Evening Star Newspaper, September 9, 1935, Page 3

DOHENY, COLORFUL OIL PIONEER, DIES, Figure in Scandals of Hard- "ing Administration Left $100,000,000 Fortune. By the Associated Press LOS ANGELES, Scptember midas of the oil industry. is dead. The 79-year-old ruler of an oil em- | pire which once spread over portions of the entire Western Hemisphere, died at his Beverly Hills town house last night. A chronic invalid for many months, | his death was the vesult of a compli- cation of ailments accentuated by his advanced age. Funeral services for the oil magnate will be held Wednesday at St. Vin- cent’s Roman Catholic Church, a $1,- 500,000 edifice bullt largely through the benefactions of Doheny. Two bishops, Most Rev. John J. Cantwell of the Los Angeles and San Diego Diocese and Most Rev. Francis C. Kelley of the Oklahoma Diocese will say mass. The body will b> placed temporarily in a vault at Calvary Cemetery. It probably will be removed later to a private mausoleum As a man who left a fortune in ex- cess of $100.000.000 and whose phi- lanthropies rolled into the hundreds of thousands, Doheny was one of the most picturesque figures in the his- tory of oil. Members of the immediate Doheny family—his widow, a daughter, Mrs. Leigh Battson, and his five grand- children—were at the bedside when the end came. While virtually in Doheny was president of the Pe- troleum Securities Corp., his major holding. at the time of his death. Figure in Oil Scandal. The story of Doheny is studded with peak accomplishments and not s few marked disappointments. He won fame as the discoverer of vast oil resources and notoriety as one of the key figures in oil reserve scandals of the Harding administration. Attention centered on Doheny in connection with a Senate probe of leases involving the Elk Hills and Teapot Dome naval reserves, which had been granted by Albert B. Fall Secretary of the Interior. At 44, Doheny had made his first million. In 1916, long after he had built the | first pipe line out of Mexico—a line | ro-called experts labeled “absurd"— Doheny sank a record-breaking well. It vielded 260,000 barrels a day until | closed in. Developed Oil Empire. Mr. Doheny wrested one of the country’s greatest fortunes from the coastal oil fields of Mexico and the West Coast section of the United States. In Mexico he reared an industrial empire of such vast proportions that his investments were known as the greatest concentrated holdings of pri- vate capital in the world. Of the corporations through which wealth poured to him, “Mexican Pete” —the Mexican Petroleum Co.—was the greatest. That represented his Mexican holdings, developed from the first oil strike in the Tampico fields. From “Mexican Pete” radiated con- cerns controlling refineries, storage plants, pipe lines, railroads, tank steamers and great distributing sta- tions far-flung along the seaboard— in Mexico, Panama, Brazl and the United States. With Rockefeller; Sinclair and others Mr. Doheny was one of Amer- ica's storied ofl barons. He laid the foundation for that niche in industrial | history when forthright courage, as well as capital, was necessary to forze ahead in the fierce competition of the hooming oil business. The calm nerve that carried him to success through the hard living days of the oil frontier of a genera- tion ago stood him in good stead when he reached the age at which many men retire. Indicted in 1924. He was well past 60 when the ofl scandals of President Harding's ad- ministration centered around the group of which he was a member and his name was carried to a sweep- ing position of attention before the | He was indicted in | American people. 1924. Tragedy and sorrow stalked him. In the heat of the oil litigation his only son, E. L. Doheny, jr. was mur- dered by a servant. He saw his old friend, Albert B. Fall, retary of the Interior, declared guilty of bribe taking. Back through the spans of the years he and Fall, many times, as prospectors, had tramped together behind the flapping ears of & pack mule. In the ramifications of litigation, | o= Edward L. Doheny. multi-millionaire | retirement, | Harding's Sec- | Oil King Dies | EDWARD L. DOHENY. Copyright, A. P. Wirephoto. to defraud the Government. He was DOLLAR RETURNS THE EVENING ST 10 BARTER GROUP California Self-Helpers Be- lieve 25 Per Cent Money Necessary. By the Associated Press. OAKLAND, Calif., September 9.— Five years of toil in building an eco- nomic organization on the barter theory has convinced a valiant band of “self helpers” that their system, | [to attain full success, must be based at least 25 per cent on the capitalistic dollar. This is not a confession of defeat, Carl Rhodehammel, one of the execu- | tives of the Unemployed Exchlnge' Association, explained yesterday, buta recognition of the fact preconceived notions of the idealistic undertaking had to be amended in the laboratory of actual experience. Now Embraces 6,000 Persons. At the very outset of the business | |in his 74th year when he was ac- | quitted of the bribery count in 1930, | six years after indictment. In the years of civil litigation over | the ofl leases all had been canceled | Doheny once | by court order. Mr. made the statement that these can- cellations cost him $21,000,000. He never wavered from his asser- tion that the $100,000 was advanced to Fall as & loan to an old friend— a mortgage loan on Fall's Western ranch properties. | Likewise, he was motivated by patriotism, not chance of possible profit, in taking over the naval reserves. | he had been led to believe a Pacific | war was imminent and that it was necessary to concentrate oil in Hono- lulu for American vessels. Here was an opportunity, he said he had been | told, for a man of wealth to perform ‘lan act which would immeasurably aid his Government. When Fall, his friend of the days of mule skinning, table waiting and odd jobs, was convicted. Mr. Doheny was in court, militantly comforting the weak and faltering Fall. The oil millionaire sprang to his feet and blazed. “It's that damn court,” when the verdict was returned. Mr. Doheny’s life was one of adven- ture, of picturesque ups and downs He was born August 10. 1856. Gold . was his goal when he started from his birthplace, Fond Du Lac. Wis, at the age of 16. to seek his fortune. He had just graduated from high school. Failed Many Times. Here was a Dick Whittington, with his belongings on his back. At the end of his journey he was reckoned a man of princely possessions. The road to that objective was studded | with menial jobs and many failures. His first idea of the straight road m wealth was in prospecting. But he lost his accumulated capital in an ex- pedition into the Black Hills of South Dakota. For 20 years he traveled through the West when that region was in the turmoil of adolescence. In 1892 he reached the end of the rainbow—in a vacant lot in Los Angeles. He drilled for oil there—and found it. Four years later he was broke again But he recouped. and developed his California oil interests to an estab- lished position. | He turned to Mexico in 1900 and | spent 20 years building up his inter-| ‘esu which pioneered the oil industry in that country. “Never look back” was the Doheny | formula for success. That philosophy he followed until he became head of a great combination of oil and sub- | sidiary corporations in Mexico, Cali- fornia and Louisiana. Petroleum & Transportation Co., of which he was president, was his prin- cipal interest aside Petroleum Co. He retired as president of the latter concern in June, 1922. Mr. Doheny married Carrie Estelle Betzold of Marshalitown, Iowa. Mr. Doheny landed in Los Angeles with about $10.000 and a fairly good knowledge of metallurgy, chemistry. During his years of travel- ing he also managed to study law |and gain admission to the bar, though he never practiced that pro- fession. l Birth of a Fortune. The beginning of his career as an | oil operator is connected with an in- | cident in Los Angeles in the Fall of 1892. He saw a colored man hauling a load of black, tarry stuff which the man called “brea” and sald it was to be used as fuel. Knowing that “brea” was an oil exude, Doheny leased a | vacant lot at Patton and State streets, | near where the man had loaded his ! wagon. feet and struck oil in small quantities. | That operation has been referred to as the first and last time that oil ever has been “mined.” A well driven 75 feet deeper yielded oil in paying | quantities. No refineries were available and he insisted at all times | He asserted | Pan-American | from Mexican | geology and | al- | He drove a shaft to a depth of 150 | depression a few jobless l-borers‘ | struck out with their only asset, the | | firewood which a half dozen men | sharing a single ax could cut. Now the organization embraces 6,000 persons.‘ ranches, factories, apartment ses and a far-flung system of barter. The workers put “production for use” principle similar to that which Upton Sinclair, de- feated Democratic candidate for Gov- ernor, incorporated in his platform. | Their primary aim was a new eco- | nomic system operating without Uncle | Sam’s dollars. Wages and commodi- ties, professional services and manu- | factured articles were appraised in terms of “points”” A point was the hundredth part of an hour's work and | had a purchasing power within the | organization equivalent to about ont-1 into practice 8 half cent. | Enterprises Established. Warehouses, fishing boats, food commissaries, portable saw mills, fur- niture factories, ranches, an iron foundry and many other business en- terprises were welded into the co- operative undertaking and operated by lease or acquired through equities or ownership. Literally bushels of false teeth were manufactured and used in trade, ele- vating “swapping” to a new high. In May, 1934, a hundred or more men, women and children moved into the Feather River section of the Sier- | ras and began the rehabilitation of a dormant lumber empire into which | several million dollars once had been |sunk. A 20,000-board-feet-daily saw mill was constructed and 27 miles of steam railroad was rehabilitated to transport lumber down the mountain side. j | | Granted $122.600 by U. S. | Having accepted a grant of $122,600 from the Federal Government. the ' self-help organization is prohibited from selling lumber, but ways have been found of trading it for food and other necessities. Reaching the conclusion that real money Is necessary in the ratio of one dollar out of four of gross business transacted, the organization had hopes of getting this cash through foreign trade. It has had inquiries from Peru and other South'and Central Ameri- can countries and hopes to trade its lumber on the basis of 25 per cent cash and 75 per cent of goods not pro- duced in America. | —— Afghans Exile Jews. ‘ JERUSALEM. September 9 (Jewish | | Telegraphic Agency) —The Afghan government has exiled all Jews from | Kabul to a remote village. Farah, in | the western part of the country near | the Persian border, the Hebrew dally, Davar, reported yesterday. | other natural well 10 miles distant. and here another 280100 acres of land was obtained. Eventually the Doheny controlled acreage ran into millions. The Mexican Petroleum Co. was formed in 1900 with a capital of $10.- 000,000. There followed the organi- zation of necessary subsidiary com- | panies into a gigantic enterprise that took all of Mr. Doheny's attention for the next 20 years. During that time, besides devel- oping a great industry, he established friendly relations with all classes of Mexicans that stood him well during the stormy years that followed the overthrow of the Diaz government. He had made friends of the leaders {of all factions. As a result, he went | ‘thmuzh all the years of disorders without fear of his property being | confiscated or destroyed Promoted Friendship. | He knew Mexico and the Mexicans as few outsiders knew them and |lconstantly tried to promote friend- | |ship between Mexico ard the United | 'States. By the time he disposed of his | | their way out of prison, AR, WASHINGTON, W.C.T. U. URGES STRICT NEUTRALITY Convention Adopts Resolu- tion After Hearing Address by Senator Nye. By the Associated Press. ATLANTIC CITY, N. J, September 9.—Spurred by an appeal from Sena- | tor Gerald P. Nye, Republican, of North Dakota, the Women's Christian Temperance Union adopted a resolu- tion yesterday urging the United States to establish a strong, manda- tory policy of neutrality Senator Nye, chairmaa of the Sen- ate Munitions Investigation Commit- tee, in an address at the afternoon session of the sixty-first annual con- vention of the organization, con- demned national armament competi- tion as leading to war and criticized the munitions makers for allegedly encouraging the belligerent spirit for personal profit. i The resolution, declaring that “civi- lization seems to be on the threshold | of another confiict,” set forth a five- point course for the United States to pursue in leading the way to an under- standing which would elminate war. The points included climination of war profits, reacknowledgement of the act outlawing war, termination of orruption in providing for our na- tional defense,” stoppage of “madly increasing expenditures in the name of preparedness” and a neutrality pol- icy which would forbid loans and mu- nition exportation to belligerents and require licensing and publicizing the activities of the munitions industry. “We would do much,” Senator Nye asserted, “for ourselves and for gen- erations to come if we would stamp out the part which chance for profit plays in bringing war upon mankind.” " Tri-State —_— ed From First P: KP\ (Conti were awaiting execution in prison at Richmond, Va. Mais and Legenza shot killing a guard. Cugino used strips of his shirt to make the noose with which he killed himself. LINKED TO CAR BARN SLAYING. Anthony Cugino. who terminated | & bloody career in his New York cell last night, was wanted here for ques- toning in the hold-up and double murder at the Chevy Chase car barn last January, although police have no definite information linking him to the crime. Cugino, police say, helped to guide the destinies of the Tri-State gang in the interval between the escape of the late Walter Legenza and Robert Mais from a Richmond death cell and their subsequent capture and electro- cution. Washington detectives had hoped to interview the gangster. He was one of a dozen men whose careers seemed to qualify them as the ruth- less killers in the Chevy Chase rob- bery. Inspector Frank 8. W. Burke expressed doubt. however, that Cugino actually participated in the local affair, ‘The examination wrung a reluctant confession from Cugino in the murder of Patrolman Charles Stockberger dur- ing the pay roll hold-up of a Phila- delphia glove factory in July, 1933. Cugino is supposed to have thrown in with Mais and Legenza after the tri-State gangsters shot their way out of the Richmond cell where they were awaiting execution for murdering a Federal Reserve Bank truck guard in a hold-up. They killed a guard in | the jailbreak Police linked the three by finger- prints left on a pane of glass at the scene of the $48.000 hold-up of the Philadelphia Electric Co. in Decem- ber of 1934. It was during this period that Mais and Legenza, probably with “the Stinger's” aid, kidnaped and murdered a Philadelphia gambler after collecting the ransom. | RE-UPHOLSTERING Custom Built 3-Pe. Suites Made New for $45.00 All Labor and | Material Included §f | Fn! Estimates | Chees Give Finest " Tapestries, Frieze, Damask, Guaranteed Workmanship La France Upholstering Co. 2509 14th St. N.W. Col. 10172 | D. | curriculum will be added by | Washington University | Tampico holdings, shortly after he civil and criminal, that followed leas- | wooden tanks holding about 100 bar- ing of Government oil lands by Fall, | rels were erected in which to store an elleged $100.000 bribe was given | the oil until a market was found for Fall, by Mr. Doheny occupied a key|it. Mr. Doheny looked after that | position. It was for that act that| Fall was convicted. But Doheny was | acquitted. The Government charged that Sec- | retary Fall leased to Mr. Doheny the Elk Hills naval oil reserve in Cali- fornia, because of the alleged bribe. Twice the level eyes of the gray-haired oil millionaire stared at a jury de- ciding whether he was criminally culpable. Both times he heard the words “not guilty.” First he was tried for conspiracy §PE(’I!L \O'HCES OWNER-DRIVER—TRUCKS. MOVE ANY- thing anywhere ary time S or long hour. _ Columbia 3724. _ 10* orr BE RESPONSIBLE FOR_ANY SeDis excent contracied by mrset RO PARKER. 1241 1st_si. n.e 11°* ‘I“\;"I‘LL“NEO'II‘ BE REsPo‘Nslzsval: FOR ANY cet _those SO053 SRaptpiase conteacte by myself. MARGARET _ ROS| v LEAS] yrite home. We are very 9nxmu; R rom MAYA 'HOYT. R. D. 4. Auburn. N. Y. 14+ AILY TRIPE MOVING LOADS AND PART oads to and from Balto.. Phila. and New Frequent trips to other Eastern DATEREIdable, Service Bince 18065 £C.. phone Decatur 500, i NACE REPAIR PARTS. Wide assortment of mtz bars ete. HECHINGER CO. NCHES—4 ANT L OR FART LOADS Connecticut. Massachusetts. way points. This week's special return price. Also ghipments Florida, Arkansas. Tllinois. Ohio; Reasonable. “Insured furnituce carrier: ARROW s‘rclémARD TR\N”PORTAT!O‘I District CLEANED FURNACES— JACUUM "CLEANED arts. Estimates on Dlumhml and heating erms. CAPL ROBEY. INC Rock Creek Church rd. n.w. _Adams Peaches, Grapes, Apples. Cider | AT QUAINT ACRES, Bilver. Spring, Colesville pike (Route 29), only 5 miles from D. C. Note detour sign. A DEAL FUNERAL AT $75 Erovides same service as one costing $500, Don’'t warte “insurance money. DEAL, with 25 years' experience. Lin- | con_8200 TO GRAPES, APPLES, CIDER| AT QUAINT ACRES, Bilver Spring, Colesville pike (Route 2a). ! only 5 miles from D. C. Note detour ) » | phase of the business and he often was confronted by the fiercest kind of competition because the opening of the field quickly brought swarms of | experienced dealers. Within two years | more than 200 companies had been | organized and more than 2,300 wells had been drilled within the city limits of Los Angeles. Mr. Doheny turned to Mexico after | his California interests were estab- | lished, confident of discovering and opening up virgin oil territory not suspected by any one. Indian guides led him and his associates through an almost impenetrable jungle and they made their first strike on the Tampico coastal plain. " Finds Natural Well. Then one of the guides piloted them through several miles of jungle to an | immense natural well of flowing oil and gas. In that immediate vicinity 280,000 acres of land were purchased and options were obtained on 500,000 acres surrounding the purchases. The guides showed the way to an- If You Operate An Apartment House Hotel, or Office Building e are prepared to offer o com- petent. engineering _service Peating ‘#nd hot-water plants. Inciud- ing boiler replacements, automatic firing and stack controls. If you feel that you would like || to reduce your heating costs, utilize our Free Survey Service. Installments financed. if desired. by the liberal Federal Housing Adminis- tration plan or privately, NATIONAL Heating Company Room 410 Bond Bldg. NAtl. 3934 was indicted In connection with the naval oll leases, however, the Mexican government had placed what were con- sidered exorbitant taxes on ofl. Irish politics also claimed much of Mr. Doheny's attention. He advo- | cated establishment of an Irish repub- lic and at Chicago in April, 1921, was elected president of the American Association for the Recognition of the Irish Republic. He was said to have| underwritten a $4,000,000 Irish relief | fund in this country and was credited | with having been the largest contribu- tor in America of money for the sup- porl of the aspirations of & free Ire- I.AWEIS' BRIEFS RUSH PRINTING BYRON S ADAMS Immediate Repairs NA. 4370 Reasonable Prices Gichner 50 Years' Enviable Reputation 418 6th Street Marketed By Washington’s First Fuel 0il Distributor “See ETZ and See Better” ‘Many grown people are NOT wearing glasses today—be- cause they did so wiien they were children. Is your child getting to be eye helped? ETZ Optometrists 1217 G St. N.W. MON NDAY, SEPTEMBER Life in Jail Cell 9, 1935. ANTHONY CUGINO, Alias Tony the Stinger, sits handcuffed in New York police headquarters shortly after his arrest yesterday on seven murcer charges. A few minutes later the notorious gangster ended his life by hanging RESEARCH METHODS e e e NEW 6. W. COURSE Study Designed Particularly to Aid Workers in Use of Libraries Here. Miss Adelaide Hasse, well known bibliographer and spefialist in pub- lic documents, who is a reasearch consultant with the F. E. R. A, will have charge of the class, day. A new course in its library science | George | this Fall to meet a need arising out of the great volume of research work now being carried on in Washington by govern- mental and private agencies. i Designed particularly for workers' who, in making special studies, com- piling reports, bibliographies. etc., | must obtain information from the vast | watches into MONEY at— storehouses of knowledge in the Capi- tal, the new course kntmn as meth- arwerer e s v AL Kahn Jne. use of the Congressional Library and the more than 200 special libraries Arthur J. Sundlun, Pres’ located here. Tuin your old trinkets, jewelrs and IT WASN’T RAINING When Noah Built the Ark —but wasn’t it a good thing he had it ready? Fill vour bin NOW with Marlow’s Famous Reading An- thracite and be ready when the need arises. Chilly nights will soon be here, CALL NA. 0311 TODAY 77 Years of Good Coal Service LB e Marlow Coal Co. 811 E St. N.W. 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Burke and Government agents, Burke said the contraband liguor seizure is the largest since repeal. ft consisted of 5,000 cases of British LIQUOR ARE SEIZED British Vessel and Three U. S.| GShcguy after midnight, three Coast | Guard cutters on patrol bore dawn Launches Taken by Coast |upon the British schooner, which was Guard Off Cape May. | anchored about 10 miles southeast of Atlantic City. Burke said the Amer. By the Associated Press. | ican boats, Theresa of Margate. Nam CAPE MAY, N. J., September 9.— | pach of Point Pleasant and the Dread Laying & shot-across the bow of the naught, were alongside her and case: British oil schooner Popocatapetl, of whisky had already been trans Coast Guardsmen early yesterday | ferred. seized the boat, three high-speed American launches and confiscated a $200,000 liquor shipment. Twenty men, officers and crew, members of the four ships, were taken under guard to the brig at Cape May air base, where they were held for The Popocatapetl carried a crew o eight. She is a swift craft of abouj 153 tons, gross, and is owned by West ern Transport, Ltd. of Yarmouth Novia Scotia, according to Lloyd: register. The boat is equipped witt Diesel engines. which will | | meet from 7:10 to 9 p.m. each Thurs- i ‘43 YEARS at 935 I S REET | JUST 5 MORE DAYS Just three weeks ago I made an announcement that I would reduce my standardized dental fees on all classes of dental restorations, (full and partial sets of teeth), remov- able and fixed bridges etc., from 10 to 2577 for one month. You have only 5 more days (o take ad- vantage of this great saving. 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