The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-10-20
FALL kept OIL
deal SECRET,
AID TEST|FIES
Ordered No Information Be
Let Out on Teapot Lease,
Says Finney.
POUND AT PATRIOT PLEA
Ex-lnterior Secretary May
Go on Stand to Explain
One of Letters.
BY HERBERT LITTLE
United Press stan Correspondent


United PreSs stan Correspondent
WASHINGTON, Oct. 2O.-Secre-
tary OF Interior Albert B. Fall early
in 1922 told his assistant secretary.
E. S. Finney, not to give out infor-
nation on the prospective lease Of
Teapot Dome, Finney told the Fall
Sinclair oil conspiracy jury today.
The Government drew this state
ment from Finney to support its
charge that the Fall-Sinclair ne
gotiations leading up to the Teapot
Dome lease we're conducted in Sc
crecy designed to protect an illegal
conspiracy to defraud the Govern
ment of the naval reserves.
Letters in Evidence
The Government also produced
letters to the Interior Department
from men seeking to lease Teapot
Dome naval reserve, which Finney
testified he answered saying no in
formation was available.
He took this action in accordance
with word from Fall, he said. In re-
gard to one such reply written by
him, March 8, 1922 "a month before
the Teapot lease was signed) Finney
said he knew the Leases were then
being negotiated with Sinclair.
Finney was then given to the de-
tense for cross-examination. =
Reports were current today that
Fall intended to testify, but he as
serted this is not decided.
The reports arose, Fall said. prob
ably from comment he made to
friends yesterday when one of his
letters was being read to the jury.
Fall May Go on Stand
Fall felt that the Government
was not explaining it in its true
meaning, he said, and as a result,
he exclaimed:
THAT letter will have to be ex-
planned if I have to get on the
stand myself and do it,"
George P. Hoover, Sinclair's law
yer, who irritated Owen Roberts,
prosecution chief, by frequent OBJ
Jections yesterday, conducted the
Finney cross-examination. His
questions dealt mostly with Finneys
activities in leasing Government
land in Salt Greek field, adjoining
the Teapot reserve, and with the
claims of various persons to parts
of Teapot. These claims we're
Dough up by Sinclair preparatory
to taking over reserves Under the
lease granted by Fall.
Questioned on Policy
The Pioneer and Belgo claims to
Teapot Dome, for which Sinclair
paid about $1,000,000, were the sub
ject of extensive examination by
Hoover. He questioned Finney as to
the departments policy, apparently
seeking to show that the DEPART
ment's adverse decisions on the
claims were not final.
The Government contends Sim
clair merely bought up the worth
less" claims to prevent any protest
of the Fall-Sinclair lease later. The
defense seeks to prove there was
still color of validity which mieht
nave been sustained on final appeal.
Hoover established through cues
tloning Finney that his department
IN 1921 leased 6,400 acres of the Salt
Greek fields. adjoining Teapot Dome
on the north, and made condition
that lessees should drill diligently.
This was a foundation of the de-
tense contention that drainage OF
reserve by three wells was a danger
requiring drilling of wells in the
Dome.
Saw Sinclair, ZeveIy
Late in 1921, Finney said. ne
learned Of an investigation by FAN
OF possibility Of drainage OF Teapot
Dome by neighboring wells.
you said something Of learning
that Secretary Fall had some pro-
posal from Sinclair; when was
that?" Hoover asked.
Early in February, 1922. Fall said
he had some sort Of tentative pro-
posal. He told of Sinclair's proposal
to build pipeline to the east.
Between then and April 7 when
the lease was signed you knew the
lease was being discussedP"
"Yes."
when did you meet Sinclair?"
Il recall having seen him in Falls
ante room about that time"
did you know what Sinclair and
j. w. zevely (Sinclair's attorney
were there for?"
II inferred they were discussing