Evening star., 1943-06-23
Further Information
On Elk Hills Oil Deal
Sought by Legislators
Move Gets Under Way
For First-Hond Probe of
Illegal Navy Contract
BY the Associated Press.

BY the Associated Press.
Suspicious lawmakers of both
House and Senate demanded
more information today on the
Elk Hills Navy oil deal, described
by a Justice Department attor-
ney as more far-reaching than
the notorious Teapot Dome leases
of the 20S, and a movement also
started for a flrst-hand inquiry
in the Oil field involved.
The House Public Lands Commit =
tee decided to hear more testimony
Friday. Secretary of the Navy Knox
asked an opportunity to give his
version of the now -abrogated con-
tract with Standard Oil of Calfor-
mia for development of the Elk Hills.
california; reserve
Mr.. Knox Cancelled the contract
after the Justice Department ruled
it was illegal but contended in pub
lie statements that it was good
one for all concerned, including the
public.
Assistant Attorney General Nor
man M. Littell drew the compari-
son with the Teapot Dome leases
in testimony before the committee
yesterday. Chairman Peterson indi-
Gated Mr.. Littell would be quizzed
further.
Visit to Region Proposed.
At the same time Mr.. Peterson
appointed group to appear before
the House Rules Committee seeking
authority to make a trip to the Elk
Hills region.
Meanwhile. the Senate Public
Lands Committee authorized
standing subcommittee headed by
Senator OMahoney, Democrat. of
Wyoming to confer with the House
Lands group to formulate plans for
joint investigation. The action was
based on resolution by Senator
Nye, Republican. of North Dakota
who said he wanted to know if there
had been political maneuverine"
behind the deal. He did not amplify
his remark.
Mr.. Littell reviewed the Teapot
Dome cases as background for his
testimony, but emphasized he was not
questioning the Nays good faith.
Congress conducted a five-year in
qulry into the Teapot Dome and
Elk Hills leases executed by Albert
B. Fall, Secretary of the Interior
in the Harding administration. Mr..
Fall was convicted of accepting a
sl00 900 bribe in the Elk Hills in
StanceSD
Mr.. Littell said he believed the
Navy officials had negotiated the
present Elk Hills transaction in
good faith
Leased U. S. Property.
Explaining how it went beyond"
the Teapot Dome leases, Mr.. Littell
said the Elk Hills contract had con-
veyed to the Standard Oil Co. actual
interest In Government property (oil
still in the ground. whereas the
Teapot Dome leases had merely ex-
changed Government ole already
produced for storage and pipeline
facilities the private companies
promised to construct.
He said the contract provided for
the Navy to pay Standard Oil
s1,748, ,408 for title to the company S
surface rights to about $500 acres
of the reserve. Standard would
operate the field, taking one-third
of the output, with two thirds going
to the Navy.
Keith Kane, legal adviser for the
Navy. said the department had
sought to conserve the field and
prevent company wells from drain
ing oil off the Navy lands. Con-
demnation was considered too slow.
Mr.. Knox said that in the cir
umstances this probably would be
the best alternative now.
Knox Hints at Attacks.
In letters to the House and Senate
Naval Affairs Committees, Mr.. Knox,
meanwhile, limited at ulterior mo-
tives behind the attacks on the con-
tract. He wrote that while he had
ordered abrogation of the contract,
the Navy would not under any cir
cumstances surrender willingly to
the pressure or intrigue of any one,
public or private, who seeks to ex-
plot and dissipate" the Elk Hills
field. He did not elaborate on this
point.
Representative Mott, Republican,
OF Oregon, inquired whether Mr..
Littell believed Standard also made
the agreement in good faith.
II don't know the motives of
Standard" Mr.. Littell replied. 'I
(see OIL LEASES, Page A-2o.)