The Waterbury Democrat., 1931-06-18
By ROBERT TALLEY NEA Service Writer

 nOw.)
 By ROBERT TALLEY
 NEA Service Writer
 Washington, June 18-After near. < ly a decade of senate investigation criminal prosecution and civil suits to recover the Teapot Dome ard < Elk Hills oil lands, no one has yet < gone to jail for his part in the conspiracy 10 hand over these valu- able tracts to private interests. all though ex-Secretary Albert B. Fall at last, seems dangerously near it Fall, convicted for accepting bribe .a in connection with the oil leases while member of the Harding cabinet, is under sentence of year < in prison and a $100,000 fine.
 Harry F. Sinclair. of Teapot Dome fame, went to jail for seven and one-half months, but that was for contempt of the senate in re- fusing to testify before 1t and con- tempt of a District of Columbia court in hiring detectives to shadow jury. On the bribery-conspiracy charge, Sinclair stands acquitted, as does E. l.. Doheny, who blandly admitted that he expected to make 14VV,VVu,VUV punt Oi thC eiS"e ASiiA Hills lease.
 But these two great naval oil rs- serves are safely back in govern rnent hands, civil suits to recaptufe { them having been successful. Near ly . half billion dollars is their es- 2 timated value, the Teapot Dome re- serve in Wyoming being appraised at S1OO,0O0,O0O and the Elk Hills reserve in California at $300,000, 900.
 The government also has recover cd some $24,000,000 in cash, oil and steel tanks from the Doheny com panies and about $6.000,000 in the same from Sinclair companies. These represent the principal recovery suits.
 Three presidents--Roosev Taft and Wilson-had hand in build- ing up these great naval oil reserves intended for the nations security in time of war, that Secretary Fall yielded up for $100,000 that Doheny sent him in little black bag and s2sS,000 that Sinclair gave him in Liberty Bonds. Maybe there w6s more involved, but with the except ion of 25,000 unsecured loan that Sinclair made to Fall and $10,000 that he advanced him for a Euro- pean trip, this is all the records show.
 Whether this gigantic corruption plot was matched in a hotel room at the Chicago convention that nom- mated President Harding in 1920 or after his election is & matter of dispute. But the fact remains that hardly had Harding arrived in Washington for his Inauguration in March, 1921 with the "Ohio gang dropping at his heels, than the wheels were put in motion.
 In May, 1921, President Harding was persuaded--on the grounds of military wisdom and amid wild tales of q Japanese "war scare'-to sign . secret executive order transferring the custody of the great oil reserves fro mthe Navy Department to the Interior. Department. That put the min Albert B. Falls hands.
 The rest is easy. In December. Doheny sends his son (now dead) to Fall with a little black bag con taining $100,000 in cash. Exactly IF days later, Doheny gets from Fall a secret lease on the great Elk Hills reserve.
 Even earlier--in November, 1921 Sinclair and others have Organiz' ed the dummy Continental Trading Co. Ltd, of Canada. These men, by buying 33,000,000 barrels of oi lfrop1 a producer for s1.50 and selling il back to the stockholders of theil own companies for $1.75. stand te realize a quiet profit of 25 cents q barrel or about 5000, 900. As $1, ,OOt bills excite suspicion, part of this 1! converted into 1000 Liberty Bonds
 Late in 1921 Sinclair visits Fal as his New Mexico ranch and tho first lease is drawn. In April, 1922 the lease is secretly signed in Wash ington and Sinclair gets the navy { oil. On May 10, 1922, Sinclair comes back to Washington in hi private car, Fall sends his son-in law down to the station and Sin 4 clair gives him brown package containing s19S,000 in Libert! < Bonds, everydollar of which cam Y from the Continental Trading Co. few days later the son-in-law Goe to New York and gets $S5,0oO nor, in bonds from Sinclair.
 The rest is known. A suspicious senate. tipped off by Carl Magee. | New Mexico newspaper editor wh'
  around Falls broken down ranch investigated and finally the shame ful story came out under the re lentless questioning of Senator Walsh.
 More names were dragged in Secretary of Navy Denby, who hat dumbly--and innocently-approvet the transfer. resigned. Assistan Secretary Theodore Roosevelt saic he had been hoodwinked and "wor over.' His brother Archie Roose welt, who had been in Sinclair's ern ploy for six years, took the stand He said he had become suspicious and resigned when Sinclair had giv en Fall "six or eight thousand dol lars" The secretary insisted tha he had said merely that Sinclair gave Fall "six or eight cows fol his ranch.
 E. B. Mclean, Washington news ped by Senator Walsh in the erro of his statement that he loaned { $iO0, 900 to Fall. Doheny hImsel took the stand. Amid copious weep ing and q story of how he was mere ly helping an old friend of 90 year standing, he admitted the si00,00' little black bag" transaction ans insisted it was an innocent loan,
 Sinclair refused te testify and tn senate cited him for contempt.
 
 The trail of the Liberty Bonds Ie, further. Will Hays, who was Hard ing's postmaster general and ehaIr man of the republican national com mittse, faced q big deficit after tn Harding campaign. ip the summe of 1898, % he later admitted, he Aa csptsd from Sinclair tisb,000 Q these bonds as R joan, divided then into parts, save them i0 rich 70 pnblIeans. accepted thslP persona checks Co return and used fhl nsansy io nay off the Harding ram