Evening Star Newspaper, February 8, 1924, Page 4

McADO SkS Some: Newspaper Accouma of His Cqmwcu'an With .. Petroleum Industry “Vicious and Unfair,” : " Former Cabinet Member Says. William ‘G McAdoo former Secre- tary of ‘tfie Treasury, and a candidate for the deiocratlc nomination for President, announced here last night that he had terminated his profes- sional service with E. L. Doheny, Cal- itornia_oil magnate, involved in the naval oll reserve leasing investiga- tion. Mr. McAdoo, in his letter, also ex- nressed a desire to appear and tes. tity immediately before the p\lblici 1ands committee of the Senate, which | 13 conducting the investigation of the maval ofl reserve lease ury Secretary that when he rp. Mr. Doheny’s “amazing disclosures about his transactions with Ex-Sec- retary Fall” he refrained fro: im- mediately terminating his profession- al services with Mr. Doheny, as was his first impulse, but. had dome so now “fearing that the newspaper ac- counts might be as viclous and un- rair' 'to Mr. Doheny as some of them had been to him.’ . Text of MeAdoo Letter. The text of Mr. McAdoo's letter to Senator Lenroot follows: My Dear Senato: Since my arrival here yesterday & copy of the letter to you from Mr. E. L. Doheny has been shown me correcting his testimony before your committee with respect to the aggregate counsel fees paid to my former law firm, Messrs. McAdoo, tton & Franklin, and the annuai retainer to myself. 'Mr. Doheny's fet- ter confirms my statement issued re- cently in Los Angeles, namely, that my said firm received $100,000 in fees and that 1 Rave received as special counsel at'Los Angeles $25.000 per annum for the past two years and |ernment was attempting to confi in the newspapers | Tréasury. About a vear after my resignation he called on me In my* office in New York city and ex- presseéd a desire t6 retain me in his companies' Mexican difficulties, grow- ing out of article 27 In the Mexican constitution, adopted some years be- fore. under which the Mexican Koy e property of American citizens by !&iving retroactive effect to said ar- ticle. T knew that our government, early’in 1918, while T was a member of. the cabinet, had solemnly pro- tested against the unfairness of the retroactive effect of this article of the Mexican constitution and that to represent a client whose property in Mexico was jeopardized thereby was in harmony. "I was willing to accept the employment and my firm was Paid a fee of $100,000. “ At that time Mr. Doheny stated that the properties of the. Doheny companies then threatened with con- fiscation were worth several hundred million dollars, so that the qusstion was_vital to his companies and he would be ‘willing to ‘pay ten times the fee it we got for his companies & satisfactory settlement in th ican question. No additional ever. paf, Often Met Doheny Oficials. Thereafter for a period of over two years I and members of my firm conferred frequently with Mr. Doheny and his officers and Joined with other Counsel representing American oil interests in Mexico in filing brie and memoranda and representations 1o the State Department In an at- tempt to get such diplomatic action as the rights of the oll companlies were entitled to under the various notes of the State Department. My connection with the Doheny com- panies was, I think, known to all those officlally connected with Mex- fcan off interests. In that period also ing a commandeered tanker which PRAE Bir. Dok sty s DEes o sttt } my firm worked on matters. concern- that there had been paid to me or to my firm and myself $250.000 wag in- correct. Despite this correction, I de- sire to appear and (estify before your :ommittee immediately. I conceive (notwithstandipg that Mr. Doheny's letter emphasises his testimony to the effect that neither [ nor my firm were ever employed in any way in connec- tion with any matter relating to the contracts and leases which have been under investigation by your commit- tee) that it is my right to submiit to your committee and to the American people a complete statement of my professional assoclation to Mr. Teny's compani ' v | Y anies In order Lo show !ind 1 informed 3ir. Dobany. thate | was my intentios to take up my resi- {d=nce and practice law in California, conclusively and sucelnctly. that neither as "counsel nor ‘In any other capacity have 1 liad any relation, near OF remote, to the contracts and leases Which have been the subject of inves- tigation before your committee. Tt is also important that I appear Ppromptly, because the newspapers throughout the land have blazoned my name on the iront page in glaring type in the most unfair and libelous manner, as though I were involved in some way in this nauseating scandal. This has had the wholly unfalr efect of diverting attention, temporarily at least, from the real culprits—an ex. member of the cabinet of this adminis-} tration, who appears to have acted cor- Tuptly and -to have srossly betrayed a public trust. 1 am not wiiling that the innocent shall be made to suffer in order that the guilty may be protected or shielded by this transparent effort | to bring odium upon innocent men :ionnecled with a fornfer administra- on. TRecord an Opén Book. In the several capacitles in which T served the government during the administration of the iate President Wilson my record is an open boox. invite the most searching investiga- tion of my official condyct while in public office, if it has not already been made. 1 betrayed no irust while I was (n office, neither dfd I enrich my- #€lf at theexgenne of my -countty or its people, nor: permit any other man to do s0. As Secretary of the Tre: ury I received a salary of $12,000 per annum only, and as director general of all the Tailroads of the United States 1 served without additional compensation. After the armistice was eigned in 1918 I resigned as Sec- retary of the Treasury because after 8ix yvears in ‘office I was In_reduced circumstances and my health was seriously impaired. I had a large number of people depending on me for their living and their future and I was obliged, upen my retura to. pri- | vate life, to take up the practice of ! e my profession in order to make pro- Yiston for them and for their future. ‘To resume the practice of my profes. sion was obviously the proper and necessary thing for me to do. Early in 1919 I entered an active law firm in New York with a wide general practice as its senfor member, ahd until January 1, 1922, continued in the active practice of law in New York city. Since that time I have of law In Los Angeles. ‘With the growth of governmental instruments, the contacts of modern business of all kinds with the gov- ernment have become more frequent and necessary, and no lawyer can en- joy & remunerative practice without appearing in behalf of his ciients be- fore the courts, governmental agen- cies, commissions and department: public oplnion debarred a lawyer who | had held public office from such work his opportunity to make a living or acquire a sompetence for his family would be at an end. 'In my work, both in New York and Los Angeles, I have accepted such law busine: s has been offered to me and which I was legully entitled to take, provided the business was honorable and pror- er. In addition to arguing cases in the courts, I have argued matters be- tore some of the federal departments and have filed briefs and memoranda in these departments, among others the State and Treasury departments and the Shipping Board. I never kmew Mr. Doheny until, after I resigned as Secretary of the i Feeived $250,000 from the Do i ] been actively engaged in the prncucel tlie government had agreed to return to the Doheny companies. Puring the year 1921 I made a trip to Mexico and interviewed Mexican authorities, among others President Obregon. in an effort to have the retroactive effect of the clause in the Mexican constitution %o which I have réferred. modified or changed. On my return T advised Mr. Doheny that the ofl companles having interests in Mexico would, in my opinion. do well te have representatives confer with the Mexican officlals with a view to effecting an adjustment. In January. 1922, my firm’dissolved, whereupon he said to mé that he would like to retain me as special counsel in connection with his com- BS ies at an annual compensation of 25,000 and proposed the duration of such employ of four year: modificatio; ent to be for a term To this T suggested a so that at the end of three years, .at the will of either DII“E my services could be terminat- ed. During my professional emplo ment since moving to California Alr. j Doheny has conferred with me from time to time upon questions concern- ed exclusively with his Mexican In- terests. Hits C. P. Taft's Paper. When I read in the newspapers Mr. Doheny's amazing disclosurs ahout his transactions with ex-Secr: téry Fall I refrairied from immedi- fely terminating my professional rvices” with him, as.was.my . first impulse, although I have now don . fearing that the newspaper a. counts might be as vicious and unfair te him as Charles P. Taft's partisan organ. “The Times-Star” of Cincinnati has been to me when iIn its issue of ‘Februray 1 ‘it set out in.flat head- &8 ¢ ront page the following malicious, an: charge _purpos malicious, libel and He. "McAa6o re. ny in- terests—was pald $50.000 a Yyear ‘on outside’ while he was Secretary of Treasury.” I indignantly protest against the whispered suggestion that I—and the others, lawyers and laymen, who help- ed in_the Mexican enterprises of which Mr. Doheny is the head—share any taint of any Kind. insinuation as “monstrously. unfair. For those who, like myself, can stand up and make good this denial it is not so important, but particularly do 1 resent the insinuation that because thie late Franklin K. Lane, after sérvice as Secretarry of the Interio resigned and became, quite open? officer of the Doheny companies, he thereby shares the taint of corrup- tion. It would be ridiculous if not so viclou: ‘What I have done was within my rights as & lawyer. In my represent: tion of the Doheny companies in Mexican matters I never dealt in po- litical influence. nor did I ask or promise, or give or receive political favors or other favors. If my con duct in acting professionally in these matters is open to criticism, then, no lawyer can take a cabinet office un- less he be rich enough to give up all professional employment in business when he. comes out.of office. I do not belleve that any such standard is wise or proper. 1 believe that the 1t [ spirit of fair play of the honest-mind- ed American people will not misun- dsrstand my course in this matter, npr take their minds off of those who are gullty of betraying their trust as disclosed in this investigation. Yours very_truly, (Bigned) " WILLIAM G. McADOO. S A The total tax.bill of the people of the Unfted States for 1922, according to a census bureau report, was $7.- 433,081,000. If this had been paid eoually \by every mgn, woman and child each individual ' would have turned over $68.37 to the various tax collectors. This was approximately eight times as large as the per.capita electric-current bill of the nation, which, for 1922, was $8.90. RADIO FANS, NOTICE To Celebrate the Opening of Our - Enlarged Radio Department " ‘We Offer Subject o Prior Sale. - REMARKABLE RADIO BARGAINS New Atwater Kent: Set, $104.00 Freed-Eiseman Neutrodyne Set, $150.00 LADIES, Crystal Set Complete— No Extras—No Outside Aerial. 1210 Byl s o e The district includes all 1 deny that THE EVENING: STAR, WASHINGTON, D. C, FRIDAY, FEBRUARY 8 1924 00" QUITS DOHENY SERVICE;<!. ROCKENBACH T0 D: C. 0 TESTIFY IN OIL PROBE!cerers . sucomin 3unaiots sn Washington District. Brig. Gen. Samuel D. Rockenbach, by ordera {ssued at the War Depart- ment today, was relieved from duty in command of the tank center at Camp Meade, M, and, by direction of the President, assigned to the com- mand of the ‘district’ of Washington. the posts and troops at Washington barracks, Fort Myer, Va.; Fort Washingion, Ad.; Fort Hunt, Va., and Fort Hum: phre; Va. The orders direct Gen. Rockenbach to proceed to this city and assume new dutles. Since the retirément of Maj. Gen. Hayry H.. Bandholtz, in De- cember last, the distriot of Washing: ton has been in command of Col Hamilton S, Hawkins, 3d United States Cavalry, at Fort Mygr. e McADOO TO APPEAR . MONDAY IN SENATE OIL LEASE INQUIRY' —_ (Continued from First Puge.) The very structure of our government rocks upon its foundation in conse- quence of the revelations made in connection ‘with it. There i¥ but one way to restore to It that confidence which is indispensable to its stabllity and perpetuity, namely, to visit upon the perpetrators the extremest rigor of the law and to drive from the pub- lic service every one through whose connivance or supineness it became possible. “Are you willing, my colleagues, to turn back these great properties into the keeping of Edwin Denby? 1 am not. "Are you willing to condone the flagrant’ faithlessrieas which has characterized his administration of his great office, as revealed by his own testimony before you? I am not. Are you content to let him down easy, lest senaibilities be offended or political prospects be affected? I-am not. p “f want to see him driven from office with all the odium that possibly attaches to his going. that his fate may serve for all time as & warning to those. who might otherwise fail the republic as he has falle Reads Protest. Senator Walsh read intp the record 2 memorandum of protest from Rear Admiral Grifin to Secretary Denby against the transfer of the naval oil reserves from the Navy Department to the Interior Department. He also read a letter written by Secretary Denby to President Harding, which stated that there was inclosed & draft of the executive order of the trans- fer and a copy of the Griffin protest. Calling_attention that the Grifiin memorandum was dated May 27. 1921, & day after the date on the Denby letter, Senator Walsh sald: “If ‘Secretary Denby had sent that i letter to the President and if he had transmitted the protest of Admiral Griffin this nasty mess probably would never have occurred. - But he dld not send them, as I shail proceed to_show. The speaker then read from the rec- ord of the oil investigation to show that neither & copy of the.Denby letter nor of the Grifin memorandum could be found either in the filew of the White House or of the State,Department, where the executive order is kept. Other portions of the committee record read by Senator Walsh showed that a re- draft of the original order was.sent to the White House.on May 31, 1921, and !signed that day by the President. James O.d.ewis, one of the geologists {employed by the committee in investi- gating conditions at Teapot Dome, pro- tested in a memorandum. read to the committee h.Xllnn snggestions which, he sald, been made by Senator ‘Walsh, democrat, Montana. He in ed that when he accepted employment {by the committee his “mind was open” with regard 10 the.matters under in- vestigation, and that Le was free of ejudice which would have disquali- B6d him from undertaking the work. Fulk authority for its oil committee to follow .the_ everswidening trail of its inquirg.’ tntq thé .lease of the naval.oil reserves wos voted yesterday by the Senate without debate or a dis- senting vote. The Senate also voted without dis- cussion and unanimously to direct the Becretary of the Interior, to take steps to recover from the Standard Ofl Company of California sections sixteen and thirty-six in the Elk Hills, California reserve. These plots are near the fleld held by the Doheny Interests, which the government also Is seeking to recover along with the Teapot Dome fleld in Wyoming, le ed by Mr. Fall to the Sinclair in- terests. With these two resolutions out of the way, the Senate swung again lifto debate on the Robinson resolution de- manding the resignation of Secretary Denby for assenting to the oil leases. Senator Reed, democrat, Missourl, opened this discussion with a care- tully prepared address assalling Mr. Fal, E. L. Doheny, Harry F. Sinclair and Mr. Denby. Senator Reed opened his address by asserting that the “sinuous trail of bribery” had been found to reach to government office,'and now should be "extended to the penitentiar: ‘We are about to determine,” he sald, “whether oll kings and cabinet officers are immune from the law which governs the common people of the land.” Demands Court Action. “All officers who have betrayed their trusts must be brought to the bar of the courts. All officers who have permitted the country to be plundered while they slept at their posts must be removed. Every man who has for fees or favor employed the influence which he galned through the generosity of the pub- lic to seduce public servants must be exposed and condemned.” Asserting that immediately after taking office Fall had begun “setting the stage for one of the most gi- gantic steals of hlstory,” Senator Reed sald that on April 7, 1922, “Sin- clalr in the role of minor burglar carried away the Teapot Dome. “April 25, Doheny, playing the star part, strolled across the stage boast- ing that his loot ‘exceeded $100,000,- 000,” the - senator continued. —“The play was endeéd; the curtain was rung down. The ol circuit season . was closed. The actors retired: Sim to the race track, Doheny to his Cals ifornia habitat, and Fall prepared to return to innocent pastoral pursuita. Referring to Fall's refusal to t tify, the Senator declared that who dares not speak lest he shall prove himself u criminal stands self-condemned.” See Dohemy Trapped. “Nor is Doheny In a happier plight.” he continued. “Entangled in the meshes of his own words, tripped and trapped by admitted facts, he lles floundering. Sinclair manifest- ly prefers the companionship of bright-eyed Paris to the stony faces of the Senate committee. “The crime stands confe: S0 far as Fall. Doheny and Sinclair are concerned, gullt has becn found by a substuntially unanimous vote in both branches of Congress. That de- ion Is backed by the universul ver- ict of 110,000,000 peopl: Recretary Denby, Senator Reed said, did not fall within the scope of those who had lost all their de- fenders. Hits Denby Defenders. “Has not the senator from Maine (Mr. Hale) brought to the defense of the Secretary the thunders of his cloquence and forces of his invine- ible logic?" he said. Has not the grave and revered leader on the res publican side, in his most oracular manner, warned against the outrage of laying a finger upon the skirts of Denby’s garments? “And here comes Denby declaring that ‘he approves the leases. That he ‘acted right’ That he would do the same thing ag: And_that he “‘will not resign even if - Congress enacts the resolution.” - “This defiant declaration destroyd all pleas In mitigation and likewise all appeals for sympathy. It forces Congress to act.’ Reviewing Mr. Doheny's testimony that during the Wilson administra- ‘paid George Creel for hid or, rather, his pretended | moral fiber of publi influence, with Secretary Danlel he continued: “The testimony of Doheny affords indubitable proof of the corrupt drift of Doheny’s mind. It demonstrat that his policy was to buy the I fluence of every man he believed gould cunningly debauch publle of- T Tt “also shows the contemptible kind of instruments he was willing to employ. The hiring of Creel to, as he hoped, debaunch Danlels, throws light on Doheny's every act, and demonstrates the villainous purposes of his heart. c Turning then to the transfe: naval leases from the Navy Dapart- ment to_the Interior Department, Senator Reed charged that Mr. Fall had “gone Into the Department ' ol the Interior to do this job. £ “Fall wrote the executive order.’ he asserted. “Denby signed it. Their responsibility is joint and several. e the Siamese twins of this frau When Senator Hale, who is chair- man of the naval committee, inter- rupted the Missour! senator, the latter asked him about it. Senator Reed continued. “T would like to ask him whether he approves the lease, “I make no effort to Das them.” replied Senator Hale, for the courts.’ Answers Robinson. Senator Robinson, democrat, Ar- kansas, asked whether Senator Hale thought Secretary Denby's activities were legal and got the same answer. After reviewing in detail the evi- dence relating to the leases, the en- largement and Improvement of Mr. Fall's New Mexico ranch holdings and the loans made to the former Secre- tary by Mr. Doheny and Mr. Sinclair, Senator Reed said the “facts adduced prove more than the guilt of Fall, of Doheny, of Sinclair and of Denby. “They indlcated,” he said, “a low- ering of official ethics and a deb: ment of official morals. The process has been going on for years. Says Party Debts Pald, The Missouri senator then charged that political debts were boldly paid in the writing of the Fordney-Mc- Cumber tariff bill, and that William G. Wrigley of Chicago “has bought and paid for the privilege” of exemp- tion by Congress from an excise tax on “his chewing gum.” “But he paid the money into the coffers of a political party instead of into . the Treasury - of the United States,” he said. Opening fire on Secretary Mellon, Senator Reed said he held office in violation of the law prohibiting “men engaged in trade from holding that high position.” He declared that at the time he took office the Secretary was a director in sixty-elght banks nd industrial companies and & chief owner of one of the “greatest trusts he also upon ‘that is heavily interested in oil. If Mellon can write the tax laws. he asked, “whv should Doheny not be permitted to write the ofl laws? If Mellon can administer the taxes, why should Doheny not be permitted to administer the oils? The difference in their situation is that Melon acts directly as a cabinet officer. Poor Do- heny had to act indirectly through a cabinet officer. Mellon gets paid for acting as a cabinet officer. Doheny had to pay a cabinet officer for act- Ing. Cites Veterans' Bureau Probe. To support his argument that the men has deca ed, Senator Reed referred to the Ve! erans’ Bureau investigation and to what he characterized as an “epi- demic_ of tax-dodging’ and bootleg g . "gumpx along with that condition,” he continued. “has been a debasement of officers out of a job. “Even {n private life the servant is not allowed to the secrets ob- tained In his master's employment But such a code of morals is appar- ently too high for thé present-day ex- office holder. This fact was readily discerned by the shrewd Mr. Dohen He seems to have specialized with ex- | to | officers.. There was no depths which he would not go in his search for Instruments of influence. He even descended to George Creel and paid that gentleman $5,000 to attempt the { impossible task of influencing Jo- | [l sephus Daniel : “In justice to Mr. Creel, I ought to * Auth’s Bacon Has a ~ Flavor All Its Own! EVER forget to give a man bacon for break- fast—one who is really fond of it and asks for it every ‘'day? Auth’s Bacon tan’t help being a bit dif- ferent—fifty years adherence to quality standards has made it so. hickory smoking and curing according to an age-old family recipe gives it that richness and flavor none can imitate. Sold at All Grocery Stores and at Gooc Our Market Stands il g ‘d"" it At There’s just one other thing quite as bad and that is serving a substitute for Auth’s bacon to some one who knows its rich, wholesome flavor. * ol what I understand has been his se. It is that while he took th ang undertook: the job df try- ing to influence Dan| he tesigned 88 300n as he dincovered that be was being pald with Doheny’s money. A remarkable defense!” As Benator Reed. concluded half a dozen “senators clamored for _recog- nition. Obtairing it, Senator - Edge told the Semmte that the Denby reso- lution was “un-American” and added that “If partisan division has brought us to this, we have come to a low place: indeed.” Announcing he would withhold hls support from the resolution, Senator Bruce of Maryland, democrat, sald he would “rather see every plank in the democratic party shivered into a thousand pleces than that any action should be taken which would the Magna Charta of America: dom, the right of trial by jury. Not Partisan Matter. Senator Bruce declared this was not a partisan matter; that there were hapless wings and feet of democrats floating off on this sea of oil as well wings and feet of repub- b book,” he went on, “but I am in favor of bringing him to book in the proper, the constitutional way.” Stating that he was not attempting to judge Mr. Denby’s case, the Mary- land senator sald he was opposed to the resolution because it was so vio- lative of “every true constitutionsl principle and of every fundamental right of a citizen” for trial before being condemned. a i iator Pepper u: against adops tion of the resolution .because the Ben-, ate might be passing judgment on matter upon which it later might have to sit in judgment under oath. “As = court'’ he said, “we may be called upon before this terrible transac- tion' passes into” history, to try more impeachments than one. Pepper Asks More Pime. ‘Arguing that the Senate had been substituting denunciation for facts, Sen- ator Pepper urged that the committee be given time to get all the facts. “F do not know,” he eald, “whether a request for his resignation would be unfair to Secretary Denby or so grossly inadequate a punishment as to be & ridiculous thing to waste time upon. “No charges have been made against him. He Las had no opportunity to make defense. We do not know the facts. We are trying to evade the re- sponsibility of finding them out and of telling the people. “Secretary Denby when befors the committee this winter disclosed no memory of even the outline of these great transactions. That was bad.\Was he Ignorant or careless or incapable or ‘wicked two years ago when the transac- Itions were made? “Did he act without advice? Was he. fooled by corrupt people or was he aware that something was anilss? Was he as guilty as Fall? “I do not know. You do not know. Our committee has not reported.” Repeated suggestions from Senator Pepper that Mr. Denby be heard brought sharp interruptions from the democrats. Senator Walsh of Montana_vigorously called attention that Mr. Denby had been examined by the committee, while other senators pointed to Mr. Denby's blic_statements of recent date that g:hldlllflulmufll’fi“’lnlfllud the transfer of the oil reserves from his department to the jurisdiction of the Interior Depurtment. President. Clllnmlngno! the Senate signed and sent to ident Coolidge the Walsh resolution directing the insti- tutlon of court procsedings for the an- nulment of the naval ofl leases and the unishment of any guilty or wrongdoing n connection with the granting of them to the Doheny and Sinclair interests. - STANDARD ISSUES DENIAL. Declares Company Has No Connec- tion With 01l Scandal. By the Associated Press. BAN FRANCISCO, Februar} 8.—The Standard . Ol Company -of- Californis “has no interest direct or indirect in a single acre of naval reserve ofl leases,” annountement from the com- pany offices here last night sald com- menting on & resolution offered in the Senate by Senator Walsh, which called upon the Becretary of the In- terior to take steps for the recovery oNl l&fuonl 16 and 36 in naval reserve 0. 1. ‘The company has no interest in section 16 in No. 1 reserve, nouncement said. “The attempt to link the Standard Oil Company with the scandal in respect to navEl ofl lfllfle‘l 1s absolutely unwarranted and unfair. “The decision made by Secretary [ Fall in 1921 In respect to sectfon 36 is beyond criticl the anmounce- ment said. “It was the only decision he could make. The land was grant- ed to the state of California by an act of Congress in 1853, granting the 16th and 36th sections, not known to be mineral, and the grant became effective when the land was survey- ed in 1902. In 1904, the federal iand office, Mr. Hitchcock being Secretary of the Interior, determined that the land was not known mineral land and_afirmed the title to the state. In January, 1908, the United States local land office certified to the stat that there was no valld claim against the state title. In August, 1908, 480 acres were taken by purchase from the state. ? Deny Allegations True. “In November, 1809, these 480 acres were s0ld to the Standard Oil Com- pany. Approximately 160 acres of section ‘36 were sold to other pur- chasers in 1910 by the state. In 1919 the other purchasers made a contract with the Standard Ofl Company for the operation of these 160 acres, Prior to the contract referred to the company had nothing to do, directly or Indirectly, with the taking up of these lands from the state of Califor- nla, and assertions which have been e to the contrary are not true. “No ofl was produced in the vicinity until ‘the Standard Ofl Company drilled in the section in 1919. It ap- pears that in 1914 proceedings had been directed to be filed to this sec- tion on the ground that it was known mineral at the time passed to the state. But no action wi taken on these proceedings, nor were they brought to the attention of the com- pany until early in 1921. The com- missioner of the general land office himself testified in the land commit- tee hearings in Congr that the title to this section was not in dis. ute. P 1916 this section and other lands in naval reserve No. 1, owned by oth. er ofl companies, were tendered to the Bacr:.ury of | t'n,:‘ Navy in erder to create 4 _comp overament own- ership of 'Pn ol-flr'o reserves. The offer was dgclined on the the Navy Department its experts (:;i not consider the land valusble for oil. . “Early in:1981, two years after the dard Ofi Coinpany discovered oil on this section, when it had been in private ownership for over thirteen years, the company was advised that proceedings were to be instituted for the recovery of the section by the sovernment’ “The company asked the Depart- ment of Justice to suspend action un- til it could be heard in opposition to 50 inequitable and groundless a suit.” Under an agreement with the de- partment, the statement says, the company agreed not to drill the prop- erty pending a determination of the cloud on the titl: The company then appealed to Sec- retary Fall for a decision in the land in .controversy and after a pj hearing held on June 8, 1921, at ington, the statement says, and aft- er all parties were heard, Secretary Fall decided that the section of land was not known to be valuable for oil in 1903 and the state of California and its purchasers gave good title. T s e MEN IN SERVICE FAVORED. Considered in Choice of Successor to Building Inspector. Men already in the service will be given: careful consideration for ap- Fnlntment to the position of bullding nspector of the District left vacant by the death of Inspector John P. Healy. Engineer Commissioner Bell said today he favored promotion of men from the ranks wherever practicable. He has had one conference on the subject with Maj. Raymond Wheeler, asyistant Commissioner in charge of bullding activities, but no decision has been reached. John W. Oehmann, assistant in- spector during Mr. Healy's term of omu:, is acting head of the depart- ment. ound that March has five pay days, but that when the income tax is due. Glasses Fitted Dr. CLAUDE S. 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