Teapot Dome Scandal “Roaring ’20s” Unit U.S. History Class Notes What is a scandal? Raise your hand if you can define the word scandal. Scandal • An action or event regarded as morally or legally wrong and causing general public outrage. • Today we are going to be talking about a scandal that involved the US government: the Teapot Dome Scandal. Who was involved in the Teapot Dome Scandal? Who? • Warren G. Harding: POTUS (1921 1923) Who? • Albert Fall: Secretary of the Interior (1921-1923) Who? • Harry Sinclair: Sinclair Oil (Teapot Dome reserve, WY) Who? • Edward Donehy: Pan American Petroleum (Elks Hill reserve, CA) Who? • Thomas Walsh: US Senator, Wyoming. Any questions? What are the details of the Teapot Dome Scandal? What? • In a nutshell, the TDS is a bribery incident that took place in the United States during the administration of President Warren G. Harding. What? • In 1921, President Harding issued an executive order transferring the rights to three oil reserved from the Navy Department to the Department of the Interior. What? • In 1922, Albert Fall (Secretary of the Interior) leased the oil production rights at Teapot Dome to Harry F. Sinclair of Sinclair Oil. • He also leased the Elk Hills reserve to Edward L. Doheny of Pan American Petroleum. • Both leases were issued without competitive bidding. What? • The lease terms were very favorable to the oil companies, which secretly made Fall a rich man. • Fall had received a no-interest loan from Doheny of $100,000 (about $1.31 million today). He received other gifts from Doheny and Sinclair totaling about $404,000 (about $5.29 million today). Any questions? Where did the Teapot Dome Scandal take occur? Where? • • • • Teapot Dome, Wyoming Elks Hill, CA Washington, D.C. All of the United States When did the Teapot Dome Scandal take occur? When? • 1922: Leases issued. • 1922: Senator Walsh begins as investigation. • 1923: The stress of the scandal affects President Harding’s health. He dies in office. His VP Coolidge becomes president. • 1922 - 1924: Fall tries to cover his tracks. Walsh (and more!) want to know how Fall became so rich, so fast… • 1927: SC ruled that the oil leases had been obtained fraudulently. Leases invalidated. Reserves returned to the Navy. • 1929: Fall found guilty of bribery, fined $100,000 and sentenced to one year in prison. Harry Sinclair, who refused to cooperate with the government investigators, was charged with contempt, fined $100,000, and received a short sentence of 6.5 months for jury tampering. Edward Doheny was acquitted of bribery in 1930. Any questions? Going once… Going twice… OK. Let’s move on. Why is the Teapot Dome Scandal historically significant? (Why should you care about it?) Why? • Teapot Dome was the "greatest and most sensational scandal in the history of American politics.” • Destroyed the reputation of the Harding administration. • Teapot Dome = government corruption. How did the Teapot Dome Scandal impact the United States? (What remaining effects do we see today?) How? • McGrain v. Daugherty (1927): Congress now has the power to compel testimony. • Public distrust of politicians. • Partisan politics. Any questions? A 1924 cartoon shows Washington officials fleeing in panic down an oil-slicked road to the White House, trying desperately to outpace the giant steamroller symbolizing the Teapot Dome scandal of President Warren G. Harding's administration. A 1924 cartoon shows Washington officials fleeing in panic down an oil-slicked road to the White House, trying desperately to outpace the giant steamroller symbolizing the Teapot Dome scandal of President Warren G. Harding's administration. Now, complete the political cartoon handout. All questions must be answered in complete sentences. 1. This cartoon, published in 1924, comments on the ____________ Scandal. 2. Why are the officials running? 3. How do you think the White House will be affected? 4. What is the significance of the rolling tank? 5. According to the cartoon, how will this scandal affect the government? Any questions? Your task (if you finish the questions): The Teapot Dome Scandal is also known as the Oil Reserves Scandal or Elk Hills Scandal. Draw a political cartoon using one of the alternative names for the scandal in which you convey the meaning and key details of the scandal. Your cartoon MUST include a title and a caption explaining the central (the scandal!)