New Britain herald., 1928-04-10

NIlsnt came to the N1Slt Of Slnclll
 to Falls New Mexico ranch.
 'In December. 1921, Mir. Sinclai
 and Mir. Zevely called at the in
 terior department in respect to som
 leases they had bought in the Osag s
 Indian reservation" said Wright.
 They found they must put up one
 fourth value Of the lease in cash an,
 the remainder in liberty bonds be
 fore they could start drilling. NIT
 Fall was at his ranch and wire,
 them permission to come to Thre
 ltivers. That was the first time Sin
 clair and Fall had met, Wright said Sinclair admired the country th.
 counsel said.
 ''To show you my client did no
 do as my opponent claims, givt
 Fall s233.o00 for nothing. I'll de scribe this wonderful ranch" sait
 Wright. displaying a map of tn.
 Tres Ritos Cattle and Land com
 pany which took in every water.
 hole in an area 36 miles by 4t miles. The defense claims Sinclair. $2S",o0O was for a part interest ir the ranch.
 l AS Sinclair was leaving" said Wright, ''he asked Fall if he in. tended to lease Teapot Dome. Fall | replied he had nothing to do with it that it was matter under control of the navy.
 Were Awaiting Fall When Fall returned Denby, and Rear Admiral J. K. Robison were ! awaiting Fall because reports the, had received said Teapot Dome would be drained.
 What are you going to doc" Wright said Fall asked. Were going to develop Teapot Dome and must lose S1a.0o0.o 900 in oil drainage" Robison replied, ac- | cording to Wright.
 The next day Rohison returned to Fall and said it had been deter mined to build tanks in Hawaii and a pipe line to Chicago and pay for { with oil from the Salt Creek field. It was then, Wright said, that Fall told Robison that Sinclair might be interested in Teapot Dome.
 "Mr. Sinclair and Admiral Robi- son came together in the navy de- partment and Robison laid down the laws of the lease." he said. "Mr. Sinclair then made a written me- morandum to Robison. showing just what he would do.''
 The navy decided it was unwise to have public bids.' he continued.
 Assistant Secretary Roosevelt said he wanted the plans for oil storage kept secret" said Wright Not a. single other bidder. he said. offered to meet the terms insisted upon by the navy.
 After the terms Of the lease had been drawn mp Wright said Fall ln- creased the royalty "tarre for bar rel and the navy was getting half the oil produced without cent of expense.
 "Thc lease was prepared and on April :. Sinclair called on Secretary Fall," the attorney said. Fall then imposed some new terms and Sin clair. said Wright. handed back the lease saying anerily: There's your lease. am done with it."
 Wright. using a blackboard and drew a diagram of the Salt Creek field and explained the oil sand formation. He said gcologists as early as 1915 had arranged the Teapot Dome reserve so if could not he drained by the remainder of the field. Later oil was found in deep CT sand which upset the calcula- tions.
 In ia.o Wright said Fall and Harding were members of the United States senate and took keen interest in the oil and mining lease legislation. He told the jury of the passage in 1920 of the law authorizing the leasing of producing oil wells on government reserves and the passage granting the secretary of the navy authority over oil re- serves and of a later change trans- this authority to the secre- tary of the interior.
 Fall. on coming into office. found his predecessor, Secretary Payne. had leased, e,4o0 acres of the Tea pot Dome Reserve, Wright asserted.
 Wright said that Fall and Secrc- tary Denhy, of the navy depart ment, had met on their way 10 a cabinet meeting in 1921, and that Denby then proposed changing the jurisdiction over the naval oil re- serves from the navy to the interior department. The attorney quoted Denby as having said:
 ''1'm going to ask the president to put you in charge of these oil landa.'
 Up To Harding.
 This was put up to President Harding that day, said Wright. with the result that the president orally Fall to initiate a move for a transference. The reason given by Dcnby for his proposal at that time. said Wright, was because the navy department lacked the rfhcn and organization to administer the ! affairs of the reserves and that the ! interior department was equipped 1 through such bureaus as the geo ! logical survey.
 Secretary Fall reported in full to he president said Wright, "con- ,erning the leasing of P wells in | Salifornia to MT. Dohcny. This was Il May, 1922, and he wrote to Mir. ooheny on the same day.
 Court Interrupts.
 Justice Bailey interrupted Wright 0 ask him to give the jury a digest