anaheim-gazette 1924-04-24

FEDERAL OIL LEASES Rep. Charles E. Winter, of Casper, Wyo., lives only 30 miles from the Teapot Dome naval reserve. Because oil is one of the greatest industries of his state, Representative Winter is familiar with the problem and the facts. In a recent speech in the House of Representatives he disclosed some very startling information regarding the conditions of the naval oil reserves as the Republican administration found them. Representative Winter said, in part, as follows: I voted for the resolution to appoint special counsel to bring a court action to test the validity of the leases on naval reserve No. 1 in California, and No. 2, the Teapot Dome, in Wyoming; and the prosecution of any and all wrongdoers in that connection. These matters both as to criminal and civil issues are now where they should be, in the courts of the land. We might well have taken the action to secure a decision by the courts cease discussion of these things in Congress and give our attention to the legislation the people are demanding. Yet day by day we witness ex parte investigations and partisan attacks in the hope of affecting the national tread in the great political battle about to ensue. No word of proof has been uttered, no evidence has been adduced against any official, in spite of all these attempts, indicating moral turpitude or bribery, excepting the single instance of Mr. Fall. Searchers, inquirers and the newspapors have raked and scrapped the entire area, and nothing more has been found against any agent of the government. And yet gentlemen on the Democratic side are willing and an- to the character of the quoted statement of Mr. Daniels in attempting to make the public believe that he had not done that which his successor Denby has done. Note the careful insertion of the right words in the right place so that he would not be making a false statement and yet carry the impression to the public that Denby and Fall had done something which was wrong which he had heroically resisted and refrained from doing when he was Secretary and Payne was in the Department of the Interior At Philadelphia February 25, 1924, he said: "If the Republican committee has any information that I leased or recommended leasing a single foot of naval reserve oil land when the oil could be retained in the ground, that information is manufactured." No one stated that he leased land in reserve No. 2 "when the oil could be retained in the ground." Neither did Denby and Fall lease "when the oil could be retained in the ground." The fact is, it could not be retained in the ground, and therefore he leased naval reserve No. 2, the first one on which leases were granted. On August 21, 1920, Daniels informed Payne that the lease to the Boston-Pacific Oil Co. covering the drilling of five new wells on section 32 of naval petroleum reserve No. 2, was satisfactory to the navy. This lease called for royalty to the government of 25 per cent. On January 25, 1921, Payne stated his willingness to lease 120 acres in the eastern part of section 28 of naval oil reserve No. 2 to the Consolidated Mutual Oil Co., without restriction on the number of wells This tract was so leased just prior to the going out of the last Democratic administration at a graduated royalty of from 12½ to 25 per cent. And so, as the drilling of private interior on which would have been had not leased the would the fact of government leased line on the Salt Lake were bringing a roverment, have just lease. For there were lands and state land drawing off enormously which paid no royalment. The evidence private wells adjoin that it was the duty to thus conserve a government this oilalty lease. Indeed tension against Secretary Payne was not responsible by during their term for difference between that it did contain 000 barrels which dedications and opinions contained in the first Creek sands and until contain when the determined its content clair lease. Salt Creek producing for several Teapot lease was not the general leasing No. 25, 1920, from wells Salt Creek in very close teapot line, by no leases in Salt Creek ment in June, 1920, and Payne in the Winton. Thus went on or safeguarding of interests the drainage Dome until the negotiation gun promptly upon it the Republican act March, 1921, although until April, 1922. national tread in the great political battle about to ensue. No word of proof has been uttered, no evidence has been adduced against any official, in spite of all these attempts, indicating moral turpitude or bribery, excepting the single instance of Mr. Fall. Searchers, inquirers and the newspapers have raked and scrapped the entire area, and nothing more has been found against any agent of the government. And yet gentlemen on the Democratic side are willing and apparently anxious to continue the making of charges, intimations, covert attacks, insinuating the making of profits out of these leases, and, indeed, in criminal participation by other officials connected with the Naval and Interior departments. I say plainly and without hesitation, because all the facts should be known and intelligent and fair judgment arrived at that so far as these leases are concerned, the naval oil reserves of the nation, Nos. 1 and 3, in California and Wyoming, have not been "given away," the country has not "lost them" or the oil in them; there was no "wanton waste of $1,000,000,000 worth of oil;" the people of this country have not been "deprived of the mans of national defense;" the navy is not "without adequate oil for navy fuel to meet any war emergency;" and would not be, and will not be, if these leases continue in operation. Naval reserve No. 2 in California was the first of the three naval reserves to be opened to leases to private persons or corporations, and that was done entirely under the administration of Mr. Wilson and under the then Secretary of the Navy, Daniels, and Payne, of the Interior department. I am not criticizing them for doing it. My position is that they were forced to do it to protect the interests of the government; it was not only their right but it was their duty to save the nation from loss of its oil. But I am criticizing those who criticized their successors for doing the same things in the interest of the navy and the nation's defense. The time had come, and it was absolutely inevitable, when the policy of conserving the naval reserve oil under the ground had to be changed to conserve it upon the ground, and there was no other course open. Private wells were draining the oil out from under this naval reserve No. 2, of which I am now speaking. Daniels realized it. The fact of drainage and loss to the navy. This lease called for royalty to the government of 25 per cent. On January 25, 1921, Payne stated his willingness to lease 120 acres in the eastern part of section 28 of naval oil reserve No. 2 to the Consolidated Mutual Oil Co., without restriction on the number of wells. This tract was so leased just prior to the going out of the last Democratic administration at a graduated royalty of from 12½ to 25 per cent. And so, as the drilling of private wells on an adjacent ground made it necessary, this policy of leasing to preserve the government interest was continued and necessarily enlarged. Now, let it be recognized and admitted once and for all that the policy of leasing naval reserves and preserving the naval oil in storage by exchange of the crude nonfuel oil as produced for fuel oil for the navy, out of necessity, began and was accomplished under Wilson, Daniels and Payne, as to practically all of naval reserve No. 2. Then came similar conditions to be met on reserve No. 1. The government interests required that all of the government area of naval reserve No. 1 be leased for the same reasons, and of necessity and further for the sake of efficiency, for saving, for the accomplishment of development on a systematic, businesslike basis, and to accomplish the proper storage policy which would be most beneficial to the navy, and to place fuel oil ready for use by the navy at strategic points to remain in storage permanently until necessary for emergency war use, the lease was let to Mr. Doheny on naval reserve No. 1. At this time not Daniels and Payne but Denby and Fall occupied the offices at the head of the Navy and Interior departments, respectively. In naval reserve No. 1, 15½ per cent of the total acreage was owned by private parties, who were drilling or would be drilled in At no point in this structure was there a greater distance than two miles between government area and privately owned area on which wells were drilling or would go drilled in the immediate present. The royalty provision was 12½ to 35 per cent, a higher royalty than on No. 2. Coming now to naval reserve No. 3, known as the Teapot Dome, located in my district, the state of Wyoming, and with in 35 miles from the city of Casper, my residence. Of the situation here as to this reserve, I do not claim to know all. I do not claim to know more or as much as some other President Coolidge ed his title to the office and respect by "of Harlan F. Stone" eral. Even as inter paper as the New York pelled to praise the Stone has herculean in the cleaning out of grossly mismanaged years of Democratic and incompetently three years of Reputation. But there is that former Dean Law School is equal ing. The Democratic att Mellon has proved at their program, that sooner saw Mr. Daugher cabinet than they Mellon. There was no charges, but that was true of Mr. Daugher true of Secretary Demer ever, was the last thither were seeking and party capital. By discredit, and the D deserves a large share the failure of the H et al. The Democrat—what the Democrat in the Senate could latter were only di party in the public editorial condemnation some of the scandal Senator Wheeler (than Democrat) is no guns on Secretary Wheeler in program. But chant for thorough witnesses will probable that would-be seo time, Senator Walsh on the oil investigation The time had come, and it was absolutely inevitable, when the policy of conserving the naval reserve oil under the ground had to be changed to conserve it upon the ground, and there was no other course open. Private wells were draining the oil out from under this naval reserve No. 2, of which I am now speaking. Daniels realized it. The fact of drainage and loss of naval oil was an inescapable fact as to each of the reserves, not only No. 2 but in their turn No. 1 and No. 3, the Teapot Dome. Of No. 1 and No. 3, I will speak presently, in their order. The fact of drainage of No. 2 was unquestioned. It was stated and seen and recognized. Sixty and four-tenths per cent of the area of reserve No. 2 was then privately owned; 20.5 per cent was placed under the jurisdiction of the Secretary of the Interior by the general leasing act of February 25, 1920; 10.1 per cent only came under the jurisdiction of the Secretary of the Navy. Manifestly, present or future drainage in increasing quantities was inevitable. Daniels thereupon asked for and received from Congress, because of the absolute necessity in protection of the government, broad powers from Congress. The act of June 4, 1920, was an amendment to the original leasing act of February 25, 1920, although not so denominated. Did that act give authority to the Secretary of the Navy to lease the naval reserves? It did. That was its object. Did Daniels proceed to act under it? He did. Did he lease to private corporations naval reserve land No. 2 in California? He did. Fifty-eight wells were thus authorized by him and drilled. At this point I wish to call attention privately owned area on which wells were drilling or would go rdilled in the immediate present. The royalty provision was 12½ to 35 per cent, a higher royalty than on No. 2. Coming now to naval reserve No. 3, known as the Teapot Dome, located in my district, the state of Wyoming, and with in 35 miles from the city of Casper, my residence. Of the situation here as to this reserve, I do not claim to know all. I do not claim to know more or as much as some other men, but I do know many facts which have been ignored or overlooked with reference to this matter. No amount of quibbling or fine-haired theory can change the fact that Teapot Dome was being drained and had been in the process of draining for some time into and through private wells in Salt Creek field immediately adjoining it on the northwest.* Its producing power had been diminished from an expected capacity per well of 300 to 500 barrels per well per day to an average proven during the past year of operation of 70 barrels per well per day. Instead of a content of 135,000,000 barrels estimated by all, it was found after drilling had given the necessary data of the thickness of the sand; its porosity and the location of the water line in the sand around the field that its content is but 26,000,000 barrels. The expert geologists employed by the government reported that drainage was taking place, though one of the two, I believe, testified that in his opinion the drainage might cease after 4,000,-000 barrels had been lost. Other geologists estimated that had no lease been given 70 per cent of the oil would have been drawn out and lost to the government. And so that under these conditions it would have been almost criminal carelessness in the Secretary of the party in the public editorial condemnation some of the scandal. Senator Wheeler (than Democrat) is no guns on Secretary Welling to program. But chant for thorough witnesses will probably of that would be so time. Senator Walsh on the oil investigation from many Democrats the country is severe Democratic sensation akening to the fact that grossly misled by to create party capital irrespective of party covered and the great but they do not want into believing their permeated with graft no foundation for sure they resent the defiance public men by witnesser of Henry Wood felon, Roxy Stinson, Maine's instructed Coolidge is accepted long series of such insults will make certain the Cleveland of the son sets "dirt farmer." should have instructed for La Follette occasion although the instructors mocrats to their defor Gov. Al Smith struck another blow the McAdoo boom, as fusal of the Iowa District their delegates Crown Prince. Its probable that the Denion will dare to no Smith, because he is, ANAHEIM GAZETTE Interior on which in after years he would have been denounced, if he had not leased the Teapot Dome, nor would the fact of the presence of government leased wells across the line on the Salt Creek field which were bringing a royalty to the government, have justified a failure to lease. For there were also patented lands and state lands in Salt Creek drawing off enormous amounts of oil which paid no royalty to the government. The evidence of drainage by private wells adjoining was so strong that it was the duty of the secretary to thus conserve and save to the government this oil by a proper royalty lease. Indeed it is a fair question against Secretary Daniels and Secretary Payne whether they are not responsible by the failure to lease during their term for the loss of the difference between 26,000,000 barrels that it did contain and the 135,000,000 barrels which the field by indications and opinions ought to have contained in the first and second Salt Creek sands and upon test did not contain when the experts finally determined its content under the Sinclair lease. Salt Creek field had been producing for several years when the Teapot lease was made and, under the general leasing bill of February 25, 1920, from wells in southeastern Salt Creek in very close proximity to the Teapot line, by reason of sales of leases in Salt Creek by the government in June, 1920, made by Daniels and Payne in the Wilson administration. Thus went on without attention or safeguarding of the government interests the drainage of the Teapot Dome until the negotiations were begun promptly upon the coming in of the Republican administration in March, 1921, although not concluded until April, 1922. the Democratic press, "a wet Roman Catholic," but the fact that the Wisconsin Democrats preferred him to McAdoo is striking evidence of the disfavor into which the son-in-law of the late President has fallen. The courageous letter of John W. Davis declining to give up his law practice in order to seek the Democratic presidential nomination and his statement therein that, "The only limitation upon a right thinking lawyer's independence is the duty he owes to his clients, once selected, to serve them without the slightest thought of the effect such service may have on his own personal popularity or political fortunes," is everywhere regarded as a severe rebuke to McAdoo who dropped his client Doheny immediately the Doheny oil leases came under investigation. It is generally held that while Mr. Davis may not have promoted his political fortunes he has gained the respect of upright, honorable men by his courageous stand. Democratic obstruction of tax reduction for partisan purposes is being more and more severely condemned as it is becoming more widely appreciated. A few of the abler Democratic leaders are pleading with their colleagues to abandon the obstructionist program, insisting that the indignation of the tax-payers will be visited on the Democrats at the polls. But thus far, these wiser councils have proved unavailing with the little Democrats of the Wheeler-Walsh-Heflin-McKellar type, who seem to have become drunk with their ability to create scandals and with the publicity it is procuring for them. Unable to attract any attention as Senators they are infatuated with the attention they attract as scandal-mongers. If you expect to be married long, better not be married "short." NOTICE OF ASSESSMENT ANAHEIM EUCALYPTUS WATER COMPANY, Location Principal Place of business, Anaheim, Orange County, California. Notice is hereby given that at a regular meeting of the board of Directors held on the 10th day of March 1924, Assessment No. 16, of three ($3.00) dollars per share was levied on the capital stock of the corporation payable immediately to the Secretary of company, at Anaheim, Orange County, California. Any stock upon which this assessment shall remain unpaid on the 17th day of April, 1924, will be delinquent and advertised for sale at public auction, and unless payment is made before will be sold on the 12th day of May, 1924, at $ P. M., to pay for the delinquent assessment, together with the cost of advertising and expense of sale. ANAHEIM EUCALYPTUS WATER COMPANY, By M. E. Beebe, Secretary. 3/20—St. Change now to the brand that never changes and you'll never change again. the Teapot line, by reason of sales of leases in Salt Creek by the government in June, 1920, made by Daniels and Payne in the Wilson administration. Thus went on without attention or safeguarding of the government interests the drainage of the Teapot Dome until the negotiations were begun promptly upon the coming in of the Republican administration in March, 1921, although not concluded until April, 1922. WASHINGTON LETTER (From our Regular Correspondent) President Coolidge has again proved his title to the country's admiration and respect by his appointment of Harlan F. Stone as Attorney General. Even as intensely partisan a paper as the New York World is compelled to praise the selection. Dean Stone has herculean task before him, the cleaning out of a Department grossly mismanaged during eight years of Democratic administration and incompetently manager during three years of Republican administration. But there is every indication that the former Dean of the Columbia Law School is equal to the undertaking. The Democratic attack on Secretary Mellon has proved a flivver. True to their program, the Democrats no sooner saw Mr. Daugherty out of the cabinet than they turned on Mr. Mellon. There was no basis for their charges, but that was in large part true of Mr. Daugherty, and entirely true of Secretary Denby. Truth, however, was the last thing they wanted. They were seeking sensationalism and party capital. But they got only discredit, and the Democratic press deserves a large share of credit for the failure of the Heflins, McKellars, et al. The Democratic press realized—what the Democratic demagogues in the Senate could not—that the latter were only discrediting their party in the public mind and their editorial condemnation has checked some of the scandalmongers. Senator Wheeler (more I. W. W. than Democrat) is now turning his guns on Secretary Weeks—all according to program. But Wheeler's penchant for thoroughly discreditable witnesses will probably soon dispose of that would be sensation. Mean-time, Senator Walsh is soft-pedalling on the oil investigation, having heard PARK ROADS GOOD INVESTMENT One of the best business investments the Government could make is proposed by the Sinnott Bill, which has just passed the House, providing $2,500,000 per year for three years for construction and improvement of roads, trails, and bridges in National Parks. When we read in t he New York papers long lists of residents of the United States taking passage on steamers for Europe, chiefly for pleasure trips, there can be no doubt of the desirability of making every reasonable effort to encourage these tourists to remain in the United States. Nothing more effective in that direction could be done than the construction of good highways in the National Parks so that travel therein will be made safe, convenient and pleasurable. American tourists spend not less than $500,000,000 a year, and probably much more than that on the other side of the Atlantic. If any considerable proportion of these tourists could be induced to remain in the United States the saving to the Nation would justify the appropriation for road construction in the Parks. But that would be only a minor consideration. Even if this feature of the subject were given no consideration whatever, the benefits that would be derived by tourists who never think of leaving the United States would fully pustify even a larger ap; propriation than proposed by the Sinnott Bill. Many thousands of our citizens visit the Parks every year, they travel over roads only 12 miles of which, in the Parks are paved. Very few sections of the road have anything that could be called hard surfacing of any character. Many of roads are narrow, and the grados are unnecessarily steep. If the roads were adequately improved travel in the Parks would be much more enjoyable for those who are accustomed to go there from year to year and Big Pay Jobs OPEN IN Los Angeles for auto mechanics, electricians, etc.,—earn $40 to $125 week. Learn auto trades. Short, easy, practical course. We guarantee to qualify you. Earn room and board while learning. FREE 84-page illustrated catalogue explains everything. Write Dept. 145 NATIONAL AUTOMOTIVE SCHOOL 4004 So. Figueroa, Los Angeles. PUBLIC SALES We have purchased 192,000 pair U.S. Army Munson last shoes, sizes 5-1-3 to 12 which was the entire surplus stock of one of the largest U.S. Government shoe contractors. This shoe is guaranteed one hundred per cent solid leather, color Senator Wheeler (more I. W. W. than Democrat) is now turning his guns on Secretary Weeks—all according to program. But Wheeler's penchant for thoroughly discreditable witnesses will probably soon dispose of that would-be sensation. Meanwhile, Senator Walsh is soft-pedalling on the oil investigation, having heard from many Democratic friends that the country is severely criticising the Democratic sensationalists and awakening to the fact that it has been grossly misled by the their efforts to create party capital. The voters, irrespective of party, want graft uncovered and the grafters punished, but they do not want to be deceived into believing their government is permeated with graft when there's no foundation for such reports and they resent the defamation of their public men by witnesses of the character of Henry Woodhouse, convicted felon, Roxy Stinson, et al. Maine's instructed delegation for Coolidge is accepted as the first in a long series of such instructions which will make certain the nomination at Cleveland of the son of the Massachusetts "dirt farmer." That Wisconsin should have instructed its delegation for La Follette occasions no surprise, although the instructions of the Democrats to their delegates to vote for Gov. Al. Smith of New York struck another blow to the corpse of the McAdoo boom, as did also the refusal of the Iowa Democrats to instruct their delegates to vote for the Crown Prince. Its not regarded as probable that the Democratic convention will dare to nominate Gov. Al Smith, because he is, as described by not Bill. Many thousands of our citizens visit the Parks every year, they travel over roads only 12 miles of which, in the Parks are paved. Very few sections of the road have anything that could be called hard surfacing of any character. Many of roads are narrow, and the grades are unnecessarily steep. If the roads were adequately improved travel in the Parks would be much more enjoyable for those who are accustomed to go there from year to year and many more thousands would be attracted by the assurance that they would be able to travel in comfort. It is surprising to read in the report submitted by Congressman Sinnett in behalf of his bill, that, since 1872, only $3,540,000 has been expended by the Federal Government, in road building and improvement in our National Park system, while it is estimated that since 1915 the States have expended nearly $24,000,000 in improving approach roads to National Parks. It is absorb that the road leading to Mt. Rainier National Park has been improved at a cost of nearly $4,000,000, but people who travel that road to the Park entrance are required to purchase an automobile permit at a cost of $2.50, and then find available for their use within the park a $3,540,000 road 20 miles long—a road unsurfaced and scarcely in a safe condition for travel. The National Parks are not local, but national institutions. In fact they are of more interest to the wealthy Americans residing at a distance than to those who reside nearby. The greater number of people who enjoy the beauties of the Parks the most, are not those who work fifty-two weeks a year. There is no safety zone for a Jay-talker. PUBLIC SALES We have purchased 192,000 pair U. S. Army Munson last shoes, sizes 5-1-9 to 12 which was the entire surplus stock of one of the largest U. S. Government shoe contractors. This shoe is guaranteed one hundred per cent solid leather, color dark tan, bellows tongue, dirt and water proof. The actual value of this shoe is $6.00. Owing to this tremendous buy we can offer same to the public at $2.95. Send correct size. Pay postman on delivery or send money order. If shoes are not as represented we will cheerfully refund your money promptly upon request. 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