American Scandal - Teapot Dome | An Extraordinary Transaction | 3

Episode Date: July 23, 2024

After months of chasing his tail, Teapot Dome investigator Thomas Walsh finally gets a lead when Denver Post reporter D.F. Stackelbeck reveals evidence that Albert Fall accepted bribes. Fall and his benefactors, Edward Doheny and Harry Sinclair, remain defiant, but their continued attempts to mislead the investigation backfire. Need more American Scandal? With Wondery+, enjoy exclusive seasons, binge new seasons first, and listen completely ad-free. Start your free trial in the Wondery App, Apple Podcasts, Spotify or visit wondery.app.link/IM5aogASNNb now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Hi, this is Lindsey Graham, host of American Scandal. Our back catalog has moved behind a paywall. Recent episodes remain free, but older ones will require a Wondery Plus subscription. With Wondery Plus, you get access to the full American Scandal archive, ad-free, plus early access to new seasons and more. Join Wondery Plus in the Wondery app or on Apple Podcasts. podcasts. It's November 1923 in Washington, D.C. Senator Thomas Walsh is sitting in his office on Capitol Hill reviewing case files as he waits for his afternoon meeting to start. Walsh has a reputation as the most skilled constitutional lawyer in the Senate.

He sits on more committees than any of his colleagues. But for the last few months, all of his energy has been consumed by the thankless assignment he's working on now, leading the Senate's investigation into former Secretary of the Interior Albert Fall. Walsh's colleagues in the Senate convinced him to take on the case about a year and a half ago. They believe that Fall had been paid off by two of the country's biggest oil tycoons in exchange for lucrative drilling rights to federally controlled oil reserves. The Senators insisted on a full-scale investigation,

and they left Walsh to do the work. So far, that work has not been going well. The press doesn't seem to care about the case, Walsh's fellow committee members are sleeping through the hearings, and Walsh still hasn't been able to find any proof that Fall took a bribe in exchange for the oil leases. But today, for the first time in a long while, Walsh is feeling hopeful that he's going to find the evidence he needs. Recently, he subpoenaed a reporter for the Denver Post named D.F. Stackelbeck. Stackelbeck might have information about Fall in his relationship with one of the oil tycoons in question, Harry Sinclair.

So Walsh is eager to meet with Stackelbeck today to find out what he knows. today to find out what he knows. Walsh looks up and sees Stackelbeck entering his office in a rumpled brown suit with a file folder tucked under his arm. Mr. Stackelbeck, please, have a seat. It's nice to meet you, Senator. I understand you have some information that might help my case. Stackelbeck smiles. I believe I do. In fact, I've been waiting a whole year to get this story out. It's the greatest scoop of my career. Walsh leans forward expectantly. Well, I'm all ears. I'm sure you already know that my bosses at the Denver Post sent me down to New Mexico to sniff around Falls Business Affairs. But what you might not know is that when I got there, people started telling me that Falls Finances had taken a major turn for the better.

Turn for the better? How so? Well, Fall owns his massive ranch out there, but for years he couldn't afford the upkeep. He hadn't even been paying taxes on it, and the place was falling apart. That is, until the spring of last year, and suddenly, Fall is making big and expensive improvements. He pays 10 years of back taxes in one fell swoop. Then he even buys a second ranch for almost $100,000. Do you have any proof of this? Stackelbeck pulls the folder out from under his arm and begins placing documents one by one on the desk in front of Walsh. I sure do. Here's the paperwork on the ranch purchase. This one is the payment for the back taxes. This is a receipt for a

trainload of high-dollar livestock sent to fall by none other than Harry Sinclair. I'm guessing it was some sort of thank-you gift for the teapot deal. I wrote the whole story up for the Post, but they never ran it. They never ran it? Why? Apparently, the publishers said they thought he was too hot. Could be libelous, but I suspect what really happened is Sinclair paid them not to run it. Oh, interesting. Now, I can't prove that Sinclair was behind my story getting killed, but the rest of it, the evidence is right there in front of you, and it's all true. There's no other way Fall could have come into that money overnight. I talked with a lot of local ranchers. There's a drought going on in New Mexico. Cattle prices are sinking.

Nearly everyone in the business down there is going broke except for one man, Albert Fall. Walsh is thrilled with the news. It's exactly what he'd hoped to hear. Well, this, this is all very helpful, Mr. Stackelbeck. I guess you know my next question. Are you prepared to share this with the Senate committee? Well, I want to. I want to help you, Senator. I really do. And you're welcome to share these documents with your committee. But if I testified, I could lose my job. Well, I understand. I won't put you in that position. But can you think of anyone else out of all the people you've spoken with? There must be some other names you can provide. Stackelbeck takes a moment to think. Well, um, there is someone, yeah, Carl McGee. He owned the Albuquerque Morning Journal until very recently. He was at war

with Fall, and I mean at war, all kinds of harassment. So if you think I know a lot, McGee knows a lot more. He can probably bury Fall. I bet all you'd have to do to get his testimony would be ask him. Walsh stands and shakes Stackelbeck's hand. That sounds like just the man I need. Thank you, Mr. Stackelbeck. Before he leaves, Stackelbeck shares more documents with Walsh, including all his notes from the weeks he spent reporting on Fall. It's a treasure trove of information, including leads to more potential witnesses. Walsh keeps his cool, but inside he's doing cartwheels. The evidence against fall is finally mounting,

and Stackelbeck's reporting and sources are detailed and verifiable. Now Walsh can draw a straight line between Sinclair's wallet and fall's staggering overnight fortune, evidence that the teapot dome deal was built on a foundation of bribery and fraud. Get ready for Las Vegas-style action at BetMGM, the king of online casinos. Enjoy casino games at your fingertips with the same Vegas strip excitement MGM is famous for when you play classics like MGM Grand Millions or popular games like Blackjack, Baccarat, and Roulette. With our ever-growing library of digital slot games,

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In April 1922, news broke that President Warren G. Harding had approved leasing the federally protected Teapot Dome oil field in Wyoming to private oil interests. Outraged Democrats in Washington, D.C. pounced on what they saw as a scandalous overreach by a Republican president and his administration. Within days, Senate Democrats announced an investigation, and they convinced the relentless Montana Senator Thomas Walsh to head it up. Walsh's investigation targeted former Interior Secretary Albert Fall for striking the teapot deal with Oil King Harry Sinclair

and for leasing out two other California fields to another tycoon, Edward Doheny. But almost as quickly as it began, the inquiry fizzled out. The Republican establishment was keen on quashing any negative press on Sinclair, who was one of their biggest benefactors. And Fall smooth-talked his way out of suspicion during his first committee appearance. But with reporter D.F. Stackelbeck's evidence about Fall's finances, Walsh found the thread that would eventually unravel one of the biggest corruption scandals in U.S. history and put the once untouchable Albert Fall, Harry Sinclair, and Edward Doheny back in the hot seat.

This is Episode 3, An Extraordinary Transaction. It's December 1923 at the Waldorf Astoria Hotel in New York City. Edward Doheny watches the ascending numbers as he rides an elevator up to the 13th floor, where he's scheduled to meet with former Interior Secretary Albert Fall for a serious talk about the Senate investigation into him. When the hearings first began two months ago, Doheny wasn't especially concerned. He kept tabs on what was happening and even testified himself, but it was clear to him that the committee was grasping at straws. But now things have changed. Committee leader Thomas

Walsh has started sniffing around Falls' finances, looking for evidence that the then Secretary of Interior was paid to give preferential treatment to his friends in the oil business. And if Walsh continues down this path, it will lead him straight to Doheny. In the autumn of 1921, Doheny gave Fall $100,000 to buy a property next to his ranch in New Mexico. The problem is he did this just after the leases for the Elk Hills and Buena Vista oil fields in California were signed. As far as Doheny is concerned, the timing was a coincidence. That just happened to be when the ranch came up for sale. And Doheny considers Fall a close friend, someone he would have loaned money to regardless of the oil leases.

But no matter what Doheny's intentions were, he knows this exchange will be seen as a bribe, and that could prove disastrous. So Doheny has called Fall to New York and asked to meet at this hotel. Sooner or later, Doheny suspects they'll both be called to account, and when that happens, he needs to make sure Fall points the investigation away from him. Doheny steps out of the elevator and walks down a hallway to Falls' suite. Falls' wife lets him in. Doheny is shocked at Falls' appearance, though.

His eyes are sunken and he's emaciated. He reeks of alcohol and it's only 11 a.m. The men settle into the living room where Falls stifles a cough and pours himself a glass of whiskey. You want a drink? It's a little early for me, Albert. Look, I'm not currently scheduled to testify, but I came here to tell you that if Senator Walsh asks me about that $100,000 loan, I'm going to deny I gave it to you. I don't understand. Why lie about it?

It was just a loan between friends. That's not the way the committee's going to see it, and you know it. Besides, I can't have any of this right now. I'm in the process of opening a new venture to bring all my California holdings under one umbrella, and I need to raise $20 million in funding to get it going. But even a suggestion of scandal could threaten my efforts. Well, then what do you expect me to tell Walsh? That I won the money in a poker game? Well, you have a lot of rich friends, Albert, and maybe one of them loans you the money. Someone with no stake in the oil business and no connection to this whole teapot dome fuss. Like who? Like Ned McLean? McLean? He's in newspapers. And a good friend, right? If memory serves, didn't he also want to invest in your ranch at some point? Well, yeah, two years

ago. He wanted to raise horses. Well, then it all adds up. That's where your loan came from. I mean, it's not going to hurt McClain a bit. Fall sits slumped on the couch, holding his glass of whiskey on his stomach. He lifts the glass and takes a sip. Yeah, I suppose that could work, as long as Ned is willing. Well, I'm sure you can be convincing. How soon can you see him? He's in Atlantic City, last I heard. Uh, I'll tell him I'm coming to visit on my way to D.C. Perfect. Well, I'm sorry I can't stay any longer, Albert,

but I have more meetings while I'm in New York. Let me know how it goes with Ned, though. Can't wait. Doheny grabs his coat and heads for the elevator, as fall down to his drink and then erupts into a coughing fit. He really looks terrible. Doheny thinks the stress of Walsh's investigation must be getting to him. But if Doheny is concerned about his friend's health,

he's more worried that Fall's weakness might make him increasingly vulnerable to Senator Walsh's questioning. Doheny has a lot on the line, and he doesn't want to lose a fortune over a misguided $100,000 loan to a desperate man. Shortly after Albert Fall met with Edward Doheny, he contacts his old friend Ned McLean, the publisher of the Washington Post. The two men agree to meet in Atlantic City, New Jersey. During their meeting, Fall tells McLean about his predicament and asks McLean if he'd be willing to say that he lent Fall the money. McLean agrees to help, and Fall heads to Washington, armed with a new cover story for his financial windfall.

So when Republican committee members Reed Smoot and Irvin Lenroot show up at Fall's Washington apartment a few days later, the former Secretary of the Interior is ready for their questions. Smoot and Lenroot want to keep Fall out of trouble, but their deeper concern is the Republican Party. The 1924 presidential election is just a few months away, and they're worried that if Fall can't explain this $100,000 loan, the Republicans will be caught up in a scandal so big it could cost them the election. So they demand that Fall tell them where the money came from, and at first, Fall refuses to say. He'll only admit that it was a loan from a friend,

and he doesn't want that friend's name dragged into the Teapot Dome investigation. But finally, Smoot and Lenroot wear him down, and Fall confesses that the money came from Ned McClain, the owner of the Washington Post. Smoot and Lenroot are delighted to hear this. They believe this revelation will stop Walsh in his tracks and bring a swift end to the investigation. But Fall says he doesn't want to testify in person. He's too ill. So Smoot and Lenroot propose that in lieu of a live testimony, Fall dictate a statement for Walsh.

And Fall agrees. In it, Fall denies once again that he ever received any money from Doheny or Henry Sinclair for the ranch purchase or for any other use, and he certainly never took funds in exchange for granting them the oil leases. As for the livestock he received from Sinclair, Fall states that he was always going to pay Sinclair back. Everything is above board and just ordinary transactions among friends. Fall then signs the statement, and the next day, when Lenroot reads it to the committee, the letter lands on Walsh like a punch to the gut.

For weeks, he's been trying to establish a financial link between the two oil tycoons and the former Secretary of the Interior. Walsh felt certain that Fall had been paid off by at least one of them, if not both. But now, after hearing this letter, Walsh is forced to confront the possibility that he was chasing a false lead. Hoping to finally put the matter to rest, Walsh calls Ned McLean to Washington to testify. But McLean replies that he, like Fall, is too sick to come. He says he's in Palm Beach, Florida, recovering from a sinus infection. But he'd happily submit to a deposition at the hotel where he's staying, if Walsh would like to make the trip.

For good measure, McLean sends Walsh a telegram that reads, In 1921, I loaned Fall $100,000 on his personal note. I have never met Sinclair or Doheny. There is no stock of their oil companies pledged with the note. Walsh knows that if McLean sticks with this statement under oath, it'll be the last nail in the coffin of his investigation. Many committee members are already inclined to shut the hearings down, and Walsh is toying with the idea himself.

But then Walsh receives a tip from an unexpected source. It turns out that Walsh's girlfriend is a close friend of Ned McClain's wife, and she says the $100,000 loan could not have come from McClain, because at the time the loan was made, McClain didn't have $100,000 to loan. He was effectively broke. Armed with this new information, Walsh leaves for Palm Beach in January 1924, prepared to depose McLean and catch him in the act of lying to protect Albert Fall. Walsh arrives at McLean's oceanfront cottage at the Breakers Hotel,

where he finds McLean staring out a window at the sea. From the moment they sit down, McLean looks uncomfortable. He shifts in his seat and avoids eye contact. For his part, Walsh doesn't mince words. After swearing him in, Walsh asks McLean if he loaned $100,000 to Albert Fall. McLean nods, adding that Fall paid a visit in November of 1921 and asked to borrow the money to purchase a second ranch in New Mexico. The words sound rehearsed and maybe even hollow, probably because they are.

So Walsh digs deeper, asking if the loan was made in cash, check, or some other form. For a moment, McLean's eyes dart around the room. And finally, he blurts out that he wrote Fall two or three personal checks from different banks. Walsh reminds McLean that if the loan was made by check, then the bank would have a record of those checks. But before Walsh goes to the banks, he asks McLean if he has a copy of those records. McLean blanches, drops his head, and says that Fall never cashed the checks. In fact, he returned them a few days later, but McLean isn't sure where they are now. Walsh sits stunned. He knew McLean was lying,

but this is a complete reversal of the statement he made in his telegram. And of course, it means that Fall did not buy the ranch with money borrowed from McLean. He got it from someone else, most likely Edward Doheny or Harry Sinclair. Walsh is eager to report this information back to his committee in Washington, but before he leaves, he has one more stop to make. He's heard that this Palm Beach hotel has another guest, none other than former Interior Secretary Albert Fall. I'm Jake Warren, and in our first season of Finding, I set out on a very personal quest to find the woman who saved my mum's life.

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In January 1924, Senator Thomas Walsh tries to confront the main subject of his investigation, Albert Fall, at the Breakers Hotel in Palm Beach, Florida. But in the end, he comes away disappointed. He has no legal authority to force Fall to see him. And after waiting in the lobby for an hour, all he receives from Fall is a letter saying he's too ill to meet. In the letter, Fall also claims that he ultimately decided not to take a loan for $100,000 from newspaper publisher Ned McLean because he found other sources. Fall declines to reveal these sources, but asserts they were in no way connected to Henry Sinclair,

Teapot Dome, or any other oil deal. Based on what he knows, Walsh thinks Fall is lying. He feels certain that Sinclair was indeed behind Fall's recent financial turnaround, but he still lacks the evidence to prove it. Then another unexpected gift drops in Walsh's lap. On Sunday, January 20, 1924, Assistant Navy Secretary Theodore Roosevelt Jr. contacts Walsh, saying his younger brother Archie would like to testify in front of the committee as soon as possible.

Until very recently, Archie had been vice president of Harry Sinclair's Union Petroleum Company, and according to Teddy Jr., Archie has some important information to share with the committee about his former employer. Walsh acts quickly and arranges to have Archie testify the very next day. And when the hearing is called to session on the morning of Monday, January 21st, Senate Room 210 is packed with the press. The McLean story has reached the newspapers and reignited public interest in the case. Now, every reporter in Washington is eager to hear what today's witness has to say. Archie Roosevelt enters the room and slowly makes his way to the witness table.

He's only 29, but he walks with a cane due to injuries he suffered in World War I. Walsh asks Roosevelt when he started working for Sinclair as vice president of Sinclair's Union Petroleum Company. Roosevelt answers that he's been with the company since August of 1919, though he resigned over the weekend. Walsh asks what caused the sudden departure. Roosevelt says it was his increasing certainty that Harry Sinclair was somehow involved with the Teapot Dome scandal.

He explains that the final straw came about a week ago. Roosevelt had been in his office at Union Petroleum, reading a newspaper article about the Ned McLean deposition, when suddenly Harry Sinclair called him into his office and ordered him to book Sinclair a ticket on the next boat leaving for Europe. The Senate hearing room is instantly abuzz with murmurs from the crowd. Roosevelt continues saying that Sinclair told him to make sure his name would not be included on the passenger list, and Roosevelt was not to mention this trip to anyone,

especially anyone in the office. Walsh then asks if there was any urgent reason Sinclair would need to get overseas. Roosevelt leans forward with some effort, and the room falls silent, waiting for his response. Roosevelt says no, there was no reason for Sinclair to leave so abruptly. The implication is clear, Sinclair was skipping town. Walsh then asks if there was anything else that contributed to Roosevelt quitting his job, and Roosevelt nods. Right after Sinclair left for Europe, his personal secretary asked Roosevelt into his office and closed the door. The secretary said that Roosevelt had a strong family name, a reputation to uphold, and if he wanted to protect that name, he should resign immediately.

Walsh's heart is racing with excitement, but settling himself, he calmly thanks Roosevelt for his testimony and excuses him. Another hushed murmur breaks out over the courtroom. After today's testimony, Walsh is more certain than ever that Harry Sinclair has something to hide. He's likely the source of Fall's sudden riches, and now he's on the run. Fall's sudden riches, and now he's on the run. Archie Roosevelt's testimony sends shockwaves through Washington. It draws national headlines and rampant speculation about oil tycoon Henry Sinclair's sudden, secret trip to Europe. Given his abrupt departure, it's widely assumed that Sinclair must have bribed Interior Secretary Albert Fall. Walsh is among those convinced that a mysterious $100,000 loan to Fall must have come from Sinclair, so he's not prepared for what his investigation's next witness is about to reveal.

On January 24, 1924, Edward Doheny walks through the doors of Senate Room 210, prepared to give voluntary testimony. The hearing room is crowded with spectators. They narrow their eyes at Doheny, as if trying to read the expression on his face, but he remains inscrutable. He's already determined what he wants them to know, and is not planning on giving them anything else. Senator Walsh calls Doheny's name and swears him in. But before Walsh can begin questioning, Doheny pulls out a piece of paper from his pocket and asks if he can read a written statement first. Mr. Fall has been making an effort to keep my name out of the discussion to avoid any misunderstanding. But I wish to state to the committee and to the

public the full facts of the situation to set the record straight. On the 30th of November 1921, I loaned to Albert B. Fall $100,000 to enable him to purchase a ranch in New Mexico. Doheny looks up from his statement, long enough to see the look of astonishment on Walsh's face, and he continues reading. The sum was loaned to Mr. Fall by me personally. It was my own money and did not belong in whole or in part to any oil company with which I am connected. The reason for my making the loan was that Mr. Fall and I had been friends for more than 30 years, and he was down on his luck after some failed investments. It had no relation to any of the subsequent transactions or contracts whatsoever. Doheny sets down the pages of his statement,

and Walsh quickly leans forward to respond. Well, Mr. Doheny, I want to thank you for your statement. Already your testimony has brought a great deal of clarity to one of the chief questions of this inquiry, but I feel I must ask, why didn't you mention this loan the last time you appeared before the committee? Such a statement was not pertinent to any of the questions asked to me by the members of the committee at that time. Well, I believe our chairman did ask if Mr. Fall profited by the oil contracts directly or indirectly, and you answered in the negative. And I reiterate that answer now. The personal loan I made to Mr. Fall was in no way connected with the contracts made with the Pan American Petroleum and Transport

Company. Well, Mr. Doheny, you are a man of very large affairs and of great business transactions. So perhaps to you this transaction was not unusual, but surely you must see that it was an extraordinary way of remitting money, was it not? Certainly a loan of $25 or $50 from one individual to another would not be considered at all extraordinary. For a man of my means, a loan of $100,000 is no more extraordinary. For me, it was a trifle, an easy gesture to help an old friend. I can appreciate that on your side, but looking at it from Mr. Fall's side, it was quite a loan.

It was indeed. There's no question about that. And I'm perfectly willing to admit that it probably would have caused him to favor me. But under the circumstances, he did not have a chance to favor me. And what do you mean by that? I mean that Fall was not influenced in any way by this loan, because the negotiations were carried on by men who were not under his control. The Elk Hills and Buena Vista leases were negotiated between Navy officials and my subordinates. Mr. Fall and I were barely even involved. and my subordinates. Mr. Fall and I were barely even involved. After more questioning, Walsh finally dismisses Doheny, and the oil man gets up from the witness table confident in his performance. He's been up front about his dealings with Fall, and he's

offered to return the contracts on his California oil fields, if only to clear Fall from the shadow of this controversy. In his heart, though, Doheny believes he shouldn't have to answer for any of this. He's done nothing wrong. It's all just business. Edward Doheny gives an assured performance, but the response from the committee is less than enthusiastic. The idea that Albert Fall was not part of the lease negotiations directly contradicts what most Washington insiders know to be true, that Fall had taken control of the naval oil reserves and placed them under the jurisdiction of the Department of the Interior. The response from the media is equally dubious.

After the hearing, the United Press runs a national story calling the teapot situation a throbbing drama of politics, high finance, and intrigue. The whole thing looks bad for the Republican Party, and President Calvin Coolidge is beginning to feel the heat. Since taking office after Warren Harding's death, Coolidge has been trying to avoid the teapot issue altogether. But with an election coming up, and so many Democrats pointing to the oil leases as evidence of Republican corruption, the president's advisors are begging him to take a stand. Coolidge is a cautious and quiet man. He's reluctant to intervene unless it's absolutely necessary. But on Saturday, January 26, 1924, Coolidge gets a call to action he can't ignore.

That morning, he's attending a strategy meeting aboard the presidential yacht when an urgent radio call comes in from Senator Irvin Lenroot. Lenroot says he just came from a closed-door meeting where Thomas Walsh told the committee he was planning to make a series of demands of the president. Walsh wants to introduce a resolution asking Coolidge to cancel the oil leases and appoint a special council of prosecutors, likely to go after Fall, Sinclair, and Doheny. He's also going to demand that Coolidge fire the Secretary of Navy, Edwin Denby. He's going to do it all on Monday. Lenroot urges the

president to do something, because if he doesn't act now, it's going to seem like the Democrats are the party of truth and transparency, and Republicans are the party of backroom deals. Coolidge ends the call and considers what to do. He never wanted to be involved in this thing, but now it seems he has no choice. Lenroot is right. He has to act for the good of the party. So Coolidge turns to face his advisors and tell them they need to get back to the White House immediately to make a statement. And over the next several hours, he and his advisors begin outlining the major points of a press release. And when newspapers hit the stands the following day, they quote the president,

promising that crimes will be prosecuted, illegal contracts will be canceled, a special counsel team will be appointed from both parties, and Americans will finally learn the truth about T-Pod Dome. On January 5th, 2024, an Alaska Airlines door plug tore away mid-flight, leaving a gaping hole in the side of a plane that carried 171 passengers. This heart-stopping incident was just the latest in a string of crises surrounding the aviation manufacturing giant, Boeing. In the past decade, Boeing has been involved in a series of damning scandals and deadly crashes that have chipped away at its once sterling reputation.

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lands in the newspapers on Sunday, January 27th, 1924, it positions the president squarely on the side of truth and transparency. But the following morning, when the hearings reconvene in Senate Room 210, Senator Thomas Walsh catches Coolidge in a lie. For months, Coolidge has been telling reporters that he knew nothing about the Teapot Dome deal. But Walsh has done his homework, and he's unearthed evidence proving otherwise. Walsh opens the day's hearings by introducing letters and documents written by both late President Warren Harding and Albert Fall that clearly indicate the oil leases were approved

by every member of the cabinet, including then-Vice President Calvin Coolidge. It's a stunning embarrassment that calls the president's integrity into question. And Walsh doesn't stop there. Over the course of six hours, Walsh details how the reserves were transferred from the Navy Department to the Interior, how they were leased without any measure of competitive bidding, and how fall was given financial rewards for brokering the deals. And in a resolution backed by senators on both sides of the aisle, Walsh also calls for the resignation of Naval Secretary Edwin Demby, who in what Walsh calls ineptness and stupidity, signed over control of the federal oil reserves and thereby made the whole scandal possible. Walsh's tour de force address in the Senate reverberates through Washington. His tireless, diligent work is recognized by his colleagues and praised by the press. And Walsh is still not done. He orders a subpoena for Albert Fall to appear before the committee. But once again, Fall claims he's too sick to testify. His lawyer says

he's on the verge of a nervous breakdown and cannot possibly sit for questioning. But the committee has had enough of Fall's delays. They send a team of doctors to examine Fall, and the doctors determine that Fall is indeed anxious, but otherwise healthy enough for questioning. With this new, mostly clean bill of health, Fall is scheduled to testify on February 2nd, and Walsh spends the intervening days preparing to question him.

Walsh knows that Fall is a skilled politician, with a sharp legal mind and an even sharper tongue, and that when Fall takes the stand, he'll most likely be prepared for everything Walsh has to throw at him. But when Fall enters the hearing room, Walsh is shocked. Fall's hair is a mess. He looks like he's been sleeping in his suit. And as he makes his way to the witness table, he leans heavily on a cane,

looking much older and frailer than his 62 years. In all honesty, it's a sad sight for Walsh, who first came to know Fall as one of his fellow senators, a larger-than-life character from New Mexico. In his Stetson hat and gun holster, Fall had always seemed like the living embodiment of the frontier spirit. But as Fall settles into his seat today, Walsh is forced to confront how the hearings have taken a toll. So before Walsh launches into his questions, he decides to ask Fall if there's anything he'd

like to say. Fall carefully pulls out a typewritten page from his coat, and with his very first sentence, Fall declines to answer any of the committee's questions. Fall explains there are two reasons for this. The first is that the investigative committee was authorized by the last Congress, but not the current one, so its lifespan has expired. Therefore, the committee has no legal right to exist. Walsh stifles a smile.

Despite his appearance, Fall's fighting spirit is clearly still kicking. Walsh makes a mental note to have the Senate reauthorize the committee as soon as possible as Fall continues reading his statement. He says the second reason he won't be answering questions is that Senator Walsh has resolved to send the oil reserves case to criminal court. And if Fall is to be named as a defendant, as seems likely, then it's in his best interest to avoid saying anything that

might incriminate him. Coming to an end of his statement, Fall announces he's invoking his Fifth Amendment rights to stay silent, and he puts the paper back in his pocket and looks to Walsh for a response. Walsh gazes around the room, and reading faces, it seems to him that his fellow senators are divided between sympathy for this clearly ailing man and outrage at what could be seen as a confession of guilt. At this point, there's nothing Walsh can do, though, so he says he has no further questions and dismisses Fall for the day. As Fall rises and makes his way out of the hearing room, tapping the marble floor unevenly with his cane, the rest of the room sits in silence, baffled by what they've just seen. It's a pathetic end to the session, but Walsh isn't discouraged. He's still determined not to

let fall off the hook, no matter how frail or wily he is. A week later, on February 8th, 1924, Congress adopts a resolution stating that the Teapot Dome and Elk Hill leases were signed under circumstances indicating fraud and corruption and without authority. The resolution also directs President Coolidge to appoint a special counsel to handle the civil suits required to cancel the oil leases, as well as any criminal prosecutions that may arise from the scandal. Coolidge responds, naming a former Democratic senator from Ohio, Attlee Pomerene, and a Republican attorney from Philadelphia, Owen Roberts, as the special counsel in charge of the Teapot cases. Initially, Walsh is unhappy with Coolidge's choices. He feels that

Pomerene and Roberts lack the experience necessary to handle such a complex investigation, and that they're likely to get railroaded by whatever high-powered attorneys Edward Doheny and Harry Sinclair hire to represent them. But for the time being, Walsh has more personal issues to deal with. A group of Warren Harding's old cronies has launched a campaign to smear and derail Walsh's investigation. Led by Attorney General Harry Doherty, the so-called Ohio Gang are well known for dirty tactics. Walsh believes they've been tapping his phones and opening his mail. And in one especially overt expression of intimidation, Walsh's daughter is approached by a man who threatens to hurt her if her father doesn't drop the investigation. For Walsh,

it seems odd that these attacks would start ramping up just as his investigation is winding down. But there's still one major witness Walsh has been waiting to question, and the GOP seems desperate to keep him off the stand. For the last five weeks, Henry Sinclair has been hiding out in Europe in an apparent bid to avoid facing Walsh and the Senate committee. But when Sinclair hears that Coolidge has handed the Teapot case over to two no-name attorneys, Sinclair decides it's probably safe to return to the States. He boards the ocean liner SS President Harding, and on February 20, 1924, the ship pulls into the harbor at Hoboken, New Jersey.

The ship pulls into the harbor at Hoboken, New Jersey. As soon as the massive liner docks, a dozen reporters rush aboard the ship. Sinclair appears on the main deck, dressed in the nines, flashing his wide trademark grin. He's expecting the press and determined to show that he's not hiding anything. Well, hello, boys. I sure missed you. Mr. Sinclair, what do you think about the progress in the teapot hearings? Well, to be honest, I don't think about them that much. I've been occupied with oil business in Europe.

It's hard to keep up with the latest news over there. Are you aware that Archie Roosevelt testified that you'd left the country in secret? I'd prefer not to comment on that, but Archie's a good man. Let me assure you, I'm ready to report to Washington if they want to speak to me. I understand you're so ready, you've already engaged a law firm to represent you. Well, I'd have to check with my office about that, but let's just say that luck favors the well-prepared, right? And say, why don't you all follow me down to the tearoom for a drink? I'm sure we'll find a teapot there. Sinclair's joke gets a few laughs from the reporters, but one seems determined not to let him off the hook. Mr. Sinclair, are you prepared to return your lease on Teapot Dome?

Ed Doheny has volunteered to do that with his two leases. At this question, Sinclair's sunny facade fades for just a brief moment. He quickly recovers with a smile. You know, I can't comment on that, but I can tell you that this whole thing is a game of politics. I'm a businessman. I let Washington do what Washington does. Can we get a photo, Mr. Sinclair? Of course, and I'll even give you my committee face. As the flashbulbs pop, Sinclair thumbs his nose and flashes another broad grin.

He knows how to play the game for the press, but he also knows that next time he meets with Walsh, or President Coolidge's special counsel, they won't be playing. The government's charges are serious, and Sinclair wants to avoid a prison cell at all costs. From Wondery, this is Episode 3 of Teapot Dome for American Scandal. In our next episode, the Teapot Dome investigation lands in court, and no one's getting away scot-free. If you're enjoying American Scandal, you can unlock exclusive seasons on Wondery+. Binge new seasons first and listen completely ad-free when you join Wondery Plus in the Wondery app, Apple Podcasts, or Spotify. And before you go, tell us about yourself by filling out a survey

at wondery.com slash survey. If you'd like to learn more about Teapot Dome, we recommend the book The Teapot Dome Scandal by Leighton McCartney, Tempest Over Teapot Dome by David H. Stratton, The Teapot Dome Scandal by Jake Kobrick, and Dark Side of Fortune by Margaret Leslie Davis. Thank you. is hosted, edited, and executive produced by me, Lindsey Graham for Airship. Audio editing by Christian Paraga. Sound design by Gabriel Gould. This episode is written by Peter Gilstraff. Edited by Emma Cortland. Fact-checking by Alyssa Jung-Perry. Produced by John Reed.

Managing producer, Olivia Fonte. Senior producer, Andy Herman. Development by Stephanie Jens. Executive producers are Jenny Lauer Beckman, Marshall Louis, and Aaron O'Flaherty for Wondery.