Evening Star Newspaper, October 21, 1927, Page 5

SINCLAIR SENATE TESTIMONY this morning himself, and permitted the letter to be read to the jury, be- cause a letter from La Follette to the State Department which was missing yesterday was available today. This latter communication called for all executive orders on flle at the State Department dealing with transfer of the naval oil reserves, Nos. 1, 2 and 3, from the Navy Department to the Interior Department, and was referred te Secretary Fall. Fall's reply then was read to the jury by Hoover. Tt was dated April 12, 1922, five days after the Teapot Dome lease iwas signed. La Follette's letter to the State Department was dated April 6 1922, or the day before the Teapot Dome lease was signed. After stating the documents re- quested were being forwarded, Fall wrote the late Wisconsin Senator his explanation of the policy with respect to leasing the reserve, which he said was determined upon to prevent ‘drainage from private drilling. The purpose of leasing the reserves was to conserve and preserve the Navy's oil above ground if it was found impos- sible to conserve it in the ground owing to the danger of drainage. “Not with regard to drainage, geology or any other ma that time,” Dr. Smith adde Roberts then submitted a a copy of the Heald merely to show, he said, what presented to Secretary Fall at that time This report simply bore out Heald's oral statement as to there being no imminent danger of drainage in the field. It noted that the previous study made must be modified hecause of evidence the Salt Creek and Teapot Dome re- serves. Leakage Declared Slow. Drainage in the reserve would he exceedingly slow. the report siated, and along the northwestern border there would be presumably Ssome nage, but the report stated it would not ultimately be drained. At the present rate, at that time, it was concluded that a vear must elapse hefore any considerable drain- age could be noted. Roberts then turned the witness wer to Hoover for cross-e: i The defense attorney a up the question of the Wazgeman re- port, which it seems was on file in the Geological Survey. e asked Dr. Smith if Fall had not Accompanying the letter was a_memo- randum giving a synopsis of the con- tract between the United States and the Mammoth Oil Co. for the lease of Teapot Dome, which was entered i he memorandum said, to preserve th oil for the N Among it called for immediate drilling of wells, construction of a pipe line 1,000 miles long, exchange of c1l alty oil for fuel oil for the V. use d credit for oil storage without any | sh outlay by the Government. Dr. Smith on Stand. Dr. George Otis Smith, director of the Geological Survey, was then called to the stand as the Government re- sumed presentation of its case. Under direct examination by Roberts, the witness testified that in the latter )ctober. 1921, he went to s office in response to a_request for his appearance and that Fall had told him he heard that there was the possibility of a revision of some of the facts in the report of the geologist who made the original re. port on the Salt Creek field and Teapot Dome between 1910 and 1915, with respect to drainage by private wells. Dr. Smith said Fall felt gome concern over this and wished to have ! the statement confirmed. Fall asked that a competent geologist be sent to Wyoming to check up the statements. “I made arrangements for Mr. K. C. Heald, to go and he reported to me afterward,” said the witness. *I} took Heald with me and we went to | Fall's office November 26, and Heald made a statement to Fall orally. “Heald said he had visited Teapot Dome, had seen maps and notes of the other geologist and checked up those fields and he was in an agree-| ment with the statement of the other | geologist regarding the saddle be- tween the two structures, Salt Creek | and Teapot Dome.” The original | geologist had reported only a small| area was susceptible of being affected | by private wells. - i At this point Justice Siddons asked , the witness to explain to the jury hi meaning of the word “dome.” Dr. | Smith said it was a broad up-arching | of the rock layers beneath the surface found in that area and was com- parable to the roof of the tabernacle in Salt Lake City. When informed by Fall's counsel that “all of us have not been to Salt Lake City,” Dr. Smith amended his explanation by placing his hands together and forming a slight convex illustration. He said the dome in the Salt Creek field was 10 miles in length and 5 or 6 miles in width and that the dome to the south —Teapot Dome—was one of smaller | scale. It got its name, not from any resemblance to a teapot, the witness sald, but from Teapot Creek. which crosses just about between the two domes. - Report on Drainage. Dr. Smith was questioned concern- ing his consultation with Heald after the geologist's return from the Teapot | Dome field from checking up_ the | previous report made by Carroll Wag- geman, the expert sent out in accord ance with Fall's request. He was asked if anything was said about drainage. “Only in reference to his statement | that there was not imminent danger of drainage from Teapot Dome,” Smith replied. ‘““He did mention pos: sible drainage in the northern portion of the reserve. The reserve, it seems, was found to be larger outside of || Teapot Dome than was supposed.” Dr. Smith added that he did not re- » member that he did say more than to | vouch for Heald to Fall. i “Did Fall ever consult vou about | this matter again?” as Roberts. The witness replied that three davs later he went to Fall's office and gave him a copy of Heald's written statement which contained the substance of the oral statement which he had indorsed. | “After that I was not consulted by | Secretary Fall with regard to Tea- | pot Dome at any time,” Dr. Smith | 2 | “Not in regard to drainage or geology ?” Roberts asked ENCE MATERIAL AT LOW PRICES Fence Paling 4’ Fence Pickets. each Small Orders G Sl X0 Delivery J. 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Smith Fall wanted to have a made of the situation. discus: in the veplied that further study The witness hrought out that W e !man had made the first study of the Salt Creek and Teapot fields. and for the henefit of the jury and the court explained that the term intended to describe the low point be- tween the two domes, “much the same as the lowest point in a Western saddle,” he said The effect of the change noted in the location of the so-called saddle, Dr, Smith testified, simply indicated that the area in the reserve outside of Tea- not Dome was larger than was antic- ipated when the boundary first was drawn. “That's all T know about the Wag- geman report,” he said. William E. Leahy then cross-exam- ned the witness on behalf of Mr. Fall. Dr. Smith explained that he had no recollection of Fall discussing the Wagzeman report with him be. fore the Secretary had requested that he send another geologist out to the field. Denles Giving Instructions. “‘Secretary Fall said he had heard of the change in the location of the saddle and he thought this might mean drainage,” Dr. Smith explained. the absence of the saddle hetween | saddle was | THE EVENING STAR. WASHINGTON, D. . FRIDAY. OOTOBER o1 | “Then there was quite some talk|and the witness confirmed that testi {rlpl'm\ne had a right to question the|Fail that he was only on the ground | < ahout what he told Fall. “We | for an hour, \ about drain asked Leahy hat ference Smith said ite in struction | report | replie Iy, “Certainly n “Didn’ in to him th < anxjous to know about th ze?" the witn: I explained drainage was the 1 the study.” the wit Dr. Smith testifie examine Heald's report 10 looking for possible err simply received it, “read | terest™ and transmitted with his indorsement he w with a | Heald Takes Stand. now emploved with the Gulf Oil « then took the stand siated that he was a t al survey, after V he 1 associate professor at Y answer to testified that he was callod to Dr. nd requested to subsequently did. On returs Washington, he reported to who then took him to F where he made an oral Secre which fater was reducs writing. Here Roberts direct amination ended and the witness was turned over to Littleton Littleton had the witne: his past experience i work ch Heald said began i and him up the where he was asked to make vestigation of the accurary port by ¢. H. Wi n | out Teapot Dome originally and who, in September, 1921, left the Governmernt service. In the o amination it oped that Waggeman had made three reports on the location of the “saddle” of the reserve, which con- cerned the area in danger of drainage by private wells on the border of the reserve. Heald, In reply to Littleton's ques tions, said he checked the reports, went to the property in Wyoming and found Waggeman's relocation of the saddle as embodied in the third re- port was correct. He agreed with Waggeman that the relocation had been drawn down one-half to three- quarters of a mile further into the reserve. 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However, today, he id ha | witne wounld rather he more precise and now | won't object to anything he told F say a little less than three-quarters of | Roberts shout With the permis 1 mile, I'sion of the court Littleton proceeded of questions at e Argument Over Report. 1 spent hour on Dome during his invest He hout one punds. “How you on the ground? leton arts immediately sustained him tid 2 minute sund an hour, and in Wyom ohjected ttleton feet with an ely offered that a report fired back cared nothin Azain the objection was sustained. The scene was intensely amusing the jury as well as to the specta urtroom was almost in a dttleton would fire «ques it You the berts jumped to JHoRe ection, declarin 1 to prove ade and he the truth or aceuracy of it It w ffered to show that Fall did report to him ifter he had heen requested to make nvestigation followed the part the Hoover and Le: bitterns . the Government int the witnes accept the ago vou Roberts wonld = v would note The Little- to the would object. ain him and an exception much argument on defense, in which . evidencing claim was rded to show that because Fall did | yan with th eport he was subject | Susiained [ bad faith. The de-| | hy not s a fow moments the courtroom statements: Object eption Littleton said he 1 10 offend the court by his Iotlike™ questions and exceptions, the court smilingly replied the no offense, In rapid succession the defense 3 fired these questions: “Was there snow on the ground” How much snow? Was any one with on? Where were yon staying? Were you ever in Caspar? Who did voi see in Caspar?’ All these que: lots tions the witness was not allowed to He sus- | 4nswer Finally Littleton asked verrnied the | eaid it he did not say he could do no Dinore in his report than confirm Wag seman’s previous study im \ediately objected to this. nally did not “bul down the report if pos and clared that Roberts' asser caved nothing for the ace 1t this time made it immaterial Whereupon hoth Fall and Sinclair oiged in a motion to have the report tfcken out unless they could examine the witness on it Justice Siddons reviewed on offered by Roberts, and sumed “we shall heat vidence on this point later A the ohjection and o ion of the defense, and de on that he of it the con added Smith Testimony Attacked Roberts moved to strik Dr. Smith with conference Penies “Hearsay™ Statement did not get any Littleton interrupted attorney then asked had not told Secretary 0000 00 We Pay You on your DAILY BALANCES 2% 3% 49 THE MUNSEY TRUST CO. Munsey Building Pa. Ave. Bet. 13th and 14th Sts. NW. Another Munsey Service—Real Estate Dept. e = I,HE the But t the of the “Maybe he mation at all The defense 4 if he or Heald eport Littleton then interposed that Interest on checking accounts on daily balances—com- pounded monthly. Interest on ordinary savings accounts—compounded quar- terly. Interest on special savings certificates — compounded semi-annually. Wrist Watch T R ] ‘fluuumluhmwam«umummmumuum.u«uwmumwmfm«ummwummmuuuumumu««hudu ingtons Oldest Credit Jeivelers % the | court’s opinion he | The | | the veracity of Littleton | ton asked did memory, |he had gone out to the field at one with the rapidity of a machine | ment ournment | «ion, ‘but did not succeed In bringing | out Teapot Dome lease 10 ask the i | What he asked v T Alex,, Va, Br., 818 King St. 3 £ b i Tl zeman e him if he did not I uade the court to permit the witness | to state. <ion, made lair Wied loover is anxious to obtain from him tates, that you say o this thing?" Finney replled: “Three ofl com panies, and 1 think to one or two en neer companies.” was Heald's reply. “You told him that about the Wag report, that he was right in =ard to the change in_ the saddle? he witness replied, Then the defense Names Only One. many persons did vou aver retary Fall discussing the pol based merely on hearsay. “No, orally?" Roberts asked again, ied the witness. named only one—Judge You went out there to investigate £ Texas nother man?” Little. <" the witn: replied, Further questioning along this line not seem fo clear the witness €0 Littleton read from th that Heald had said attorney asked | “How <ay his own report La Follette of Wi memorandum wh had been done ah 1 oil Teases. Finney admi about it “pogsibly at to show ticular place to question the yaggeman. o letter w dence today, the ha offered xamination by defense coun ter in que ward C. Finney, star Govern witness, concluded r of court yesterday Finney, however, is to be re. er during the trial for in_the which Iy to per nswer relating to policy Iministration of. the le 11l attempted so drama | PROMINENT MASON DIES“ m E. Leahy, one of Fall's at . wound up the afternoon CINCINNATI, Ohio, Col. W Oct P iam RB. 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