The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, APRIL 4, 1928. THE OIL DEALS.

Hokitika Guardian, 4 April 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, APRIL 4, 1928. THE OIL DEALS.

Foil tlio p:ist seven years public opinion in tlio United Stntes Inis lieen agitated by revelations and disclosures concerning certain dealings by Government officials in oil lands which lor a variety of reasons have come under the cognisance of the Courts. Mr Fall, at present facing a charge of corruption, asserts that his actions were known and approved hv President Harding. The story, according to a contemporary, goes hack to 1921, when President Harding, immediately on his inauguration appointed Albert li. Fall as Secretary of the Interior. Two months later the President, at the suggestion of Mr Fall and Mr Denhy. Secretary to the Navy, transferred all naval oil lands from the control of tl: Navy Department to the control of the Interior Department under Mr Fall. Early in 1922 it was discovered that two of these naval oil properties, Teapot Dome in Wyoming and Elk Hills in California had lieen leased to two oil companies controlled respectively hy Harry F. Sinclair and Edward 1,. Doheny. From that time to this Congress and the Courts of the United States have been endeavouring to discover under precisely wlint eiministii' cos and conditions these transfers were made. The Senate at once ordered its Public Lands Committee to make an investigation. Fall relied apparently upon a letter written by President Harding to the Senate stating that Fall’s actions had his “entire approval’’ hut, of course, this does not indicate how much or how little the President really knew about the matter. However, Fall resigned bis post ns Secretary of the Interior and wenf on a trip to Europe with Sinclair, who paid liis expenses. In 1923 Fall, examined bv the Senate Committee, defended the leases, maintaining tiethe transfer bad been extremely profitable to the Government. Then Dohonv was examined as to the financial side of the trnsaction. and lie admitted that he and his company “will to In bad luck if we do not get 100.000000 dollars profit.” And then evidence began to come in about the benefits that Fall had secured for himself by the transaction. Though in 1920 lie was virtually bankrupt bo had able since the sale of his leases to improve his farm to the extent of 17'.

000 dollars and under pressure 1; tit Sinclair and Dohenv, having first denied the imputation, were forced to admit at. this .stage that Fall had received from them “loans” to the extent of more than 100,000 dollars. Sinclair by this time seemed to he broken down by the ordeal He refused to test if v further, was cited for contempt of o>urt. and was sentenced to three months’ imprisonment, which he has not yet served. Meantime some mvsterious correspondence which fell into the hands of the Committee implicated Harry Daugherty, the AttorneyGeneral. and he was compelled bv president Ooolidge to resign. Penby. the

bead of the Na-val Department, had alreadv resigned, after being ndm-m. ished by the Senate for lack of vigi-

lance in accepting Fall’s assurances about the leases. Following on these resignations, Congress set the law in motion, and after a hitter struggle the Poufts of Appeal cancelled both

the Elk Hills and the Teapot Dome leases on the ground of “fraud and and corruption.” Next, Fall, Sinclair, and the two Dohenys, father and son, were indicted for conspiracy and bribery; and in 1926, Fall and tho elder Dolienv were acquitted on the charge. In 1927 Fall and Sinclair were enabled to escape for the moment fr< in the charge of corruption through a miss-trial, duo to the .efforts of private detectives in Sinclair’s pay to bribe or intimidate the jury. Sinclair however, is now under indictment for contempt of Court on this account. Meantime the position was rendered ov n more difficult bv the emergence of a new factor, the Continental Trading Company. This organisation made huge profits in oil and put them into Liberty bonds. Some of those bonds we "o traced to Sinclair, and then to Fa ! l, and it was shown that Fall had received in this way from Sinclair over 300.000 dollars for “services rendered.” But as more of these Lflierty bonds were traced to the treasury of the Republican party organisation the scandal lias now assumed wliat the Americans term “nation-wide” dimensions, and we have still to see if the cry of “tainted money” rained by Republicans as well as Democrats may not affect the course of the coming Presidential contest.