Like thunder rolling across the plains, the latest political
scandal started as a low rumble a year ago and exploded with sound and fury two
weeks ago. The congressional hearings have begun with the jawing and snapping from
partisans out for blood.
What can
either side expect (hope) to find in the Internal Revenue Service’s practice of
focusing on conservative political groups, notably the Tea Party, who sought nonprofit,
thus tax-exempt, status as so-called social-welfare organizations?
More
precisely, what can they uncover that the investigation conducted by the
Treasury Inspector General for Tax Administration didn’t find? A missed memo
that has the president ordering the practice? A liberal grand conspiracy to
destroy America ?
Perhaps,
but the hearings and investigations also could lead to the less nefarious, nothing
more than bureaucratic incompetence; even, dare say a tempest in a teapot?
This political
scandal, as with many, has scale and headlines – “IRS targeted conservative
groups” – that compel partisans and pundits to over-react with one hearing
after another, one investigation after another, and one expose after another.
Often,
there is no there there, as the White House has said about the endless Benghazi
terrorist attack hearings, but congressional investigations can sometimes uncover
wrongdoing, even when they look like partisan point-scoring in the
lurch-for-power game.
The precedent
was set for this nearly a century ago during the presidency of Republican Warren
G. Harding, who had one of the more scandal-ridden administrations in American
history. The scandal du jour then was known as Teapot Dome .
The leasing of U.S. naval oil reserves at Teapot Dome in Wyoming and Elk Hills in California to two private oil companies seemed
suspicious to Montana Democratic Sen. Thomas Walsh because Secretary of the
Interior Albert Fall had not sought competitive bids.
In 1921, Harding ordered control of
Teapot Dome and Elk Hills transferred from
the Navy Department to the Interior Department. The navy,
after Secretary Fall’s persuasive insistence, transferred control in 1922.
That same year, Fall leased the oil
production rights at Teapot Dome to Mammoth
Oil, a subsidiary of Sinclair Oil, and Elk Hills to Pan American Petroleum.
That neither lease was competitively bid was legal under the Mineral Leasing
Act of 1920.
Nonetheless, a Wyoming oil producer complained to his
senator that Sinclair got the rights through a secret deal. Republican Sen.
Robert LaFollette of Wisconsin lead an
investigation, during which he initially believed Fall innocent, until his
Senate office was ransacked. Then he, too, became as suspicious as Walsh.
For two years, Walsh conducted a
fruitless inquiry into Teapot Dome , uncovering
nothing illegal, even though records kept disappearing mysteriously. Just as
things were about to wrap up, the Montana
senator uncovered evidence that revealed Fall had gotten kickbacks from the oil
companies – a $100,000 loan to start.
That broke open the scandal. Civil
and criminal lawsuits ensued; the U.S. Supreme Court ruled the contracts were
obtained through fraudulent and corrupt means, and the oil reserves were returned to
the navy.
Fall was found to have received
more than half a million dollars in kickbacks. He was fined $100,000 and
sentenced to one year behind bars, the first time in history that a
presidential cabinet member was sent to prison for his actions while in office, according to historical accounts.
Since then, scandal and
investigation have become part of the political diet in Washington
because, as the Teapot Dome scandal showed, no
matter how thorough an investigation, there could still be something damning
that was missed or not yet found.
Expect the congressional
investigations into the IRS’s targeting practice, and the Benghazi scandal, and whatever other scandals
come our way, to continue for a long time because there could be that bit of yet
unfound evidence.
Incidentally, the Teapot
Dome scandal had no political effect in the following elections of helping
Democrats win or Republicans lose.