Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-13
Knew Sinclair Was
To Get Teapot,
Stack Says.
TOLD WEEK BEFORE
LEASE, HE ASSERTS
Attorney, Asking Hearing
Promises Valuable
Information.

tee, investigating oil leases, heard
further statements today regarding
payments made by Harry F. Sinclair
to a group in Denver, Col, which
had asserted conflicting claims to
portions of Teapot Dome.
Karl c. Schuyler, a Denver attor-
ney, telegraphed the committee that
he had correspondence in his posses
sion that would be OF value in the
inquiry, and he was asked to bring
it to Washington.
! John Leo Stack, the Colorado oil OPP
orator, who was member of the Den
yer group. was cross-questioned at
length about the motives behind the ne
gotiations with Sinclair. He also con-
| tributed an assertion that officials Of
the Pioneer company, one of the Stand
ard Oil subsidiaries, had told him a
| week before Teapot was leased that
| Sinclair was to get the contract.
| McKellar Renews Demand.
| President Coolidge's New York
speech, in which he referred TO the
oil disclosures, led Senator Mcclellan,
democrat, Tennessee, to make a re-
newed demand in the Senate for i'm
mediate court action. The senator
said Mr.. Coolidge's promise of prose-
cutions would be approved by every
one. and then added:
! Everybody knows that Doheny and
Sinclair bribed Fall, and that Fall
accepted the brides, and yet no in
dictment has been found against any
of the three. Why the delay? The
district attorney should move at once.
! Every one knows there is ample
ground for indictment"
! Leo J. Stack, a Denver oil man,
| testified today before the Senate oil
| committee that Pioneer Oil Company
| officials had told him confidentially a
week before Teapot Dome was leased
that Harry F. Sinclair was to get the
| lease.
| Karl c. Schuyler. a Denver attor-
| ney. telegraphed Senator Walsh, dem
| ocrat. Montana, today that he has in
his possession correspondence which
/ he thought the Senate oil committee
! should have. Senator Walsh said he
! would be summoned.
AT the same time the Montana
senator received telegram from d.
F. Stackelback of the Denver Post,
saying he had good reason to be-
( lieve that the correspondence in
| Schuylers possession was "sensa-
| tional."
Stackelback's telegram follows:
| Have good reason to believe that
Karl C. Schuyler, Denver attorney.
his possession regarding Teapot mat
ter. 1 believe he should be sub
poenaed and asked to bring any cor
respondence had by him with news
paper publishers"
Was Stacks Counsel.
Schuyler's telegram said:
Il acted as personal counsel to
John Leo Stack in connection with
his contract with Pioneer Oil Com
pany and his claims arising there
from. Charges have been made in
the local newspapers which, by i'm
plication, involved me in wrong
| doing In connection with the sub
ject matter. / also have In my pos
session certain correspondence which
I believe your committee should see
and hereby request opportunity to
appear before you at earliest con-
venient time. Please wire"
When the oil committee resumed its
hearings this morning Stack, who tes-
| titled yesterday, was cross examined
by Chairman Lenroot. Stack EN-.
| phasized the danger OF drainage of
| Teapot Dome by wells which would
| be opened on the land surrounding
| the naval reserve under the action
which the Interior Department had
taken in 1920 when the rights to OPP
crate on such land had been sold at
| public auction.
I'm 1920 1t was common talk among
the oil men that the reserve was
being drained" he said.
Wanted Offset Wells.
He declared that he had never
thought of seeking to obtain a lease
to the entire reserve, but was only
trying to arrange for the privilege
Of driving Offset wells to prevent
drainage to the entire reserve. His
advances to obtain an arrangement
had been rejected in 1917 by Admiral
Griffin and Commanders Stewart.
| Wright and Shafroth.
Taking issue with George Creel,
who also testified yesterday. Stack
said the former chairman Of the COM
mittee on public information did
know that L. I. Doheny was asso-
ciated with him in the efforts to get
a lease to drill Offset wells in Tea
pot Dome.
IT may not have told him the
money I paid him came from Do
iheny," said Stack. but he knew had
none and that Mr.. Doheny was back
ing me-"
stack said the $1,000 he paid to
Creel was the amount named by the
latter, and was the grub stake" he
would need. Creel was employed, he
said, because he knew the officials
in Washington and was to represent
the syndicate in the National Capital.
Stack said he had shown Secretary
Daniels where Teapot Dome was
Secretary replied that IL the field
twas being drained the government
was getting its royalty oil Just the
same from the nearby wells.
He had conferred also with several
naval officers regarding the matter.
Stack said, but became convinced that
The was making no Roadway. 1t was
after this he entered into contract
with Doheny to try to get the Teapot
Dome lease. This was In January,
1921.
Saw Leasing Possible.
"what did you tell Mr.. Doheny2"