TEAPOT DOME OIL SCANDAL

Taranaki Daily News, 19 October 1927, Page 9

TEAPOT DOME OIL SCANDAL

TRIAL OF FALLS AND SINCLAIR. By Telegraph—Press Assn.—Copyright. New York, Oct. 17. The trial of Falls and Sinclair', charged with defrauding the Government in connection with oil leases, hag opened before Mr. Justice Siddons in the Supreme Court of the District of Columbia. The selection of the jury Occupied the first day of the session. A message from Washington on October 10 said the Supreme Court had annulled the lease of the Teapot Dome oilfields that Mr. A. B. 'Tall (Secretary of the Interior) granted to Mr. Sinclair’s Mammoth Oil Company, and which started the scandal of 1923. The decision brought victory to the Government’s long continued efforts to regain control of the naval oil reserves, as the Court had already annulled the Elk Rills lease and President Harding's executive order giving the Department of the Interior jurisdiction over navy oil had been revoked by President CoolidgeiJ The judge said that there was persuasive evidence that Fall and Sinclair conspired to defraud the United States, and tho failure of Sinclair to testify was strong evidence against his company. The Court was of the opinion that Fall was a "faithless public officer.” The decision said: “Fall so favoured Sinclair in the making of the lease and agreement that it was not possible for him loyally and faithfully to serve the interests of the United States or impartially to consider the applications of others for leases in the reserve, and the lease and agreement were made fraululently by means of collusion and conspiracy lietween them. 1 ’-