HISTORY This Week – “Oil Fields, Bags of Cash, a Presidency Exposed”

Release Date: April 6, 2026
Podcast: HISTORY This Week, The HISTORY® Channel | Back Pocket Studios
Main Theme:
This episode delivers a dramatic retelling of the infamous Teapot Dome scandal—the biggest corruption scandal in American political history before Watergate. Through rich storytelling and expert interviews, it explores the motivations of the key players, the unraveling of their secret dealings, and how the fallout permanently changed government oversight and Senate investigative powers.

Episode Overview

The episode dives into the 1922 Teapot Dome scandal—a secret deal to lease oil reserves on public land, involving Secretary of the Interior Albert Fall, oil tycoons Harry Sinclair and Edward Doheny, and President Warren G. Harding’s administration. The show details how greed for oil profits corrupted the country’s leadership, exposed a network of cronyism known as the “Ohio Gang,” and led to landmark legal decisions that still shape American constitutional law.

Key Segment Breakdown

1. The Setting: Oil, Politics, and Power (01:09–10:18)

• Backdrop: Central Wyoming, 1920; Teapot Dome's 135-million-barrel oil field was set aside by President Wilson for the Navy.
• Albert Fall: Frontier man, poker enthusiast, and opportunist, becomes Secretary of the Interior.
• Harding Administration: Heavy with drinking, gambling, and cronyism—the “Ohio Gang.”
• Fall's Ideology:

  “Why lock [America’s riches] away when you can create wealth?” – Host John Earl (01:18)

• Key Character: Joshua Kastenberg (University of New Mexico School of Law) frames Fall’s worldview:

  “They don’t always work according to the law of contracts...they work in many instances according to the law of power.” (06:27)

Notable Quote

“Harding is riding the crest of a wave of popularity.... If there was some irregularity in government contracting, it wasn't likely to upset the American public all that much.”
— Joshua Kastenberg, on initial public apathy (10:20)

2. The Secret Deal – Contract, Exposure, and Initial Reaction (10:23–13:35)

• Fall’s Maneuvering: Transfers naval oil reserves from Navy to Interior without competition; grants Harry Sinclair exclusive drilling rights.
• Fall’s Secrecy:

  “He signs the deal, locks it in his drawer and leaves town.” – Host John Earl (08:48)

• Media Leak: Wall Street Journal’s front-page exposé.
• Public Reaction: Initially underwhelmed; Harding’s popularity and booming postwar economy overshadow concern.
• Harding’s Downfall: Parties, corruption, and his questioning of whether to publicly expose scandal before his premature death in 1923.

Memorable Moment

“The secret party house is run by the Attorney General. Warren Harding is often ranked among our worst presidents... because of the crooked company he kept, starting with his inner circle, a group known as the Ohio Gang.”
— John Earl (11:55)

3. The Investigation Breaks Open (15:01–22:51)

• Senate Hearings Begin: One year post-exposé; Albert Fall stonewalls under questioning.
• Carl McGee’s Testimony: New Mexico journalist, once threatened by Fall ("I’m going to break you"), points out the transformation of Fall’s ranch post-contract.
• The $100,000 Question: Explosion in Fall's visible wealth leads to investigation.
• The Alibi Unravels: McGee’s story, and the investigation into whether Washington Post owner Edward McLean actually funded Fall, reveals lies and further intrigue.
• Fall on the Run: Skips testimony, journalists and agents track him as front-page news engulfs America.

Notable Quotes

“Where did Albert Fall get his money? This becomes the central question of Teapot Dome. It’s a lot like, ‘What did the president know and when did he know it?’”
— John Earl (19:03)
“McLean said, ‘Well, I wrote him checks for $100,000, but he never actually cashed the checks. He brought them back to me and so he didn’t get the money from me.’”
— Jack McElroy, summarizing McLean’s testimony (21:36)

4. Expanding the Scandal: California Oil Leases & Bags of Cash (22:51–25:11)

• Not Just Wyoming: Fall leased two even larger oil fields in California to Edward Doheny.

• Doheny Testifies: Admits sending his son with $100,000 in cash to Fall—claims it was a loan unrelated to the oil deals.

  “I did it. I gave him the $100,000. But... it has nothing to do whatsoever with these oil lease contracts. Just a loan between old friends.”
  — Paraphrased from Doheny’s testimony (24:17)

• Hard Facts: Doheny expected $100 million profit; optics of no-bid contracts and literal bags of cash.

• Public Outrage Erupts:

  “If there are corrupt businessmen, that's one thing. If there are corrupt people in the Oval Office, that's another. And that is, to me, the tipping point.”
  — Joshua Kastenberg (25:11)

5. Legal Fallout, Lasting Legacy & Final Fates (25:11–28:38)

• Additional Payments: Fall received more bribes from Sinclair—cash, bonds, even livestock.

• Charges Brought: Fall, Sinclair, and Doheny indicted for bribery and conspiracy (mid-1924).

• Landmark Supreme Court Ruling:

  • McGrain v. Daugherty (26:46–27:09): Affirms Senate’s power to issue subpoenas in investigations—a precedent used for Watergate, Whitewater, and further government oversight.

    “Without Teapot Dome, Congress wouldn’t have the subpoena power it still uses today."
    — John Earl (27:26)

• Fate of the Players:

  • Albert Fall: Convicted, first former U.S. Cabinet official sent to prison, dies in poverty and disgrace (28:38).
  • Edward Doheny: Acquitted, despite clear bribe payments.

    “It was unjust that the wealthy briber had not been held to justice, but the poor bribed was, and it did not strike him as fair.”
    — Jack McElroy, quoting Carl McGee (28:22)

• Aftermath: Teapot Dome oil field returned to the U.S. Navy, lay untapped until the 1970s, then sold (scandal-free) in 2015.

Notable Quotes & Memorable Moments

• On Harding’s Inner Circle:

  "These parties aren't just about getting drunk or listening to jazz music. These parties are about sex... and Roman orgies and the like."
  – Joshua Kastenberg (11:12)

• On the paradox of legal justice:

  "The wealthy briber had not been held to justice, but the poor bribed was."
  – Carl McGee (28:22)

Key Timestamps

• 01:09 – Introduction to Albert Fall and Teapot Dome
• 06:15 – Interview: Joshua Kastenberg on Fall’s mindset
• 08:48 – Fall signs secret oil contract
• 11:12–12:21 – Corruption, parties, and the Ohio Gang
• 13:19–13:35 – Harding’s death & Teapot Dome about to blow
• 15:01–19:03 – Senate hearings; Carl McGee’s testimony
• 24:17 – Doheny’s confession about the $100,000 bag
• 26:46–27:09 – Supreme Court decision on Congressional subpoena power
• 28:22-28:38 – Carl McGee’s reflection on justice and Fall’s death

Takeaways

• The Teapot Dome scandal set the template for high-level American corruption—secret deals, bribes, denials, and a long investigation.
• Public and political response evolved from indifference to intense outrage as the scale and brazenness of the crimes became clear.
• The episode details how the fallout led to pivotal Supreme Court rulings, strengthening Congress’s oversight powers on fraud and executive corruption.
• The human stories—Fall’s hubris and ruin, Doheny’s escape from justice, McGee’s crusading journalism—underline the moral complexity and significance of the scandal.
• The show ultimately frames Teapot Dome as a cautionary tale, a crucible in which modern mechanisms for government accountability were forged.

Credits and Sources

• Guests:
  • Joshua Kastenberg, Univ. of New Mexico School of Law
  • Jack McElroy, author and journalist
• Referenced Works:
  • The Teapot Dome Scandal by Leighton McCartney
  • Tempest Over Teapot Dome by David Stratton
  • Senator Thomas J. Walsh of Montana by J. Leonard Bates

This summary was prepared to give you a vivid, full-spectrum account of a complex historical turning point—and the lasting mark it left on the American presidency and system of government accountability.