New Britain herald., 1924-02-14

His payment from the Pioneer Oi company. ShafIer added. came out ot | the s1,00.000 paid to that company by 1 the Sinclair interests. Senator Walsh pressed the witness for reasons which 1 led the Pioneer company to give him an eighth interest in its Teapot Dome 1 matter.
 The Pioneer people felt we had a ! common interest in the Teapot hold ] ings in case the Dome was ever thrown open to the public" Mir Shaf- fer said. "They made the proposal to give it to mo. gave Up nothing. Ii was their idea"
 Mir. Shaffer Recognized his sigma ture to a letter dated April Ie, 1922, to Assistan; Secretary Finney calling his attention to newspaper reports that a contract had been made with the Mammoth oil company.
 Fall Again Involved. As you know, have a personal interest in this deal" the letter read. Secretary Fall had arranged with Mir. Sinclair for some acreage for me personally"
 He therefore asked that a copy of the Sinclair lease be sent him.
 The witness having just testified be- fore the reading of the letter that he had no interest in the Sinclair lease, Senator Walsh asked:
 Does that refresh your recollec- tion?"
 Rack in 1917. shaffer replied. he applied for land on the Teapot Dome under lease and had been promised 200 acres of land by Secretary Fall. How in the world do you think the, mere fact that you had applied for land gave you a right to share in the Sinclair lease?" Senator Walsh demanded.
 'I didn't" Mir. Shaffer replied.
 Didn't you think it was the duty Of Il public officer to get something for the public out of it Was it your opinion that anybody in this country could go to Secretary Fall and de- mand a share fin the Sinclair lease or money for it?"
 "I think so." Shaffer said.
 And you think that was consistent with Secretary Falls discharge of his duty" Senator Walsh said, 'and that he could distribute the interest around just as he saw fit?"
 'I think so."
 Shaffer explained that when he pressed a claim previously presented to Secretary Lane, Secretary Fall told him he was then negotiating with Sinclair for a elase.
 Promised Some Land.
 He then said that as l had made my application in 1917 he would see that I would have some land there" Shaffer testified. ''He told me after ward that he had told Mir. Sinclair that he was reserying for me 200 acres because of my previous applica- tion.'
 Chairman Lenroot took over the witness examination.
 'I had a conversation with Secre- tary Fall two months after he took office" Shaffer said, and told him had spent si5o.ooo trying to-fevelop oil at the Teapot Dome. He promts- cd me that would be given a chance to get some land if the reserve was ever opened. Later. he said, he would
 
 Following ths Sinclair made a proposition to develop goo acres of the Teapot Dome land in his behalf, Shafrer said.
 What was the obligation you uu- dertook in getting an eight of the Pioneer company" Senator Lonroot asked.
 "Just that I was to help them de- velop," Shaffer said. That we would both have land inside the Teapot, and l would have felt obliged 10 give them an eight interest in mine"
 Was thera anything in tho con- tract to fix this obligation7" Senator Lenroot asked.
 Moral Obligations
 No. fl was a moral obligation, but we would have had 10 put up pipe lines together and make joint arrange monts. would have agreed to de- velop jointly with them"
 DO you mean a business man would make arrangements like that without a contract and on the basis Of a moral obligation?" Senator Lem root dueried.
 "I think so." Shaffer replied.
 "You were to furnish no money, no service and were free 10 make lease yourself ?" Senator t.cnroot com- mentcd. What was the consideration you gave for this cighth?"
 "Tt was 'i and other valuable con- sidcration." shaffer responded 'as tho contract said
 'So they just gave you this eighth % Senator Lenroot interpreted.
 "Yrs but senator, there were a.ooo acres Of land there" ShsTer protest cd. '1 vas just to ge one small sec tion."
 Senator Lenroot took the witness back over the history Of his attempts to get a lease on the Teapot Shaffer said his contract with inc Pioneer company was made in 1918.
 You know when you made your application that all this land was withdrawn from leasing" Senator Lenroot asked.
 ''Ycs and t was my understanding that this was not open" Shaffcr said.
 "Ycs and it was my understanding It3dA A15io AdS llVL ppcHs HAdHef odiu.
 'Dut on the ba.Sis of this applica- ton, made before the land was open. you made a demand On Secretary Fall for somo of this land on prefer encs basls9"
 Made Nh Demand
 NO. not al ali. ] made no demand. 1 just urged that ] get f. Anybody could have done thc same thing
 DO you think they would have got the same answer"
 The question 1as vrarsHarrs5,