The Washington times., 1924-02-01
WARNED
:. LEASES WERE
BLUNDER
Naval Officers Objected, Some
vehementIy, Statements
Now Disclose.
BY JOHN T. LAMBERT,
COamODolitan Nawa Sarv,oa

Dome and the other naval oil
reserves for protection of the
safety of the country.
One Of them called Secretary
Fall a traitor to his face. The
story of their sensational clash is
Eere told for the first time.
After the naval oil reserves
were transferred by DENLY to
Fall, the Navy Department as
signed Commander John. Shat
roth, SON. Of. former Senator Shat
roth of Colorado, to work out
the details. Of the proposed leases
to DOheny and Sinclair with the
Interior Department.
Asked "Amenable Officers"
From the outset, Ehafroth did his
work under protest, always grum-
bling against Falls lavish interest
for the oil companies. until Fall,
exasperated, called shafroth a vile
name.
ShafrOth jumped to his feet, and,
Ieveling his finger at FAN, said to
him, calmly and slowly, you're q
traitor to your country"
Other officers present Jumped be-
tween them.
In the records. there is a refer
ence made to IAN alteration" be-
tween Shafroth and Fall, but its
violence has been concealed.
DENLY shortly thereafter received
. request from Fall to send him, in
the future, officers "whO are more
lamenable."
Rear Admiral r. s. Griffin was
perhaps the most conspicuous in
the long list Of gallant war-dogs
who protested to DENLY against the
proposed lease, who denounced 1t
after 1t was made, and who i'm.
plored him to regain all that was
possible from the wreckage.
Nearly all these men have been
since transferred out of Washing
ton. Mr.. DENLY probably would
deny that they were ordered to sea
as a punishment for their stubborn
ness.
eight years in command of the oil
resources Of the navy, and was in
charge Of the navy's fuel during all
the serious days of the world war.
He protested to DENLY when he
first heard Of it, and DENLY never
asked his advice again. In fact,
he said 1t was evident that DENLY
had made up his mind to transfer
the Oil to Fall when he first men,
toned the matter to Griffin.
Thomas A Edison headed the
Naval Consulting Board, composed
Of distinguished scientists and in
ventors who were called in by Sec
rotary Daniels during the war to
study and coordinate the inventions
offered by patriotic citizens to
strengthen Americas first line of
defense. Mr.. Edison and his as
sociates found as follows on the oil
reserves:
THAT any legislation which may
divert from the Navy any portion Of
its reserves will seriously weaken
the navy and imperil the national
defense. The Naval Consulting
Board, therefore, urged upon the
nation and its representative in
Congress to permit no steps to be
taken that will impair the integrity
Of the existing naval petroleum re-
serves"
Board Pointed to Attacks.
The Naval Fuel Oil Board was
charged with the responsibility of
recommending policy in the mat
ter. That board found in part:
I'm the four years that have
passed since the creation of the
first naval petroleum reserves there
has been a continuous attack on the
navy's tenure of these lands by
private interests and corporations.
Action Of the Congress in this
matter will indicate whether It is
possible to retain these or similar
reserves after they have become
commercially attractive. It will de-
termine whether in such a contest
between private interests and those
of the Government the latter can
survive"
Those two boards were not called
In for advice by Secretary DENLY,
but when there was still a chance
to correct some Of the evils, Mr..
DENLY received the following from
Capt. John Halligan, jr., who bit
terly denounced to the Secretary
himself the secrecy with which the
deals had been carried on:
Denounced by Captain.
"This country is now facing the
definite probability Of the depletion
of its petroleum reserves to such
an extent that in this generation It
will depend upon foreign sources of
supply.
''The British government has
for years pursued policy designed
to give that government control
of the worlds supply of petroleum
and now apparently has achieved
such control. Petroleum Is the
predominant note in British d.
plomacy. That government is in
the oil business and controls COM
panies whose investments are sold
to be double the combined capitali-
zation Of all American oil COM
panies.
Captain Foley, of the United
States Shipping Board, estimated
that at least 81 per cent Of the
possible future supply of oil was
in the possession of the British
government, while the United States
Geological Survey said that for
eign countries have enough oil for
$50 years while Uncle Sans faced
exhaustion in eighteen years.
+ Admiral Griffin's Warning.
Admiral Griffin said, at the time
when Mr. DENLY first told him
of the plans: II told him that 4
was very sorry to hear it and
hoped he would reconsider the