The Washington times., 1924-06-05
OIL REPORT
IS GIVEN
SENATE
Committee Holds Falls Deals
With Doheny and Sinclair
illegal and Immoral

Dv 1nVeBuAtIOnoI MOVIE SERVICE.
Leasing of the Teapot Dome and
Elk Hills naval oil reserves to
Harry F. Sinclair and E. L. Do
heny, respectively, by Ex-Secre-
tary of Interior Albert B. Fall
and former Secretary of Navy
Edwin DENLY, cannot be justified
legally, morally or from q good
business standpoint, Senator
Thomas J. Walsh, unofficial
prosecutor" Of the Public Lands
Committee, charged today in a
report to the Senate.
Present Laws Adequate.
Walsh's report. covering thirty
six printed pages. exhaustively re.
viewed the naval Oil reserve scan.
dial, but failed to outline definitely
any legislative recommendations for
Tightening up the leasing laws. He
explained that present laws were
adequate to prevent a similar re.
currence of the scandal, which the
committee has investigated since
last October. If Federal officers in
charge of the reserves did not dele
gate to themselves "unwarranted as.
sumption of authority" or did not
abandon the settled policy of the
Government" compelling retention
Of the oil in the ground for emer-
gency use by the navy.
Walsh carefully refrained from
commenting other than percursorily
upon court action instituted by the
Government against Fall. Sinclair
and Doheny, but did savagely as
sail them, with DENLY, for the lease
negotiations, which. he said, were
'reprehensible and tainted with sus.
picion."
RapS Doheny Loan to Fall.
The famous 100000 loan by Do
heny to Fall. the $4,000 loan by
Sinclair to Fall, and Falls use ol
detachment OF marines to drive
squatters off Teapot Dome were
particularly singled out by Walsh
Tor bitter denunciation.
Pointing out that Fall entered
the Cabinet ''in straitened finan
cial circumstances" but in 1922
purchased property involving ar
expenditure of from $175,000 to
100000, Walsh said, speaking spe
officially Of the Doheny loan:
Though the committee refraine
from characterizing the transaction
referred to. it does not hesitate to
condemn it as, in the last degree
reprehensible on the part of all con
cerned in 1t. The essentially cor.
rupt character Of a loan made un.
der such circumstances requires no
comment.
Its sinister import is appreciated
when 1t Is borne in mind that, with
out, competitive bidding, Doheny got
from Fall, in the month Of April
Following the loan, the contract for
the construction of tanks at Pearl
Eiarbor, and with 1t a preference
right to the lease Of a large share
OF naval reserve No. 1 elk Hills
TO be followed, without competitive
bidding, by lease of the entire
reserve. comprising over 10000
acres, estimated to contain $50,
1000 barrels of oil, out of which
Doheny told the committee, he
would be in bad luck II he did not
make 100000, 900 profit"
Marines Use An Outrage.
Ordering Of marines to Teapot
Dome was described las a perfectly
outrageous use Of the armed forces
or the United States" 1.-THE civil
arm of the Government was unques.
tionably equal to the emergency"
Walsh said. 1T is perfectly obvious
that the procedure followed was
pursued to avoid judicial inquiry
into the validity Of the Sinclair
lease"
Walsh attacked the legality Of the
leases. first, because the late Presi.
dent Harding was without Authority
to transfer control of the reserves
from the Navy to the Interior De,
partment; second, because the leas.
ing acts Of Congress strictly pro-
hibited either Fall or DENLY from
Continued on Page 2. Column 81