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WARREN G. HARDING (1865–1923), who is considered by most political scientists and historians to have been one of the worst presidents in the history of the United States, was blamed for the Teapot Dome Scandal, which erupted during the rampant corruption and gaiety of the so-called Roaring Twenties. Although the president was not personally involved in the criminal activities that wrecked his administration, Harding's fierce loyalty to his political cronies and his reluctance to believe in their dishonesty led to his being discredited along with them.

On becoming president, Harding brought what became known as the “Ohio Gang” with him to Washington, D.C. He may have never realized the extent of the corruption practiced by these opportunists who saw the capital as a city ripe for exploitation. While Harding's friends saddled him with a number of scandals, the most serious was Teapot Dome, which came to define the Harding presidency. The scandal involved Harding's cabinet, presidential appointees, the oil industry, and even a few innocent bystanders.

The groundwork for the scandal had been laid during the preceding decades with an increased emphasis on conservation during the presidency of Theodore Roosevelt and with increased demands for oil during the presidency of William Howard Taft. In 1912, the U.S. Navy began converting its ships from coal to diesel fuel; and in anticipation of the need for increased fuel, Taft decided that government-owned oil reserves or “domes” at Elk Hills and Buena Vista in California should be held in reserve for future naval needs. President Woodrow Wilson further expanded naval oil reserves in 1914 with the addition of a location in Wyoming that came to be known as Teapot Dome because it roughly resembled the shape of a teapot.

Albert Fall

As a well-known lawyer and wheeler-dealer, Albert Fall was a name to be reckoned with in New Mexico; he became one of its first senators when the territory achieved statehood in 1912. In 1921, Fall left the Senate to serve as Harding's secretary of interior. Before accepting the position, Fall had suffered a series of financial setbacks. A number of risky investments had left him with a mortgage he couldn't pay and a ranch in need of serious repairs.

Whether he was innately dishonest, or whether he simply grasped the opportunity to solve his financial problems, Fall decided to use his position for personal profit. His first move was to convince Harding that private oil companies were inadvertently draining the government's oil resources. Harding was already under some obligation to the big oil companies because they had been instrumental in his election. According to Fall, the government's response to the drainage should be to allow the oil companies to lease the reserves instead of obtaining oil at the government's expense.

After only three months in office and with the full support of Edwin M. Denby, the secretary of the navy, Harding issued an executive order placing the oil reserves at Teapot Dome in Wyoming and Elk Hills in California under the Department of Interior, with Fall in charge. Congress agreed to the president's request to lease the naval reserves, and Fall made sure that neither the president nor Congress was aware of the details of the deals.

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