I am pleased to welcome Ciara Torres-Spelliscy to the ELB Book Corner, writing about her new book Corporatocracy. This is the first of four posts:
Press coverage of the political events in 2025 often lament that the corruption unfolding is unprecedented. Adopting this framing requires a rather cherry-picked history. As someone who writes about corruption in the United States, I can say: this not corruption’s first rodeo.
One of the episodes of political corruption I write about in my new book Corporatocracy is the Teapot Dome Scandal. This scandal was a welter of crimes in the midst of the immoral Harding administration. Arguably the nation only knows about what happened because President Harding abruptly died, leaving President Coolidge to appoint special counsels to investigate the crimes.
This was mostly a scheme about oilmen Harry Sinclair of Mammoth Oil and Edward Doheny of Pan American Petroleum getting the ability to drill in formerly off-limits military oil reserves in exchange for bribes paid to Harding’s Secretary of the Interior Albert Fall.
Fall might have gotten away with taking the bribes, but for some nosy neighbors. Neighbors in Wyoming saw Sinclair’s trucks driving into the formerly off-limits oil reserve, and the neighbors in New Mexico reported remarkable improvements on Fall’s previously ramshackle ranch. Edward W. Knappman relates, “soon Senator Robert M. LaFollette . . . [said] Fall’s Interior Department was ‘the sluice-way for ninety percent of the corruption in government.’” The question for curious Senators was: “How did Albert Fall become so rich so fast?”
The whole mess started years before in a separate scheme was hatched by oilmen who met in a hotel in New York in 1921. The oil executives first pulled off phony oil sales through a dummy corporation, the Continental Trading Company. Then oilman Sinclair took the profits from that scam, turned them into Liberty Bonds, and used those bonds to bribe Secretary Fall. In other words, proceeds of one scam were used to fund another crime.
This was also a money in politics story. The Teapot Dome scandal “was so monumental [that] a Senate Report called it a ‘criminal conspiracy . . . unparalleled in the history of this or any other civilized nation.’” One fact uncovered by the Senate’s inquiries was that Sinclair gave the Republican Party $75,000 in cash to help retire the party’s debts from the 1920 campaign to elect Harding. One cost the party incurred was paying $25,000 to one of Harding’s mistresses, Carrie Phillips, as hush money. These payments were funneled through a secret bank account. Sinclair had provided an additional $185,000 in Liberty Bonds to the RNC.
Secretary Fall became the first cabinet member to be convicted of a crime. Sinclair stonewalled the Senate investigation so thoroughly that he was indicted for contempt of Congress. At Sinclair’s first criminal trial for bribery, he was acquitted, but there was evidence he had bribed one juror with an offer of “a car as long as this block.” Sinclair got six months in jail for contempt of court in addition to three months for contempt of Congress.
Why did so many involved in Teapot Dome get away with it? Many of the participants had a penchant for burning incriminating evidence including Harding’s Attorney General Harry Daugherty, Harry’s banker brother Mally, Harry’s assistant Jess Smith, President Harding’s widow and the owner of the Washington Post who tried to cover for Fall early in the investigation. This missing burned evidence made convictions hard to come by. AG Harry Daugherty was tried twice but never convicted. See any parallels to corrupt actions today? They nearly jump off the page. To learn more, please read Corporatocracy or listen to my new radio show Democracy & Destiny.