Evening Star Newspaper, October 20, 1927, Page 5

-FALL INTERRUPTS OIL LEASE TRIAL | they had some Alsagreement about the o Former Secretarv Creates Sensation in Plea for Statement by aney (Cantiny irst Page) pro- | less in so far as thev did not duce oil in commercial quantities When the applications were present- ed o Finney after the Harding ad- ministration came in he likewise ruled ugainst them on the same ground as specified by Payne. How- | ever, he did grant a hearing to the| coampany's attorneys for 1 arzu- ments and set the date for Septem- her 20, 1921 hut thix date was ¢an- colled and the attorneys were i formed that Fall would take cha of the hearing at a later dute. So far as he knew. Finney testified. that hearing has never heen held Hoover announced in court from | time to time what he sought to prove as his questions were blocked by Roherts and among these announce- ments was the statement that fhe claims against Teapot Dome which Sinclair later acauired in order to | clear title to the area were valid despite the final ruling of Finney When the luncheon recess was called Finney was still under cross- examination by Hoover. Hoover's efforts to utilize Finney as a defense witness did not hy any means constitute his only onportu- nity of counteracting the Govern- ment’s charges. On one jon when Justice Siddons declined to pe mit him 10 pursue a_question wi had hammered away at hecause ha wanted fo show there was nn act of bhad faith on the part of Fall as the Government charges. the observed that the defendant meet the question by afrmative testimony at a later date 1 | Negotiations Kept Secret. When contt reconvened at 10 n'clock this morning Mrs, Fall. who was ab- sent vesterday on account of illness, accompanied her husband and daugh- | ter. Mr. Fall took occasion just he-| fore the session opened to explain that he had mnot announced any in tention (0 take the stand in his own behalf durinz the trial E. C. Finnev. First Assistant Secre. | tary of the Interior. was recalled to the witness stand ard after a brief period of questioning Mr. Roherts turned him over to defense counsel for cross-examination At the outset of Mr. Toberts' in terrogation the Government counsel| introduced the letter written by C. D. Applin of Minneapolis. Minn.. dated | February 1922, requesting the De. | partment of the Interior for informa- tion regarding naval oil Jand leases. | Finney admitted replying to this Teiter stating that mo information eonld be given by the department. | From the witness Mr. Roberts oh- tained the admission that he kne: at the time this letter was written | that negotiations were being con- duerted with regard 1o Teapot Dome. “The policy was not to divuige’'any Information,” said Mr. Finngy. Further questioning bv Mr. Roberts was tended to draw from the witness the information that Secretary Fali had invoked this policy of secrecy regarding the leaset on the part of departmental officials. Finney ad- | mitted that he had been so advised by Mr. Fall himself. | Government counsel then went int: the guestion of other oil concerns | making applications for leases dur- | ing the ur!, part of 1921 and up to | April. 192 Teapot Dome Inquiries. Mr. Finney could not say that these | companies wére applying for land in Teapot Dome, Buf he mentioned spe- cifically the Standard Ofl Co. of In- diana. the Prairie Oi) & Gas Co. and the Midwest Oil & Refining Co. as| being interested in oil lands in the Salt Creek field. adjoining. “Were there frequent inquiries about | Teapot Dome about this time?" asked Roberte. | Mr. Hoover for the defense objected | to the term frequent, and Roberts | changed it to “any” inquiries “Yes, there were a number of in-| quiries,” Finney admitted. It was at this point that Mr. Roberts s2id he had concluded with the witness and turned Mr. Finney over to the de- fense for cross-examination. The cross-examination of the witness was begun by Mr. Hoover, who seemed | to be intent on impressing the jury | with Mr. Finney's extensive knowl: >dge of land and oil laws gained during | long years of service with the Govern- ment. The witness went into detail | in his various connections with the Depariment of the Interior. in the last ' 25 or 30 years Mr. Hoover then directed the wit ness’ attention to the order of August 3, 1921, allocating various. duties in the Department of the Inteifor. He sa1d there was nothing unusual in the allocation of this work. “At the time this was done.” asked Mr. Hoover, “was there any policy in effect in regard to lease under the act of June %, 19207 Mr. Finney replied that fot answer exactly. but that he did know that no leases had been made. Fall Sought 0il Expert. Mr. Hoover brought out that before | Finney left for the West, in June 1921, Fall asked him to suggest the appointment of same one tp be plac in charge of oil matiere. He sugg: a4 W, C. Mendenhall, a geologist con- nected with the Genlngical Survey After Finnev's return to Washing he coutd | | United Midway {retary in cl | attor mn the witness o\phlned Fall told him about a settlement which had been made between the United \(Id way Co. and the Pan-American Co.. n()lwn_\ concern. in connection with | the drilling of 22 wells in Naval Re- serve No. 1 in California “Mr. Fall said he was sorry that Menderhall had been designated. as | compromise cffected.” Finney festifie | Finney explained that this disagree- | .. opposition of of ment arosa over the Mendenhall to the granting tain lands to the Midway Co. United Midway Claima. Hoover asked the witness if he ever talked tn Fall about the claims, after the Sec had come into office in 19 He replied that he had called the mat- ter to his attention after the claims | an had I had heen reterved to the Department |, jp of the Interior hv George B. Christian, jr. private secretary to President Harding. Justice Siddons inquired abont the situation about that time with re, d 10 the leases. In response Mr. Hoover explained that the United Midway U had made anplication for some wells in Naval Reserve No. 1. A< a yesult of a compromise settlement. the Pan-Anw an Co. was awarded 14 welle and the United Midway R In veply 1o auestions Finney said | the United Midway Co. had olaims | on naval reserve No. 1. and after the Jeasing act had heen approved the company Wilson in the closing daye of his administration a petition for a lease on this reserve. This petition was forwarded to the Interior Department bv President Harding's secretary ifter the new admimstration entered office Secretary Fall informed the President on July 8. 1921, that a sei- tlement had been made with (he United Midwav Co.. which the wit. ness learned about some time later on | his return from official The F ms on apot Dome. ,to Washington an visit. cer Ol o serve No. 3. which is o the amount of about 00 acres, and under the law by nossessing these claims they eculd apply for leases on producing wells. Four applications were made for leases. and in all four cases produc- ing wells were alleged. However, applications, the witness said, cted by Fall's predecessor. arv John Barton Payne. on the ground that the wells were not eap- 2ble of actual production in commer- cial quantities Rehearing on Leases Denied. Finney said a motion for a rehear ing of Payne’s decision was filed. con- sidered by himself. and demed on April 18, 1921 Finney's decision was hased in part on the ground t the wells were not producing in com- mercial quantities. After his decision. the Pioneer Co. fook the last step in ite appeal by filing a petition for exercise of supervisory authority. and, Finney said. he signed a letter to evs, for the them an oral argument on the mat. ter. September 20. 1921, On August 11, 1921 signed another letter stating that the had presented (o President | had succeeded THE EVENING wmrnt and considered by the depart- | meht. That they were not used as a | pretense,” Mr. ‘Littleton said. = The question to be determined. he declared, is whether the claims were a mere shadow of pretense or presented an honest obstacle necessary to ba re | moved hefore the Government could give a lease to Sinclair “The good faith of Secretarv Kall STAR. WASHINGTON, Hoover followed another phase | co dering the leasing of the serves to offset drainage, and discussed the matter with Sinclair, inneyv replied “At some subse- auent date he had mentioned a pos: ble pipe line. Fall sald this pipe line wonld open up the field to better prices to the Government on its tion, of the examination and inquired if the Government had taken any action to invalidate tha claims of the Ploneer Co. on Teapot Dome, to which the wit- ness replied in the negative Then he was asked if he was fa- miliar with the action taken on the claime of \White and Boffin on Nava Reserve No 1. 10 which the witr % to how he dealt with [replied he was. Hoover said he < * Littleton declared. 1o show that the Government “Thes anestions must he explained | for hide on veserve No. 1 and to the jury tn show whether these[time it was discovered there were cor | were veal claims or mevely a pretense. | tain claims The award of the le; .~P‘ "" wish to know how he took this|was held up until the claimes had been | nction. Let us go to the heart of the [disposed of in the manner of the |F I matter, |lessee obtaining quit-claim deeds to the “Tt was an honest thing 1o do 've. Upon submitting chese a | feetly legitimate,” Littleton said claims he got the lease, Mr. Hoover | referring to the acquisition of said pioneer claims. The whole ohiect in developing this | The court ri'sd that Finney could [was 1o coun t the Government's wot give his interpretation of policy.|charge that Fall did net act in had was evident that defense was |faith. Hoover declared. but Justice Sid asking for some expression of dons maintained that the defendant | which it was not allowed to |could reach the questions aMirmatively cross-examination, ,“' 1 later date dificulties | Oil Debate Recatled. he wanted | Abandoning altogether tine- bor - cross examination, Hoover A A lease | 1o 4 conference Finney Lad with on o producing well and a status of | Qutro, attorney for the claim which may be the basis for | Co. of Californta. in which the fatter |an avplication for a patent. He said | maintained that it the In De Ihe wanted (0 siow that the denial of | paytment exehanged royalty for 1 lease application did not mean that | tuel oil and storage facility it wonld [ the claim wi void Roberts objected | ha in violation of the lyw Finney de. {10 all of Hoover's avestions put 1o |eclaved he did not agree with Sutre's Finney on this subiect and Justice | views, and told Fall laie: 10 hia of Siddons sustained the Government. fect, When Hoover nsked 1 rinnes When Hoover arose and announced [told Sutre he was firm in the he wanted to address the court on the [ viction that competitive hiddine subject. Roberts ohjected. stating that | not vequired. Finnev replied h {often matters pertaining to evidence | not recall such a st lereep 1n such statements. Hoover | ing the meeting oe i replied “he was not going fn follow |azo Hoover | | the had example by Mr. Roberts,” fc nt. however, | which Justice Siddons remarked that |and the court sustained Mr. Hoover should not follow a had |ment. ammplr no matter by whom it was| Mr. Hoover then hrought the Mam- | set | moth” 011 Co, lease into his | amination. In tober, rn-nm | zone to Fall's office for some maps of Califorma | Foster Bain of | and Admiral “Hoover went into the question challenged of Mid-Continental prices and Salt hese clain that | formation t the former were about ‘bu cents a barrel higher. Finney could nor recall pecificallv about further “Rut between February 3. [ Aprfl 7. 1022, vou knew the artual teasing of No. 3 was und | Hoover asked. “Yes” per in the | replied the testified that he no acquaintance with Sinclan prior 1o February, 1922, but had met { him several times in Fall's office after | that date. He also had seen Sinelair's counsel, Mr. Zevely, a number of | times at the department torned | 1 inferred that they the department in conneetion nossible leases of Teapot Dome, IFinney explained. ter the witness testified that he found out that Ambrose of the 1 of Mines wax drawing up a of Teapot Dome and that he had nated a man to help Ambrose in matters involved Finney stated that in January, he had begun to look into matters of the Pan American Petroleum Co. leasc in ¢alifory 1 was Finney then merely apinion do under Hoover encountered | when. as he told the court 1o draw from the witness a d ftion between an application for thie phase were al My con wase id 1 this point that My Hoover ster up the defense case. | Two Big Problems. 1..™ were, in fact, two big prob |lems before ihe department at this time. namely, the California and the the Govern- | “Patent” Explained to Jury. brought out in the course of the ex- amination Finney admiited that was so, was rather non-committal in inswer My Hoover, however, ve. garded the answer as sufficient to v that Kinney was handlng alifornia leases and that Fall devoting his time to the loase because of Finney's inability do so. Atorney Failing to get an answer, owing lo Rohert’s objection to a question as | to whether Finey's decision had any | the Burea | eftect on the validity of placer min- K. Robison [ing claim. Hoover further explained | to tha court his client’s position on | the matter as follows Mines s Departmeni wa« gating the drainage situation in “The Government contends thal |serve No. 2 (Teapol Dome)? Honver when Kinney made his decision on asked | the_application of the pionesr claims [ T learned ihat on. Teapot Dome. that wiped out the was heing made.” whole thing and that when Mr. Sin- | could not rec clair acquired quit ciaims deeds he | vember, 1971, acquired nothing and that was the 'around that subterfuge the Mammonth Oil Co. em- " ploved in getling the lease on Teapot Refers to Pro Dome. We want to show the claims | Hoover asked the wiiness { could he asserted for a patent. ©all told him that he had a prop- | The word “patent” was explained |osition from Sinclaiv. Finner replied | {10 the jury as being title in fee simpl= | that he had done sa’in the early part | for life of an area of public land 'of February. 1922 shortlv after the unon which elaim had heen made. | Secretary’s return from the West Forced to abandon his line of eross | “What did Fall tell Hoover examination by the action in | asked Mheld Wert ' abiec | S Ahan Al T | to some investigation Finney replied. He | 11 whether it was in No. but said that it was time, Roberts in fact that Fall had the Do of his desk Mr. Hoover asked Finney when he first saw 2 copy of the Teapot Dome lease. Finney explained that on April 18 he went to Fall's voom and got a copv of the lease so that he conld make an accurate statement concern- ing it for the press notice (hat was to ha given ont He sald the only that he saw was taken out the he v ¢k drawer Kept Teapot osition. whether von” corll naw mpany granting | he testified. he | oral hearing had been canceled and | that the hearing would be held be- fore Secretary Fall, instead of him- self, at a date to be determined later between Fall and the company's at- torneys. So far as he knows, Finnev declared, that has been made. Justice of the Gov ment counsel in a highly controversial argument hy Mr. Hoover when he sought to oh- oral argument never | | dons uvheld the objection ! precipitsted | tain from Finney his interpretations of policy in regard to the Pioneer Co claims and the difference between a | placer claim and an oil mining claim under section A of the general ‘!l‘:‘ ing act. IMI', Littleton, chief of Sinclair eoun sel, that the question goes to the part of the indictment charging that Fall and Sinclair conspired to defraud the Gov- ernment in obtaining quit claims from the Pioneer Co. on its acres in Teapot Dome. Mr. Hoover had asked the witness if the Interior Department did not construe the iaw with regard to claims on naval grounds as heing un- der the administration of the Secre tary of the Interior. The court held the question seemed 1o be predicated on an interpretation of the law by the witness. Hoover protested that “one of the questions in this case is the good faith of the Secretary of the Interior.” He changed his question several times. During the argument that followed the defense attornev declared he was asking the witness what this policy was Finally Mr. questioning to ask if leases made in Reserve No. 2 were in pursuance of | the act of 1920. were. ‘The chiet bone of contention arose when the defense attornev asked Finney what was the difference be- tween an application for an oil mining lease and a piacer claim. Mr. Littleton interrupted here. He declared the Government charges that one of the evidences of fraud is that the quit claims acquired by Sin claiv from the Pioneer Co. were a part of the conspiracy “We are trying to show thai these claims were presented to the Govern Finney replied they The penetra unE warmth of BAUM BENGUE soothes the inlunod nerve ends and relieves the pain. Good for Rheumatism Lumbago, Stiff Joints, ete. | ME BENGUE 'SAY BEN-GA Bad Weather Suggeste OXFORDS COURSE OF von'll had this week throughout the hrown or black lizard In fac shoes for inclement Winter require more closed-in days, such as we've t. for all-around wear. Style pictured, in S proves e siiee of this type may be cmart—ac well as utilitarian twelve-fifty New sports hose and entirely new sorts of novelty Galoshes always and Rain-Shus— on tap interposed a protest to the court ' 32,000 UNCLE SAMS GIRLS There's a certain smart, keen young lady whose spright- Iy, well-groomed figure vou may single out among the throngs headed each morning toward the Navy Department. Her name is—let's call her Marjory Mills. Hoover changed his| Marjory came to Washington from a small town in the Middle West. The spirit of the War was on her and she felt it would be an honor to work for Uncle Sam. She’s typical of thousands of wholesome, happy girls who rattle typewriters, mail seeds to rural constituents, and otherwise help speed up the wheels of Government while enjoving life in this heautiful Capital Citv. She walks A certain Shoes are an important item with Marjory. to work. On her feet all day. She plavs golf. handsome Army officer takes her to dance at night. So, she has hought her shoes from Hahn's she came to Washington. Sometimes, at our F Sometimes, at our 7th or 9th St. Stores. Occasionally “Arcade” Shop—up on an evening, she will drop in at our Columbia Heights, near her home. While sometimes, around payday. she may “hlow™ herself to a pair of our higher-priced shoes—usually she buy “HAHN SPECIALS.” She knows thev are the “last word” for every occasion. And their extremely modest cost appeals to her level little head. Pictured (1) The popular hrown or hlack suedes — dainty strap effect. Black velvet, sat- in or patent—an- other new atrap design. “Topsv” Ties — blue kid. hrown or black suede— contrasting trim. More Brown and Black Suedes — round toe opera ton” — side-laced, in brown allige- “Steel” black patent lesther — 1 0 w heel. New Colonial— Cor. 7th& K 414 9th St. 3212 14th 233 Pa. Ave. SE. “Women’s Shop”—1207 F s and brought out the in- | anything | comments | all had made on Sinclair's proposal. | 1922, ana | * discussion,” | with | 1922, | hreught out an important fact to bol- | Wyoming leases. the defense attorney | hui was | Wyoming | his presents. ! tlon of the case had laid stress on the | e lease locked up in the drawer | | | | New Pack Sauerkraut TEA co. e ATLANTIC & PACIFI ANOTHER WEEK END of LOWER (AP PRICES! FINE GRANULATED AR | Lb. 6 c 100-16. Sack 555 | Lbh. 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Fresh Killed LEAN Tender, Choice CHICKENS FRESH LAMB 35¢ HAMS 35¢ Shoulder Roast O 12v%¢ Lean Stewing Lamb. . .....lb., 15¢ Fresh Ground Beef, Ib. . . .23c st Lean Boiling Beef, lb. . .. .15¢ | All Pork Sausage Meat. .. .lb., 40c FRESH FISH Trout,lb. ..............18c | Pan Rock, lb Fillet of Haddock, lb. . ...20c | Spots,Ib. . ............. .15¢ Croakers,lb. . ...........18¢c | Sliced Halibut, Ib. . ... ...35¢ Salt Water Oysters Standards, qt., 65¢ Selects, qt.....75¢ Also a Complete Line of Lofller s, Auth’s and Bnggs Sunshine Products Small Legs Roasting pr Stewing Lb. Quart or 2 lbs.