Monday, Feb. 25, 1924

Oleum

A long suffering public is entitled to what little pleasure it can extract from its daily measure of scandal. The sibylline Senator from New Hampshire, George Higgins Moses, happily forecasting no restriction of the oil scandal ration, said:

"There are Senators in Washington who are round-shouldered now with the burden of information which they are carrying around looking for a chance to spring on the public. . . . Those yet unnamed are greater in number and of more consequence than the ones already involved. Of course, this information cannot be stifled."

The name of Silas H. Strawn, of Chicago, chosen by the President as special counsel in the oil cases, was withdrawn after opposition to confirming his nomination developed in the Senate. His fault was that he was a Director of the First National Bank and First Trust and Savings Bank of Chicago, which are depositories of the Standard Oil Company of Indiana. The withdrawal eliminated both of the prosecutors originally named by the President--the other attorney, Thomas W. Gregory, of Texas, having retired (TIME, Feb. 11) when it became known that he had once accepted a fee from a group of oil companies, $2,000 of which was paid by Doheny.

In place of these two men President Coolidge nominated as special counsel former Senator Atlee Pomerene of Ohio, Democrat, and Owen J. Roberts of Philadelphia, Republican. After a lengthy debate, Senator Pomerene's nomination was confirmed, 59-13. Those in favor included 34 Republi-cans and 25 Democrats. Those opposed were chiefly the radical group-- Brookhart, Frazier, La Follette and Norris, Republicans; Ashurst, Dill, Sheppard, Stanley, Walsh (Mont.), Wheeler and Adams, Democrats; Johnson (Minn.) and Shipstead, Farmer-Laborites. The so-called Presidential candidates of the Senate--Underwood, Ralston and Hiram Johnson--were none of them present and voting. Roberts was subsequently confirmed with less opposition, 68-8.

All sorts of evidence continued to pile up at Committee hearings, about those who had an interest in the leasing of Teapot Dome. One J. Leo Stack, a Colorado oil operator, testified that he had heard of the lease to Sinclair a week before it was made. Another, John C. Shaffer, publisher of the Chicago Evening Post, The Indianapolis Star, The Rocky Mountain News, The Denver Times and other papers, testified that Secretary Fall had told him of the impending lease a year before it was signed. He also admitted receiving $92,500 for a one-eighth share in the prior claims of the Pioneer Oil Company--which was to receive $1,000,000 in settlement from Sinclair. He further declared that he received this one-eighth interest gratis. The Senators became more and more 'dumbfounded.

Others matters which transpired:

P: The law firm of Wilson and Colby (ex-President and former Secretary of State) had declined in 1922 a large fee from Sinclair to represent him in a threatened Senate investigation. Mr. Wilson believed it improper for a former official to represent a private party before the Government.

P: A rumor that Doheny had employed Mr. Colby at one time was denied through Mr. Doheny's attorney--"never in his life did he employ or offer to employ Bainbridge Colby or any member of any firm with which Mr. Colby was connected."

P: The Senate got on the trail of diplomatic correspondence with foreign Governments regarding oil concessions to Americans. A treaty with Colombia, to which the U. S. paid $25,000,000--as recommended by Secretary Fall--was the occasion of the inquiry.

P: Rumors got about that a $1,000,000 slush fund had been organized by oil men against the investigation. Edward B. McLean, publisher of The Washington Post, was summoned to testify on the subject.

P: Senator La Follette, who started the present investigation many months ago, offered a resolution for an inquiry into Naval Coal Reserves in Alaska, which it was alleged had been improperly leased, "parallel to the Teapot Dome affair."

P: It was charged in a subcommittee of the House that Secretary Fall had illegally leased oil lands on various Indian Reservations.

P: "Huge speculations" in oil stocks, carried on under numbers instead of names, were declared to be one of the next disclosures in view--to show that those who had advance knowledge of the oil leases played the market extensively.

Secretary of the Navy Denby resigned.

Attorney General Daugherty answered a resolution introduced in the Senate which would request his resignation, by 'demanding an investigation of his official acts.