Chapters
Shownotes Transcript
Wondery Plus subscribers can binge new seasons of American Scandal early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. It's 2 a.m. on June 12, 1920, the final day of the Republican National Convention in Chicago, Illinois. Harry Doherty is roaming the halls of the Congress Hotel, searching for Senator Warren G. Harding.
Just a few minutes ago, the GOP's top power brokers decided that Harding would be the party's next presidential nominee. And as his campaign manager, Doherty has been assigned to find Harding and bring him to a secret late-night meeting of Republican Party leaders and top donors so they can give him the news. It's been a long day following a long week, and Doherty is exhausted. But as he weaves his way around the hotel's smoky parlors and endless corridors, Doherty can't help but grin.
Five days ago, when the convention first began, Harding was a dark horse contender with 40 to 1 odds stacked against him. But Doherty was certain that Harding would emerge from the convention as the Republican nominee, and he told the press as much. What Doherty didn't tell them was that he'd brokered a secret deal to make sure of it.
Months before the convention began, Dougherty met with an Oklahoma oil tycoon named Jake Heyman, who was offering $1 million to buy the delegates Harding needed to secure the nomination. But he had one condition. If elected, Heyman wanted a position in Harding's cabinet, specifically the Secretary of Interior.
Among other things, the Secretary of Interior is the gatekeeper for all the country's federal lands and resources, including its oil fields. And once in office, Heyman plans to open the federally protected oil fields to private drilling, leasing them out to his friends in the oil business in exchange for hefty kickbacks. Doherty assured Heyman that Harding was a get-along guy who would be happy to help the people who helped him. And Harding reiterated that sentiment during a subsequent meeting with Heyman.
But that was back when Harding believed the odds were against him. Now the party's leadership is calling Harding to offer him the nomination. So before that happens, Doherty needs to confirm Harding will uphold his end of the deal with Heyman. Doherty turns a corner and finally sees his man staggering down a hallway. Harding looks a bit disheveled, and as Doherty gets closer, he can smell booze.
"'Warren, I've been looking all over for you.' "'Harry, good to see you. I need you to come with me. We've got some important business to discuss.' "'Business? At this hour? Oh, can't it wait? I'm trying to find Nan's room. Just can't seem to recall the number.' Doherty shakes his head. "'Nan Britton is Harding's mistress. He's got her stashed away somewhere along with their illegitimate daughter. But Nan will need to wait.'
"'Well, sir, we need to talk now about your candidacy.' "'Oh, my candidacy, come on. Harry, you know the odds. Nobody wants me to be president. Even I'm not sure I want to be president.' "'Well, you better make up your mind quickly, because the guys upstairs are about to offer you the nomination.' "'Oh, stop joking. How could we possibly run a real campaign? There's only $100,000 in our account.' "'That's about to change. You remember Harry Sinclair? Sinclair Oil? Of course. Sinclair's a good man. Salt of the earth, you know.'
One lousy poker player, though. I took him to the cleaners the other night. Well, someone told him that you're planning to put Jake Heyman in the Interior seat. And if that's true, Sinclair says he'd be willing to provide the backing for your candidacy. Huh. Well, how much are we talking about? Three million dollars. Three million? That's music to my ears. So you are planning to pick Heyman for Interior?
Oh, Harry, you know I don't care who goes where. Well then, Mr. Future President, I think it's time we make this official. Doherty throws open the door to a double suite and leads Harding inside. There, in a haze of cigar smoke, a group of Republican power brokers turns to the door. Doherty watches as Harding makes the rounds, grinning and glad-handing. He knows Harding's a womanizer and a gambler who lacks any real aptitude for politics. But even drunk, Harding looks presidential.
He's tall and handsome with strong features that practically scream trustworthiness. And in a matter of minutes, he has everyone in the room laughing at his jokes. Then someone asks Harding the big question. Is there any reason you can't be the next president of the United States? Harding looks back at Doherty and then turns to the room. With a giant grin on his face, he says, absolutely not. If he gets the nomination, he'll gladly accept it.
Doherty claps him on the back. That's exactly what they all want to hear. T-Mobile has home internet on America's largest 5G network. It's how I stream the game. It's how I knock out the shopping list. It's how I level up. Get T-Mobile 5G home internet for only 50 bucks per month with auto pay and any voice line. Plus, there are no exploding bills or annual contracts. T-Mobile, it's how you internet. Check availability today.
Price after $10 monthly bill credit while you maintain a nationally available postpaid voice line. Qualifying credit required. Regulatory fees included for qualified accounts. Plus $5 per month without auto pay. Debit or bank account required.
American Scandal is sponsored by Dell Technologies. This year, Dell Technologies' Back to School event is delivering impressive tech with an inspiring purpose. Learn how Dell is helping ComputerAid, whose work is helping equip solar community hubs with tech and AI literacy skills to empower remote, displaced, or disconnected communities around the world.
Help Dell make a difference and shop AI-ready PCs powered by Snapdragon X-Series processors at Dell.com slash deals. That's Dell.com slash deals. At the beginning of the 1920s, Americans were feeling optimistic. World War I was over. The economy was booming, and millions were buying an expensive but must-have new item, the automobile.
As a result of the high demand for cars, oil and gasoline were at a premium, and oil companies were raking in record profits. In theory, their products should have been cheap and easily obtained. Domestic oil deposits were plentiful. But there was a problem. The emerging American conservation movement.
Twenty years prior, in 1901, President Theodore Roosevelt began a program to save the nation's natural resources. Before that, most federal land was in the public domain, meaning it could be sold to private parties. Roosevelt changed that, claiming 230 million acres as forest reserves. It was a controversial move and sparked the ire of Western lumber kings and oil barons who felt the country's natural resources should be theirs for the taking.
In particular, the oil men had their eyes on three massive tracts of land, two in California and one in Wyoming called Teapot Dome, named for a kettle-shaped rock formation nearby. But these reserves were not only off-limits. They were under the jurisdiction of the U.S. Navy, set aside for the next war effort.
But oil barons Edward Doheny, Harry Sinclair, and Jake Heyman had millions and were determined to spend it on the White House. All they needed was the right man in charge, and then they believed the naval oil reserves could be theirs. And in the presidential election year of 1920, they found their man, Ohio Senator Warren G. Harding, a politician far more concerned with enjoying himself than upholding the public trust.
The resulting Teapot Dome scandal darkened Harding's presidency and unleashed a six-year stretch of civil and criminal trials that reached the Supreme Court, leading to prison sentences for some of the wealthiest and most powerful men in the nation. But thanks to the untimely death of one of the scheme's ringleaders, it almost never happened. This is Episode 1, A Mammoth Deal. It's February 2nd, 1921, on the Indian River in Florida.
Newly elected President Warren Harding is luxuriating in the warm afternoon sun on the deck of the Victoria, a 90-foot houseboat owned by one of his friends from the Senate. Harding takes a sip of scotch and gazes out at the mangrove trees along the shore. Two months ago, Harding and his running mate Calvin Coolidge won the election by an unprecedented landslide. But his inauguration is still a month away, so he has plenty of time to relax. But this trip isn't all fun and games.
Harding also needs to use this time to make decisions about his cabinet appointments. And right now, there's a giant question mark hovering over the Secretary of the Interior post. This was not a decision Harding thought he'd have to make. The Interior appointment was supposed to go to Oklahoma Oil King Jake Heyman. In fact, Harding's nomination had been contingent on his willingness to give Heyman the job.
But just a few weeks after the election, Heyman was murdered, shot and killed by his mistress. So now Harding has to find a replacement. And he can't just pick anyone. Another oil man, Harry Sinclair, gave $3 million to bankroll Harding's campaign. And Sinclair expects a Secretary of the Interior who's as favorable to his personal oil interests as Heyman would have been.
Harding does think he knows the man for the job, New Mexico Senator Albert Fall. Harding even invited Fall on this trip to offer him the post, but Fall doesn't seem to want the job. His reluctance is driving Harding crazy. Fall is the perfect man to head up the interior. As a frontiersman and a lawyer, he knows the business of land rights seemingly better than anyone. He also worked as a prospector and rancher and is a staunch believer that the country's natural resources should be available for commercial exploitation.
But Fall can't seem to let go of a promise Harding made before he was elected, that Fall would be his pick for Secretary of State and not head the Interior Department. Harding has tried and failed to convince Fall that Interior is the next best thing.
But there's still one card Harding has yet to play. So he's called Fall to the top deck to continue to discuss the matter. Soon he sees Fall coming around a corner. The New Mexico Senator looks out of place on this fancy houseboat with his black Stetson hat and droopy walrus mustache. At least he's not wearing a pistol today, as he often does. Harding flags him over, offers him a chair and a cigar, and then looks him dead in the eye.
He says they need to settle the matter of the interior position. He knows Fall doesn't want it, but Harding needs someone who knows the business of land management. Someone who won't be bullied by conservationists. And most importantly, someone he can trust. Fall lights his cigar, taking his time to respond. He exhales a plume of smoke and tells Harding that wasn't their plan.
This is the same song Harding's been hearing from Fall for the last three days. And he's had enough of it. So Harding leans forward and quietly says that he knows Fall's been having financial difficulties. In fact, it's come to Harding's attention that Fall hasn't paid taxes on his ranch in years or kept up with all the maintenance it needs. Fall's head droops like a deflated balloon. Harding puts a hand on his shoulder.
He says the Secretary of Interior job doesn't pay much in the way of salary, but there are other compensations that might offer themselves in that position if Fall goes looking for them. Fall looks up, seeming to suddenly understand. But for a moment, he just puffs thoughtfully on his cigar. Finally, he says he'll take the position on one condition. He only has to stay for a year. That's good enough for Harding. A lot can be accomplished in 365 days.
On March 4th, 1921, the Harding administration takes over the White House, and Albert Fall moves into a wood-paneled office in the Department of the Interior. Despite his initial reluctance, Fall takes to the position with zeal. For decades, Secretary of the Interior had been one of the country's key conservation posts. But Fall believes in exploiting natural resources, not protecting them. And his plans for exploitation extend far beyond just what's controlled by his department.
So not long after taking office, Fall brings in his top staffer for a meeting to strategize. The first and most pressing item on the agenda is the Navy's oil reserves. He wants them under the Interior Department's purview, starting with two oil fields in California known as Elk Hills and Buena Vista and the Teapot Dome Land in Wyoming. Then he wants to lease the reserves to the highest bidder so the government can profit from them. They're not doing anyone any good just sitting there untapped.
But the question remains how to take control of them. The staffer notes that it will be difficult, reminding Fall that the conservationist wing of Congress is already livid that Fall's been installed as head of the Interior. They know his reputation, and they're afraid he's going to undo all the protections they've spent the last 20 years establishing. If they get word of what he's up to, they'll do everything in their power to stop him.
Fall agrees it's an issue, so one of his first acts as Chief of the Interior will be to rid his department of any conservationist sympathizers. He wants to operate in strict secrecy and not reveal his designs on the Navy's oil reserves until it's a done deal. The staffer agrees but wonders if Fall might encounter opposition not only from conservationists in Congress, but also from his boss. Harding's campaign platform stated explicitly that conservation is a Republican policy.
Fall knows the staffer isn't aware that Harding is already on board with the land transfer, and he tells him that Harding will support whatever Fall recommends. He also explains that the way he sees it. His entire plan is in perfect alignment with another of Harding's campaign promises, one more central to Republican Party goals. Harding said he wanted to downsize the federal government, shrink the bureaucracy, and in a way, that's exactly what Fall is planning to do.
The staffer nods but says, just for the sake of argument, they should consider one other potential obstacle. Even if Fall is able to take the oil fields away from the Navy, the oil they contain is currently sanctioned for future war efforts. It just can't be handed over to private enterprise.
But Fall reasons that technically, the government would still be able to get a hold of the oil if a war actually necessitates it. The reserves would be under the government's control. That wouldn't change. So seemingly satisfied, the staffer says then, the only thing left to do is discuss it with the Secretary of the Navy, Edwin Denby. Denby dislikes the conservationists as much as Fall does, but the Navy reserves are his territory, and he might have a hard time letting them go.
But Fall says he knows Denby well, and he's confident he can bring him around to their cause. In late spring 1921, Edwin Denby gets word that Interior Secretary Albert Fall would like to meet with him at the White House.
Denby can already guess what the meeting is about. He's heard rumblings about Falls' plans for the Navy's oil reserves. And as far as he's concerned, the idea of leasing federal reserves to private interests is questionable at best and politically explosive at worst. But Denby knows that Falls' plan has President Harding's full support, and to oppose it might be political suicide.
So as he arrives at the White House on April 1st, 1921, Denby's looking for any excuse he can find to agree to the plan, something that might give him cover if this whole thing blows up in their faces later. He finds Fall in his office, sitting at his desk, sorting through paperwork. As Denby takes a chair, Fall gathers up a few remaining pages and shoves them into a drawer.
Well, thank you for coming, Edwin. Let's cut to the chase, shall we? Your department controls the oil reserves at Teapot Dome, Elk Hills, and Buena Vista. And I'd like that control transferred to the Department of the Interior. And Harding agrees. The move makes sense, efficiency-wise. Yes, it does go along with the reorganization, and I'm well aware that you have Harding on your side. But I'm concerned about the public perception of the transfer. The public perception. What do you mean?
Well, this oil is earmarked for the Navy, and if we hand it over to the Interior and you lease it out for private development, well, I mean, I would hate for any Democrats to accuse this administration of putting our national security at risk. For a moment, a look of anger flashes across Paul's face, but he quickly replaces it with a smile. Well, you know, you and I are in complete agreement on this, Edwin. National security is actually one of my top priorities in even requesting the transfer.
Well, that's good to hear, but how do you figure? Well, you're no doubt aware of the drainage issue we face. Right, yeah, neighboring oil rigs have been tapping into the same reserves as our wells.
The Navy studied this extensively. It's a minor annoyance. Well, our geologists have looked into it as well and concluded it's a far bigger problem than we thought. We need to extract as much oil as possible as quickly as possible before these freeloading neighbors beat us to it. Private investment would enable us to do that, and we'd require any lessees to set aside a generous portion of this oil for our Navy to power our fleets for the foreseeable future. Everybody wins.
Demby considers this. He's skeptical that this drainage issue is really as urgent as Fall is making it out to be, but it could be the political cover he needs to agree to the transfer. Well, Albert, if these neighboring wells really are such a threat, I admit that your plan makes perfect sense. Of course it does. After all, I have the Bureau of Mines and Geological Survey under my purview, and they'll be able to get the whole thing sorted out in no time. Certainly better than the Navy could, anyway.
Denby nods, relaxing. It's a good point. The interior agencies are much better suited to monitoring the issue. Well, then it's settled. I'll draw up the paperwork and send it over for your signature. Denby rises and shakes hands with Fall before leaving the room. As he closes the door behind him, though, he lets out an anxious sigh. Denby knows his colleagues in the Navy will still have questions. But soon enough, it will be Albert Fall's problem.
And Denby vows to himself that he'll have a subordinate handle any future dealings with this issue. He wants nothing to do with whatever dubious deals Fall is planning to make next. American Scandal is sponsored by Audible. Ever notice how a whisper can be more captivating than a shout? It's because your mind races in to fill in the blanks. Listening doesn't just inform, it invites in your imagination. And that's why Audible is such a great place to let your imagination soar.
When you listen, you can be inspired to imagine new worlds, new possibilities, new ways of thinking. There's more to imagine when you listen. One book that opened up whole new worlds of imagination for me was Arthur C. Clarke's science fiction classic, Rendezvous with Rama. New members can try Audible free for 30 days. Visit audible.com slash AS or text AS to 500-500. That's audible.com slash AS or text AS to 500-500.
Hey Prime Members! Have you heard? You can listen to your favorite podcasts ad-free? Good news! With Amazon Music, you have access to the largest catalog of ad-free top podcasts included with your Prime Membership. To start listening, download the Amazon Music app for free or go to amazon.com slash adfreepodcast. That's amazon.com slash adfreepodcast to catch up on the latest episodes without the ads.
In April 1921, Albert Fall is on the cusp of achieving his first major goal as Secretary of Interior. President Warren G. Harding and Naval Secretary Edwin Denby have both given their verbal approval to transfer the Navy's oil reserves to the Department of the Interior, and Fall has drafted an executive order to make it official. Once Harding signs it, the power to approve drilling leases will rest solely with Fall. But as Denby predicted, that does not sit well with other Navy administrators.
It's taken years for the Navy to establish its own oil reserves, and once transferred out of their control, they suspect those reserves will be gone for good. So before signing off on the transfer, two senior naval administrators rewrite portions of the transfer order. Among other changes, they add a clause specifying that the oil reserves cannot be leased without the Navy's approval.
Denby signs this revised order, then directs his assistant secretary, Theodore Roosevelt Jr., to deliver it to President Harding. But first, Roosevelt has to bring it to fall for him to sign. And it's not a meeting Roosevelt is looking forward to.
The 34-year-old has no strong personal feelings about the fate of the naval oil reserves. Despite being the son of America's first environmental president, he's no enemy of oil interests. Before getting tapped to join the Harding administration, he worked for Sinclair Oil.
But he knows Fall, who's taken him on as something of a protégé. Fall has even invited Roosevelt to poker games and shared stories about his days as a rough rider with Roosevelt's father. And Roosevelt Jr. knows that Fall won't approve of the Navy's last-minute changes to the order. When Roosevelt pokes his head through Fall's door, Fall greets him warmly. "Tad, good to see you. And I see you come bearing gifts. Well, at least one, Albert." Roosevelt smiles nervously, waving the executive order in the air before handing it over.
Fall quickly scans the document with his attorney's eye and stabs his finger down on a paragraph. And what the hell is this? What are you referring to? This. This language here. The Interior cannot issue a drilling lease without approval from the Secretary or Acting Secretary of the Navy. Who added this? Ah, right. Well, you must know that some of the top Navy officials aren't happy about the idea of relinquishing control of the oil fields.
That's just revision reflecting the way they'd prefer the relationship to operate. And what precisely is the problem? They just want some say in how the reserves might be leased to private interests. They don't want such leases to be granted too hastily or in a way that might jeopardize national security. I see. And how do you feel about it? Well, initially, I didn't think much of it at all. But after hearing their concerns, I must admit I am more sympathetic. Their feeling is that the claims of drainage are perhaps somewhat exaggerated.
and that you're using them as an excuse to take the land. Fall stews for a minute. Then he grabs a pen and starts striking and adding sentences. Well, I'll make some changes of my own. The Interior will not have to get approval from the Secretary of the Navy. Just consult with the Secretary of the Navy. There's no sense in tying up this transfer with a lot of red tape. When Fall is finished marking up the document, he hands it back to Roosevelt. Now deliver this to the President.
Roosevelt is in no position to fight back, so he nods and heads out the door. He knows Harding will sign the order, probably without even reading it. And after that, Fall will have free reign to sell off the oil leases to the highest bidder. For Albert Fall, seizing control of the naval oil reserves was a means to an end. And more than anything, that end was the resolution of his own financial troubles.
Years of living on a public servant's salary had left Fall with debts he couldn't pay. He hadn't paid taxes in years, and he was unable to afford the upkeep of his New Mexico ranch. So in his one year as Secretary of the Interior, Fall plans to use his power to curry favor with prospective employers in the private sector. And Edward Doheny is the most desirable option.
Fall first met Doheny in the 1880s, when they were both prospectors in the New Mexico Territory. Since then, Doheny has helped usher in an oil boom in Los Angeles, and now, as owner of Pan American Petroleum, Doheny is a very rich man.
And he's recently set his eye on a new prize, the Naval Oil Reserve at Elk Hills, about 20 miles west of Bakersfield, California. It's estimated to contain up to 250 million barrels worth around $100 million. To better his odds, Doheny has been aggressively pursuing the new president and his interior secretary. He's offered Harding the use of his yacht and written gushing letters to Fall.
Fall has returned the favor with praise of his own. And after he leaves the Interior Department, he's hoping for a cushy job with Doheny, one that will help him square up his finances and spruce up his ranch. And so in July of 1921, Fall awards Doheny a lease for 22 wells on the Elk Hills Reserve. Over the next several months, he continues to cozy up to Doheny. He gets tickets to attend the annual Army-Navy football game and arranges a meeting with Doheny and the President at the White House.
But Doheny isn't entirely satisfied with the Elk Hills deal. The royalty rates are too high, and the 22 wells on the eastern edge of the property aren't enough. So in the autumn of 1921, Doheny decides the time has come to discuss the matter in person. He invites Fall to a dinner at a private restaurant, where he wines and dines his old friend before getting down to business.
Doheny takes a sip of Bordeaux and then announces that he wants full and complete drilling access throughout Elk Hills. Doheny knows this is a big ask, but he also knows fall can be very accommodating if he gets something in return.
Fall nods and wipes his chin with a napkin. He says he can indeed make that happen, but there is something he wants in return. He explains that the military wants to create an oil storage facility on the U.S. naval base at Pearl Harbor in Hawaii to accommodate the Pacific fleet. Fall says that if Doheny can take on the construction of that project, it would make the president very happy. And for his troubles, Fall says he'll throw in preferential leases on the nearby Buena Vista Naval Oil Reserve as well.
Doheny does some quick calculating. The project will no doubt cost millions, but the yield from the California reserves will dwarf that. It's a foolproof investment. So Doheny smiles and extends his hand. But before shaking on it, Fall says he has one more request. This is something of a more personal nature.
Fall explains that he's only planning on staying in Washington through March. After that, he wants to relocate back to his Three Rivers Ranch in New Mexico, and he needs money to buy an adjacent ranch with crucial water rights. Doheny squints, and then asks how much he needs. Fall says $100,000.
Doheny can't help but smile. $100,000 is nothing to him, but he was actually hoping Fall would ask for a job, because having ex-cabinet members on the payroll is great for business. He's hired several former officials from Woodrow Wilson's administration, so he decides to work it into the deal. Doheny says he'll be happy to give Fall the money whenever he needs it, but he has a request of his own.
Leaning in, Doheny asks Fall if he would come work at Pan American Petroleum. A man with Fall's experience could come in handy, and then Fall could repay the $100,000 incrementally from his salary, which would be somewhere in the neighborhood of $50,000 a year. Hearing these numbers, Fall looks like he's just won the lottery. He lifts his glass, and Doheny lifts his, and then the two men toast.
Doheny calls for the check. He'll be buying tonight's dinner, but that's not all. He just bought himself the influence of a cabinet member. Two days after their dinner, Albert Fall calls Edward Doheny to arrange for the transfer of the $100,000 loan. Doheny promptly sends his 27-year-old son, Ned, to deliver the cash.
Ned does as instructed. He arrives at Fall's apartment at the Wardman Park Hotel in downtown Washington, D.C., where Fall eagerly lines up the five banded bundles of $20,000 each. It's a huge sum, around $2 million in today's money. Fall scrawls out an IOU and hands it to Ned to return to Doheny. Then Fall heads for his ranch in New Mexico. For the next month, he enjoys some time away from Washington.
But then, on December 22, 1921, Fall receives a telegraph stating that the oil baron Harry Sinclair wants to pay Fall a visit to discuss an important matter. Fall shoots off a reply indicating that Sinclair is welcome to come by, and one week later, Sinclair arrives by private rail car at the Three Rivers Ranch with his wife and attorney.
Fall isn't close friends with Sinclair, but he likes the man and certainly wants to keep him happy. So over the next few days, Fall plays host to Sinclair and his entourage. They spend their time drinking, eating, and hunting on Fall's sprawling ranch. At one point, Sinclair casually mentions that he sure could use Fall's assistance making a few minor changes with his oil lease on the Osage Indian Reservation in Oklahoma, and Fall says he'd be happy to help.
But this is not the important matter Sinclair mentioned in his telegram. Sinclair explains that what he really came to discuss are the naval oil reserves at Teapot Dome. Sinclair has had his eye on Teapot Dome for years. The 9,500 acres in Wyoming have the potential to be one of the richest oil fields in the country. But because there's long been conservationists in the Interior Department, Sinclair has never been allowed to get anywhere near Teapot Dome.
So Sinclair struck a deal to put an oil-friendly president in the White House. His friend Jake Heyman bought the nomination for President Harding. And Sinclair spent $3 million bankrolling Harding's campaign on the condition that he got exclusive rights to Teapot Dome. But then, of course, Heyman died, and the certainty of the deal vanished. Now, Sinclair's hoping fall will still uphold the spirit of the agreement that put Harding in office.
Hearing this, Fall is not surprised and doesn't mind agreeing. His office will gladly grant drilling rights on Teapot Dome to Sinclair, which is exactly what Sinclair has been hoping for. He assures Fall he'll be sending a proposal right away, and as a gesture of gratitude, he wants to make Fall an offer.
He says he's interested in buying a share of Fall's Three River Ranch. The main house would be an ideal card-playing getaway, and the hunting is superb. He could also breed racehorses on the property. He asks Fall if $233,000 would be enough. Fall is delighted. He extends his hand, and they shake on the deal.
Sinclair couldn't be happier himself. And as they stand outside the ranch house smoking cigars, Sinclair exhales a long stretch of smoke toward the moon. He does like this ranch, but that's not what he's buying into. What he's really doing is securing his rights to an oil field in Wyoming by paying off a cabinet-level member of the federal government.
Hi, I'm Angie Hicks, co-founder of Angie. When you use Angie for your home projects, you know all your jobs will be done well. Roof repair? Done well. Kitchen sink install? Done well. Deck upgrades? Done well. Electrical upgrade? Done well. Angie's been connecting homeowners with skilled pros for nearly 30 years, so we know the difference between done and done well. Hire high-quality, certified pros at Angie.com.
Most Americans think they spend about $62 per month on subscriptions. But get this, the real number is closer to $300. That is literally thousands of dollars a year, half of which you've probably forgotten about. Thankfully, Rocket Money can find a bunch of subscriptions you've forgotten all about and then help you cancel the ones you don't want anymore. Rocket Money is a personal finance app that finds and cancels your unwanted subscriptions,
monitors your spending, and helps lower your bills so that you can grow your savings. Rocket Money has over 5 million users and has saved a total of $500 million in canceled subscriptions, saving members up to $740 a year when using all of the app's features.
Stop wasting money on things you don't use. Cancel your unwanted subscriptions by going to rocketmoney.com slash wondery. That's rocketmoney.com slash wondery. rocketmoney.com slash wondery. In January of 1922, Albert Fall feels like he has a bright future ahead.
He's maneuvered himself into a position that now controls some of the nation's largest oil reserves. He's brokered deals with two wealthy and powerful oil barons and been handsomely rewarded for his efforts. Edward Doheny has given Fall $100,000 in the guise of a loan, as well as a lucrative job offer for his post-Washington career. And Harry Sinclair has just offered to invest $233,000 in Fall's ranch.
But the leasing deals Fall offers these two men aren't quite finalized yet. And until they are, Fall wants to keep his enemies from finding out about them. In particular, Fall wants to avoid a confrontation with Gifford Pinchot, the founder of the U.S. Forest Service and a powerful voice in the conservation movement.
Pinchot is already attacking Fall and the press over his attempt to take over the Forest Service from the Department of Agriculture. And to Fall's frustration, it seems to be working. Fall's boss, President Warren G. Harding, initially approved the Forest Service transfer, but now, because of all the negative press, he's gotten cold feet. The same thing could happen if Pinchot gets word of the impending transfer of the naval oil reserves.
And Fall can't let that happen. He needs to finalize his deals with Sinclair and Doheny quickly and quietly while he still has Harding's support. So on February 3rd, 1922, Fall calls Harry Sinclair and his attorney J.W. Zevely into his D.C. office. His guests settle into deep leather chairs in front of Fall's desk. Sinclair flashes a wide grin and asks Fall how he liked the gifts he sent.
Before leaving Three Rivers Ranch, Fall received a bull, two boars, four sows, six heifers, and a thoroughbred racehorse, all thank-you gifts from Harry Sinclair. Fall says it was a thoughtful gesture. It also indicates Sinclair clearly wants to do business, and Fall says he has great news. He explains that he had one of his interior department geologists look into how much oil Teapot Dome and its surrounding reserves might hold.
Sinclair is going to be happy because the estimate is nearly 500 million barrels, far more than previously thought. Sinclair and attorney Zevely look at each other with raised eyebrows. Sinclair tells Fall he'll take the entire teapot area and pay the usual royalties, which is exactly what Fall had hoped. He knows Sinclair is hungry for drilling prospects and is ready to spend. And what Fall is offering is an irresistible deal. They
Based on average profits of a dollar per barrel, minus even the royalties paid to the U.S. Navy, Sinclair could make somewhere in the neighborhood of $400 million. That's about $7 billion today, so it's no wonder Sinclair is eager to get moving. All that's left is to draw up a contract.
But for the time being, Fall asks that Sinclair keep the deal under wraps, just until Edward Doheny signs his contract for the Elk Hills and Buena Vista reserves. Then Fall can announce everything all at once, because done deals will be much harder for conservationists to fight. On February 28, 1922, Harry Sinclair announces the establishment of Mammoth Oil Company, an offshoot of Sinclair Oil.
What he doesn't say is that Mammoth will be entirely dedicated to the oil business at Teapot Dome. And only a few weeks later, on April 7th, Fall quietly signs a contract giving Mammoth Oil a 20-year lease on Teapot Dome. And Sinclair begins making plans to build a long-distance pipeline to deliver the oil from the teapot field in Wyoming to the main line in Chicago.
Sinclair finally has what he wants, and he's thrilled. But even though he has sworn not to discuss the deal before Fall makes an official announcement, word somehow gets out. And eventually, it makes its way back to a Chicago PR executive named Albert Lasker. Lasker is a good friend of President Harding's, and one of the people who helped him get elected.
So when Lasker hears about this secret deal between Fall and Sinclair, he smells a scandal. And on April 10th, 1922, he rushes to the White House to warn his friend. When Lasker enters the Oval Office at the White House, Harding is standing, deep in concentration. He's hunched over in his shirt sleeves, gripping a golf club, focusing on the ball at his feet. Mr. President?
Harding taps the ball, but it misses the mug lying on the carpet and rolls under the president's massive oak desk. Harding straightens and looks up. Lasker, you ruined my putt. You want a drink? I'm going to have one. No, thanks. But Warren, something important's come up that we really should discuss. What might that be? Walter Teagle paid me a visit this morning, and I can tell you he is fit to be tied. The president finishes pouring himself a scotch and cocks his head to one side.
Tegel. Uh, remind me. He's the president of Standard Oil in New Jersey. Ah, yeah. And what is he upset about? Well, Tegel says he's gotten wind of a contract in the works at the Interior Department to lease Teapot Dome. Yeah, I'm aware of that. Fall's dealing with it. What does Tegel care? He's not involved with any of this. Well, that's the point exactly. He said Standard has no skin in the game, but he felt strongly that the Teapot deal stinks to high heaven. People are talking about it in the industry, and they're not saying good things. What?
Warren, at best, it looks like blatant favoritism. And at worst, at worst what? Well, it looks like Falls brokering deals with wealthy oil men, and some people are wondering what Fall could be getting out of it. Well, there are always people whispering on the Hill. It's more than that, Warren. Falls already brokered another deal with Ed Doheny for the oil at Elk Hills, and now I understand that certain senators are trying to get a copy of your order okaying the transfer of the Naval Reserves to the Interior.
Lasker can't believe the president is so unconcerned. It's almost as if he doesn't understand what's on the line. Harding sips his scotch and continues.
What's more, Doheny and Sinclair are decent men, too. Good Americans, leaders in their industry. I met Doheny. He's a nice fellow. And Sinclair's been my guest many times, not to mention he backed my campaign generously. Warren, that's even more reason to avoid the appearance of playing favorites. Look, you're the president, so of course it's your decision. But Teagle thinks you should stop the contract. And if you ask me, I feel the same.
This could really come back to haunt you. Ah, nonsense. It's all perfectly above board. I mean, if Albert Fall isn't an honest man, then I'm not fit to be president. As we speak, he's preparing a full report on the situation. Then I have no doubt we'll put all of this to bed. Lasker is flummoxed. He's warning the president of a serious scandal sparked by a member of his own cabinet, but it's apparently falling on deaf ears.
So when Harding again offers Lasker a whiskey, this time he takes it. He gulps it down, thinking Harding either knows something he doesn't, or the man's ignorance is staggering. Either way, Lasker thinks Warren G. Harding is heading for deep political trouble. From Wondery, this is Episode 1 of Teapot Dome for American Skin.
In our next episode, members of the press begin sniffing around Albert Falls' clandestine deal with Harry Sinclair, sparking a congressional investigation into the Teapot Dome and Elk Hills leases.
Wondery Plus subscribers can binge American Scandal early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. If you enjoy American Scandal, be sure to give us a five-star rating and leave a review. I read every one of them. I also have two other Wondery podcasts you might like, American History Tellers and Business Movers. Follow American Scandal on the Wondery app, Amazon Music, or wherever you get your podcasts. You
You can binge all episodes of American Scandal early and ad-free right now by joining Wondery Plus in the Wondery app or on Apple Podcasts. And before you go, tell us about yourself by completing a short survey at wondery.com slash survey. And to find out more about me, including my other podcasts, go to notthatlindseygram.com. That's notthatlindseygram.com.
If you'd like to learn more about this story, we recommend the books The Teapot Dome Scandal by Leighton McCartney, Tempest Over Teapot Dome by David H. Stratton, Dark Side of Fortune by Margaret Leslie Davis, and Teapot Dome by Burl Noggle. This episode contains reenactments and dramatized details. While in most cases we can't know exactly what was said, all our dramatizations are based on historical research.
American Scandal is hosted, edited, and executive produced by me, Lindsey Graham, for Airship. Audio editing by Trishan Paraga. Sound design by Gabriel Gould. Music by Lindsey Graham. This episode is written by Peter Gilstrap. 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 Erin O'Flaherty for Wondery.
Welcome to another round of Boardroom or Miro Board. Today we talk retrospectives with Agile coach Maria. Let's go. First question. You've spent two hours in a team retro, but the only input you've heard is Dave's. Boardroom or Miro Board? Boardroom. In Miro, Dave can't hog the space because everyone can add thoughts anonymously, online at the same time. Correct. Correct.
Next, you need the team to act on feedback fast. So you turn all those retro notes into Jira tasks. Miro all the way. And I can assign those tasks to teammates. You're nailing this. Now, you see hundreds of sticky notes from the retro. A real mess. But you organize them into five themes in just seconds. Miro, I basically get back an entire hour when I use its AI tools for clustering.
And she's done it. For a limited time, visit miro.com slash retro now for a free business plan trial to unlock advanced retro tools like private mode, voting, and two-way jira syncing. That's miro.com slash retro now.