Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-06-05
SENATE COMMITTEE
REPORTS ON DOHENY
AND SINCLAIR LEASES
nv The Associated Pres-n


WASHINGTON. June 5.-Flzgrant
disregard of the law in negotiation Of
thf Sinclair and Doheny oil leases was
charrea in rt port tu the senate today
prepared f0r th.. VIII committee by IT,
prosecutor. Senator Walsh w Montana.
The executive order by which Presi-
dent Harding transferred the oil reser-
vrs from The navy AZ the interior der
pArtmtnt was held to have heen Illegal.
The manner in which the leases were
negotiated secretly by former Secretary
r ~ was described as in disregard Of the
statutes.
The leases themselves were declared
4" ir fcnsihly wastcfuI" ind "based 0n
"A po icy which congress alone had au-
thority to determine,
Falls acceptance Of 100000 from Z.
L. Dohcny was characterized as in the
last degree rePrehensible" although no
opinion was expressed as to whether the
payment was IN fact Loan
shipment ~ Harry F. Sinclair Of
consignment Of blooded cattle TO Falls
New Mexico ranch and Sinclair's SUITS se-
qnert emp oEmcnt 0f Fall after he left
the caf inet were cited without comment.
Likewise. without comment. the re
port related how Sinclair expended ST.
CO0.000 70 clear Teapot Dome Of conflict
ing claims. some M which at least, were
~Shadowy- Former Secretary DENLY or
thc navy department end Assistant Sec
rctary Roosevelt were exonerate from
"any part whatever" il the negotiations
leading up TO tho leases.
H. .l.mf4rMI hw4 "a
inquiry the committee found -no facts
of sufficient Importance tO report" in
support W the rumor that public Off
GERS had spccu ated in stocks Of the
Sinclair and Doheny companies.
Similarly. the report said. the evil
tcnce failed to establish the exist
encc" of any conspiracy between oil
oprators and others M the republican
national convention in 1920 for ex-
ploitation OF public resources.
Only N passing reference was made to
the conflicting statements by which it
haze been sought Nv connect Edward III
Mclean with 100000 payment 10
Fall. and no opinion on that subject
WIS expressed.
President Harding was criticised for
signing the executive order transferring
the leases without having documentary
support VI any kind" for his action.
The department Of justice also was de-
clarcd to have failed TO diligently as
srrt nnl maintain the governments
title to section aH within the confines
WI naval reserve NV. ! in California the
report stating that had this been done,
and three other sections properly pro-
tsctcd the problem of drainage upon
taat reserve would have been re ative-
iy simple.
The only recommendation contained
in the report. sside from a reference 70
court proce cdings now in progress. was
contained in the following summary:
Had the legislation enacted NV con-
rrrss been observed in its spirit in
dealing with the reserves. hal II not
been wrcstaG out OF an reason 10 af-
ford some appearance for justification
for tho course pursued. further action
Ly ihe lawmaknE branch might not be
necessary Tn view WI whist has trans
pircd IN shou u wv made plain:
"I That no lease or other contract
"a ithorizing or providing for the extrae-
tion az oil or gas from the reserves
CONTINUED on mage 6l