Evening Star Newspaper, December 6, 1926, Page 5

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Mr. Hogan like- ‘wise would give no indication on what day the Secretary would appear in court, Mr. Roberts also brought to light for the first time in the trial a state- ment made bv Secretary Fall of the Interior Department to Secretary Denby late in 1921, urging immediate action on leasing of the oil reserves. Quoting the stenographic report of a meeting of the Navy Council which had before it, under date of November 28, 1921, an estimate of cost of con- | strucing the storage tanks, submitted bv Doheny. Mr. Roberts read that th~ | Navy Secretary said: “Secretary Fall | told me if we do not tackle it now we would not get any three months from now. They are getting 4,000 ! barrels 2 day from the wells now.” | The witness did not recall Denbv have made that statement, but he vol- unteered the explanation that “it wasn't true, so far as the reserve oil is concerned.” Attendance Unusually Large. An unusually large attendance was in court this morning when the ses- i slon reconvened, In anticipation of ocretary Wilbur being called as a witness Spectators were doomed tr disappointment, however, as it was concluded not to permit any interup- tion of Capt. Robison's cross-exam- ination. Mr. Doheny appeared early, his left arm in a sling. The oil defendant seemed to be In a weak condition, but said his arm was feeling a little better. In the hope of gettirg through with the cross-examination of Capt. Robi- son by Govenment counsel before the session ends today, Attorney Hogan, for the defense. prepared to make short work of his own examintion of the former chlef of naval engineers. Taking up examination where he left off last Saturday, Hogan asked the witness if he did not convey to Secretary Fall the information that the December 11, 1922, contract was satisfactory. Capt. Robison sald he took the final draft of the contract to Secretary Denby—Mr. Wilbur's predecescor— for him to sign. This the Secretary did. In the presence of Robison, the elder Doheny and J. J. Cotter, in the private office of the Secretary. Questoned by Denby. Asked to relate what occurred, Robl- son said that Denby inquired whether the contract included the changes he had incorporated in the original form. “I assured him that it did, and without completely reading it he signed it,” Robison said. The naval witness replied in answer to questions jthat Denby had asked if any addi- jtional clauses had been put in the contract and was informed that such ! was not the case. “I introduced him to Mr. Doheny, and Mr. Cotter and Secretary Denby expressed pleasure at meeting them,” he said. ‘‘One or the other, I don’t know which, said that it was unfortu- | nate that they had not met before.” Asked to relate the conversation that took place, Robison said: “The Secretary said, ‘Well, Mr. Do- heny, you've got a fine piece of prop- erty of ours turned over to you. You've got a big _job to do.” To this Doheny replied, ‘Yes, we've got a big Job on our hands, and I hope we've 8ot a fine pieve of property.’ " After completion and signing of he contract. Robison said, the super- vision over the Pearl Harbor work was_turned over to the Bureau of { Yards and Docks. So far as he knew the Intericr Department had nothing to do with it. The question of oil drainage in Re- serve No. 1 was brought up, and Capt. Robison sald he had discussed this { matter with Denby during the nego- i tiations. He said he had advised Denby that immediate development was greatly to the Navy’s interest to prevent further drainage. Discussed With Denby. “I advised him that the men who got the first well dug got the most oil,” he said. “It was to the Navy’s | interest to have on the spot a com- { petent oil organization whose interest in getting the whole of the Govern- ment's share of oil was the same as our own. I told him it would be like having a competent watchdog always ; on the job,” he said. | All this matter was discussed with { Denby, he said, before the Secretary | agreed to incorporate in the December 1 Re- i contract the whole of the No. serve. Robison testified that he was anx- fous to have the Navy benefit from the le of gas from the reserves, all such sales theretofore having been put into the Treasury to the credit of the Gov- ernment s miscellaneous fund. He said he suggested this to Dr. H. Foster | Bain, chief of the Bureau of Mines, and after an investigation on the lat- ter’s part, this purpose was accom- plished. The gas was turned over to the Pan-American Co. and credited to Pearl Harbor. Mr. Hogan then directed examina- tion of the witness to bring out what the defense contends is the great value of the Pearl Harbor contract and leases to the Government. Robison said that the Navy at flrst | objected to the S$i-abarrel rate | aquoted tor oil and he was told by Mr. Cotter that the Pan-American Company would reconsider, Fina:ly the Navy secured a price of 90 cents a barrel for the first allotment o 1,500,000 barrels of oil stored at Pear] Harbor. The price of 90 cents was in addition to the Pacific carrying .| charge. air. Hogan brought out that the best obtained from $1 a barrel. | Points Out Other Benefits. The contract of December 11 in- cluded, pesides completion of the oil storage tanks at Pearl Harbor, other provisions of great benefit to the Navy. the witness testified. One provision was for further construc- tion of fuel oil storage faci'ities on future royalties, if they should come. contract gave the Navy the bonus, he said, by providing uable _ considerations such as maintaining 3,000,000 barrels of oil in continuous storage at At- lantic Coast points, and another clause for 1,000,000 barrels in storage on the vacific Coast. He cited as another benefit to the Navy the fact that the contract awarded the department the right to | purchase for 16 years any petroleum | products at 10 per cent below the market va'ue. Since the Navy buys | from ten to fifteen million dollars'| worth of petroleum products yearly, | he said this was a . particularly favorable clause. Purchases on the | Pacific Coast, he said. amount to | considerably more than $5,000,000 a year “"At this point Mr. Hogan asked the witness when he was made a rear ! admiral in his own right, Robison having held the grade of rear ad- miral _temporarily while chief of ! Naval Engineers. The witness' mem-, ory seemed at fault and in some| embarrassment he said it was in June of 1924 or 1923, he could not recall | which. 3 ! Robison said he had been given a recess appointment. ‘Asked if his appointment had ever been sent to Congress, the witness replied: *No, sir.” ‘g'!llon J. Lambert, :\thfn v for Fall, offer thut the Navy other sources had was i | jacting under instructions from ! counsel asked him why he did not tell | also tried to get from Robison the date of his appointment as a rear admiral. Mr. Lambert’s methods were directed at bringing out the fact that the appointment had been made in 1924. { Tells of Talks With Fall. The questioning then reverted to conversations which the witness had with Secretary IFall about procuring oil for the Navy. Robison said he had talked with Fall' about having oil turned over to the Navy, inas- much as various Government agents, such as the Shipp:ng Board, were, receiving oil from the Interior Depart- ment. “Didn’t you suggest to Fall that you could not see why the Navy couldn’t get oil as well as the Ship- ping Board?” asked Lambert. “Yes,” was the reply. | “You knew then that the Shipping Board had the contract with the In-| terfor Department, in which it got ol lower than the market price? Lambert asked. “"Yes.” Robison replied. “I wanted that right for the Navy also.” Mr. Lambert had no further ques- tions to ask and Robison was turned over to Mr. Roberts of the Govern-j ment counsel for cross-examination. Roberts began his cross-examination from the date Robison was appointed chief of the Bureau of Engineering and questioned him about his remarks | to Fall on how the Navy could get) money from its ofl reserves instead of the Treasury. Roberts produced the Los Angeles civil suit testimony of the witness, which quoted Robison as saying Fall likewise was anxious %o stop the money running into the Treausry, and that Fall had referred to a plan that he had for tankage | construction. _Robison declared this was not the first time he had heard of the plan. Letter to Denby Produced. Roberts produced a letter Robison had written tol Denby and which the former had showed to Fall before it was dispatched. This letter suggested the Navy would obtain larger royalties on its oil by putting the storage plan into competition “‘or otherwise.” The { last two quoted words were suggested by Fall, the witness said, but stoutly maintained they wera not put in so that public competition could be done away with. The letter also stated that all leases and contracts would be arranged and consummated by the Interior Depart- ment, and copies would be sent to the | Navy Department as a means of rec- ord only. At this time, late in 1921, Roberts demanded of the witness if Fall told him & bid was expected from Doheny, but in denying this Robison recalled that Fall said he could get figures on the cost of the tankage from “an old friend of his.” It was agreed that the plan be kept secret merely as a matter of public policy and not because it was felt Con- gress should be consulted about the disposition of the reserv the wit- ness maintained, although Roberts | took the opposite stand on the matter. Fall did not express doubt as to the legality of the bids, Robison said, but | he did express doubt “as to the gel eral belief in_ their legality,” whi might have the effect of decreasini the bids. Doheny Letter Read. Doheny's letter of November I8, 1921, giving an_estimate of the cost, was referred to by Robison at a meet- ing of the Navy council a few days later, to the effect that all he would have to do would be to approve the contents ““and we can get the tanks built.” This was read to the witness enographic re- after Robison failed to recall whether he took the letter there or not. The letter was accompanied by one from Fall which sald the Government would have to turn over additional leases for the work. “apt. Robison volunteered the information that he did not approve the letter with his initials. While this matter was being dis cussed at the council Roberts read from the notes that Denby stated that Fall told him “if we don't tackle it now we won't get any three months fron. now. They are gettng 4,000 barrels a_day from the wells now.” Robison did not recall Denby ng this at thit or any time and added, “It wasn't true so far as the reserve oil is concerned.” Over the repeated rapid-fire ques- tioning of Roberts that the Doheny letter of November 28 clearly sug- gested a bid at that time from the Pan-American Co.. the witness insisted with emphas.s that he did not regard the communication as conveying that impression to him. ; Likewise, the witness denied having told Fall that Doheny would submit a bid prior to his conference w:th the oil magnate ir_the middle of De- cember, 1921, at which time an agree- ment to submit figures was reached. Then Roberts asked the witness if, asking ' Doheny to submit a bid, he had taken the matter up with Con- gress, with the naval affars com- mittee, or any other person, to which the witness replied he had not. “Then you and Denby and Doheny assumed the policy of the United States on this?” “No," replied Robinson. Recalls Naval Conference. While these events were happening in the latter part of 1921 Roberts asked the witness if he was aware at that time of the conference on reduction of naval armaments and negotiations for a four-power treaty being in. progress. Roberts cited the dates of the conference and the dates) the arms and four-power treaties were signed early in 1922, around the time | the first contract of April 25, 1922, for | the erection of the Pearl Harbor tanks | was signed. The witness stated he knew all of the dates and facts as they occurred at that time, and also | that all powers interested in the Pa-| cific were in attendance. When the contract was made, in 1922, Roberts asked the witness if he still felt this urge of national de- fence. Robison replied the urge was still on him at that time “and is} now.” “Again in December 22, 1922, you wanted to get more storage facilities at Pearl Harbor,” Roberts said. “You | had plenty of time then to get the| matter before Congress, did you not?” “Yes,” replied Robison. “‘but I was the Secretary of th> Navy. Turning to Bains’ Westward trip to confer with oil men in 1921, Rob- | erts asked Robison if he did not know | then that he had a man who would | do the work at cost. Receiving an | affirmative reply, the Government| Bain then that there was no need for him to go West. “I wanted to get the best proposition for the Navy,” Robi- | son replied. ‘Witness Denies Fencing. Several clashes occurred between | the witness and counsel over the | question raised as' to the legality of the leases bv various of the oil com-, panies. Robison had great difficulty in recalling just how many concerns regarded the Pearl Harbor construc- tion as legal. “Don’t fence,” Roberts said sharply. “I'm not fencing,” the witness re- plied. | ‘When Roberts read from previous testimony to the effect that the Asso- ciated General Petroleum and Stand- ard Companies had regarded the work | as illegal, Robison ‘“recollected” that he possibly knew of three companies which did not wish to go into the plan before the Elk Hills and l"?arll Harbor contracts were made. He also sald that he did not want the Union. &N Company to go into the work be- cause it was a partly owned British concern. In reply to other questioning by Rob- erts, who frequently refreshed Robi- son’s memory by reading from the records of the Los Angeles trial and the Senate hearings, the witness ad- mitted that he knew the Standard Oil Co. would not bid on the construction. Roberts then asked the witness about conferences he had had with Fall regarding the cost plus matter when _invitations to bids were issued in February. He again refreshed Rob- ison's memory by showing from the records the naval officer not only had conferred with Fall, but also with Bain. Robison added that he might have talked the matter over with the chief of operations. Conferences With Doheny. The cross-examination diverted then to conference tha: Robison had had with the elder Doheny in New York at he home of young Doh:ny. Rob.- son recollected that he had discussed the circumstances of what he termed the Navy’s necessity and reasons for wanting to accomplish the Pearl Har- bor work. “And Doheny told you then that he was still going to make a bid,” Rob- erts prompted. “I don't think so,” the witness re- plied. At this point Robison recalled an- other time he had seen the elder Do- heny in New York. “Once I took dinner with Mr. Do- heny in New York: it was either Christmas or New Year, in 1921,” he said. “At any rate, it was at th Ritz Hotel, because I recollect I did not have to pay the bill. I can re- member that, because Doheny had to pay a big tip to the waiter.” He said he did not discuss any naval oil matters with Doheny at this party. Before Fall went to New Mexico in April, 1922, he told Robison he was afraid he would not get any satisfac- tory bids, to which Robison replied he knew ‘“one good bid” would be re- ceivzd from Doheny, according to the latter’s promise. Roberts then referred to Falls’ let- ter to the Navy Department of April 13, 1922, suggesting an attempt be made to g°t congressional authoriza- tion whereby naval royalty oil could be sold for cash and the funds em- ployed in constructing the tanks. The letter added that Fall was “holding up the bids” pending a reply from the Navy. Quiets Fall's Remarks. “How could he hold up the bids ~hen they had not been received, or were not due to come in until April 57" asked Roberts. The witness' orly explanation was tnat Fall might have been planning to_hold them up. When the bids were opened and Denby was shown the Pan-American proposal, Robison said, he made this remark: “This doesn’t mean any- thing,” and added “that if that pro- posal cannot be consummated public competition could be entered into.” Then followed a_discussion between Mr. Roberts on the to No. 1 reserve, which Doheny had asked in return for constructing the tanks. The witness be fused more than once, and confessed: “1 didn’t know much about that preferential , right business.” However, at the time he recalled hav ing said the Doheny proposition look- ed good to the N When Jo seph J. Cotter, attorney for the Doheny company, remarked it was t S0 very important to his concern, H. Foster Bains of the Bureau of Mines, and who played a prominent n the contract and leases, “joshed him” for taking such a stand,” Robi- son testified. 0 Roberts pressed the witness regard- ing various changes suggested during the negotiations before Finney ac- cepted proposal “B” of the December 11 contract. “When was it Cotter w re: Pt up to vou that nted a lease on the whole serves?” Rober ked. Robison_replied that it was that week of December 11 and was em- bhodied in the supplemental bid. “In Aprfl,” said Roberts, “I undes- stood you to say that you did not un- nd the re lue of the prefer- al right privilege.” did not then, “And yvou don't snapped. Proposition Agreed To. Robison replied. now,” Roberts The witnes lieved the pre id that Dr. Bain be- ential right clause would be of value to the Government, worth about 5,000, the difference between the two bids. Neither Bain nor Finney mentioned dollars and cents to him, he said, but both agreed to the proposition in order to accept the lower bid. “If any one offered you a bonus of #500,000 tor that preferential right, would you have accepted it?” Roberts isked. “Yes, I would,” Robison replied. He declared he estimated it in- volved a gross saving to the Govern- ment of $500,000. Roberts referred to the Fall memo- randum of October, 1922, in which the Interior Secretary said he was favorably disposed toward the pref- orential rights agreement. He read from the record D. C made a memorandum to the effect that this proposition was brought to his attention originally by Fall. Fall thought of it very favorably, the memorandum stated, and_suggested that it would benefit the Navy. He could not recall whether Fall brought this matter to his attention in per- son or by letter. 4 “Didn’t Fall tell you that Doheny had told him that he was very much concerned over the ofl situation?” asked Roberts. Robison replied that he thought so. “And didn’t Fall communicate to you that he thought that this was a matter of a time of taking advantade | of Doheny’s necessity?” Robison replied that he thought it meant “we could profit out of Do- heny’s necessity.” Witness Flounders. “How could you do that?” Roberts acked sarcastically, as the witness floundered. The Government counsel pressed the witness with regard to anything having been said to him as to how much profit Doheny might be expect- ed to make out of the contract. “The December 11 proposition was purely a business affair,” replied Robison. “In other words, then, it was not a patriotic offer?” remarked Roberts. “I never regarded it as having been inspired by patriotism,” answered the witness. Going Into matters connected with the contract, Roberts asked the wit- ness if he had not reported to Denby that the Doheny company would be paying about $1,600,000 to do that work. The witness replied, ves. Roberts read from the record to show that Robison knew at that time that the December 11 proposition was founded on a prior right to the future naval reserve leases. Roberts then produced the letter of November 6 from Doheny, which had been found in the safe of the Bureau of Mines after considerable search by the Department of Interior officials. The letter was not officially stamped and contained figures of W. H. Ander- son, president of the Pan-American Petroleum Co., used in estimating the work at Pearl Harbor. Robison admitted that these figures had been used in connection with negotiations. Treated As Secret. “Was that paper treated as secret in character by the Interior Depart- ment?”’ Roberts asked. “Yes,” replied Robison. Mr. Hogan at this point interrupted to say, “Mr. Fall never saw it.” “In other words,” said Roberts, “the question of making a lease with Doheny was treated as a secret?” Robison maintained that only the figures were not disclosed, and that they had been produced at the nego- tiations. 4 Mr. Roberts questioned the witness at some length regarding the prefer ential right clause, and Robison ad- mitted that there were two negotia- tions leading up to the December 11 contract, at which Doheny was pres- ent. At these conferences the prefer- ential right matters were considered. Roberts brought out that the origi- nal offer included a 10-year period, during which the company was to re- ceive Government royalty oil. In the confract, as awarded, this period was_increased to 15 years. “How was that raised from 10 to sked Roberts. To get a better deal for the Gov- ernment,” the witness replied. Slow in Answering. During the cross-examination the witness was slow in answering and Roberts at one time interrupted. “Let him answer,” -urged Mr. Hogan. “Oh, I'yn not going to cut him off!” replied Roberts, “Don’t get nervous.” Robison answered in reply to ques- 15 tions that the Navy got better royal-| s a result of the extra five years' right given the Doheny com- tie prio pany. Mr. Roberts pressed him closely ahout conversations leading up to th additional five years' concession. “You didn’t sctually get any in- creases, did you?” he asked. “Not all 1 asked for,” replied Rob- ison, “but in the long run we got an increase of about 3 per cent.” “Did you know exactly what the preferential right did cover during these negotiations?” asked Roberts. Robison replied he could not recall THF EVENING STAR, WASHINGTO! MONDAY, DECEMBER —_— e e son’s showing the naval officer had | 6, 1926. MELLETT MURDER JURY BEING PICKED McDermott, Accused of Slay- ing, Denied Rights, Counsel Says as Trial Opens. By the Associated Press. COURTROOM, CANTON, Ohio, De- cember 6.—Patrick Eugene McDer- mott, charged with the murder of Don R. Mellett, Canton publ'sher, July 16, went on trial for his life here today. Judge Edwin W. Diehl presided. Immediately on open‘ng of court E. L. Mills, Canton attorney, counsel for McDermott, took the witness stand and, under examination by Homer C. Durand, Coshocton, his associate counsel, testified that his attempts to interview Steve Kascholk and Peggy Cavanaugh, the State's star witnesses, had been thwarted. He contended that McDermott had been denied his con- stitutional rights in this respect. Start Selecting Jury. Prosecutor McClintock ~contended the State Supreme Court has held that defendants in court can be barred from interviewing State's witnesses. A motion by the defense that it be permitted forthwith to interview Kascholk and Miss Cavanaugh was |overruled. The court then proceeded with the selection of a_jury. McDermott's counsel said he would | deny all knowledge of the murder, and | acquaintance of those alleged to have | originated the conspiracy—Ben Rud-| ner of Massillon and Louis Mazer of | Canton, McDermott’s co-defendants— | who are siated for trial later. 1 The State seeks conviction of Mc- Dermott_on the theory that he was employed by Canton’s underworld lead- ers to take part in the plot against the editor, who was shot at his garage door. Two Venires Likely. | It is expected that two venires, each of 75 citizens, will be necessary will take at least four days. The State's star witnesses are Steve Kascholk, first informer against Mc- Dermott, and Peggy Cavanaugh, a friend. Kascholk claims to have back- says he and McDermott were drawn. According to the investigators, Kas- cholk also involved Rudner. Miss Cavanaugh is held as a wit- ness because it is claimed that she is able to establish a connection be- tween McDermott and Rudner, who is regarded as the “‘pay-off.” Brothers Reach Court. | About the time selection of the jury {'was begun, Thomas and Bernard Me- Dermott, “Pat’s” brothers, who sur- rendered him to the anthorities on Oc- | tober 24, thus ending a three-month search, entered the courtroom. In | view of their arrival, Judge Diehl | held in abeyance his ruling on the de- fense’s application for permission to take their depositions. Defense counsel had contended the brothers, at the prosecution’s instiga- tion, would not come to Canton. Their arrival from Pennsylvania made them subject to subpoenas as witnesses. Twelve prospective jurors had been examined up to noon, two being dis- missed because they said they have formed opinions from which they can- | not be dissuaded; two because of ad- lies at the point of death and two be- | cause of challenges by the State. | The defense has not made any chal- lenges for cause. After the tempo- rary panel is arranged the defense it exactly how much of the reserves| they covered, but added, “I knew then.” Roberts referred to testimony of the witness at the Los Angeles civil suits and precipitated a sharp clash with Mr. Hogan. He asked if the witness had mot said “the more they get the more we get.” Robison asked if he was reading from the record. Court Recesses for Lunch. “Well, I am not forging any testl- mony,” Robert retorted sharply. Mr. Hogan sprang to his feet and inter- jected that the remark was uncalled for. After further questioning about the terms of the contract and matters leading up to its negotiation, court testimony of Robi- recessed for lunch. > DA o TOEDTETROOEOEDECE Safe Milk for Babies @ Produced in Co-operation with Dr. J. Thos. Kelly, Jr. For those tender years, when he#ith means so much in the development of strong bodies and keen men- talities, you owe it to your youngsters’ future to safe- guard their health with a proper diet, the most im- portant element of which is milk. And the safest milk for babies is our Holstein Nursery Milk. b P | 1 black jersey. entitled to 18 peremptory challenges and the State to 4. Throughout the morning session McDermott, sleek-haired and smiling, watched with interest every move of the court, attorneys and spectators. He conversed frequently with his counsel, Attorney Mills, Homer C. Durand, Coschocton attorney, and James Emsley, Canton lawyer. .. Strict precautions wete taken in the courtroom to prevent any disturbance. Nine special deputy sheriffs guarded the courthouse at strategic points. $25,000 LOSS BY FIRE. Blaze Explodes Dynamite in Ware- house Near Seattle. SEATTLE, Wash., December 6 (®). —Fire today destroyed the main ware- house of the Erickson Mercantile Co. at Bothell, 23 miles north of Seattle, after threatening to burn the town when dynamite stored in the ware- house exploded and spread flames. Loss was estimated at $26,000. A Seattle fire brigade was sent tu aid the Bothell Volunteer Department. Residents of the town of 1,000 turned out to fight the fire. Own Your Own 8 CRAZED MAN KILLS WIFE AND WOUNDS TWO IN ROW Declaring afterward that he hac been crazed with corn liquor, whick he said, was given him by relatives. Douglass Grifin, colored, 24 yean old, yesterday afternoon ran amuck with a loaded pistol, and while em- broiled in a fight at his home. 113% Sixteenth street northeast, shot and killed his wife, Rosle Lee Griffin, 22 years old, and seriously wounded Parthenia Green, 23 years old, and James Peyton, 42 years, all colored. Mary Todd, colored, of 1153 St=. teenth street northeast, attracted by the affray, disarmed Griffin, who fled down M street. F. W. Becker of 3481 Holmead place, a former police man, seized him and took him to the ninth precinct police station, where he was held on a charge of murder. The three victims of the shooting were taken to Casualty Hospital. Griffin is said to have admittel t Policeman Henning of the ninth pre cinet, who investigated the case, that he had fired the pistol while strug gling for possession of it with Peyton and his wife and blamed his act on liquor. The fight started, police learned, when Griffin accused hi~ wife of hiding the pistol from him. 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