Evening star., 1927-10-24
SINCLAIR PROPOSAL
FOR DOME LEASE
IS READ TO Jury
Oil Magnate's Letter to Fal!
Declared Reserve Was
Being Drained.
SIDDONS DEFERS RULING
'ON SENATE TESTIMONY
Court Demands More Facts Before
Decision on Admissibility
of Evidence.


Fall to lease Teapot Dome, written
under date of February 3, 1922. and
declaring that the great naval re-
serve in Wyoming was being drained
of its oil, was read to the jury this
afternoon in the Fall-Sinclair con-
spiracy trial by Owen J. Roberts, spe-
cial Government oil prosecutor, after
he had laid a foundation of evidence
IN the morning session in an attempt
to show that the Interior Department
had regarded all existing claims
against the Dome as being worthless,
which claims later were acquired by
Sinclair and used as a means of OBJ
tanning the lease, according to the
Governments charges.
In the letter and under paragraph
seven. Sinclair declared: Il will fur
ther undertake to quiet all outstanding
claimants titles on this reserve No. 3,
thereby enabling the Government to
make a contract now which will be
free from controversy. These claimants
have made some development
through themselves or through those
under whom they claim have
drilled some wells to the depth to
, produce some oil and have expended
large sums of money in their develop
l
that existing outstanding claims have
as great merit as some of those by
reason of which the department has
recognized equities and granted
rights"
Opposed Auction Method.
In the following paragraph Sinclair
says: Il desire to suggest that the
leasing of this area by public auction
W. ha n i'm "a y
being awarded to great many diff
ferent interests, with the result that
the congestion now existing would be
mitch increased. / also suggest for
your consideration that you would
have from the auction method null
tiplicjty of accounts and great num-
ber of tenants to deal with which
would involve great additional ex-
pense."
Sinclair said the plan he proposed
"will insure the Navy against loss of
its oil by drainage" The letter de-
clared a contract with the Govern
ment would be wanted on terms OF
which 'I would be authorized to take
out all of the oil in this reserve with
out. reference to the length of time
which might be required to accom-
plish that in" Other proposals set
forth included: A willingness to pay
reasonable royalty, the amount OF
the Government and Sinclair; devel-
opment of the property as rapidly as
conditions will warrant; construction
of steel storage tanks to take care OF
the production until the volume Is
sufficient to warrant the building of
pine line to connect Wyoming with
the markets of the world: agreement
to furnish for the use of the Navy
~ ha Mt
fuel oil in exchange for the Navy's
ROYALTY oil and construction of storage
tanks to keep the Navys oil on the
Atlantic and Gulf Coasts.
"The recent drilling and discovery
of OIL" another paragraph of the let
ter said 'in what is known as the
Saddle. lying between the Naval Re-
serve No. and the Salt Creek field.
is conclusive evidence of the fact that
the Teapot Dome is not sealed dome
and has been and now is being
drained.
Argues for Storage.
"In conclusion, I respectfully sug-
gest that it will be vastly more val
liable to the Navy Department to
have its oil in secure, steel storage
which does not leak and which is
above ground and which will be To-
as it may direct and therefore always
instantly available, than to have the
oil underground. where it is subject
to being drained and perhaps totally
lost to the Navy and far remote from
where it could be used
Because counsel in the trial, during
their lengthy argument Friday for
and against the admissibility of Sin
clair's testimony before the Sen
in
neglected 10 establish all the facts
that body, Justice Siddons deferred his
ruling on the question until all doubt
is removed as to Sinclair's status when
he gave the testimony.
Justice Siddons opened the second
week of the trial by reading a pre-
pared statement on the question, in
which he declared no evidence had
been offered on the status of Sinclair,
but cited excerpts from arguments
of the Government and the defense
which. he said. left in doubt whether
Sinclair was under subpoena or only
had been sworn as a witness after
having been notified to appear. The
court also drew the inference from
the arguments that no subpoena for
the defendants testimony had been
issued prior to December 81, 1923.
whereas the statements before the
committee which the Government
seeks to have admitted as evidence
against Sinclair were made Decem-
her /, 1923,
Demands. All Facts.
"The court desires that no doubt
exist on this point and considers it
important 10 know the exact cIrcum-
stances under which Mr. Sinclair APP
paared," Justice Siddons said in ad-
t3ition To his prepared statement
"The court awaits this information
before proceeding further"
Counsel for both sides then con.
ferred at the counsel table and later
at the bench, following which Owen J..
Roberts, special Government oil coun-
sel. resumed presentation OF his case
at the point where it had been inter-
rupted Friday when he sought to have
fhe Jury hear Sinclair's Senate testi.
n1onv to the effect that he visited AL
hert B Fail, then Secretary Of the In
ferior and co-defendant in this case,
AT his Three Rivers, \. Mex, ranch
- the last week in DeceWber for the pur
nose of discussing a lease on Tepot
Dome.
The Government produced evidence
BASED on an Interior Department in
Sestieation in an effort to show that
the placer claims to lands in Teapot
a>onne for which Sinclair paid the
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