The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-10-10
Supreme Tribunal Rules
That SincIair's Lease
Is AnnuIIed.
FALLS SECRECY HIT
Oil Company Not Formed for
Evidence of Conspiracy to
Defraud Government,
(History of Case on Page 1A
BY HERBERT LITTLE
United Press staff COrrespOnder


WASHINGTON, Oct. 10.-Teapot
Dome's millions of barrels of oil 60
back to the Go yernment.
The United States Supreme Court
today annulled the lease On the
famous Wyoming oil field, granted to
Harry F. Sinclair's Mammoth Oil
Company, which was the starting
point Of the oil scandal investiga-
tions of 1923-24.
This decision brings to a success
full close the Governments long
legal battle to regain the two rich
naval oil reserves, leased by the
then Secretary of Interior Albert B.
Fall, in 1922, and 1923.
Takes Al Minutes to Read
Associate Justice Butler an
nounced the unanimous decision of
the court in an opinion which took
AZ minutes to hear. Justices Van
Devanter and Stone, it was an
nounced, took no part In considera-
ton Of this case.
Butler ended the opinion and an
nounced the courts decision at l2:47
p. m.
There is persuasive evidence that
Fall and Sinclair conspired to de-
fraud the United States" he said.
Failure of Sinclair 10 testify Is
strong evidence against his company.
Butler said.
I'VE do not determine whether
Fall was bribed," the opinion added.
Appeals of two Sinclair sub
sidiary companies to be allowed TO
remove their property built on the
reserve must be denied, as they are
in the same position as the Man,
moth company, Butler said.
E. L. Doheny's leases of the Elk
Hills reserve in California have
been annulled by the Supreme
Court, and President Harding's
executive order giving the Interior
Department Jurisdiction over the
navy oil has been revoked by Presi-
dent Coolidge.
Read by Justice Butler
The decision of the Supreme
Court was read by Associate Justice
Butler, commencing when the court
convened at noon.
His first words did not indicate
the nature of decision. The deci-
sion is the first of the new term Of
court.
AS the reading continued, how
ever, indications we're that the de-
cision would be for cancellation of
the lease.
Butler delivered the Doheny-Elk
Hills decision last spring, annull-
ing the rich California lease, grant,
ed by Fall at the same time early
in the Harding administration.
Buffers opinion contained a long
history Of the negotiations between
oil men and Government officials,
disclosure of which by the Senate
oil committee in 1923-24 stirred the
Nation.
Hits at Secrecy
There never was any legitimate
reason, Butler said, for the great
secrecy with which Fall was said
to have surrounded the leases.
He found also that the leases
were not made to prevent drainage
Of Teapot Dome by nearby privately
drilled fields.
Butler then discussed the $685.
in Liberty Bonds which the Govern
ment alleged was given to Fall by
Sinclair in connection with the
lease. He retold the details of tbs
Continental Trading Company, Ltd,
deal, out of the profits Of which
Sinclair was said to have obtained
the bonds later found in Falls pos
session.
Butler mentioned the absence of
H. M. Blackmer and James E.
ONeil, oil men, wanted as witnesses
in this case when it was tried. and
wanted also in next weeks criminal
trial. Both are understood to be in
Europe.
The Continental company, in
which Sinclair, Blackmer, O'Neil
and others were said to be involyed,
was proved mot formed for any le-
gitimate purpose" Butler said.