So what was the Teapot Dome scandal? The affair took its name from Teapot Dome, a rock formation in Wyoming that looked like a teapot and, more importantly, stood atop a large government naval oil reserve. The scandal was the most famous of several scandals that ruined the reputation of President Warren G. Harding, who served from March 1921 to August 1923 and is often described as the worst president our country has ever had. At its bare bones, Teapot Dome is a simple case of bribery. Secretary of the Interior Albert Fall, a former senator from New Mexico and a friend of Harding's, was convicted of taking bribes from oil executives. Oilman Harry Sinclair obtained leases to drill for oil at Teapot Dome, Wyoming, and Edward Doheny acquired leases for reserves at Elk Hills, California. Fall received in the neighborhood of $400,000 in cash and gifts from Doheny and Sinclair. Like the details of the various Enron accounting maneuvers, the details of the oil leasing were complicated. For the public it was reduced to Fall granting favors to friends who had given him a great deal of money.
TEAPOT DOME AND ENRON PARALLELS
The parallels between the two scandals are only reinforced by the recent suicide of former Enron executive Cliff Baxter. In all likelihood Baxter's death will leave unanswered questions. The suicide of Jess Smith during the 1920s similarly left questions unanswered. Smith had an office at the Justice Department and was the right-hand man of Attorney General Harry Daugherty but was not on the government payroll. By many accounts Smith was not a leader but was at the center of much of the corruption. Smith's suicide provided fuel for conspiracy theorists who saw his suicide as a murder to ensure his silence. There was also the unfortunate murder of Edward L. Doheny, Jr., the son of the oilman who acquired the California leases. Along with his friend, Hugh Plunkett, he had delivered $100,000 in cash to Fall shortly before Fall awarded the oil contracts. Plunkett apparently cracked under the pressure and murdered Doheny.
At first, Fall's oversight of the leasing seemed unimportant. When asked about the secrecy of the arrangements Fall replied that national security required it. Doheny similarly evoked patriotism and security to justify his actions. However, progressives and environmentalists unhappy with Fall's policies continued to pursue the matter, leading to congressional investigations. Fall refused to testify before congressional committees, witnesses pled the Fifth Amendment, and insiders testified to widespread corruption. Eventually Fall earned the dubious distinction of being the first cabinet member to go to prison for a crime committed while in office, thus forever linking Warren Harding's administration with corruption. All told, Teapot Dome was a significant part of the political landscape for close to a decade.
http://hnn.us/articles/550.html
TEAPOT DOME AND ENRON PARALLELS
The parallels between the two scandals are only reinforced by the recent suicide of former Enron executive Cliff Baxter. In all likelihood Baxter's death will leave unanswered questions. The suicide of Jess Smith during the 1920s similarly left questions unanswered. Smith had an office at the Justice Department and was the right-hand man of Attorney General Harry Daugherty but was not on the government payroll. By many accounts Smith was not a leader but was at the center of much of the corruption. Smith's suicide provided fuel for conspiracy theorists who saw his suicide as a murder to ensure his silence. There was also the unfortunate murder of Edward L. Doheny, Jr., the son of the oilman who acquired the California leases. Along with his friend, Hugh Plunkett, he had delivered $100,000 in cash to Fall shortly before Fall awarded the oil contracts. Plunkett apparently cracked under the pressure and murdered Doheny.
At first, Fall's oversight of the leasing seemed unimportant. When asked about the secrecy of the arrangements Fall replied that national security required it. Doheny similarly evoked patriotism and security to justify his actions. However, progressives and environmentalists unhappy with Fall's policies continued to pursue the matter, leading to congressional investigations. Fall refused to testify before congressional committees, witnesses pled the Fifth Amendment, and insiders testified to widespread corruption. Eventually Fall earned the dubious distinction of being the first cabinet member to go to prison for a crime committed while in office, thus forever linking Warren Harding's administration with corruption. All told, Teapot Dome was a significant part of the political landscape for close to a decade.
http://hnn.us/articles/550.html