San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-13
No Date Set for Further
Hearing in Oil Reserve
Case.
EXEMPT PIPE LINES
Court Order Hats Drilling
of New Wells on
Property.
BY the Associated FresA

Cheyenne, Wyo.. March f3.-Fedef-
al Judge I. Blake Kennedy today
granted temporary injunction halt.
ing further development work BY the
Mammoth Oil company on the Teapot
Dome oil reserve.
Judge Kennedy named Rear Ad-
miral Joseph Strauss Of the United
States Navy and A. E. Watts, vice
president of the Sinclair Consolidated
~ corporation as joint receivers for
tne teapot Dome property pending the
flnal outcome of the litigation.
Neither counsel objected to the man
named by opposing counsel.
File Bill Of Equity.
Granting of the injunction and ap-
pointment of receivers followed the
filing by Atlee Pomerene and Owen
j. Roberts. special government coun-
sci, of a bill in equity, seeking annul-
ment of the Teapot Dome lease to
Harry F. Sinclair. and the Mammoth
Oil company on the ground of fraud
and irregularity.
Judge Kennedy granted the defen-
dants 30 days in which to plead in
answer to the government complaint.
No date was set for further hear
ing in the case. Opposing counsel
stated that on account of the involved
nature of the action It would be I'M
possible at this time to state when
they would be ready for further hear
ings.
Details of the injunction and receiv-
ership will be set forth in an order
requested by counsel for the govern
ment and which will be signed BY
Judge Kennedy after its revision in
part.
Pipe line and storage facilities and
the pump station and working mans
quarters, property of the Sinclair Pipe
Line company am IL storage tanks
belonging to the Sinclair Crude Oil
Purchasing Corporation are excepted
from the terms of the receivership.
Excluded by Request.
Government counsel asked that these
properties be excluded as operation of
some of them would be essential to
disposal of oil impounded by the re-
Ownership.
The temporary Injunction halts the
drilling of new wells and the receivers
will he directed to continue the opera
ton of the wells and equipment only
to such extent as he shall deem nee
essary TO prevent the loss or damage.
Fraud Is Charged.
Charging fraud, conspiracy and IL
legality the government filed its suit
here today TO cancel the Teapot Dome
lease and contracts.
The governments special counsel
petitioned the United States District
Court 10 do three specific things:
Tissue a temporary injunction
stopping oil production.
Appoint a receiver 10 take charge
of the properties.
ENTER a final decree cancelling
the leases and contracts. returning the
properties to the government and en-
forcing an accounting.
Former Secretary Fall is charged
with making false representations"
to the late President Harding. which
resulted in the transfer of the lands
from the navy to the Interior Depart
ment. The government denies that
there was any warrant OF law for
leasing the lands at all
The bill further alleges that Fall
and Harry +. Sinclair. the latter set
lux LOT lue -hdmuOlh vi tphiistater
did combine and conSpire and cOnfed-
crate to defraud the United States
The result of these alleged acts,
the governments bill recites. was 10
lease the Teapot lands TO the Mann
moth oil company. st IAN inadequate
Improper and fraudulent considera-
ton"
Former Secretary DENLY in connec.
ton with the transactions is described
in the governments bill as ~hayins
exercised no discretion" and his sig
nature is characterized "as merely :
colorado attempt TO evidence the con-
pliance b. him in its terms.
The Sinclair Crude Oil PURCHASING
and the Sinclair Pipe Line
company. operating storage facilities
on Teapot Dome. are made parties ia
the suit ss ~trespassers % BE-
elected. their properties 20 Be taken
over by the receiver.
Prepared BY former Senator P0mer-
enc aud Owen J Roberts. specisl eouu-
sci for the government the bill res
&C u,inued on next pase.l