Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-23
OIL CASE STARTED
BY La TOILETTE
Senator Caught Significance
in U. S. Policy Announce
ment in 1922.

On April is, 1922. newspapers OF the
United States carried inconSp1cuously
an apparently innocuous announcement
by the Interior Department Of "a new
policy in handling fuel oil for the Navy.
contemplating abandonment OF attempts
to keep the oil in storage under ground"
Most newspapers buried the item
inside the paper, thereby cataloguing it
with other routine news. Some papers,
perhaps, threw the press release away
In the rush of the days news.
Every editor of the country thereby
"muffed' tip on the biggest Govern
ment news story of a generation. But
even editors are not SeerS, and they
may be excused in view OF the circum-
stances.
The Star printed the announcement
on page 2 under a small head. The
announcement caught the eye of the
late Senator Robert M. La Toilette,
whose curiosity was aroused. The late
Senator possessed an extraordinary fac
ulty for ferretting out the unusual from
among the commonplace. To use plain
language, he "smelled a rat"
That little news item carried in the
papers one Spring day eight years ago
was the first installment of the serial
story which in the intervening years
has come to be slugged the Naval Oil
Scandals" All subsequent episodes OF
that story, with few exceptions, have
hit" the front page without any dim
Guilty whatever.
Import of Simple Words.
The original story is herewith repro
duced, just for old times sake:
The Interior Department has an
nounced new policy in handling re-
serves of fuel oil for the Navy, con-
templating abandonment of attempts to
keep the oil in storage under ground
The new scheme was worked out in
cooperation with the Navy Department,
statement from the Interior Depart
ment said, and involves permanent
storage above ground of royalty oils
derived from naval oil reserve lands in
California and wyoming, storage to be
made by operators at points on both
coasts suitable for quick supply to the
neets in emergency
Contracts have been made and are
now being made which will insure the
Navy ample storage for all the fuel oil
which it has obtained now and which
1t will hereafter obtain from such re-
serves. This storage will be located at
such points that in time of crisis or
need the ships can obtain the same at
points from Guantanamo, Cuba, to the
extreme northeast of Maine, and from
California to Hawaii"
This statement referred to certain
contracts" but did not specify to whom
they were issued or with whom further
negotiations were being made.
Exactly one week before this press
release was issued Secretary of the In
terror Albert B. Fall and Secretary OF
the Navy Edwin DENLY had signed q
lease giving to Harry F. Sinclair GER
tain drilling rights on naval oil reserve.
no. $, known as the Teapot Dome, in
wyoming
And just one week prior to signing Of
the Sinclair lease President Harding
had issued the now famous executive
order dividing control of the naval oil
reserves between the Navy Department
and the Interior Department.
Ten days after the press announce.
ment Secretaries Fall and DENLY signed
q contract with Edward L. Doheny for
construction of storage facilities for
naval oil from the Elk Hills reserves, in
California. Attached to the contract
was q clause giving Doheny preference
In leasing Of the Elk Hills reserves.
Speech Before Senate.
Three days after the DOhenY contract
was signed Senator La Toilette arose in
the Senate and sounded the call which
was to precipitate the most productive
senatorial Investigation in history-an
investigation which was to lead eventu-
ally to chain of criminal and civil
actions unprecedented In court annals
and which was to come perilously close
to Wrecking an administration. -
La Toilette before making his speech,
had done q bit Of investigation on his
own hook. In that preliminary inquiry
he had learned enough to impel him to
launch on the floor of the Senate bit
ter attack on the administrators 'new
oil policy" He declared the naval oil
reserves were being ''scrapped In behalf
Of specially favored private interests"
and asserted the Department of Interior
was granting to favored individuals
public properties worth hundreds Of
millions Of dollars which belong to the
people"
The Wisconsin flrebrand climaxed his
outburst by introducing q resolution
calling on the adminiStration for all
facts and documents regarding the oil
leases"
In his address the late Senator said:
THE throwing open Of the naval re-
serves by leasing the lands TO oil cor
porations by the administration comes
as distinct surprise to the country.
The policy OF Is years OF conserving
under ground oil in naval reserves has
been abandoned. The three great naval
oil reserves have recently become pri-
vate oil reserves.
To-day the naval reserves are on the
right road to destruction or exhaustion
by allowing specially favored interests
to secure leases upon them. They are
being strapped, that's all.
The circumstances surrounding this
departure from the policy Of conserving