The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-06-05
WALSH REPORT
ON DOME LEASE
MATTER GIVEN
Prosecutor Says Former Sec.
retary Of Interior Not Party
TO Negotiations
LEASES ARE CRITICIZED
Policy Held Indefensive ~ No
''Oil Deal" Proved at G. D.
p. 1920 Convention

Washington, June (By the A.
Flagrant disregard of the law
in negotiation of the Sinclair and
Doheny oil lease was charged in
report to the Senate today, prepared
for the oil committee. by it's pros
ccutor, Senator Walsh of Montana.
The executive order by which
President Harding transferred the
oil reserves 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 de-
clared "indefensive wasteful" and
based on policy which Congress
alone had authority to determine.
Fall Criticized
Falls acceptance of 100000 from
f. l.. Doheny was characterized as
''in the last degree reprehensible"
although no opinion was expressed
as to whether the payment was in
fact a loan.
Shipment by Harry F. Sinclair of
consignment of blooded cattle to
Falls New Mexico ranch and Sin
clair's subsequent employment Of
Fall after he left the Cabinet were
cited without comment.
Likewise, without comment, the
report related how Sinclair expended
one million dollars to clear Teapot
Dome of conflicting claims some Of
which, at least, "were shadowy."
Denby Exonerated
Former Secretary DENLY of the
Navy Department and Assistant
Secretary Roosevelt were exonerated
from "any part whatever" in the ne
gotiations leading up to the leases"
1t was declared that despite dill
igent inquiry the committee found
mo facts of sufficient Importance to
report" in support of the rumor that
public officers had speculated in
stocks of the Sinclair and Doheny
companies.
Similarly the report said "the evi-
dence fails to establish the exist
ence" OF any conspiracy between oil
operators and others at the Repub-
lean national convention in 1920 for
exploitation for public resources.
Only a passing reference was made
to the conflicting statements by
which it had been sought to connect
Edward B. Mclean with a 100000
payment to Fall and no opinion on
that subject was EXPIRE ssed.
The only recommendation contain
ed in the report, aside from ref
erence to court proceedings now in
Congress, was contained in the fol-
lowing summary:
Summary Made
Had the legislation enacted by
Congress been observed in it's spirit
in dealing with the reserves, had it
not been wrested out of all reason
to afford some appearance of justi-
fcation for the course pursued, fur
ther action by the law-making
branch might not be necessary. In
view of what has transpired it should
be made plain:
81. That no lease or other con-
tracts authorizing or providing for
the extraction of oil or gas from the
reserves should be entered into ex-
cept upon competitive bids, for
which proposals should be duly ad-
vertised.
"2. That no lease or contract
should be entered into for any pur-
pose except to protect the reserves
for drainage and for such limited
areas as should be drilled to that
end, unless in the case of an emer-
gency to be proclaimed by the Pres
ident of the United States.
'3. That every such lease or
contract should be submitted to and
approved by the comptroller general
before taking effect.
"a. That the authority conferred
by the act of June A, 1920, to ex-
change, is restricted to the exchange
of crude oil or gas for fuel oil or
other products or derivatives Of oil
or gas"