The Birmingham age-herald., 1924-03-14
TWO RECEIVERS
 WILL TAKE OVER
 TEAPOT RESERVE
Further Development Work In Dome Halted
 By Injunction
SINCLAIR MAINTAINS
 LEASES ARE HONEST
Roosevelt Testifies Fall Asked Protection Of U. s.
 Marines

CHEYENNE, Wyo., March 13.-- (By Associated Press. 1.-Two receivers will be named to take over control of the Teaport Dome oil reserve, Judge T. Blake Kennedy ruled after hearing argument of opposing counsel.
 Rear Admiral Joseph Strauss of the United States navy had been re- quested by government counsel as re- ceiver pending the outcome of the litigation and A. E. Watts, vice presi- dent of the Sinclair Consolidated Oil corporation, had been named by the defendants.
 Judge Kennedy granted temporary injunction halting further development work by the Mammoth Oil company on the Teapot Dome oil reserve. He also granted the defendants 30 days in which to plead in answer to the gov ernment complaint.
 No date was set for further hear ing. Opposing counsel stated that on account of the involved nature of the action it would be impossible at this time to state when they would be ready for further hearings.
 Details of the injunction and re- ceivership 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 Lines Excepted
 Pipe line and storage facilities and the pump station and working mems quarters, property of the Sinclair Pipe Line company, and IT storage tnaks be- longing to the Sinclair Crude Oil Pur- chasing corporation are excepted from the terms of the receivership.
 Government counsel asked that these departments be excluded as opera tion of some of them would be essential to disposal of oil impounded by the re- ceivership.
 The temporary injunction halts the drilling of new wells and the receivers will be directed to continue the opera tion of the wells and equipment only to such extent as they shall deem nec- essary to proven. loss or damage.
 T. J. O'Donnell of Denver, appear ing for parties claiming right to a part of the Teapot Dome structure under claims antedating these of the naval reserve lease, requested that these properties be excluded from the re-
  federal receivership.
 Government counsel went into con- ference with Mir. ODonnell immediate ly after court adjourned to consider changes requested by Mir. ODonnell.
 Strauss Urged As Receiver !, eThe name of Rear Admiral Strauss was proposed by government counsel as receiver and the defendants in their reply requested a dual receivership on which both the government and the defendants would be represented. They suggested Mir. Watts as their selection.
 Opposing counsel stated that both Rear Admiral Strauss and Mir. Watts would serve without pay. Bond for the receivers was fixed at $50,000 by agreement.
 J. w. Lacey of Cheyenne, one of the Sinclair attorneys, told the court that the defendants stood on the de- fense that the lease of the Teapot Dome reserve to the Mammoth Oil company was valid and legal.
 Sinclair Issues Statement Harry F. Sinclair, president of the Mammoth Oil company, in a statement issued late today after Federal Judge T. Blake Kennedy had granted an in- junction and receivership in the gov ernment suit for annulment of the Teapot Dome leases, declared:
 q am convinced when all the facts are disclosed and understood that it will be realized that the Teapot Dome lease to the Mommoth Oil company was the result of negotiations conducted at arms-length by honest representa- tives of the navy and interior depart ments and they not only fully protected the government but drove hard bar gain in its interest"
 Concerning the charge of conspiracy in the execution of the lease. Mir. Sin clair said he knows ''it can be dis proved by overwhelming proof
 He also expressed relief that the Teapot Dome conspiracy has at last been transferred to "a court of justice"