The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-03
S|NCLA|RADM|TS
STANDARD OIL
INTERESTS
Owns Half of Teapot Dome
Pipe Line and Purchasing
Company, He Says.
BY International News Service


NEW YORK, March 3.-The Tea.
pot Dome naval reserve lease be-
tween the Federal Government and
the Mammoth Oil Company was
signed forty years after oil was
first produced in Wyoming and
twelve years after the State had be.
come one Of the greatest oil pro.
ducing districts of the world" Harry
F. Sinclair declared today in q
statement issued by him as chair
man Of the board Of the Sinclair
Consolidated Oil Corporation.
The statement summarized the
obligations and investments Of the
Sinclair Company in the Mammoth
OIL Company whose lease Of Teapot
Dome brought Sinclair into the lime.
light Of the Senate investigation Of
the Wyoming and California naval
reserve leases.
Stock Ownership.
Though the Mammoth Company
was organized by Sinclair to de-
velop the Teapot Dome, the Sinclair
Consolidated Oil Corporation towns
slightly more than rs per cent of
the stock of the Mammoth OH Com.
pany," the statement said. The
ownership Of the remainder Of the
stock Is not revealed.
The Sinclair Corporation has not
loaned money to the Mammoth Com.
pany or guaranteed any of it's finan.
cial or other obligations, the state.
ment said.
For the slightly more than rs Der
cent interest 1t holds In the Nam.
moth Company. the statement said.
the Sinclair Corporation gave 25O. 900
shares OF its common stock with q
present market value Of approx.
mately $5,75O.000."
Storage Project.
One by-product of the lease of
Teapot Dome, the statement reveals.
was the construction by the Sin.
clair Corporation of a $1,000, OOOY oil
storage project for the Navy at
Portsmouth, N. H., now almost com.
pleted-the cost Of which will be
paid by royalty oil "accruing to
the government through the Nam.
moth Oil Company operations"
construction of pipe line into
the Wyoming field, he intimates,
Will increase the price of the field s
Oil.
During all the time and prior
to the leasing of Teapot Dome the
Wyoming fields were isolated" the
statement said. The capacity of
local Wyoming refineries was much
less than the available Wyoming
production and producers were sell.
ing less than half of their available
output and receiving go cents a
barrel less than the price paid in
the Mid-Continent field for oil of
similar quantity.
Standard Oil Interests.
The pipe line which ia to have
carrying capacity of 10000 barrels
a day and create the first direct
outlet from the Wyoming fields to
the markets of the world" Is now
being completed by the Sinclair Pipe
Line Company, the stock Of which
Is owned half by the Sinclair Cor
poration and half by the Standard
Oil Company of Indiana.
One other contract with the gov
eminent held by the Sinclair inter.
ests is revealed by the statement
issued today. It Is the contract
Of the Sinclair Crude Oil Purchas-
ing Company. jointly owned by the
Sinclair Corporation and the Stand.
ard Oil Company of Indiana, to
purchase all government royalty oil
in the Salt Creek field of Wyom.
ing. This now averages more than
10000 barrels day, according to
the statement. The contract runs
five years from January 1, 1923.
with the privilege of renewal for
another five years.