Secretary Fall resigns in Teapot Dome scandal - Jan 02, 1923 - HISTORY.com

Albert Fall, the secretary of the U.S. Department of Interior, resigns in response to public outrage over the Teapot Dome scandal. Fall’s resignation illuminated a deeply corrupt relationship between western developers and the federal government.

Born in Kentucky in 1861, Albert Fall moved to New Mexico in 1887 because doctors told him the dry desert air would improve his health. Fall thrived in his new home, quickly building up a large ranching operation near Las Cruces and investing in silver mining and other ventures. By the turn of the century, Fall was a well-respected and powerful western businessman, and he used his considerable resources to win a seat in the U.S. Senate when New Mexico became a state in 1912.

In Washington, D.C., Fall quickly discovered the enjoyable prerogatives of power. He made several powerful allies, including President Warren G. Harding, who appointed him secretary of the U.S. Department of Interior in 1921. As secretary of the interior, Fall was responsible for managing the government’s vast western land holdings in the public interest. Unfortunately, Fall’s close ties with western developers tempted him to abuse his position. Ostensibly acting to ensure adequate oil supplies for the navy in the event of war, Fall set aside a large oil deposit in Wyoming known as Teapot Dome. Secretly, he then began to sign leases with big western oilmen allowing them to exploit the supposed reserve.

When news of the secret leases leaked out, Fall claimed he had signed them with the best interests of the public in mind. Subsequent investigations, though, threw Fall’s integrity into question when they disclosed that many of his investments in New Mexico had recently collapsed, and he was on the verge of bankruptcy. Desperate for money, Fall had accepted “loans” of about $400,000 from the same oil men he granted access to Teapot Dome, two of whom were old friends from his New Mexico mining days. Fall insisted that the loans were unrelated to his granting of the Teapot Dome oil leases, but conservationists and government reformers were outraged. Such conflicts of interest were inevitable, they argued, when western developers were given control over federal agencies responsible for managing western natural resources.

Forced to resign his office in shame, Fall spent the rest of his life trying to rebuild his fortune and redeem his tarnished reputation. He died in near poverty in 1944.