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Investigation. Last January, while investigating Teapot Dome, the Senate Committee on Public Lands discovered that just before and just after Dec. 20, 1922, the date of the Salt Creek lease, Oilman Sinclair gave or loaned Secretary Fall $35,000. The day the bids for the Salt Creek contract were supposed to close, Oilman Sinclair was on a train returning from a visit to the Fall ranch in New Mexico. It was nine hours after the legal time was up when Oilman Sinclair sent in his bid, by telegram from Pratt, Kan. Simultaneously, Fall wired Assistant Secretary of the Interior Edward...

Author: /time Magazine | Title: National Affairs: Villains? Goat? | 10/29/1928 | See Source »

Renewal. The discovery of all these facts was in progress last winter just before and at the moment that Secretary Work had to decide about letting Sinclair exercise his Salt Creek option. Besides the Senate's investigation, the trial of Sinclair for criminal conspiracy was then fresh in Washington's mind. Sinclair's was an extraordinary name indeed, but Dr. Work took no extraordinary precautions. He simply asked the Solicitor of the Interior Department if he thought Sinclair's option was valid. Solicitor Ernest Odell Patterson said he thought...

Author: /time Magazine | Title: National Affairs: Villains? Goat? | 10/29/1928 | See Source »

...whole import of what Senator Walsh had said. For Senator Walsh had qualified his view that the option was inescapable, by saying: ". . . except it [the U. S.] treats it [the lease] as void or voidable." Senator Walsh's opinion at that time was tentative. Further investigation of the Salt Creek affair was in store and Senator Walsh further said: "I have not been able to give the subject the study that it ought to have in order to arrive at a conclusion such as would be reached by a good lawyer...

Author: /time Magazine | Title: National Affairs: Villains? Goat? | 10/29/1928 | See Source »

Further Investigation. Last April, stirred by the Senate's activity, President Coolidge ordered the Department of Justice to look into and report on the Salt Creek lease to Sinclair. Attorney General Sargent turned the matter over to Assistant Attorney General William J. ("Wild Bill") Donovan. The result was awaited attentively, not only by Senator Walsh, but by Senator Capper of Kansas. The latter, a faithful Republican, did not seek to embarrass the Administration, but there were potent oil men in Kansas who wanted to know what was what. Not the lease provocative feature of Oilman Sinclair's Salt...

Author: /time Magazine | Title: National Affairs: Villains? Goat? | 10/29/1928 | See Source »

...Universal Service (Hearst), and the arch-Democratic New York World were on the job. On Oct. 14. the World said that, with Senator Walsh's assistance, it was going to expose "another oil scandal." On Oct. 15. the World and Senator Walsh began telling the story of the Salt Creek lease and its renewal. On Oct. 16, the World continued the story. That afternoon. Attorney General Sargent signed and issued an opinion holding the Salt Creek lease void in the first instance and its renewal void as a result...

Author: /time Magazine | Title: National Affairs: Villains? Goat? | 10/29/1928 | See Source »

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