Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-31

% HE atmosphere in becoming rather oily
again. Tomorrow will witness the
transfer back to the Navy Department
of the naval oil reserves which, through
tho famous executive order Of President Hard
ing May ST. 1921, were transferred to the In.
terror Department. The oil reserves include
those which have been involved in such extern
siye litigation since their leasing to the Sinclair
and Doheny interests by former Secretary Fall.
Those in California. the leasing Of which was
declared invalid, now shut down. Those in
Wyoming, around Teapot Dome. are operating
in the hands Of a receiver pending the outcome
of the civil suit to recover them to the Govern
ment, a suit which probably will be decided by
the United States Supreme Court during it's
next term. OF the criminal cases gowing out
Of the oil leasing, the Government has lost its
case attempting to show conspiracy to defraud
the Government in the Fall-Doheny transac.
tons and it's cases against Fall and Doheny,
alleging bribery, and against Sinclair and Fall,
alleging conspiracy, are yet to come to trial.
X "
The transfer of the reserves back to the
Navy Department, accomplished by execu-
tive order Of President Coolidge, March II, re-
Voking the executive order of President Hard
ing will be carried out without ceremony. So
far as can be learned there is to be display,
such the firing Of a national salute Or the
turning out of a detachment Of sailors or
Marines. The Secretary of the Navy and the
Secretary of the Interior entered into an agree.
ment time ago which provides, briefly,
that the Navy Department will have control
the reserves through inspectors of the
Navy Department, while the supervisors OF the
Geological Survey will continue to perform the
same duties as heretofore, except that they will
report to the Navy instead of to the director
of the Geological Survey. The Navy will con.
suit the survey on technical matters pertain.
ing to the reserves and will determine the policy
regarding the leasing of any part of the
serves. Prior to further congressional action.
expected at the next session, the Navy Depart.
ment has announced that this policy will be-
generally speaking, to keep much oil in the
ground as possible for long time as pos
sible.
So, except for the task to be completed bv
the courts, the oil reserves revert to the status
occupied before they transferred to Mr..
Fall which started the greatest of Government
scandals
In the meantime, indications are pointing
to an oily year on Capitol Hill. The great over.
production Of oil in America, the activities of
foregno owned or controlled companies which
are taking part in this overproduction, with the
resulting exhaustion of American oil resources
are tending to bring matters affecting the Gov.
eminent and the petroleum industry to a head.
Legislation Is expected which may ultimately
mean Government control OF oil production,
and, il that step is not attained immediately
what it would accomplish may be brought
about by some other means.
"
During the past week there occurred an in.
cident affecting tho world drama of oil which
is regarded as OF the greatest significance. 1t
involves the Standard Oil Co. Of New York
tire Vacuum Oil Co. and the Soviet naphtha
trust on the one hand, and the Standard Oil
Co. OF New Jersey and the Royal Dutch.Shell