109
“Teapot Dome” became part of the
political lexicon, a synonym for
high-level corruption. It was pressed
into play on campaign cards (left)
during the 1924 presidential election.See also: The Mississippi Scheme 100WHITE COLLAR CRIMES
field and two oil fields in California
from the navy department to the
department of the interior. Fall then
covertly, and without competitive
bidding, granted exclusive rights to
Teapot Dome to Harry F. Sinclair of
the Mammoth Oil Company. A
similar deal was made with
Edward Doheny of Pan American
Petroleum and Transport Company
for the Elk Hills reserve in
California’s San Joaquin Valley. In
return, Fall received hundreds of
thousands of dollars in interest-free
loans from the companies.
Although these leases and
contracts were technically legal,
Fall’s acceptance of the money was
not. He attempted to keep the dealsI can take care of my enemies
in a fight, but my friends, my
goddamned friends, they’re
the ones who keep me walking
the floor at nights!
President Warren
G. Hardinghidden and to cover his tracks
administratively, but he was seen
spending money lavishly on his
New Mexico cattle ranch and other
business ventures. Suspicions
arose about his sudden prosperity.The scandal blows open
In 1922, the US Senate launched
an investigation into the leases and
contracts negotiated by Fall, and
his dishonesty was finally exposed.
President Harding was ordered to
cancel the leases, and the oil fields
were shut down. Harding was not
personally implicated in Fall’s illicit
deals, but as the scandal unfolded,
his health began to suffer. In 1923,
he died of a heart attack, before all
the details of Fall’s wrongdoings
were made public.
Fall was found guilty of
accepting bribes in the Elk Hills and
Teapot Dome negotiations. He was
fined $100,000 (£865,000 today) and
sentenced to a year in prison,
becoming the first cabinet member
to be convicted of a felony. His fine
was waived, though, because he
was destitute, and he was released
after nine months on the grounds of
ill health. The heads of Mammoth
Oil and Pan American Petroleum
were acquitted of all charges of
bribery and criminal conspiracy.
Investigations initiated by
Harding’s successor, Calvin
Coolidge, revealed that the Teapot
Dome scandal had been one of
many examples of corruption
during Harding’s tenure. His
reputation was forever tarnished. ■His friends betray his
trust by accepting bribes
and embezzling
government fundsPresident Harding
appoints several friends
to senior positions in his
governmentSecretary of the interior
Albert Fall leases public
oil reserves, including
Teapot Dome, to private
companies in return for
money and giftsA senate investigation
into Albert Fall’s activities
begins but President
Harding dies before it
releases its findingsA Congressional
investigation held
after Harding’s death
finds that his
administration
was riddled with
corruption108-109_Teapot_Dome_Scandal.indd 109 02/12/2016 16:17