Evening star., 1924-02-14
Publisher Tells Hon. He Cut In
I'm For Big Slice of Oil Lands

John c.. Shaffer, publisher of the
Chicago Post, the Rocky Mountain
News and other newspapers, was
questioned by Senator Walsh about
his holdings in the Pioneer Oil Com
pany, q standard subsidiary.
Il received from the Pioneer Oil
Company, in which I had an ighth
interest" Mr.. Shaffer said, $50 far
$4,000"
Did you render any services in
connection with the matter?" Senator
Walsh queried.
None, and the property has been
sold"
Didn't you at one time demand
$4,000 from the Pioneer Oil Com
pany for seryices?"
mo, SIR
Got One-Eighth Interest.
''Mr. Shaffer," Senator Walsh pro-
ceeded, II have a record before ME of
proceedings of directors OF the Pio-
neer Oil Company, granting to John
.. Shaffer an eighth interest in the
Pioneer Oil Company because of
services rendered"
fer returned. "and never heard of
them until you read that"
What service did you render?
None; l had contract calling for for
Pioneer company had in Teapot
Dome. They had three wells there
some time in 1915"
Senator Walsh asked for the con-
tract; the witness said his copy of it
was in Chicago. ;,
II had land adjoining Teapot Dome
Mr.. Shaffer continued, "a holding
known as the Maryland Oil Company.
Pioneer wells on Teapot Dome"
Chme From 81 100000 Fund.
His payment from the Pioneer Oil
Company. Shaffer added, came out Of
$1,000,O00 paid to that company by
the Sinclair interests. Senator Walsh
pressed the witness for reasons which
led the Pioneer company to give him
an eighth interest in it's Teapot Dome
matter.
The Pioneer people felt we had
:ommon interest in the Teapot hold
ings in case the Dome was ever
thrown open to the public" Mr.. Shaf
fer said. "They made the proposal to
vas their idea"
MIR. Shaffer recognized his signature
sistant Secretary F'inney. calling his at
tention to newspaper reports that Il
contract had been made with the Mann
moth Oil Company.
"As you know. l have personal in
terest in this DEAL the letter read.
Secretary Fall had arranged with Mr..
teinciair for some acreage for ME per-
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.
To- l,I,
Does that refresh your recollection?'
Back in 1917, Shaffer replied. he had
applied for land on the Teapot Dome
under lease and had been promised 200
acres of land by Secretary Fall.
Gave Him No Claim.
"How in the world do you think that
the mere fact that you had applied for
land gave you right to q share i'll the
Sinclair lease?" Senator Walsh de-
>nlanded.
ut didn't" Mr.. shaffer replied.
"Didu't you think it was the duty of
public officer to get something for the
public out of it? Was 1t your opinion
that anybody in this country could go
to Secretary Fall and demand share
in 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, land that
he could distribute the interest around
just as he saw fit?'
'I think So"
Shaffer explained that when he press
retary Lane. Secretary Fall told him
he was then negotiating with Sinclair
for lease.
Promiked Some Land.s
<.He then said as had made my ap-
plication in 1917 he would see that I
would have some land there" Shaffer
testified. "IIe told me afterwards that
lie had told Mr.. Sinclair that he was
reserving for me 200 acres, because of
my previous application"
Chairman Lenroot took over the wit
f6ss' examination.
M had a conversation with Secretary
Fall two months after. ne took office"
smarter said. land told him had spent
Sl5O,OO0 trying to develop oil at the
Teapot Dome. He promised me that
! would be given chance to get some
Later. he said. he would take it up
with Mr.. Sinclair" Nf
Following this. Sinclair made
proposition to develop 200 acres Of the
teapot Dome land in his behalf, Shat
fer said.
What was the obligation you un-,
dertook In, getting an eighth of the
Pioneer Company" Senator Lenroot
( aJust that I was to help them de-
relop,n Shaffer said. THAT we would
both have land inside the Teapot, and
] would have felt obliged to give
7hem an eighth interest in mine,"
WAS there. anything in the con-
tract to fix this obligation?" Senator
1enroot asked. :. -
NO. 1t was a. moral obligation,
but we would have had to put up pipe
lines together and make joint ar
rangements. I would have agreed to
develop Jointly with them"
Moral Obligation Only.
'Do you mean a business man
would make arrangements like that,
without a contract, and on the basis
of a moral obligation?' Senator Len
root queried.
II think so," Shafer. responded.
you were to furnish no money, no
service, and were free to make a
lease yourself?" Senator Lenroot COM
mented
what was the consideration you
gave for this eighth?"
"It was 81 and other valuable con-
Shaffer responded, "as
I'M contract said.''
$50 they just gave you this
eighth?" Senator Lenroot interjected.
'sYes, but, Senator, there were 5000
acres OF: land there" Shanfer protest
49,. II