Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-13
Fight on Stra,Un and Pomerene
Continues Before Committee

gotiations with Josephus Daniels.
former Secretary of the Navy, to get
a lease for offset wells in the Salt
Creek field and how he had con-
tinued the negotiations after the
Harding administration came into Of
flee.
Renewed Efforts In 1920.
The witness said he conceived the
idea Of obtaining IA lease to Teapot
was without authority to ''even put 1,
stake in the ground of the reserve"
and dropped the matter. There axas
a renewal of efforts. however after
Congress gave the Navy authority
in 1920 to operate or lease the oil
Having known Mr.. Creel for a
number of years. both as newspaper
man and as police commissioner of
my home city, Denver" he said. land
knowing that Mr.. Creel was a warm
personal friend of Mr.. Daniels. l in
terested Mr.. Creel in the proposition
and asked him to make 1t possible
for me to meet Mr.. Daniels and pre-
sent the matter to him personally.
Mr.. Creel arranged for the interview
ard accompanied me to secretary
Daniels office.
"The Secretary was firm In his
stand that he would not consider any
proposition to open up the reserve. L
tried to argue the point that the re-
serve was being drained and he stat
ed that If ii was being drained. the
land adjoining the reserve was
government land and the government
was getting the royalty just the
same"
Made Maps OF Field.
After comforting with naval officers
Stack said he went into the Teapot
Dome field and made maps which
subsequently We're checked by gov
ernneut officials and found to be cor
rect.
II then presented the maps to Mr..
Doheny," lie said. HE was startled.
He said that he could not conceive
any sane man with the responsibility
of the governments interests re-
fusing to listen to Il proposition to
protect the governments interests by
drilling offset wells on the reserve:
l suggested, knowing that Mr.. Fan
had been lifelong friend OF MIR.
Dohery and knowing Mr.. Fall was
he should take up with Mr.. Fail the
question of Il contract for Teapot.
MIR. Doheny refused to do so.
stating to me, Mr.. Fall and 1 have
been lifelong friends: we propspected
together in your state before it was
IL state, in the old territorial days;
in view OF that friendship, I would
not ask Mr.. Fall anything in refer
ence TO this Teapot Dome matter
feeling that, on account Of my friend
change his policy. if he had one
established. in my favor and l would
not ask him to do it,
Called On DENLY.
81 then called on Secretary DENLY
and Secretary DENLY was OF the same
opinion as Mr.. Daniels. that is, that
he wanted the naval reserve pre-
him the results of the investigation
which disclosed drainage that had
long been in progress. and upon con-
sidertns these facts. he said: Then
it is for the best of the Navy De-
partment that offset wells should be
drilled"
Contending that the Pioneer COM
pany had rights in the whole of Tea
pot Dome. Stack described his efforts
to get the Pioneer company to join
with himself and Doheny in endeavor-
ing to get a contract from the Navy
Department to drill offset wells. Do
heny finally tired of the negotiations
and withdrew. he said, requiring the
Pioneer company to take over Stack s
contracts.
Later Sinclair obtained the lease
Stack continued. and he was advised
by the Pioneer company that they
had sold out their titles and what
they thought also was my interest
LOT SI,UVUtUVU anu lutS ohCI Gu lie q
check for $4,000 as my per cent OF
the $1,000, 900"
The witness added that he refused
to accept the money and decided to
begin suit. as Mr.. Doheny had rep
resented his contract as being worth
much more than that.
Being without adequate funds
Stack said, he went to Frederick q
Bonfils. publisher of the Denver, Col
Post, who agreed to back him. Sim
ole i~ nd h.. 10 oil no
We're Joined as defendants, he said
but before the ten days for filing the
bill of complaint in court "the
Pioneer people Started negotiations
for compromise"
Conferred With Sinclair.
They maintained they had sold
their interest to Mr.. Sinclair" he
thereby responsible for my interest
At the invitation of Mr.. Sinclair, OIL
his counsel. Mr.. Bonfils. Mr.. Schwartz
and l went to New York for a con-
ference with Mr.. Sinclair and his
counsel: he stated that he knew OF
my contract and that in his opinion
the Pioneer company had made g
poor contract and he wanted to know
If the Pioneer people were not ir
the habit of keeping their contracts
saying:
"If | made that contract. would
responsibility was on the Pioneer
company.
THE conference came to an enc
without agreement, but evidently
, later the Pioneer people convinced
Mr.. Sinclair that the responsibility
was on him or the Mammoth OF
Company, for Mr.. Sinclair later start
ed negotiations which ripened into {
settlement between the Mammoth OF
Company and Mr.. Bonfils and me-"