Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1924-03-08
TIRE OIL INVESTIGATION


that as the United States Navy uses
oil burning vessels it was necessary to
have a reserve supply Of oil for emer
gencies and with this idea in view
vast domains on which were rich reser
voirs Of oil were held by the United
States Government.
In the meantime, large oil corpora
tons owned land OF leases on land ad-
jacent to these government lands. That
is to say that where the government
ownership OF lands ended the owner
ship by private individuals began. In
order to get this oil out OF the ground,
it was necessary TO erect drills and es>
tabiish oil wells, the cost OF which ran
far into millions OF dollars The Navy
Department had charge of these lands,
but the Congress, by legislative enact
ment authorized the leasing of these
lands.
The charge is that in leasing them,
fraud was practiced in that they were
not leased in a way and manner to
bring about competition. The Demo
cratic leaders seized upon this lease as
a campaign issue and attempted to
saddle the responsibility upon Repub
ican administration. Then the fun
began. 1t seems that Secretary Fall OF
the Interior Department had charge Of
the lease. AS the Navy Department
had charge of the oil lands, the ques-
ton arose as to how the lease could
have been brought about.
Then it was explained that Secretary
Edward DENLY of the Navy Depart
ment, not having the facilities for
handling the matter turned the whole
business over to the Department of the
Interior and through that Department
with Secretary Fall, Republican IN
charge lease was made to the E. L. Do
heny interests. Secretary Fall resign
ed from the cabinet and on his ranch
in New Mexico, it was found out that
he had negotiated loan with Doheny
for 500, 100000.
Making a political issue of the al
fair became somewhat muddled for
the reason that it was announced that
Doheny is a Democrat and member
of the State Committee of that party
in California. The reason for the early
leasing of the oil properties of the Gov
eminent was set forth in the claim
that the oil veins could and would be
depleted by private c"rp rations that
owned oil wells adjoining. In making
the lease to the Doheny interests, Secre
tary Edward DENLY, who said at the
time and who insists now that the
lease is a good and profitable one for
the Government signed the lease in con
junction with Secretary Fall, although
there is no evidence that he was con-
nected with any improper deal with
reference to the same.
The Democrats received another
''jolp" which was disclosed in the state
ment that Hon. William G. McAdoo,
ex-President Woodrow Wilson's SON.
inlaw and also who was at one time
Secretary OF the Treasury had been
and was at this time in the pay OF the
| Doheny oil interests as attorney to
! represent that corporation in Mexico
and had an annual retainer OF 5000
90 per year and his law firm had re-
ceived $150,00000 in counsel fees from
| the same concern.
This raised howl" on the part Of
: those, who were opposing him for the
presidential nomination on the Demo
cratic ticket. The United States Senate
! is continuing its Investigations, but it
/ is as liable at any time to bring IN
| OeIlOcIdlS DIS II 10 IlepuOllSollo' WI 4AS
Adco admitted that his fee was to have
been one million dollars, if he succeed
ed with his negotiations with the Next
can Government.
An effort is now being made to Sc
cure the cancellation of the lease, but
this will entail great expense to the
United States Government as the cor.
poration alleges that it has invested
sums of money in digging wells, which
sums will exceed twenty millions Of
| dollars. This agitation is taking place
on the eve of a presidential election
! and it is apparent that for the most
/ part it is being done for campaign pur-
poses,
With the elections in November fad
ing into the distance, it is an open
question as to whether the prosecu'
tions will be pushed to their logical
conclusions and whether any Of the
: leading parties named will ever be
made to serve terms in the United
/ States prisons. The oil being taken
| from these wells is also being stored
in quantities by the Government, but
the lessees charge so much for the oil
1 furnished nv them TT was claimed