistant Secre-
tary Roosevelt were exonerated from
"any part whatever" in the negotia-
tons leading up to the leases.
1t was declared that despite diligent
inquiry the committee found mo facts
of sufficient Importance to report in
support of the rumor that public Off
GERS had speculated in stocks of the
Sinclair and Doheny companies.
Similarly, the report said, "the evil
dence failed to establish the exist
ence" of any conspiracy between oil
operators and others at the Repub-
lican national convention in 1920 for
exploitation of public resources.
Only passing reference was maze
to the conflicting statements by when
it had been sought to connect Edward
B. Mclean with a 100000 payment
to Fall, and no opinion on that sub
ject was expressed.
The only recommendation contained
in the report, aside from a reference
to court proceedings now in progress,
was contained in the following sum-
mary:
Had the legislation enacted by
Congress been observed in its spirit
in dealing with the reserves; had it
not been wrested out of all reason to
afford some appearance OF justifica-
tion for the course pursued, further
action by the law making branch
might not he necessary.
"In view of what has TRANSFERRED, 1t
should be made plain
81. That no lease or other contract
authorizing or providing for the ex-
traction of oil or gas from the re-
serves should be entered into except
upon competitive bids, for which pro-
posals should be duly advertised.
20. That no such lease or contract
should be entered into for any pur-
pose except to protect the reserves
from drainage, and for such limited
areas as should be drilled to that end
unless in the case of an emergency to
be proclaimed by the President of the
United States.
20. That every such lease or con-
tract should be submitted for ap-
prevail by the comptroller general be-
fore taking effect.
a. That the authority conferred by
the act Of June 4, 1920, to exchange
is restricted to the exchange of crude
oil or gas for fuel oil or other prod
ucts or derivatives of oil or gas