Douglas daily dispatch., 1926-09-29
Circuit Court Reverses
the Sinclair Case
CONTINUED From Page one)
proval of the court.

proval of the court.
There is no corruption in this case
as to any officers of the government
except Albert B. Fall. 1t has been the
theory of the government that former
/ Secretary Fall received from Harry F.
| Sinclair, organizer and owner of the
! Mammoth company, a pecuniarx con-
/ sideration which influenced him to
grant the company a lease for Teapot
/, Dome. Counsel for the United States
charged that Sinclair received as divi-
dends from the Continental Trading
Company, Ltd, of Ontario, Canada, $780,
500 face value of liberty bonds which
he turned over to Fall as a bribe. This
charge is as grave and serious an ac-
cusation as could be made against a
public official, augmented by the fact
that this official SO cahrged was in a
sense the trustee for the people of the
United States of its public lands.
"The case is one, therefore, in which
not only the rights of the United States
and the Mammoth Oil company, but
likewise the rights of the public at
large are involved.
THE entire transaction is tainted with
favoritism, collusion and corruption, de-
feating the proper and lawful functions
of the government. Nothing is so es-
sential to the perpetuity of representa-
tive government as fidelity of public
officials.
The opinion also states that is OF
vital Importance that government oil
in naval reserve lands should not be
drained away for the benefit of pri-
to onfo
preserved in the interest of the ma
tional defense. The appellate court
listed GA exceptions to findings OF
the lower court as set out by special
prosecutors Romerene and Roberts in
three groups, as follows:
First, was there authority of law
to make the lease fApril z, 1922
and supplemental agreement on
February 9, 1923 to the Mammoth Oil
company and were they in accordance
with the law?
Second, were the lease and agree
ment procured by fraud as claimed
by the government?
Third, was there abuse of dis
cretion in not granting continuances.
asked by the government to secure
certain evidence of H. S. Osler, and
important witness, who was III Can
ada and in reusing to reopen the
case for this evidence?"
Discussing the law pertaining to
naval oil reserves, the decision set
out, "as congress deemed the law, 1t
intended to place the matter entirely
in the hands of the secretary of the
navy Whether the idea OF
placing the naval reserve control in
the department of the interior origin
ated with Secretary DENLY or was
suggested to him by Secretary Fall,
is matter of conjecture. It is GER
tain that Secretary Fall was not only
willing, but anxious that such sug-
gestion of Secretary DENLY be car
ried out"
Continuing with advice of the ar
rangements for the leasing of the
lands the document says:
This arrangements was ratified
by Secretary Fall in a letter OF
October 80, 1921. Secretary Denby
seemed to have so little information
concerning the leasing of Teapot
Dome that Secretary Fall thought it
necessary to write him long letter
Of date April 12, 1922, explaining the
same. that Secretary Fall
as TO this matter, dominated Secretary
DENLY, Admiral Robinson and othel.
government officers, and practically
controlled the action of the navy de-
partment as to the leasing of Teapot
Dome is a conclusion difficult to
escape under this record"