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Encyclopedia > Teapot Dome scandal
The location of Teapot Dome in the US state of Wyoming.
The location of Teapot Dome in the US state of Wyoming.

Teapot Dome is a reference to an oil field on public land in the U.S. state of Wyoming, so named because of a massive boulder that looks like a teapot overlooking the field. It is also a phrase commonly applied to the scandal that troubled the administration of United States President Warren G. Harding. Image File history File links Teapot_Dome. ... Image File history File links Teapot_Dome. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      A U.S. state is any one of the fifty subnational entities of... Official language(s) English Capital Cheyenne Largest city Cheyenne Area  Ranked 10th  - Total 97,818 sq mi (253,348 km²)  - Width 280 miles (450 km)  - Length 360 miles (580 km)  - % water 0. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      For other uses, see President of the United States (disambiguation). ... Warren Harding redirects here. ...


The Teapot Dome oil reserve scandal took place during the administration of President Harding. In 1921, by executive order of the President, control of naval oil reserves at Teapot Dome, Wyo., and at Elk Hills, Calif., was transferred from the Navy Dept. to the Dept. of the Interior. The oil reserves had been set aside for the navy by President Taft. In 1922, Albert B. Fall, U.S. Secretary of the Interior, leased, without competitive bidding, the Teapot Dome fields to Harry F. Sinclair, an oil operator, and the field at Elk Hills, Calif., to Edward L. Doheny. These transactions became (1922–23) the subject of a Senate investigation conducted by Sen. Thomas J. Walsh. Albert Bacon Fall (November 26, 1861 – November 30, 1944) was a Senator from New Mexico and the Secretary of the Interior under President Warren G. Harding, notorious for his involvement in the Teapot Dome scandal. ... Harry Ford Sinclair, Time Magazine cover: April 9, 1928 Harry Ford Sinclair (July 6, 1876 - November 10, 1956) was an American oil industrialist. ... Sinclair Oil is an American petroleum company based in Salt Lake City, Utah. ... Edward L. Doheny Edward Laurence Doheny (August 10, 1856 - September 8, 1935) was an Irish American oil tycoon, upon whom the character Daniel Plainview, portrayed by Daniel Day-Lewis, in the 2007 film There Will Be Blood was loosely based. ... Thomas James Walsh (June 12, 1859 – March 2, 1933) was an American lawyer and politician from Helena, Montana. ...


It was found that in 1921, Doheny had lent Fall $100,000, interest-free, and that upon Fall's retirement as Secretary of the Interior (Mar., 1923) Sinclair also “loaned” him a large amount of money. The investigation led to criminal prosecutions.[1] Fall was indicted for conspiracy and for accepting bribes. Convicted of the latter charge, he was sentenced to a year in prison and fined $100,000. In another trial for bribery Doheny and Sinclair were acquitted, although Sinclair was subsequently sentenced to prison for contempt of the Senate and for employing detectives to shadow members of the jury in his case. The oil fields were restored to the U.S. government through a Supreme Court decision in 1927.

Contents

Background

Teapot Dome is a geologic structural uplift and associated oil field located in Natrona County, Wyoming, about 55 miles north of Casper. It is named for a formation of eroded sandstone called Teapot Rock that rises above the bare sagebrush. Teapot Rock overlooks the tract of land containing the Teapot Dome structure and oil field, and the United States Naval Oil Reserve covering most of the field. Image:Map of Wyoming highlighting Natrona County. ... Casper is the only city in Natrona County, Wyoming, United States, although the county is home to a number of small towns and Casper suburbs. ...


Teapot Dome, Elk Hills and Buena Vista Hills in Kern County, California, were oil fields located on public land reserved for emergency use by the U.S. Navy only when the regular oil supplies diminished. Many politicians and private oil interests had opposed the limits placed on the oil fields, claiming that the reserves were unnecessary and that American oil companies could provide for the Navy. Kern County is a county located in the southern Central Valley of the U.S. state of California. ... Drilling rig in a small oil field Near Sarnia, Ontario, 2001 An oil field is an area with an abundance of oil wells extracting petroleum (oil) from below ground. ... An oil well in Canada. ... USN redirects here. ...


One of the public officials most avidly opposed to the reserves was New Mexico Republican Senator Albert B. Fall. A political alliance ensured his appointment to the Senate in 1912, and his political allies — who later made up the infamous Ohio Gang — convinced President Harding to appoint Fall as United States Secretary of the Interior in March 1921. For other uses, see New Mexico (disambiguation). ... GOP redirects here. ... Type Upper House President of the Senate Richard B. Cheney, R since January 20, 2001 President pro tempore Robert C. Byrd, D since January 4, 2007 Members 100 Political groups Democratic Party Republican Party Last elections November 7, 2006 Meeting place Senate Chamber United States Capitol Washington, DC United States... Albert Bacon Fall (November 26, 1861 – November 30, 1944) was a Senator from New Mexico and the Secretary of the Interior under President Warren G. Harding, notorious for his involvement in the Teapot Dome scandal. ... This does not adequately cite its references or sources. ... The United States Secretary of the Interior is the head of the United States Department of the Interior, concerned with such matters as national parks and The Secretary is a member of the Presidents Cabinet. ...


The Scandal

In 1922, the reserves were still under the jurisdiction of Edwin C. Denby, the United States Secretary of the Navy. Fall convinced Denby to give jurisdiction over the reserves to the Department of the Interior. Fall then leased the rights of the oil to Harry F. Sinclair of the original Sinclair Oil, then known as Mammoth Oil, without competitive bidding. Contrary to popular belief, this manner of leasing was legal under the Mineral Leasing Act of 1920. [1] Concurrently, Fall also leased the Naval oil reserves at Elk Hills, California, to Edward L. Doheny of Pan American Petroleum in exchange for personal loans at no interest. In return for leasing these oil fields to the respective oil magnates, Fall received gifts from the oilmen totaling about $404,000 [equivalent to $4 million in the year 2000]. It was this money changing hands that was illegal—not the lease itself. Fall attempted to keep his actions secret, but the sudden improvement in his standard of living prompted speculation. Edwin Denby Edwin C. Denby (b. ... Flag of the United States Secretary of the Navy. ... The United States Department of the Interior (DOI) is a Cabinet department of the United States government that manages and conserves most federally-owned land. ... Harry Ford Sinclair, Time Magazine cover: April 9, 1928 Harry Ford Sinclair (July 6, 1876 - November 10, 1956) was an American oil industrialist. ... Sinclair Oil is an American petroleum company based in Salt Lake City, Utah. ... Edward L. Doheny Edward Laurence Doheny (August 10, 1856 - September 8, 1935) was an Irish American oil tycoon, upon whom the character Daniel Plainview, portrayed by Daniel Day-Lewis, in the 2007 film There Will Be Blood was loosely based. ...


On April 14, 1922, the Wall Street Journal reported a secret arrangement in which Fall had leased the petroleum reserves to a private oil company without competitive bidding. Fall denied the claims, and the leases to the oil companies seemed legal enough on the surface. However, the following day, Wyoming Democratic Senator John B. Kendrick introduced a resolution that would set in motion one of the most significant investigations in the Senate's history. Wisconsin Republican Senator Robert M. La Follette, Sr. arranged for the Senate Committee on Public Lands to investigate the matter. At first, La Follette believed Fall was innocent. However, his suspicions deepened after his office was ransacked.[2] is the 104th day of the year (105th in leap years) in the Gregorian calendar. ... Year 1922 (MCMXXII) was a common year starting on Sunday (link will display full calendar) of the Gregorian calendar. ... The Wall Street Journal is an influential international daily newspaper published in New York City, New York with an average daily circulation of 1,800,607 (2002). ... Official language(s) English Capital Cheyenne Largest city Cheyenne Area  Ranked 10th  - Total 97,818 sq mi (253,348 km²)  - Width 280 miles (450 km)  - Length 360 miles (580 km)  - % water 0. ... The Democratic Party is one of two major political parties in the United States, the other being the Republican Party. ... Senator from Wyoming; born near Jacksonville, Cherokee County, Tex. ... This article is about the U.S. state. ... Robert Marion La Follette, Sr. ...


Despite the Wall Street Journal's report, the public did not take much notice of the suspicion, the Senate Committee Investigation, or the scandal itself.[citation needed] Without any proof and with more ambiguous headlines, the story faded from the public eye. However, the Senate kept investigating.


Investigation and Outcome

Doheny (2nd from right) testifying before the Senate Committee investigating the Tea Pot Oil Leases
Doheny (2nd from right) testifying before the Senate Committee investigating the Tea Pot Oil Leases

La Follette's committee allowed the investigation panel's most junior minority member, Montana Democrat Thomas J. Walsh, to lead what most expected to be a tedious and probably futile inquiry seeking answers to many questions. For two years, Walsh pushed forward while Fall stepped backward, covering his tracks as he went. The Committee found no evidence of wrongdoing, the leases were legal enough, but records kept disappearing mysteriously. Fall had made the leases of the oil fields appear to be legitimate, but his acceptance of the money was his undoing. By 1924, the Committee had only one unanswered question: How did Fall become so rich so quickly? Image File history File links Edward_Doheney_Testifying. ... This article is about the U.S. State. ... Thomas James Walsh (June 12, 1859 – March 2, 1933) was an American lawyer and politician from Helena, Montana. ...


Money from the bribes went to Fall's cattle ranch and investments in his business. Finally, as the investigation was winding down and preparing to declare Fall innocent, Walsh uncovered one piece of evidence Fall had forgotten to cover up: Doheny's loan to Fall in November 1921, in the amount of $100,000.


The investigation led to a series of civil and criminal suits related to the scandal throughout the 1920s. Finally in 1927 the Supreme Court ruled that the oil leases had been corruptly obtained and invalidated the Elk Hills lease in February of that year and the Teapot lease in October of the same year. The Navy regained control of the Teapot Dome and Elk Hills reserves as a result of the Court's decision. Another significant outcome was the Supreme Court case McGrain v. Daugherty which, for the first time, explicitly established Congress' right to compel testimony. The Supreme Court of the United States (sometimes colloquially referred to by the acronym SCOTUS[1]) is the highest judicial body in the United States and leads the federal judiciary. ...


Albert Fall was found guilty of bribery in 1929, fined $100,000 and sentenced to one year in prison, making him the first Presidential cabinet member to go to prison for his actions in office. Harry Sinclair, who refused to cooperate with the government investigators, was charged with contempt, fined $100,000, and received a short sentence for tampering with a jury. Edward Doheny was acquitted in 1930 of attempting to bribe Fall. Cabinet meeting on May 16, 2001. ...


Aftermath

The Teapot Dome scandal became an issue in the presidential election of 1924, but as the investigation had only just started earlier that year, neither party could claim full credit for exposing the wrongdoing. The only political casualty was Fall's Senate replacement, Holm O. Bursum, whom Fall had handpicked to succeed him. Bursum, guilty only of being associated with Fall, lost his 1924 re-election. Eventually, when the Depression hit, the scandal was part of a snowball effect that damaged many of the big business Republicans of the 1920s. For the rap album, see 1924 (album). ... Holm Olaf Bursum (1867-1953). ... For other uses, see The Great Depression (disambiguation). ...


The concentrated attention on the scandal made it the first symbol of government corruption in 20th century America. The scandal revealed the problem of natural resource scarcity and the need to provide reserves against the future depletion of resources in an emergency. President Calvin Coolidge, in the spirit of his campaign slogan "Keep Cool with Coolidge", handled the problem very systematically and quietly, and his administration avoided damage to its reputation by blaming congressional Republicans for the scandal. The Teapot Dome scandal came to represent the corruption of American politics over the preceding decades. This sort of thing had happened before. Teapot Dome was just the first time this kind of corruption had been exposed nationally. John Calvin Coolidge, Jr. ...


Warren G. Harding had apparently no knowledge of the scandal. It seems that at the time of his death in 1923 he was just beginning to learn of the actions of his appointee when he undertook his "Voyage of Understanding" tour of the United States in the summer of 1923, (also visiting British Columbia, Canada). Largely as a result of the Teapot Dome scandal, Harding’s administration has been remembered as one of the most corrupt to occupy the White House. Harding may not have directly acted inappropriately, but Fall was his appointee. This situation has resulted in Harding's name being linked to the infamous (and misnamed) Ohio Gang. It was revealed in 1923 that the FBI (then named the Bureau of Investigation) monitored the offices of members of Congress who had exposed the Teapot Dome scandal, including breaking in and wiretapping. When the agency's actions were revealed, there was a shakeup at the Bureau of Investigation, resulting in the appointment of J. Edgar Hoover, who would lead for 48 years as Director. Warren Harding redirects here. ... Motto: Splendor sine occasu (Latin: Splendour without diminishment) Capital Victoria Largest city Vancouver Official languages English (de facto) Government Lieutenant-Governor Steven Point Premier Gordon Campbell (BC Liberal) Federal representation in Canadian Parliament House seats 36 Senate seats 6 Confederation July 20, 1871 (6th province) Area  Ranked 5th Total 944... For other uses, see White House (disambiguation). ... This does not adequately cite its references or sources. ... The Federal Bureau of Investigation (FBI) is a federal criminal investigative, intelligence agency, and the primary investigative arm of the United States Department of Justice (DOJ). ... John Edgar Hoover (January 1, 1895 – May 2, 1972), known popularly as J. Edgar Hoover, was the first Director of the Federal Bureau of Investigation (FBI) of the United States. ...


Following the exposure of Teapot Dome, Harding’s popularity plunged from the record highs it had been at throughout his term. The late President and First Lady Florence Kling Harding’s bodies were interred in the newly completed Harding Memorial in Marion, Ohio, in 1927, but a formal dedication ceremony was not held until 1930 when enough of the scandal had faded from the American consciousness. This article is about the use of the term first lady internationally. ... White House portrait Florence Kling Harding (August 15, 1860–November 21, 1924), wife of Warren G. Harding, was First Lady of the United States from 1921 to 1923. ... The Harding Memorial, the final resting place of the 29th President of the United States of America Warren G. Harding and his wife, First Lady Florence Kling Harding The Harding Memorial is the burial location of President Warren G. Harding and First Lady Florence Kling Harding and is located in... Marion is a city in the U.S. state of Ohio and the county seat of Marion County[4]. The city is located in northern Ohio, approximately 50 miles (80 km) north of Columbus. ...


References

External links

Coordinates: 43.2885808° N 106.1733516° W Map of Earth showing lines of latitude (horizontally) and longitude (vertically), Eckert VI projection; large version (pdf, 1. ...


  Results from FactBites:
 
Teapot Dome Scandal – FREE Teapot Dome Scandal Information | Encyclopedia.com: Find Teapot Dome Scandal Research (796 words)
Teapot Dome Scandal (1924) Corruption scandal involving the US government during President Harding's administration over the fraudulent leasing of oil reserves.
Teapot Dome-before Watergate, the synonym for corruption in the executive branch of government-was a scandal that developed during the Harding...
Cloth $29,95 "Teapot Dome" is both the name of an oil field in Wyoming and one of the greatest political scandals in twentieth-century U.S. history.
Teapot Dome - MSN Encarta (277 words)
Teapot Dome is a reference to an oil field on public land in the U.S. state of Wyoming, so named because of a massive boulder that looks like a teapot overlooking the field.
Teapot Dome, notorious government scandal in the early 1920s over the leasing of government-owned oil reserves.
President Warren G. Harding transferred the administration of two naval oil reserves located at Elk Hills, California, and Teapot Dome, Wyoming, to the Department of the Interior soon after his inauguration in 1921.
  More results at FactBites »


 
 

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