Evening star., 1928-04-12
OIL MEN TESTIFY
. OF THEIR INABILITY
TO BID ON TEAPOT
Lease Given to Sinclair With
out Competition and in Sc
cret, They Say.
TRIAL KEEPS UP RAPID
PACE SET AT BEGINNING
Ex-Secretary Accused of Implying
Case Was Open After Lease
Was Signed.

Was Signed.
Moving on at the same rapid pace
which has characterized the presenta-
ton of its case since the proceedings
began, the Government today laid be-
fore Justice Jennings Bailey and the
jury sitting in the Sinclair conspiracy
trial testimony and evidence tending
TO show that former Secretary Of the
Interior Albert B. Fall favored Harry 2.
Sinclair above all other applicants for a
lease on Teapot Dome: that the lease
was granted Sinclair without competi-
tive bidding, and that an atmosphere Of
secrecy and evasion surrounded the ne
gotiations leading up TO and even after
the consummation of the agreement.
Several oil operators Of prominence In
the industry were placed on the stand
by the Government prosecutors, Owen
j. Rooerts and Atlee Pomerene. These
persons. having learned unoficially of
the possibility of leasing the reserve be-
fore and after Sinclair vas granted
the privilege on April z, 1922, testified
OF their unsuccessful efforts to obtain
all or portion Of the big naval oil re-
serve.
Other Evidence Offered.
In addition to these witnesses the
Government produced documentary eVi-
dence showing that several other Oh
men desired the opportunity Of bid
ding upon the reserve. In virtually all
of these cases the applicants received
little encouragement from Fall. accord
Ing 70 the Government evidence.
Those who testified about their un-
successful efforts to get the lease on the
Dome were Amos L. Beatty. president
Of the Texas OIL Co. in 1922; Birch
Helms. vice president Of the Texas
Pacific Coal & Oh Co.; Leslie A. Miller,
an oil operator Of Cheyenne. Wyo.: John
G. Shaffer, publisher. Of Chicago, and
B. B. Brooks, former Governor OF Wyo-
ming and president Of the Rocky Noun
tain Gas Producers Association.
In addition to these witnesses docu-
mentary evidence was introduced to
show that James G.. Oarden of Kings
vile, Md, sought lease on the Dome
on the basis Of claim on that area
which he maintained was valid, but
which FAN told him was worthless:
that Joseph w. Clark. an attorney OF
Leadville, Colo, early In 1922 sought
lease. but was told by Fall the reserve
would not be developed. and Peter @.
Nice OF Great Falls. Mont, had offered
to present plan for the Developments
Of the reserve on April II, 1872, but
was informed that q general policy for
disposition Of the reserve had been
agreed upon, but no details could be
given at that time. as the entire mat
ter was in Falls hands and he was out
Of the city.
Tells Of Conference.
Beatty testified about q conference he
held with Fail in the latter's ONCE Fri
day, March 81. seven days before the
Teapot Dome lease was signed. Beatty
asked for q lease on the Dome and Fall
told him that he had proposition from
Sinclair which was satisfactory but
he would be glad 70 have an offer from
the Texas company too. The question
OF royalties was discussed and Beatty set
forth tentative schedule Of what his
would pay.
During the conference Beatty men
toned that his company planned ersc-
ton of 8 pipe line at. .caSpar or Glen
Rock, Wyo.. from wlhM q pipe line
would be run 70 the Salt Greek Field
adjoining Teapot Dome. Fail brought
up the matter Of exchanging crude oil
for fuel oil and Beatty stated his COM
pany could make such an exchange
Beatty was not certain whether anything
was said by Fall about constructing 3
pipeline from Teapot Dome to ChicaSo
or Kansas City. but he was certain that
q pipeline condition was not imposed
rs being necessary for Beatty TO obtain
the lease.
Likewise, FAN told him nothing about
the requirements from the lessee o.
erecting storage tanks az strategic
points from which the Navy could be
supplied with oil. Fall told Beatty, It
was testified. Sinclair had obtained quit
claim deeds on most Of the property
and had paid $l,000. 900 for them.
Beatty. at the close Of the conference.
Fall he was going TO AShe-
vile. N. c.. and at that place on April
he received telegram from the IN
terror Secretary making inquiry about
details Of an oil transaction In Salt
two were introduced and II WAS plain
there was misunderstanding on Just
what each other meant,
Saw No Secrecy.
Beatty finally cleared tire matter up
with telegram ON April In which
ne made II plain he would give q GER
ain grade of fuel oil In connection
With the lease ON Teapot Dome. and
asked that the matter remain In status
quo until his return to New York
week hence, He heard nothing frcru
sam or any one else after that until
10 learned that the lease had been
'iyen 10 Sinclair, Under ereSS-eSant-
nation BY Martin W, IIttleton. Beatty
admitted that his company did net
want 10 be obligated 70 build storage
ankS or y pipe line at the outset bur
I operation OF the poMe warranted sc
later date his eoncern might have
Undertaken TO construct the tanks and
he pipe line. he said ne saw no evil
scnce OF secrecy about the lease when
le conferred with Fsll. but az the same
ime declared Fall did not discuss any
eatureS Of SinclairS proposal He
'dded he was much impressed with
shat Fail said about SinelalTS pro-
'aSal oeing satisfactory
Helms then followed en the stand and
old OF y conference with Fall about
Aprn 10 for lease. This occurred
ihfee DAYS after the lease had been
asned, Helm said about six months
previously, he had called ON Secretary
Il the Navy DENNY. Assistant secretary
Theodore Roosevelt and Assistant Sex
etary Finney OF the interior DEPART
nent. all OF whom told him that no
ease ON Teapot Dome would be made,
II his conference with Fall, Helms said
he Secretary told HIM he would be CHAD
, entertain bid from Helms COM
any, Fail explained he had talked
ith other independent OIL eonpanies
nd af all Of them Mr., Sinclair Was
ae only enc In q receptive frame of
ind 70 BID ON Teapot Dome" AelnAs
leted Fall IS having told him.
The Witness said at the conclusion Of
tcoNspaed On rage :. Colunn ~