The Teapot Dome Scandal

The Teapot Dome Scandal was a scandal under the administration of President Warren Harding which involved critical government oil fields.  These oil reserves were public land trusts in which petroleum would be kept in the natural reservoirs for the future use of the United States Navy.  Though leaders of both the Republicans and Democrats supported this petroleum policy, numerous politicians and private oil interests had always been opposed.  These critics believed that American oil companies would be able to provide for U.S. naval vessels in time of war.  Albert Fall, who became the Secretary of the Interior under Harding in 1921, was one of these opponents.  Fall had convinced the Secretary of the Navy, Edwin Denby, to turn control of these fields over to the Department of the Interior in May of 1921.  On April 7, 1922 Albert Fall leased the oil field at Teapot Dome, Wyoming without any competitive bidding, to Harry Sinclair of the Mammoth Oil Corporation.  Furthermore on April 25 and December 11, 1922 Fall leased the reserves at Elk Hill, California to Edward Doheny of the Pan-American Petroleum and Transport Company.  In return Fall apparently received gifts and loans totaling to about $400,000.  In 1923 the Senate heard of these illegal dealings and formed a committee to investigate.  Although Fall was protected by Attorney General Harry Daugherty and the leases could be legally defended, the money was the give away.  In February 1927 the Supreme Court invalidated the Elk Hills lease and in October, the Teapot Dome lease.  Albert Fall was found guilty of bribery in 1929 and was fined $100,000 and sentenced to one year in prison.  Harry Sinclair received a short sentence for criminal contempt of court for refusing to cooperate with federal officials.

-Chris Chan

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