Evening star., 1927-10-21
CONTINUED from First Page.)

from FtFSI EdkcJ
this morning himself, and permitted
the letter to be read to the jury, be-
cause a letter from La Toilette to the
State Department which was missing
yesterday was available today. This
latter communication called for all
executive orders on file at the State
Department dealing with transfer of
the naval oil reserves, Nos. /, 2 and
3, from the Navy Department to the
Interior Department, and was referred
tr Secretary Fall Falls reply then
was read to the jury by Hoover.
1t was dated April II, 1922, five days
after the Teapot Dome lease was
signed La Follette's letter to the
State Department was dated April s,
1922, or the day before the Teapot
Dome lease was signed.
After stating the documents re-
quested were being forwarded, Fall
wrote the late Wisconsin Senator his
explanation of the policy with respect
to leasing the reserve. which he said
was determined upon to prevent
drainage from private drilling, The
purpose of leasing the reserves was to
conserve and preserve the Navy's oil
above ground if it was found impos-
sible to conserve it in the ground
owing to the danger of drainage
Accompanying the letter was a memo
randum giving a synopsis of the con-
tract between the United States and
the Mammoth Oil Co. for the lease of
teapot Dome, which was entered into,
'@e nernorandum said. to preserve the
oil Tor the Navy. Among other things
1t called for immediate drilling of 20
wells, construction of a pipe line 900
miles long, exchange of crude royalty
oil for fuel oil for the Navy's use
and credit for oil storage without any
cash outlay by the Government.
DIR. Smith on Stand.
DR.. George Otis Smith, director of
the Geological Survey. was then called
10 the stand as the Government re.
sumed presentation of it's case.
Under direct examination by Roberts,
the witness testified that in the latter
part of October. 1921, he went to
Falls office in response to a request
for his appearance and that Fall had
told him he had heard that there was
the possibility of revision of some
of the facts in the report of the
geologist who made the original re-
port on the Salt Creek field and
Teapot Dome between 1910 and 1915,
with respect to drainage by private
wells. DIR. Smith said Fall felt some
concern over this and wished to have
: the statement confirmed. Fall asked
that competent geologist be sent to
Wyoming to check up the statements.
II made arrangements for Mr.. X.
c. Heald. to go and he reported to
me afterward." said the witness. Il
took Heald with me and we went to
Falls Office November 26, and Heald
made a statement to Fall orally.
HEAD said he had visited Teapot
I,aI nd nj of
the other geologist and checked up
those fields and he was in an agree
ment with the statement of the other
geologist regarding the saddle be-
tween the two structures. Salt Creek
and Teapot Dome" The original
geologist had reported only small
area was susceptible of being affected
by private wells.
At this point Justice Siddons asked
the witness to explain to the jury his
meaning of the word dome" DR..
Smith said it was broad up-arching
of the rock layers beneath the surface
found in that area and was com.
parable to the roof of the tabernacle
in Salt Lake City. When informed
by Falls counsel that "all Of us have
not been to Salt Lake City," DR.. Smith
amended his explanation by placing
his hands together and forming a
slight convex illustration. He said
the dome in the Salt Creek field was
10 miles in length and or miles in
width and that the dome to the south
Teapot Dome-was one of smaller
scale, It got its name, not from any
resemblance to a teapot, the witness
said, but from Teapot Creek, which
crosses just about between the two
domes.
Report on Drainage.
DIR. Smith was questioned concern
ing his consultation with Heald after
the biologists return from the Teapot
Dome field from checking up the
previous report made by Carroll Wag-
geman, the expert sent out in accord
ance with Falls request. He was
asked if anything was said about
drainage.
'Only in reference to his statement
that there was not imminent danger
of drainage from Teapot Dome"
Smith replied. He did mention pos
sible drainage in the northern portion
of the reserve. The reserve, it seems,
was found to be larger outside of
Teapot Dome than was supposed"
DR.. Smith added that he did not re-
member that he did say more than to
vouch for Head to Fall.
did Fall ever consult you about
this matter again?" as Roberts. The
witness replied that three days later
he went to Falls Office and gave him
a copy of Heald's written statement
which contained the substance of the
oral statement which he had Endorsed.
After that was not consulted by
Secretary Fall with regard to Tea
pot Dome at any time" DR.. Smith
said.
mot in regard to drainage or
geology?" Roberts asked.