Evening Star Newspaper, December 14, 1926, Page 5

n HOGAN OPENS PLE \ FOR O DEFESE U. S. Counsel Accused of “Vicious Vilification’ of Doheny and Fall. & £y vi (Continued from First Page) say that it is all right for Government officers to do the things we have heard done here.” Upon the conic argument, Frederic York will follow, provided Mr. Hogan Jeaves sufficient time. 1f the Doheny counsel uses up more than his allot- ment Kellog will drop out and Mark B. Thompson will follow and Wilton J. Lambert will close for Fall. Allow- ing at least an hour for Justice Hoeh- Jing's charge to the jury, the case prob- ably will be committed to the 12 men some time tomorrow afternoon. Mr, Hogan said that Roberts had re- ferred to the different types of wit- nesses for the defense and had ca tioned the jurors to study the ind viduals and the extent of interest they Yiad in the case. *I take the test,” he declared, “and T stand or fall for E. L. Doheny. You look upon him and if you believe Doheny the case ends. 1t you believe what Mr. Roberts said, believe that he is a cheater, a swin- dler, and a briber, then belleve it! For the purpose of political power they cruclfied Him, the Man who stood at the bar 1920 years ag Bribery Charge Ridiculed. Mr. Hogan asked why Doheny should hold any suspicien against Fall when the subject of a loan was made or why the question of dishonesty should enter into the transactions. He riticized Government counsel for “‘switching” from the possibility of Doheny's sending a check, to the plan of the magnate in merely calling Blair & Co. in New York and asking that house to transfer the sum to Fall's ac- B in the Riggs' National Bank here. Mr. Hogan said that even if a check had been employed in the transaction 1he only record of such a check would have been the original instrument and in the interchange of funds as it fAnally, worked out, the promissory note ‘siovd as evidence. *Is it common sense to Lelieve that & man who is bribed gives a note to the briber?” “Mr. Roberts sald yesterday he would tell why they wanted to keep the transaction hidden, for if it had become known it would ruin them,” continued Mr. Hogan. “Before the ccho of that stzrement had gone out of this courtroom, Roberts said Do- heny had demanded a demand note.” He then read Mr. Doheny’s testi- many at this trial, in which the wit- ness stated that it was not his idea to take a demand note. Mr. Hogan then commented: “For the prose- cutor to forget what was sald & few ago is nothing, but it's ter- rible for Ambrose or Denby not to remember everything that was sald five years ago. Then Roberts said Doheny wanted to hold this note as a whip over Fall's head,” continued Mr. Hogan. Defends Mrs. Doheny. “Have you ever heard anything more preposterous in your life? That’s the tortuous channel of so-called of Mr. Hogan's Kellog of New through the courtroom to the prison cell,” he shouted at the top of his Referring to ‘the mutilated note, Hogan quoted Roberts as being un- willing to believe the défense reason Zor its being torn, and then added, “We've always been taught to argue conclusions drawn from the evidence and not to tell what we think about it, as the jury doesn't care. But that's ‘why 1 said a while ago this case was #0 desperate that they would put the stamp of a lle upon Carrie Estelle Doheny. I can forget the attack on Ambrose, on Denby, but I cannot overlook, and I won’t overlook, the, impeachable integrity of a woman : did nxxr:mmn-enmlna: A man in cou: yesterday said she lied! Mr. Hogan yelled, his face al- most purple. “He ‘didn’t use that language, but he said so. Iam willing to admit that the wife's interest is more vital than the husband’s. Tell me by your ver- dict do you believe her story? *Is it true or is it perjury? Are Doheny and his wife perjurors?” de- wanded Hogan. “Is there a man among you who could so far forget your mothers, your sisters and wives as to follow such a charge and such an argument erring to Mr. Roberts’ declara- tion that Doheny’s Senate testimony 4id not conform with that given at this trisl, Hogan detailed the story as he saw it. He said Mr. Doheny walked into the committee room with- out any subpoena or’' compulsion whatever and stood before a commit- tee seeking, “not facts, but scandal,” and then related his knowledge of the affair. Disclosure of Names. Mr. Hogan quoted Roberts as say- ng that Doheny rushed across coun- try because Fall had sent him a 1elegram saying names will possibly be disclosed, and then he read from iBe telegram itself, which stated: “Names not necessarily disclosed.” ‘Roberts’ version of the message Was given from memory at the time, he explained, and was not the exact wording. i Doheny’s appearance was a ‘“coura- geous” thing to Go, Mr. Hogan con- ihued, telling the jury that a man who lends a friend ‘some money and publishes it widly is not a very good Tgend. ogan audmitted that Doheny made ai mistake “that he shouldn’t have made” in not disclosing everything, but he attacked Government counsel £4r not mentioning that Doheny was agecompanied by a lawyer and he fol- attorney’s advice in his B This referred to Doheny’s ing that he did not have the Fall te, which later was explained as bhving been on his person at the tfine, but without the signature. Mr. an shouted to the jury that the per wasn't a note then and still is npt, without the signature. He added 184t the Government closed its case thout produsing the signature, which was at its disposal. i, Stocks Given as Security. ‘Hogan then shifted to'the stock which Doheny’ had testified Fall had offéered him as security on the loan in | 1925. These stock certificates, Togun contended, were given Doheny . time when the only indictment sfunding out against them had been auashed. e :nded that Roberts’ sgatement that the ranch stock was igdorsed in blank without a date had aring whatever on its legality. “fYou don't date a transfer of stoclk n you indorse it in blank. Thou- ds of such trunsactisis occur gy in_the murket, indorsed in Wank,” Mr. Hogan told the jury. “When you indorse it in blank, law ond business procedure require you to leave the date blank so that the man who holds it can fill in the date when it is necessary,” Mr. Hogan added.” He also ridiculed Mr. Roberts’ statement that the,value of the stock was not printed on its face. The iovernment counsel’s only reason for <0 arguing, he declared, was to lead the jury into believing that it was worth only $£3,300 as security onu $100,000 loan. 4 “The uncontradicted ock that behind the st was evidence is property v valued at between six and seven hun- dred thousand dollars and that means that this stock, representing one-third interest in the company, was worth between’ $150,000 and 000,” _sal Hogan. Even by deducting the $100,- 000 mortgage which Doheny learned was attached to the property, the de- fense attorney contended the ranch holdings were worth $500,000 or more. “The charge in this case is not bribery,” Hogan declared. “If it is pos- sible for you to belleve the unbelieve- able, that this was a bribe transac- tion, that would not justify you in rendering a verdict of gullty,” h added. “This is not a bribery, but a conspiracy case. The loan has moth- ing to do with this case unless you find the particular conspiracy, which is the only charge that is being trled here. Declaring that the law holds that a defendant can be tried only on the thing charged in_the indictment, Mr. Hogan then real the indlctment to the jury to substantiate his statement that bribery does not enter into the charges. He asserted that what the jury was supposed to determine was whether consplracy had been entered into be- tween July 1, 1921, and December 11, 1922 “If, beyond a reascnable doubt, the Gevernment proves there existed that sort of agrcement, then it is the duty for the jury to convict,” he said. It the conspiracy ie not provel, then it is the duty of the jury to acquit the defendants, he reasoncd. What Government Asiss, What, in effect, the Government was asking the jury to decide, Mr. Hogan declared, was whether it should belleve that Fall and Doheny in No- vember, 1921, the year the loan Was made, knew that a year later they were golng to bave the approval of the Navy Department's war plans to construct {anks at Pearl Hx_!'lx)r in consideration for a lease. “You can- uot believe that?” Hogan To substantiate the defens tention that such plans wes unknow when the loan transaction was mad Mr. Hogan said Secretary of the Navy Denby was called 28 a witness. “And you saw the Government counsel treat Denby like a pickpocket in a Police Court,” he declared. Bitterly denouncing Roberts’ description of Denby as “a fool, a_man unfit for public office and a rubber-stamp offi- clal,” Mr. Hogan made a stanch de- fense of the former naval Secretary. He impressed on the jury that Denby was a man who had been honored by Deing elected to Congress and who, “when the dark clouds of war broke over the country,” enlisted as a private in the ranks of the Devildogs. “And this man, who had been hon- ored in public life, who fought for his country, who had a record which no lawyer can destroy and Which no lawyer in this case can match, was treated here as a common pickpocket.” Again Attacks Roberts. Mr. Hogan renewed his attack on the Government's case in general and Mr. Roberts in particular when the afternoon session began. He charged that the Government had withheld | many valuable papers in the case, valuable to the defense and which would have remained in the files had not the defense forced them out. He declared it was the Government’s duty to give the entire truth and added: “When did it become the fash- fon in this country to ask that a man be branded as a convict by a Gov- ernment that withholds from a jury the story of what, the GSvernment's own officers did? Why dldn’'t they indict some of the officers instead o just these two? “I had to literally into my arm- pits for the Government papers to put the truth before you.” The defense counsel maintained that had his side not opened up with their case and withheld nothing “‘they would have let this case go on half the, truth.” Taking exception to Mr. Roberts’ characterization of former Secretary of the Navy Denby, as being “a rub- ber stamp,” Mr. Hogan said that when Denby took office he learned that 4,000,000 barrels of oil had been sucked from No. 1 reserve by out- side companies “while the supine former Secretary of the Navy, Jo- sephus Daniels, came here for two minutes to say he had done nothing. Defense Policy Cited. Hogan cited to the jury several Jetters that had not been produced originally by the Government, but which had been injected into the case through the defense effort. One of these, he declared, exposed the de- fense clalm that Fall had not con- sulted an official of the Union Oil Co. in connection with the Pearl Harbor projects. Mr. Hogan said this letter was written September 14, 1921, from Fall to President Harding, outlining a plan to exchange royalty ofl for storage facilities on the Pacific Coast, SCHOONER ON SHOALS MUTINY THREATENED Coast Guardsmen Return for Arms After Captain Refuses to Let Them Aboard. By the Associated Pres: WILMINGTON, N. C., December 14.—The schooner Charles A. Dean, loaded with creosoted crossties and en route to Baltimore from Savannah, Ga., is ashore on Frying Pan Shoals and the officers are threatened with mutiny by the crew, according to re- ports received here today. A telephone message from the Coast Guard to H. V. Stone, head of a local towing company, sald that the cap- tain refused to permit the guards- men to board the vessel because of the mutiny. The Coast Guardsmen had returned to their station for arms with which to force their way on board the ship, Mr. Stone said. Soon after the schooner was rg- ported to have gone ashore with a heavy gale blowing four tugs from Wilmington and Southport _started full speed for the scene. The tugs were under the command of Capty L. D. Potter, owner of a flect of fug- boats, and were expected to reach the distressd_ship soon after noon. Capt. Potter sald he received the call for help from a Coast Guard sta- tion near the point at which the ves- sel went ashore. The Charles A. Dean is an 1,100- ton vessel. AR SRR $100 BUYS FIVE CARS.. Autos Seized From Bootleggers Sold at Auction. Five dilapidated automobiles seized |fl<um bhootleggers brought less than 18100 at auction today, when 50 men | wa.ted in wud ankle deep in a vacant lot at 50 Tlorida avenue to make their bids, The automobiles were sold by Ralph A. Weschler, auctioneer, for the United States marshal. The cars offered for sale were in poor condi- tion, many of them lacking a complete set of tirés and others with battered and torn bodles. The average price of the five machines was $17.60. e Mrs. Vaughn Seeks Divorce. THE EVENING lwhlch had been referred to the offl- clal in question. i Another letter the Government failed to produce, Mr. Hogan sald, was the one of November 3, which Fall had written to Edward B. Mc- Lean, suggesting that he buy the adjoining ranch to his property in New Mexico. Mr. Hogan also mentioned the checks Mr. McLean gave to Fall and explained that the publisher, although finding it inconvenient to make the loan to Fall, nevertheless insisted upon doing it. After Fall had found he could get the money from Doheny he returned the checks, Hogan sald. These facts, together with the letter Fall wrote on November 3, occurred at the time Government counsel says for the money, Mr. llogan declared. Resumes Argument Today. Mr. Roberts picked up his argu- ment this morning where he had been halted yesterday evening at 5:30 jury he wished to discuss, “the silent Witness In this case—Mr. Cotter, an employe of the company and an CX- employe of the Interior Department.” Described as being Doheny’s “con- fidential agent,” Mr. Roberts said he has been “in this case, in every trans- action In every phrase, and knows more about it than anybody else.” The Government prosecutor said he spent last night in plcking out of the record Mr. Cotter's movements ! throughout the entire proceedings and found he figured in them ‘“almost every day. He then cited Mr. Cot- ter's movement in detail, referred to letters he had written, conferences he had participated in, ahd trips and visits. “He's present throughout everything in this case and vet he doesn’t come before you,” Mr. Roberts declared. “IWhat is the reason? The only one is that his testimony could not be satisfactory and would not convince you and would not advance cause. You make ask yourselves how often he was in conference with Fall. Cotter was the one man who did the | negotiating, and of all people he is the one man you are not permitted to | hear. They go all the way to Los Angeles for a witness and yet they don't bring Cotter, who is 20 - feet away.” Reads Prayers to Jury. Mr. Roberts then informed the jury he would read but two of the prayers granted the Governiment yesterday, and in so doing they would not he read again by the court. He then read the first of the two, which instructed the jury to look to the interest of the respective witnesses in the case. The instructions added that where one witness has the greatest interest the temptation is strong to color it in his own behalf. “The deep personal interest he may have in the case should be considered y the jury as to what extent it is worthy of credit,” the prayer con- cluded. - “‘With ‘that law in mind, and it is the law of this case, turn to the testi- mony Mr. Doheny has given. May it not be taken for granted that he is an able, clear-headed man, who is able to handle himself perhaps greater than you or I or any one in this courtroom? Compare his Senate testimony with what he said on the stand here. In the Senate testimony he wiped out everything prior to January as being Ilha first he had heard of the Pearl Harbor plan. Here, it was important to his case, to say it was in October and November. It is absolutely con- tradictory. Which do you believe? Isn't it your duty to cross it all off and say that you cannot give credit to either statement? He says the most incredible thing you can imagine here; he says he is a perfect fool about the preferential right, that he dgesn't understand’ it. “Yet he goes before the Senate and vxplains exactly what it is. Has he colored it? " Question of Using Cash. Why did he send cash from New |, York to Washington? Senate he 8 he cannot re: member whether . Mr. ¥all asked him to or not, und why did he not make the matter public? He said he was not prepared to answer it at that time. Now he says Fall re- quested it in casn. Mr. Doheny drop- ped a fact on that stand about hav- ing to have cash in New Mexico for the ranch transaction that negatives the whole thing. He sald ¥all told him he was going to stop in El Paso. Yet Fall takes $100,000 in bank notes with him all across the country. EIl Faso Is no small place. They have big banks there. There’s been talk about no banks around Three Rivers, yet the ranch transaction was made in the very shadow of these big banks in El Paso.” “We ow mnow,” continued Mr. Roberts, “why Mr. Doheny went be- fore the Senate committee. They had gent a committee to Palm Beach, and when the truth came out that Mr. Mc- Lean hadn’t loaned the money Ifall sends a telegram to Doheny saying that McLean will be examined and possibly names will come out. Doheny jumps on a train in Los Angeles and ¥all moves his base to New Orleans, where they meet. Then Doheny comies to Washington, so that he will forestall the committee’s finding from some other source. He comes and pre- varicates about the note. He conceals and admits the facts because Senator Pittman was not pelite to him. It isn’t politeness when you are under oath to tell the truth, the whole truth and nothing but the truth. But he gave the committee to understand he cashed his own check. When driven to the truth he said it was ‘my son's’ check. But not until the bank began to crumble and the gravel began to fall did he make such disclosures.” Finds Unsecured. gading fro Senate testimony Roberts declared that Doheny had re- fused to. accept any security from Fall and testified that Fall had not spoken to him about it. “From that day to this not a dol- lar of interest, or principal has been paid, nor have they been once dis- cussed,” sald Roberts. - “In order.to make this loan appear innocent, Doheny produced here stock given him by Fall in 1925, four years after the loan transaction.’” Roberts declared that the stock had only a par value of $3,300, indorsed in blank by Fall and bearing no date. The only testimony glven to substan- tiate this transaction was Doheny’s. The Government counsel empha- sized to the jury that Doheny admit- ted he does not know who the other stockholders are, although he is sup- sed to own one-third of the entire The $3,300 mortgage, repre- senting & third interest in the Fall ranch holdings; “he stressed, was se- curity far.a .$100,000 loan, though Do- heny had testified the Fall properties were worth ‘- between $600,000 and $700,000,- he -thought. Jury Asked to Judge Motive. wIhat is intended to fmpress upon you that this was a bona fide loan, hecause, in all these things had been disclosed, Doheny pulls out this $3,800 worth of stock. It is intended to clothe the loan in innocenge, to prove it was bona fide and made in good faith. tended to be swallowed by you as a proper loan. You must judge for yourselves whether that sort of thing appeals to your common sense, your common reason.” Mr. Roberts attacked Mr. Doheny's testimony before the Senate commit- tee in which the oil man declared the loan was not: }ikely to make Fall more favorably disposed toward his com- pany. Yet on November 28, 1921, Doheny Before the My, Clara O. Vaughn today fileflwag in touch with Fall either person- suit for an absolute divorce from Wal- ter E. Vaughn, alleging crueky and misconduct and naming a co-respond- ent. They were married October 10, 191¢, and have two children. Attor- ney Needham C. Turnage appears for the wife, . : ally or through Cotter from begin- ning to the end, Roberts declared. De- spite this fact, he criticlsed Doheny’s alleged lack of memory before the Senate committee when he was ques- tioned about the plan. “The plan of November,” Roberts Pam—— ey Fall was telling Doheny of his need o'clock for adjournment and told the, their | It s in-' STAR, WASHINGTON, sald, “shows Doheny was interested in leasing certain ofl lands.” But Doheny could “not remember which lands, although Anderson, the president of this California company, had helped him prepare the memoran- dum. . Retirement of Fall. Roberts also attacked Doheny’s tes- timony before the Senate in which the ofl man said he had never discussed with Fall the probability of the latter's retirement from the cabinet. Doheny’s testimony at this trial, he contended, directly contradicts his Senate testi- mony and shows that the oil man 1did _discuss these matters with Fall “When a man fixes his testimony i to fit the exigencles of his case, what would you sa: demanded Roberts. “Wouldn't you say, ‘I don’t belleve any of it'? “And, on top of it all, take Do- heny's testimony regarding this loan to Fall. Does it not appear to your common sense that if this transaction was open and above board, Doheny ! would have been as happy as a flower in May to have you know all about it?” demanded Roberts. “And then take Fall's attitude,” the attorney said. “Albert B. Fall knew that $100,000 was a dirty business. He knew it would not stand the light of day, that if the facts became disclosed it would i bring down upon them public con- demnation. “And what does he do?" Roberts asked the jury. “He goes to Atlantic 1 Clty and tells Edward B. McLean I that his political enemies are bedevil- !ing him and asks his friend if he would not say that he had loaned the | money to:him. “And McLean, foolishly, I think, sald, Yes, he would.” Hotel Conference Cited. Roberts then referred to Senator Lenroot's visit to Fall at the Ward- man Park Hotel at which the Sena- | tor urged him to disclose where he got the reported loan. Roberts de- i clared that only when pressed for the | i Information” that he told Lenroot he hiud obtained it from McLean. “Why that lie to his friends, to men who were trying to help him, who would have helped him if he had been willing to teil the truth?” de- manded Roberts. Then the Government counsel re- lated that Fall had expressed his in- dignation in a letter to the Senate committee about the investigation and what he declared was a private trans- action. This letter, the attorney de: clared, went at great length into o de- scription of Fall's properties and his | need for the Harris ranch. The at- torney stressed that Fall had written the Senate committee that “the gen- tleman from whom I obtained the cash, was Edward B. McLean of Washington.” 1In this letter Roberts read to show that Fall also had told the Senate committee that in the pur- chase of the Harris ranch he had nev- er approached Doheny or @ny one con- nected with his company, or had he ever approached Harry F. Sinclair, “nor had he ever recelved from either of the two 1 cent, or anything else for oil leases."” “What was his excuse?”” Roberts de- | mandet. “He stressed that the letter to the Senate committee was not written under oath and that his only excuse was that he did not want the facts disclosed.” Attack Veracity of Letter. “In that letter there were at least three falsehoods,” Mr. Roberts said. He added that after McLean had tes- however, “the bubble had Roberts declared that it was only at this trial that the Government had succeeded in putting on Fall’s own son-n-law to show that he had obtained the cash from Doheny. In view of Fall's contradics timony. Roberts asked the jur eould give any credence to the former Secretary’s statements. + ¢ ‘Hesshowed that_le dated No- vember 28, 29 and December 16, all in 1921, proved that Doheny had made a proposal te get the yleaees and that Fall not only knew about it, but help- ed him. “What do you say as to the falr- ness and openess of Fall?” he asked the jury. “He was in these negotia- tions. In them always, with his hand on the lever when there was a de- cision to be made in which Doheny was interested. Clever, clever beyond belief, always with an alibi, either at Three Rivers or with a lstter or a document.” Fall's Letter to Robison. After the royalties at the December 8 conference had been agreed to by Robison, when Doheny got mad, Mr. Roberts continued, Fall wrote an “glibi letter” to the admiral advising him not to accept the royalties unless they were satisfactory. These roy- alties had been worked up by Full and “he knew Robison had been back- were ever investigated this letter would be pulled out of the files show- ing it was all up to Robison and that Fall had nothing to do with it.” “The Government's proofs are not faulty, fallacious or based upon fail- ing memory of individuals,” Roberts declared In referring to what the Government had done in this case. “The Government's proofs are black and white things that men put thelr pens to and they can’t be altered. “What has the defense offered by way of proof? Nothing but excuses or - explanations or forgetfulness. They say that letter of November 28 was not a bid, it was an estimate, Bain says'it was an estimate, and Robison, just a trifling thing. Noth- ing but explanations, excuses and at- tempts to change. That little relief lease would not give enough royalty oil to build a chicken coop. They bid 55 per cent for it, they bid their heads off to get into that reserve, and then they give them lcases for only 12; per cent to 25 per cent. A fine way to do business.” " Second Prayer Is Read. Mr. Roberts then read the second prayer which hud been granted and The Best Homes : : are Breuninger Homes See Them Before You Buy @ » HEPHERD Sample Houses No. 7546 Alaska Ave. N.W. and 1340 Hemlock St. N.W. containing 8 rooms, 2 baths and 2 car garage. Open and Lighted Daily Until 9 P.M. Drive out 16th St. to Alaska Ave., on to 13th St. | but written documents and Doheny’s D. referred to reasonable doubt as a basis for conviction. I After he had concluded he asked the jury: “Gentlemen, what reasonable doubt have you? Do you doubt Do- heny’s own word? Do you doubt Fall's own admission to Chase? Do you doubt the transaction of $100,000 be- tween Doheny and Fall? Do you doubt that Doheny realized he knew | it would make Fall favorable to him? Do you doubt that Doheny’s proposi- tion was a purely business proposition when he sald s0? Do you doubt his swn statement tHat he wanted to make his company a great company? That his oll lands were not producing much? Do you doubt his statement that he expected to make a profit of $100,000,0002 Do you doubt the bid was made without competition? What do_you doubt? ¥ Don’t take this case from anything testimony from the witness stand. “Where do you get your doubts they are not from sympathy or nuity of counsel?” The prosecutor told the jury the value of a good repufation, adding that in many cases it is the refuge a person has who been wrongly accused. But he attacked the charac- ter of a trusted employ who would make a private transaction with a per- son having business with his employs and when the benefit went to the pri- | sate contractor. “One hundred thou- sand dollars invested in Fall is 1 bring a return of $100,000,000 to the | investor, but you are asked to put your stamp of approval on the trans- action,” Roberts declared. “You are asked to put your O. K. on it and say that's all right for G ernment officials to do these things we have seen done here.” Mr. Roberts said that despite de- fense testimony that the 61l estimate of 1 reserve was only 100,000,000 barrels, he was positive the area con- tained 240,000,000 barrels, and added, | “What a profit!” War Scare Is Ridiculed. “This is said to be patriotism, you are asked to wrap the United, tates flag around Doheny nd | and call | him # patriot and a savior of his| country. You are asked to say that | the foreign policy of the United States is to be gotten by some admiral run- ning to a private citizen and saying ‘Shssshh, let's save the country. When foreign nations were here agreeing to scrap navies and when the treaties were approved by the| Senate, this admiral (referring to| Robison) was tiptoeing around with a war ecare in his pocket. Do you belfeve {t? I don't!” Mr. Roberts - conciuded his argu-, ment by explaining he would not, thank the jury for its attention to the entfre proceedings, because ‘it i tended, ., TUESDAY, DECEMBER 14, 1926. demand note he held the whip hand over Fall. Absolutely. He could de- mand that money any time. Roberts declared that Doheny had “spurned” Fall's ranch offered as security. “Was it a gift” the attorney de- manded. “Was it ever intended that the money should be repaid out of Fall's property or out of Fall's assets? Were we born yesterday? Is that loan from an old friend or had Mr. Doheny something else in his mind?" Roberts declared that Doheny had carried the torn note three weeks in his pocket. The reason Doheny had torn off the signature, he claimed, was 80 he could tell the Senate com- mittee it was not a note at all, when demand was made on him to produce it. “The signature is what makes the note,” he added. Roberts ridiculed Doheny’s statement that he had torn the note, giving his wife the signature for fear that in event of his death executors of his estate would press Fall for payment. “When he did not want to produce it before the Senate committee, it was not a mnote,” he declared. “Well, 1 don’t know that anybody will ever, know just why that note was torn. It was torn for some purpose.’ Refers to Pearl Harbor. At the very time this personal transaction was taking place, Roberts explained, Doheny was taking the first steps in the business and the negof tion that led to his company becoming th: lessee of the naval reserve. On November 28, the day before Fall tele- phoned for the money and got it on November 30, Roberts declared that Doheny wrote the Secretary of the In- terfor a letter which he said was a mere estimate of construction, but which Roberts claimed was actually the beginning of negotiations for the Pear] Harbor work. It was based, be declared, on the presumption that oil ‘production in California should be ‘ut down so as to stop the downward tter pves, Roberts con- that Doheny was having his “contidential agent, J. J. (Cotter.” come to Washington to disc plan_with Fall. “Now what is this plan, it all about?” asked pointed out that Doheny refinery, pipe lines and a lease on ofl reserves, out of which he hoped to make $100,000,000 profit. ‘““That wasn't a patriotic offer at all,” he declared. “He was willing to do the work at cost to the Govern- ment, because he could get leases and profits off royalty oil. That was before Admiral Robison told him about the war scare.” - Mr. Roberts declared that this let- ter of November 28 and Fall's answer was your duty, just as it is mine, for which I expect no thanks.” | Ho reminded them that they must “do the right thing in this; that you must have the courage to write a verdict of guilty or not guilty. Gen- tlemen, I say, decide this case upon the evidence in this case ae tested by your business judgment and common sense. Be not swayed by prejudices, passion or sympathy. There is no place in the courtroom for such. Be not swayed by the fact that the United States s prosecuting—it is entitled to no more consideration than the County of Podunk. Be not swayed by the standing or wealth of the defendants. They are entitled to just as much as if they were the humblest residents of this District of Columbia. Make a deliverance here that comports with your consciences, and when it is writ- ten In this record it will stand four- square as _representing your con- sciences. You will be satisfled with the result of this case and every American citizen will be found to be satisfied with vour verdict. Mr. Roberts then sat down. 1t was 10:50 o'clock and Justice IHoehling permitted a 10-mjnute recess. The Government prosecutor lute yesterday went into the story of the $100,000 loan Doheny made to Full. “In the month of November,” he declared, “while these men were dis- cussing this Pearl Harbor project while they were discussing Mr. Do- heny's becoming w contractor with the Government, something happen- ed, and I do not have to tell you what it was. You know. At the same time Secretary Fall was discussing with Mr. Doheny his need for $100,000. And Mr. Doheny was saying that if he needed it he would let him have g i i Method of Delivering Loan. After detailing various ‘“easier” | methods Mr. Doheny could have er- | ployed in getting the $100,000 to Wash- | ington, instead of through his son | and in a “little brown satchel,” Mr. | Roberts said: “That has been referred to by these partles as a loan. Gentle- men, it is for you to say, Gentlemen, | it is'for you to degide whether that transaction was a bona fide loan of one old friend to another, and that is | all. And if it was, it was.” “Why did he send his son?” Mr. | Roberts asked. “Two reasons. If he sent his son no other hwman being | knew of the transaction but his own ! blood. If he sent his son to the Ward- | man Park Hotel, where Mr. Fall lived | —the_Doheny's, as you heard here, | had lived there, were well known | there, known to be friends of the | Falls—no comment on that, no notice | taken of it that young Mr. Doheny | should call on Mr. Fall. Absolute wip- ing out and obliteration of evidence of the transaction. “Now, then, why was all secrecy | observed, gentlenien? Do 1 need to| argue it to you? Do I need to labor that kind of a question with you in- teligent men? It was concealed be- cause if it had become public both | those men knew they would be ruined. | ruined, § | “Mr. Doheny said that Fall was| necessitous and he knew it. He said | ¥all could not pay this money back promptly and he knew it. And vet he | asked au demand note. And the de-| mand note means the day after he lent Fall the money he could walk in and | lay down the note and say, ‘Fall, give | me back the money. Pay me. Demand Note Discussed. Why did he take a demand note?} If Fall could not pay for a long while, if it were a reasonable and proper transaction, why not a year note, a two-year note? But, gentlemen, with a A L€ BreunanGer &:Soxs Main 6140 708 Colorado Bldg. Builders and Realtors | Shepherd Park Will Be a Community of .Over | 200 Ideal Homes {ed had been deliberately omitted from the 6,000 puges and documents sent by Fall to the President and forward- by Harding to Congress in re- sponse to the Senate resolution. Asserts Secrecy Was Desired. With these letters and Doher $100.000 loan coming directly after, it any wonder they wanted to conceal it? he demanded. “They were a damn- Ing plece of evidence.” Roberts then referred sarcastically to Doheny's conference with Robison, later in December, at which the naval officer appealed to the oil man on “‘pa- triotic grounds” after Doheny had said he was not interested in tank construction at Pearl Harbor. “He had already told Fall he would do the work st cost as early as No- vember 28,” Roberts declared, ‘“sub- Jject to his obtaining leases. “That was a_great patriotic thing he was doing,” Le added. “Giving something to his count He de- clared that it stands uncontradicted in the record that the Doheny com- pany, made $791,000 profit out of the rovalty oil alone. Taking up the Pearl Harbor con- tract again, Mr. Roberts declared that from early January, 19 hody in the know knew there would be no competition. He cited testimony of Dr. H. Foster Bain, then director of the Bureau of Mines, who went to the West Coast to tallk with oil offi- clals about the project. This testi- mony was to the effect that after his return Bain reported to I'all there could only be one bid expected, and that was from the Pan-American Co. Then, the Government prosecutor de- clared, Fall knew that the Pan-Ameri- can Co. bid would be at cost, and be- '8 fore he went away in April he called | in “Finney and Bain und usked them | to ciose up the deal right then.” B “Something happens that 1 can't ! explain. Fall writes a letter to Den by, saying it is difficult to get bids from oll companies, and suggesting that he get the law amended to sell the royalty ofl for cash and use the money to build the tanks. He add ed, he is holding up the contracts. 1 can’t understand why that letter was written, unless it was put in the files for the time this thing broke, o it would be an alibl.” “Fall . copper-bottomed and iron- | riveted that contract and saw to it that it wouldn't get away from Do- heny,” Mr. Roberts continued. “Fall dldn’t relinquish any discretion to Bain or Finney, although Finuey was charged with executing the leases and testified he did execute every one but this and the Teapot Dome lease.” Mr. Roberts attacked Mr. Cotte: attorney for the company, and chara terized him as “Mr. Doheny’s con dentiul agent.” He added that “you' not advised as to his movements; he | didn't take the stand.” H | declaring that the eontract, with | {its preferential right clause given to | the company on No. 1 reserve, had | |been leased for a profit that's a | prince’s ransom,” Mr. Roberts de- | clared Denby first realized the magni- | tude of the clause on the stand. “Did | you see that pitiful sight when I | handed_ that contract to Denby? He | realized for the first time that all was in the hands of Fall—Fall, Cotter and Doheny, Sees Point Defendants Fear. “That preferential right clause next ! to the $100,000 loan is the outstand- ing sore thumb in this case,” he said. “It is the thing they are crawling away from. It is most extraordinarily strong."" “Don’t let them fool you about that | $200,000,000 investment necessary to | make the $100,000,000 profit,” declared Mr. Roherts, referring to Doheny's testimony to this effect. “If you put in $200,000,000, you get it back and 1 $100,000.000 besides.” = M Mr. Roberts referred to Rear Ad- miral Robison, Denby's special assist- ant on the ofl leases, as “that great business man" who had been ‘“fooled"” by Doheny and Fall. Mr. Doheny “looked like God Almighty to him,” he declared. “He was eaten up with Do- heny because Doheny could pay @ | walter o bigger tip than he could buy a meal with.” On another occasion he referred to the admiral as “the | great poo-bah Robison.” Denby, he said, was led by Robison to believe that it was necessary to make the leases to prevent drainage. “Dralnage had nothing to do with it,” he commented. | Recalls Senate Testimony. | The | made “patriotic” appeal Robison to Doheny was ‘‘done the- atrically and_almost moved me to tears,” Mr. Roberts told the jury.| Then he recalled Mr. Doheny's Sen- ate, testimony, which was to the effect that the first he heard of the storage project was in January or February, 1922, and compared it with | the testimony given at this trial, | which placed the interview early in December. “What kind of a flag are they going to hang on a man who carries off 39,000 acres’ of rich Gov- | ernment land?” asked Roberts. “If| you believe that ‘patriotism stuff,” ac- | Hotel Inn 604-610 9th St. N.W. 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