NAVAL OIL RESERVE INVESTIGATION. Acting upon the initiative of Theodore Roosevelt, who while president directed the geological survey to ascertain what areas in the public lands of the United States were oil producing and could be set aside for the future fuel needs of the navy. President William H. Taft in 1912 withdrew two such areas from public entry. Both were in California and one, in the Elk hills region, became known as naval reserve No. 1. The other, in the Buena Vista hills region, became known as naval reserve No. 2. In 1915 President Woodrow Wilson set aside an oil area in Natrona county, Wyoming, which became known as naval reserve No. 3 or more popularly as the "Teapot Dome." President Warren G. Harding in 1923 established by executive order naval reserve No. 4. near Cape Barrow, Alaska. Though the first naval oil reserves were created in 1912, the lands on which they were located had been withdrawn from all forms of entry Sept. 27. 1999; The legality of this action was questioned and therefore congress in 1910 passed an act, approved June 25, specifically authorizing withdrawals of this character by the president. Before the creation of the naval reserves private persons and corporations laid claim to certain rights acquired under the placer-mining law and after 1912 these claims were pressed in the courts and in congress. They related chiefly to lands just outside the withnaval reserves proper but within the drawn areas. In 1920 an act, approved Feb. 25, was passed by congress providing for the disposition of these public lands containing oil which were not within the naval reserves. It was further provided that the wells secretary of the interior might lease within the naval reserves actually producing oil. Because it was thought that there was more or less drainage from the naval reserves into adjoining wells and because it was deemed wise to give the secretary of the navy power to use the oil deposits when the proper time the came an amendment to the naval appropriation act, approved June 4, 1920, conferred that power upon the secretary of the navy. The essential portion of this amendment follows: "The secretary of the navy is directed to take possession of all properties within the naval petroleum reserves as are or may become subject to the control and use by the United States for naval purposes and on which there are no pending claims of applications for permits or leases under the provisions of an act of congress approved Feb. 25. 1920, entitled 'An act to provide for the mining of coal, phosphate, oil, oil shale, gas and sodium on the public domain,' or pending applications for United States patent under any law; to conserve, develop, use and operate the same in his discretion, directly or by contract, lease or otherwise, and to use. store, exchange or sell the oil and gas prod ucts thereof, and those from all royalty oil from lands in the naval reserves, for the benefit of the United States." TRANSFER OF ADMINISTRATION. On May 31, 1921. President Harding signed the following executive order transferring the the entire administration of naval from the secretary of the navy to the secretary of the interior: reserves "Under the provisions of the act of congress approved Feb. 25, 1920 (41 Stat. 437), authorizing the secretary of the interior to lease producing oil wells within any naval petroleum reserve; authorizing the president to permit the drilling of additional wells or to lease the remainder or any part of a claim upon which such wells have been drilled, and under the authority of the act of congress approved June 4, 1920 (41 Stat. 912), directing the secretary of the navy to conserve, develop, use and operate, directly or by contract, lease or otherwise, unappropriated lands in naval reserves, the administration and conservation of oil and gas bearing laus in naval petroleum reserves Nos. 1 and 2, California, and naval petroleum reserve No. 3 in Wyoming, and naval shale reserves in Colorado and Utah, are hereby committed to the secretary of the interior, subject to the supervision of the president, but no general policy as to drilling or reserving lands located in a naval reserve shall be changed or adopted except upon consultation and in cooperation with the secretary or acting secretary of the navy. The secretary of the interior is authorized and directed to perform any and all acts necessary for the protection, conservation and administration of the said reserves subject to the conditions and limitations contained in this order and the exist ing laws or such laws as may hereafter be enacted by congress pertaining thereto." LIST OF RESERVES. The naval oil reserves then or later inthis transfer. with the dates of cluded in creation, acreage and location of each, were as follows: No. 1.-Sept. 2, 1912. 38.969 acres, in Elk hills, Kern county, California. No. 2.-Dec. 13, 1912, 29,341 acres, in Buena Vista hills, Kern county, California. No. 3-April 30, 1915, 9,481 acres, Teapot Dome, Salt creek, Natrona county, Wyoming. No. 4.-Feb. 27, 1923, 22,250,000 acres, northwestern Alaska. The TEAPOT DOME LEASE. Control of the Teapot Dome or naval reserve No. 3 was given to Harry F. Sinclair under a lease signed April 7, 1922, with the Mammoth Oil The company. negotiations were carried on for the government by Albert B. Fall, then secretary of the interior, and the lease was signed by him and also by EdThe win Denby, then secretary of the navy. fact that the lease had been executed did not become generally known until April 21, when its existence was admitted in response to a senate resolution introduced by Senator John B. Kendrick of Wyoming on April 15. resolution requested the secretary of the interior and the secretary of the navy to inform the senate if they were negotiating with private parties for the operation of lands in naval petroleum reserve No. 3 in Wyoming and if so to give their names and the terms and to state of the proposed agreements whether an opportunity had been given the public for competitive bidding. The resolution was agreed to by the senate. The matter had been brought to the attention of Senator Kendrick by B. B. Brooks, a former governor of Wyoming and president of the Rocky Mountain Oil and Gas Producers' association. This was virtually the first step in the investigation of what later became popularly known as the "Teapot Dome scandal.' On April 25, the same year, control of all the remaining lands in naval reserves Nos. 1 and 2 were given to Edward L. Doheny under a lease signed by Secretaries Fall and Denby with the Pan-American Oil company. INFORMATION CALLED FOR. On April 28 Senater Robert M LaFolletto of Wisconsin called up a resolution, which he had first introduced April 21 but which he had later revised so as to read as follows: "Resolved, That the secretary of the interior is directed to send to the senate: "(a) Copies of all oil leases made by the department of the interior within naval oil reserve No. 1, and, separately, naval oil reserve No. 2, both in the state of California, and naval oil reserve No. 3 in the state of Wyoming, showing as to each the claim upon which the lease was based or issued, the name of the lessee, the date of the lease, the area of the leased property, the amount of the rent royalty, bonus and all other compensation paid and to be paid to the United States. "(b) All executive orders and other papers in the files of the department of the interior and its bureaus, or copies thereof if the originals are not in the files, authorizing or regulating such leases, including correspondence or memoranda embodying or concerning all agreements, instructions and requests by the president or the navy department as to the making of such leases and the terms thereof. "(c) All correspondence, papers and files showing and concerning the applications for such leases and the action of the department of the interior and its bureaus thereon and upon all the several claims upon which such leases were based or issued, all in said naval reserves; be it further "Resolved, That the committee on public lands and surveys be authorized to investigate this entire subject of leases upon naval oil reserves, with particular reference to the protection of the rights and equities of the government of the United States and the preservation of its natural resources, and to report its findings and recommendations to the senate.' Subsequently the following subparagraph was added to the resolution: on "And all contracts for drilling wells naval oil reserves, date and terms of same, reasons therefor, and the number and date of the drilling of wells on private lands adjacent to the naval oil reserves." HARDING TRANSMITS REPLY. The resolution as amended was adopted on President On June 7 Harding April 29. a comprehensive transmitted to the senate in him by Secretary Fall report made to In a note acto the resolution. response companying the report the president said: "I am sure I am correct in construing the impelling purpose of the secretary of the inIt is terior in making to me this report. not to be construed as a defense either of specific acts or the general policies followed in dealing with the problems incident to the handling of the naval reserves, but is designed to afford that explanation to which the senate is entitled, and which will prove helpful to the country generally in appraising the administration of these matters of great I think it is only fair to public concern. say in this connection that the policy which has been adopted by the secretary of the and the secretary of the interior in navy was submitted dealing with these matters to me prior to the adoption thereof, and the policy decided upon and the subsequent acts have at all times had my entire approval." pur In his report, which was of great length, Mr. Fall declared that the leases inquired about had been made chiefly for the pose of preventing the drainage of the oil on the naval reserves to wells drilled outside of their borders and in some instances to prewater. He quoted many vent flooding by The report mining experts to this effect. was criticized severely in a speech made by He declared Senator Kendrick on Aug. 25. that the government lost millions of dollars in bonuses by awarding the Teapot Dome He denied lease on a noncompetitive basis. that there was danger of drainage from this reserve. His contention was that there was no necessity for exploiting the reserve as it simply added to the overproduction of oil. Nothing much was done with regard to the naval oil reserve leases during the remainder of 1922 or in the early part of 1923, though the Teapot Dome contract continued to be atThe senate tacked from various quarters. committee on manufactures, of which Senator LaFollette was chairman, conducted a general inquiry into the oil trade and especially the operations of the Standard Oil company, but this touched upon the leasing policy only inIn January Secretary Fall, against whom most of the criticism for the change in cidentally. the naval oil reserve policy was directed, anOn that date he was succeeded by the nounced his resignation to take effect March 4. postmaster-general, Hubert Work of Colorado. Senator Harry S. New in turn succeeded Dr. Work as postmaster-general. reserve MEMBERSHIP OF SENATE COMMITTEE. When in October, 1923, the senate committee on public lands and grounds took up in earnest the investigation of the naval oil leases the Committee membership was as follows: Reed Smoot (rep., Utah), chairman; George W. Norris (rep., Neb.). Edwin F. Lenroot (rep., Wis.), Irvine L. N. Stanfield Ladd Robert (rep.. N. D.). (rep., Ore.), Peter Norbeck (rep., S. D.), Holm 0. Bursum (rep., N. M.), Key Pittman (dem.. Nev.) Andrieus A. Jones (dem., N. M.). John B. Kendrick, (dem., Wyo.), Thomas J. Walsh (dem., Mont.). The membership was virtually the same in the 68th congress, the sessions of which began in December, 1923, except that Senator Lenroot became chairman and that Senators Ralph H. Cameron (dem.. Col.) (rep., Ariz.). Alva B. Adams were added to and C. C. Dill (dem., Wash.) fill vacancies. Later Senator Lenroot gave up the chairmanship on account of illness and was succeeded by Senator Ladd. Ex-Secretary Fall appeared before the committee Oct. 23 and testified that he had closed lease with the Sinclair the Teapot Dome interests privately because by doing so he obtained royalties for the government twice as large as would have resulted from open bidding. On the 25th Secretary Denby told he the that found there committee when was serious drainage from the naval reserves in California and Wyoming he thought that the department of the interior, being fully equipped for handling matters of that kind. to handle the was the proper department He said that he had situation for the navy. conferred with Secretary Fall and asked him to look after the naval reserves and when he agreed to do so they obtained President Harding's approval of the transfer. H. F. SINCLAIR'S TESTIMONY Harry F. Sinclair of the Sinclair Oil company appeared before the committee Oct. 29 and testified that his company had oil property in the adjoining Salt Creek field prior to obtaining the Teapot Dome lease and said that the pipe line being constructed to Kansas City at a cost of $25.000.000 would not have been built if the government had not insisted upon it as a part of the Teapot Dome contract. In reply to questions put by Senator Walsh, who from this time on became the leader in the oil investigation, Mr. Sinel ir told of a trip to Europe with Mr. Fall in the summer of 1923 and of having him as his guest on his private car on several occasions. On Dec. 6 Mr. Sinclair testified that in January, 1922, he visited Mr. Fall's ranch at for Three Rivers, N. M., and sold a bull and six registered cows to the ex-secretary $1,100, which sum the witness received three It had cost him between $800 months later. 1 and $900 in freight charges to get the live stock to New Mexico. At another session of the committee, on Dec. 27, Mr. Sinclair denied making any gift to Mr. Fall and Mr. Fall denied receiving any gift from Mr. Sinclair in connection with the oil deal. STATEMENT BY MR. FALL. On Dec. 27 ex-Secretary Fall, who was confined to a Washington hotel by illness. sent a statement to the committee reviewing in detail phases of his personal and business affairs that had been brought out in the hearings by witnesses. "It should be needless for me to say,' he wrote. "that I have never approached E. L. Doheny, or any one connected with him or his corporations, or H. L. Sinclair, or any one connected with him or his corporations, nor have I ever received one cent on account of any lease or upon any other account whatever." Mr. Fall declared in his statement that he had bor owed $100.000 from Edward B. McLean, the Washington publisher, for the purpose of buying the Harris ranch adjoining the Fall ranch at Three Rivers, N. M. and had given his notes for the amount. Later it was learn d by Senator Walsh from Mr. McLean that the notes had been returned to Mr. Fall without having been cashed. This fact was announced by Senator T. H. Caraway (dem.. Ark.) in a speech made in the senate Jan. 16 1921 While the investigation was at this stage demands began to be made in and out of cou gress for the dismissal from the cabin t of Denby and Fall and also of the attorneygeneral, Harry M. Daugherty. The last named was accused of having approved the change in naval oil reserve policy and of being closely connected with various other dubious transactions. President Coolidge while following the investigation closely declined to act hastily. Archie Roosevelt, son of Theodore Roosevelt, testified on Jan. 21 that he had been a vice-president of one of the Sinclair oil corporations and a director in a number of others, but that he had severed all connection because of the revelations made before the senate committee and because he had learned that G. D. Wahlberg, private secretary to Mr. Sinclair. had paid $68,000 to the foreman of the Fall ranch. Mr. Wahlberg himself appeared before the committee and testified that he had resigned his position because of this transaction and because he had been ordered to turn over $95,000 in bonds and stock to Col. J. W. Zevely. who took an active part in negotiating the Teapot Dome lease. When this testimony was given Sinclair and Zevely were on their way to Europe. LENT MONEY TO MR. FALL. On Jan. 24 Edward L. Doheny, president of the Pan-American and other large oil corporations, told the committee that he was the man who in November, 1921, lent Secretary Fall $100.000. The transaction had no connection, he said, with the oil leases on the naval reserves in California or Wyoming but was a purely private transaction. He had known Mr. Fall for more than thirty years and he had lent him the money wholly because of friendship for him. When the money was delivered Mr. Fall gave Mr. Doheny's son a demand note for the amount. The note carried no interest. Through his attorney. Gavin McNab. Mr. Doheny submitted a memorandum suggesting that President Coolidge be authorized to appoint a committee of experts to inquire into all phases of the lease of naval reserve No. 1, and that if the investigation disclosed "that at the time of the making of the contracts they were not wise. desirable and adntageous for the government to make and the very best the government could have obtained" Mr. Doheny would direct the PanAmerican Petroleum and Transport company to reconvey the property to the United States. receiving in return compensation for the expenditures actually made on the property. Col. W. E. Zevely testified on Jan. 25 that Mr. Sinclair had lent Mr. Fal $25,000 in June, 1923. Part of the money was to pay Mr. Fall's expenses on a trip to Russia in connection with some oil transactions Mr. Sinclair had there. Mr. Fall did not go but gave his note for the amount to Mr. Zevely, who held it for Mr. Sinclair. PRESIDENT STATES HIS POSITION. On the evening of Jan. 26 President Coolidge issued the following public statement: "It is not for the president to determine criminal guilt or render judgment in civil causes; that is the function of the courts. It is not for him to prejudge. I shall do neither. "But when facts are revealed to me that require action for the purpose of insuring the enforcement of either civil or criminal liability such action will be taken. That is the province of the executive. "Acting under my direction, the department of justice has been observing the source of the evidence which has been revealed at the hearings conducted by the senatorial committee investigating certain oil leases made on naval reserves, which I believe warrant action for the purpose of enforcing the law and protecting the rights of the public. "This is confirmed by reports made to me from the committee. "If there has been any crime it must be prosecuted. If there has been any property of the United States illegally transferred or leased it must be recovered. "I feel the public is entitled to know that in the conduct of such action no one is shielded for any party, political or other reasons. As I understand, men are involved who belong to both political parties, and having been advised by the department of justice that it is in accord with former precedents. I propose to employ special counsel of high rank drawn from both political parties to bring such actions for the enforcement of the law. "Counsel will be instructed to prosecute these cases in the courts so that if there is any guilt it will be punished: if there is any civil liability it will be enforced; if there is any fraud, it will be revealed: and if there are any contracts which are illegal they will be canceled. "Every law will be enforced, and every right of the people and the government will be protected." On Jan. 29 Senator Walsh of Montana made a long speech in the senate in which he went minutely into the history of the oil scandal. In this speech he charged the secretary of the navy with gross incompetence and concluded with the words: "Mr. President, unless the resignation of the secretary of the navy is in the hands of the president of the United States before the sun goes down on this good day. I shall ask action by this body appropriate to the occasion." ARRANGING FOR ACTION IN COURTS. On the same day (Jan. 29) the house of representatives passed a joint resolution appropriating $100,000 to be expended by the president in employing attorneys and in meeting other expenses in instituting suits, either civil or criminal, in the prosecution of the person or persons guilty of any infraction of the laws in connection with the naval oil reserve leases. The resolution was passed by the senate Feb. 21 with an amendment re quiring that the counsel employed by the president be approved by the senate. As finally agreed upon by both houses the resolution read as follows: MONEY FOR OIL SUITS. There is appropriated the sum of $100,000, or so much thereof as may be necessary, to be expended by the president for the purpose of employing the necessary attorneys and agents and for such other expenses as may be necessary in instituting and carrying on any suits or other proceedings, either civil or criminal, which he may cause to be instituted or which may be instituted, or to take any other steps deemed necessary to be taken in relation to the cancellation of any leases on oil lands in former naval reserves, in the prosecution of any person or persons guilty of any infraction of the laws of the United States in connection with said leases or in any other measures which he may take to protect the interests of the United States and the people thereof in connection therewith. Any counsel employed by the president under the authority of this resolution shall be appointed by and with the advice and consent of the senate and shall have full power and authority to carry on said proceedings, any law to the contrary notwithstanding. (Approved Feb. 27, 1924.) Previous to the final passage of the foregoing resolution President Coolidge on Jan. 29 announced the appointment of Silas H. Strawn, republican, of Chicago and Thomas W. Gregory, democrat, of Texas as special counsel in the oil cases. Mr. Gregory was found to be disqualified from acting for the government as he had previously acted as attorney for Mr Doheny. The president appointed ex-Senator Atlee Pomerene of Ohio to take Gregory's place. The nominations were sent to the senate Feb. 8 and were referred to the public lands committee. The name of Mr. Strawn was withdrawn by the president when the obiection was raised that the attorney was a director of the First National Bank of Chicago, which carried deposits by the Standard Oil Company of Indiana. Owen J. Roberts, republican, of Philadelphia was then named in the place of Mr. Strawn and he was confirmed by the senate Feb. 18. Mr. Pomerene was confirmed Feb. 16. construction of oil tanks at Pearl Harbor. territory of Hawaii, and that certain lease of naval reserve numbered 1, in the state of California. bearing date Dec. 11. 1922. made in form by the government of the United States through Albert B. Fall. secretary of the interior, and Edwin Denby, secretary of the navy. as lessor. to the Pan-American Petroleum company as lessee, were executed under circumstances indicating fraud and corruption; and, Whereas, the said leases and contract were entered into without authority on the part of the officers purporting to act in the execution of the same for the United States and in violation of the laws of congress; and, Whereas. such leases and contract were made in defiance of the settled policy of the government, adhered to through three successive administrations, to maintain in the ground a great reserve supply of oil adequate to the needs of the navy in any emergency threatening the national security; therefore, be it Resolved by the senate and house of representatives of the United States of America in congress assembled, That the said leases and contract are against the public interest and that the lands embraced therein should be recovered and held for the purpose to which they were dedicated; and Resolved further. That the president of the United States be, and he hereby is, authorized and directed immediately to cause suit to be instituted and prosecuted for the annulment and cancellation of the said leases and contract and all contracts incidental or supplemental thereto. to enjoin the further extraction of oil from the said reserves under said leases or from the territory covered by the same, to secure any further appropriate incidental relief, and to prosecute such other actions or proceedings, civil and criminal, as may be warranted by the facts in relation to the making of the said leases and contract. And the president is further authorized and directed to appoint. by and with the advice and consent of the senate, special counsel who shall have charge and control of the prosecution of such litigation, anything in the statutes touching the powers of the attorneygeneral of the department of justice to the contrary notwithstanding. (Approved Feb. 8. 1924.) On Jan. 31 the senate without a dissenting vote passed a joint resolution introduced by Senator Walsh directing the president to in stitute and prosecute suits to cancel certain leases of oil lands. The resolution wa passed by the house Feb. 1 and was approved by the president. Another resolution direct. ing the secretary of the interior to institut proceedings to establish the title of the United States to certan sections within the limits of naval reserve No. 1 in California was passed by the senate Feb. 7 and by the house Feb. 16. It received the presidential approval Feb.directed to employ special counsel to prosecute These resolutions are given herewith in 25. full: CANCELLATION OF OIL LEASES. Whereas. it appears from evidence taken by the committee on public lands and surveys of the United States senate that certain lease of naval reserve numbered 3. in the state of Wyoming, bearing date April 7, 1922, made in form by the government of the United States, through Albert B. Fall, secretary of the interior. and Edwin Denby. secretary of the navy. as lessor, to the Mammoth Oil company as lessee, and that certain contract between the government of the United States and the Pan-American Petroleum and Transport company, dated April 25, 1922, signed by Edward C. Finney, acting secretary of the interior, and Edwin Denby, secretary of the navy. relating among other things to the NAVAL RESERVE NO. 1. The secretary of the interior is directed forthwith to institute proceedings to assert and establish the title of the United States to sections 16 and 36, township 30 south. range 23 east, Mount Diablo meridian, within the exterior limits of naval reserve numbered 1 in the state of California, and the president of the United States is hereby authorized and such proceedings and any suit or suits ancillary thereto or necessary or desirable to arrest the exhaustion of the oil within sections 16 and 36 pending such proceedings. (Approved Feb. 21, 1924.) said Edward L. Doheny appeared before the senate committee again and testified that he had paid retainers and fees aggregating $250.000 to William G. McAdoo for representing him in Washington and California after his resignation as secretary of the tr a ury in President Wilson's cabinet. He so said that Franklin K. Lane, a former secretary of the interior, but since deceas d, had been em ployed at a salary of $50,000 a year after he left the cabinet. The witness showed the fragment of a note from which the signature had been torn, which, he admitted. was the security he had for the note giv by Mr. Fall as security for the $100.000 annulment of certain leases in the naval oil loan. MR. FALL DECLINES TO TESTIFY. Ex-Secretary Fall, who had been ill for a number of days, appeared before the public lands committee Feb. 2 and presented a written statement in which he declined to answer any further questions concerning the nav..l oil reserve leases on the ground that the committee was no longer legally empowered to question him, as the passage of the WalshCaraway resolution (on the cancellation of the oil leases) constituted in effect a discharge of the investigating committee from further ac tivities. He declined to testify for the further reason that he might incriminate himself. Owing to the death of ex-President Wilson on Feb. 3 the work of the senate investigat ing committee was suspended until F.b. 7. Then on the advice of Messrs. Roberts and Pomerene it was decided not to call Mr. Fall again as a witness, as forcing him to testify might result in immunity for him in case of criminal prosecution. Mr. Fall soon afterward returned to his ranch in New Mexico. reserves of the United States; and, "Whereas it appears from evidence taken by the committee on public lands and surveys of the United States senate that certain lease of naval reserve No. 3, in the state of Wyoming, bearing date April 7, 1922, made in form by the government of the United States. through Albert B. Fall, secretary of the interior, and Edwin Denby, secretary of the navy, as lessor, to the Mammoth Oil company, as lessee, and that certain contract beand the Pan-American Petroleum and Transport tween the government of the United States company, dated April 25. 1922, signed by Edward C. Finney, acting secretary of the interior, and Edwin Denby, secretary of the navy, relating, among other things, to the construction of oil tanks at Pearl Harbor, territory of Hawaii, and that certain lease of naval reserve No. 1, in the state of California bearing date Dec. 11. 1922. made in form by the government of the United States, through Albert B. Fall. secretary of the inOn Feb. 7 William G. McAdoo sent a letter terior, and Edwin Denby. secretary of the to Senator Lenroot stating that he had lit navy, as lessor, to the Pan-American Petrothe employ of E. L. Doheny and that he de-leum company, as lessee, were executed under sired to appear before the committee and circumstances indicating fraud and corruption; explain his connection with the oil firm. On the same day Mr. Doheny correct d his te timony as to the amount his firm had paid to Mr. McAdoo, the correct figure being $150,000 and not $250,000. On Feb. 8 the committee heard the test.mony of Frederick G. Ponfils, part owner of the Denver Post, who said that he and his partners had received $250,000 from Harry F. Sinclair in settlement of claims they held on the Teapot Dome reserve. FOR THE COURTS TO DECIDE. On the same day President Coolidge, after signing the Walsh resolution calling for the cancellation of the oil leases, issued the following explanatory statement: "I have approved joint resolution (S. J. Res. 54) in order that a prompt and thorough investigation may be made and appropriate action taken. I express no opinion with reerence to the facts which purport to be found in the preambles to the resolution and with reference to those parts of the resolution which, under the constitution, do not require concurrence of the senats and house of representatives and which are unnecessary to be presented to the president of the United States to make them effective. "As I said in my public statement issued under date of Jan. 26, it is for the courts to determine the legal effect of the circumstances incident to the execution of the leas 8 and contracts mentioned. and whether they were executed with or without authority on the part of the office s purporting to act for the United States, and in good faith. I reiterate that it is the function of the courts to determine criminal guilt and to render judgment in civil cases, and that I propose to have done. "In view of the importance of the subject matter and lim ted legal force now availab? to care for the vast amount of litig tion in which the government is continuors'y engaged, I regard the authority to appoint special counsel as appropriate legislation." DENBY'S RESIGNATION ASKED BY On Feb. 11, by a vote of 47 yeas to 34 ereas the United States senate did on and, "Whereas such leases and contract were made in defiance of the settled policy of the government, adhered to through three successive administrations, to maintain in the ground a great reserve supply of oil adequate to the needs of the navy in any emergency threatening the national security.' "Therefore, be it "Resolved. That it is the sense of the United States senate that the president of the United States immediately request the resignation of Edwin Denby as secretary of the navy." SHARP REPLY BY PRESIDENT. On the evening of the same day (Feb. 11) President Coolidge issued the following statement: "No official recognition can be given to the passage of the senate resolution relative to their opinion concerning members of the cabinet or other officers under executive control. "As soon as special counsel can advise me as to the legality of these leases and assemble for me the pertinent facts in the various transactions I shall take such action as seems essential for the full protection of the public interests. I shall not hesitate to call for the resignation of any official whose conduct in this matter in any way warrants such action upon my part. The dismissal of an officer of the government, such as is involved in this case, other than by impeachment, is exclusively an executive function. I regard this as a vital principle of our governm nt. "In discussing this principle Mr. Madison has well said: 'It is laid down in most of the constitutions or bills of rights in the republics of America; it is to be found in the political writings of the most celebrated civilians, and is everywhere held as essential to the preservation of liberty that the three great departments of government be kept separate and distinct.' "President Cleveland likewise stated the correct principle in discussing requests and demands made by the senate upon him and upon different departments of the government, in which he said: "They assume the right of the senate to sit in judgment upon the exercise of |