It really is interesting how President Harding’s disastrous time as POTUS is not brought up more in modern times when speaking about controversial presidencies - luckily for Harding, he died halfway through his third year in office and dodged the fallout from the biggest scandal of them all, the Teapot Dome Scandal.
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Hi everyone, good morning, good afternoon or good evening. Thank you so much for making History Shorts part of your daily routine, and if you have not already done so, make sure you click that subscribe button. If you have a comment, you can find me at www.historyshortspodcast.com. If you like the show and want to support it, the best thing you can do is tell a friend. You can also spread the word on social media, leave a review, or buy me a coffee at buymeacoffee.com/historyshortspodcast. Have a great rest of your day. It really is interesting how President Harding's disastrous time as POTUS is not brought up more in modern times, especially when speaking about controversial presidencies. Sure there were all those personal infidelity scandals, the numerous women and illicit affairs, but then it was also the many political scandals that shook the nation. Luckily for Harding, he died halfway through his third year in office and dodged a fallout from the biggest scandal of them all. This is the teapot dome scandal. I am your host, Peter Zablocki, and this is History Shorts. President Warren G. Harding made several distinguished appointments to his cabinet, including Supreme Court Justice Charles Evans Hughes as the Secretary of State and former Food Administrator of World War I, Herbert Hoover as Secretary of Commerce. Yet many of Harding's other appointments proved to be disastrous. The President gave cabinet posts and other high-level jobs to friends and political allies from Ohio. He named Harry M. Daughtry, his campaign manager and boss of the Ohio Republican Party, as Attorney General. He made his boyhood friend Daniel Christinger, Chairman of the Federal Reserve Board, and then selected Colonel Charles R. Forbes, another Ohio friend, to head the Veterans Bureau. To those in a know, the White House resembled a speakeasy with Harding feeling more comfortable with his old poker playing friends, now known as the Ohio Gang, than he did among competent politicians around him. Still, the Ohio Gang did a lot more than drink, smoke, and play poker with the American President. They also used their positions to sell government jobs, pardons, and protections from persecution. Forbes was one of the first friends to abuse his power when he sold scarce medical supplements from veterans' hospitals and kept the money for himself, costing taxpayers about $250 million. When the American President learned about it, he scolded his friend, telling another acquaintance that he had no troubles with his enemies, but that his friends were a different story. They're the ones that keep me walking the floor at nights, he would say. By the time Harding left to tour the West in June of 1923, where he would die en route from what was probably a heart attack, the nation was amidst its greatest modern political scandal. In the early 20th century, the United States was rapidly industrializing, and oil had become a crucial resource for both civilian and military purposes. Recognizing the strategic importance of oil, the federal government began setting aside certain oil-rich lands as naval petroleum reserves. These reserves were intended to ensure that the navy would have a reliable supply of fuel in times of emergency, particularly for its growing fleet of oil-powered ships. Three significant tracks of land were designated as naval petroleum reserves. Tippa Dome in Wyoming, named for a nearby rock formation that resembled a teapot, was the most famous reserve that was rich in high-quality crude oil. Tippa Dome, along with the other reserves, was initially under the jurisdiction of the United States Navy. However, as the administration of President Warringy Harding took office in 1921, a shift in control was on the horizon. Albert B. Fall, a former senator from New Mexico and a close friend of President Harding, was appointed the Secretary of the Interior in 1921. Fall, a man of considerable political influence and ambition, had long-standing ties to the oil industry and was eager to capitalize on his new position of power. In 1921, Fall convinced President Harding to transfer the oversight of the naval oil reserves, from the Navy Department to the Department of the Interior. Fall argued that the Interior Department was better equipped to manage the leasing and development of these resources. President Harding, trusting his friend and seeking to streamline government operations, agreed to the transfer, signing an executive order to that effect. Once Fall had controlled the oil reserves, he began to negotiate secret leasing agreements with two prominent oilmen, first with Edward L. Donny of Pan-American Petroleum and Transport Company, who was a well-known figure in an oil industry with extensive operations in California and Mexico, and then with Harry F. Sinclair of Mammoth Oil Company, a subsidiary of Sinclair Oil Corporation, another influential oil tycoon with a reputation for aggressive business tactics. Without any competitive bidding process, Fall leased the Elk Hills Reserve to one and the Teepa Dome to the other. These leases were highly favorable to the oilmen, granting them substantial rights to drill and extract oil from their reserves. In exchange for these lucrative leases, Fall received significant sums of money from Donny and Sinclair. Donny allegedly delivered $100,000 to Fall in a black bag, while Sinclair provided Fall with over $300,000 in various forms, including bonds and cash. These payments were thinly veiled bribes intended to secure preferential treatment and access to the valuable oil reserves. Fall used the money to fund lavish improvements to his new Mexico ranch and to pay off his personal debts. The Teepa Dome scandal began to surface in 1922, driven by the investigative efforts of journalists and persistent rumors in political circles. The secrecy surrounding the leasing agreements and then the sudden wealth of Secretary of the Interior, Albert B. Fall, raised suspicions. Notably, the investigative work of journalists such as those from the Wall Street Journal played a crucial role in bringing the scandal to public attention. In response to the mounting public pressure and the media scrutiny, the United States Senate initiated a formal investigation in 1923. As this investigation unfolded, it revealed a web of corruption in illegal dealings. Elections were called to testify before the Senate Committee and key documents were brought up in the hearings. Among the most damning pieces of evidence were the testimonies of oilmen Edward L. Donny and Harry F. Sinclair, who had directly benefited from the secret leases. Their testimonies, coupled with financial records, exposed the bribes paid to Fall. In 1929, after lengthy legal battles, Fall was convicted of accepting bribes from the two men. He was sentenced to one year in prison and fined $100,000, making him the first former U.S. cabinet official to be convicted of a felony committed while in office. Edward L. Donny and Harry F. Sinclair also faced legal consequences. Donny was acquitted of bribery charges, a decision that sparked controversy in public outcry. Sinclair, however, was convicted of contempt of court and jury tampering during the investigation and served six months in prison. The Teapot Dome scandal had a profound impact on the Harding administration, which was already under scrutiny for other allegations of corruption and misconduct. Although President Warren G. Harding was not personally implicated in the scandal, his reputation suffered significantly. Harding's administration became synonymous with corruption and the abuse of power. Harding himself died suddenly in 1923 amid growing public criticism and stress related to the unfolding scandal. In the broader context of American political history, the Teapot Dome scandal is often cited as a pivotal moment that galvanized public demand for ethical conduct in government and greater accountability among public officials. One of the most significant outcomes was the passage of the Federal Corrupt Practices Act in 1925, which imposed stricter regulations on campaign finance and lobbying activities, a law that remains on the books to this day. Thanks for listening. Hello everyone. My name is Tom Kearns and I host the Anglo-Saxon England podcast, where I cover the history and culture of England from the departure of the Romans in the 5th century to the Norman Conquest in 1066. So far we've surveyed the collapse of Roman rule in Britain, the migration of the Anglo-Saxons, and the history of Northumbria from its beginnings in the mists of legend to its destruction at the hands of Viking raiders in the 9th century. I hope you'll come and give it a go. (upbeat music)
