New Britain herald., 1927-10-10
Country's Long Legal Battle to Regain Wells Ends With Annulment of Lease.
Fall and Sinclair Con- spired to Defraud the United States, Justice Butler Declares.

Washington. Oct. 10 tP - The government won 6 complete victory today in the supreme court in its effort 10 have Harry r. Sinclair's lease Of the Teapot Dome naval oil reserve in Wyoming cancelled.
 The court, in a unanimous opin- ion delivered by Associate Justice Butler, held that Sinclair's lease and contract had been made by Albert B. Fall, while secretary of the in terior without authority Of law and that fraud and corruption in the transaction had been proved by tn, evidence.
 The decision ends the civil iti- gation over the naval oil reserves growing out of the senates investi- gation. The governments victory today was as sweeping as it was in the Doheny case, which resulted in the cancellation of the Doheny's lease of the Elk Hill naval reserve in California.
 Goes on Trial Monday
 Fall, who is to go on trial here next Monday with Sinclair on a criminal charge of conspiracy to de- fraud the government in connection with the leasing. was denounced in the lengthy opinion read by Justice Butler as "faithless public officer"
 The effect of the decision was to affirm the decision of the eighth circuit court of appeals, rendered by Judge Kenyon, cancelling the Sinclair lease and contract on the ground of fraud and, corruption.
 The court held that the Sinclair Crude Oil Purchasing company and the Sinclair Pipe Line company. which operated storage tanks, 3 pipe line and pumping station on the reserve, were trespassers in bad faith. They are not entitled to com pensation from the court 10 reim- purse them for their expenditures, it was held. but must go to con- SreSs TOT relltt.
 Read by Justice Butler
 The courts opinion in the case, which was argued before the sum- mer recess. was read by Associate Justice Butler.
 Its effect was 10 affirm the dec,- sion of the eighth circuit court of appeals, rendered by Judge Kenyon. cancelling the lease and contract on the ground of fraud and corruption.
 The supreme court held that the Teapot Dome lease question was controlled by its recent decision in the Pan American cases brought by Edward L. Doheny, involving leases and contracts on the Elk Hills naval reserve in California, which the court ordered cancelled
 Covers Civil Action
 The decision handed down today covers the civil action end of thu Teapot Dome litigation. Sinclair. who is generally reputed to be a multi-millionaire and has some reputation as being a sportsman. is to go on trial here next Monday with Albert E. Fall. secretary of the interior when the lease was signed, on a charge of conspiracy to defraud the government in con- nection with the lease.
 Justice Butler was severe in his denunciation of former Secretary Falls activities. asserting that the leasing of the naval reserves was primarily for the purpose of using the proceeds for the construction Of S1O0. ,000 worth of storage for the navy on the Atlantic and Pa citic instead of depositing the money in the treasury.
 The justice declared that there had been no danger of drainage. that Fall knew it and that represen. tation to the contrary was in bad faith but had been used as the basis for making the lease and contracts.
 Touching on the governments al- legation that Fall received S230.5o0 in Liberty Bonds from the Sinclair interests in connection with the 'Nu"iiS, ouoAltt lutItt ueCldTtl tue evidence showed Fall was a faith less public officer and that the company organized in New York to purchase oil out of which the bond transaction arose was for no Legitimate purpose
 The Teapot Dome lease made by Fall was denounced by the court as t,N, ir,Sr I, 1 corruption.