Evening star., 1924-02-14
Legality Of Oil Leases Upheld
BY Assistant Secretary Fiinr,ey

J.. c. Finney, assistant secretary of
the interior, testified before the oil
committee today that his recollection
was that Secretary Fall told him d
short time before the Teapot Dome
lease was announced that arrangements
had been made with Harry Sinclair
to give some land in the reserve to
John C. Shaffer. the publisher.
Assistant Secretary Finney fol-
lowed Mr.. Shaffer on the stand.
you read this letter to MIR. Shaf-
fer?" Senator Walsh asked. Il in
vite your attention to it's statement
of Mr.. Shaffer's personal interest in
this deal. What did you know
about it,"
II recall Mr.. Skaters connection
with the Salt Creek matter under
Secretary Payne's administration and
his letters saying he had spent con-
siderable money in developing. oil
there and had some equities in the
field, if it ever should be developed,
and in Teapot Dome"
Denied by Secretary Payne.
4 letter has been sent by Secretary
Payne in the Wilson adminiStrat ton,
denying Mr.. Shaffer's request for
drilling permits on Teapot Dome. MIR.
Finney said. but the Maryland COM
pany was allowed drilling permits
on land outside the Dome.
II mentioned the matter to Secre-
tary Fall. likely" MIR. Finney con-
tinued. "and filed memoranda showing
SIR. Shatfer to be asserting some
equity on Teapot Dome. as did . man
I,a, am. ri
Camrion All these claims were filed
under mining locations.
.Secretary Fall told me later he
had some negotiation with Mr.. SIN
clair about taking care of the ShaHer
claims. He said Sinclair had agreed
TO do So
This letter says Fall arranged to
take care of Shaffer with some acre
age on the Dome" Senator Walsh
continued. rs that substantially
what Fall told you:"
Promised Money or OIL.
my recollection is that secretary
Fall said Sinclair would either give
Shaffer money Mr.. Finney replied
''or share UP some OF sr,ad ans 9s, 70 the
Standard Oil of California and Mr.
Sutro's testimony.
II thought there was authority un-
der the naval appropriation niIi. 10,
this leasing. Z ilIHCS SosNs
think so. This policy had 6een de,
termined by my superior ofncer ana
it was.up to me to proceed with It
"pid you know that it had been re-
peatedly suggested that. the attor-
ney general be aked for an opin,
ion? Do You know Oh apy ooJee'ioi'
"0niy the objection that each de-
partment is the judge OF ats action
The law authorizes US to, ask sucn
opinion and we occasionally do SO.
when we have doubt as to the
departmental solicitor renders the
only opinion in the bulk of matters
l had no doubt as to the legality
of this matter, and neither did Sec
rctary Fall.
did consider this some way" Sen
tor Walsh continued, "and 1t was
suggested that his opinion be given,
but there were objections. I'm sorry
to say it is my opinion you haven I
told all you know about this matter.
"All 1 have is my good name.". Mr..
Finney retorted. I'm sorry 70 nave
you say that, and you are mistaken.
Puts Blame on Fall.
Secretary Fall handled all the Tea
pot Dome matters. took no par
ticular part in it, though I did take
some part In the Doheny lease in
California;"
, Senator Walsh read a letter by Mr..
Finney responding to the Shaffer let
ter to him.
For military reasons 1t has been
deemed unwise' to give out copies OF
the Sinclair contract" it read.
What were these reasons?" Sena-
tor Walsh asked.
THE contract told Of the location
of oil tanks and storage facilities" +"
Mr.. Finney replied, land I was in
structed by my superior to refrain
from making the contract public"
But you know there were no mill
tary reasons?" Senator Walsh said.
NO, I didn't"
"But 1t was Secretary Fall who told