New Britain Herald Newspaper, February 14, 1924, Page 4

AUTHORIZED DENIAL OF LEASE (Continued from First Page) missal of the proceedings brought by the government to acquire title to oil lands held by the Standard Oil of California within the confines of naval reserve 1, in California. He declared the government was rep- resented at the hearings and the whole situation canvassed. “The secretary did the he could do in dismissing ceedings,” Sutro said. John Holland, sceretary to Senator Walsh, testified that he had found a copy of Sutro's opinion in the filcs of the interfor department, and that there had been official ecorrespond- ence about it. Letter to Fall. Foster Bain, to Secerota at Three Rivers, ing him of the Sutro opinion The letter follows only t thing pro- H. wrote 1922, Place. . Calif., “Hon. Albert B. Fall “Three Rivers, N. M “D Mr. Secretary: “I have been here for the last few days arranging for a transfer of Accumulated Royalty Oil and futyre Roys Oils to the American compan: T have surprised to find Standard nd 3eneral Petroleum particular are adopting a very hnical attitude towards this t going so far to raise a question as to whether or company would be safe in a in later handling any of question the Pan-American to have them do &o. “As you will recall Mr. Sutro and Mr. Wyle h been doubtful as to the right of the department to make the exchange cor They now seem to have become positive that no such right exists Mr. Storey is en interpreting ¢ S0 as to question the right Standard to deliver oil to the Pan-American on our order “I have bell, as ropresentir s recefve th ceipt and w awyer imp should end the n line companics are “There however, None of M, into tro 11 na nything the for Pan- been the in sfer, desi and arrang Mr. Camp- he department and give a re. I am not a is that that as far as pipe concerned another phase, Doheny to get take it we will can to make on told for it o us want anc ve | nite smaller oil com- into court and fight this ith a view to getting a doe. right of the depart- baurgain. This curried through. Mr, orey tells that he objected to it as he felt that it would em. barrass the department and would give support 1o the trouble makers in congress. Mo professes to be anxions and willing unything he can to help the department carry out its plans, bt to be in the awkward po- sition of having an opinion from his attorney which might be ki inst him in casc the came up. “Out of a gestion repeatedly that the the general be the punies contract v ciston to the ment to mak proposa ™ such & not quoted I this hus come the sug- opinion of attorney obtained ay to the lcgality of realize the objections to asking such an opinion, but 1 have thought it proper to let you know the difficul. ties that are being raised herc so that ¥ou might reconsider the decide properly ask put in writing N stood was his in ind verbal ex- pression of opinion favorable to the action the department he am not certain Mr, cares. but Mr will see him to. morrow and if it dors scem to them fmportant 1 am giving Mr. Cotter this letter to show you you may know what I have fond out “The the north lin good shape, nt work in contract matter n gene and not 1 as to whether you mig attorney what 1 have » rmal 8 tuken that Doheny Cotter wells on are coming on in Anderson has done pushing thew ahead “I am sorry to yusiness wih “Cordia at home H. FOSTER BAIN ‘Director.” No More Senator Wa whether the Lyidence he Record Then the ity me commi to at of John proposal to | matter ever | 4 | mented from the wells on Teapot Dome," His payment from the Pioneer Oil eompany, Shafler added, came out of the $1,00,000 paid to that company by | the Sinelair interests. Senator Walsh | pressed the witness for reasons which led the Pioneer company to give him an eighth interest in its Teapot Dome | matter. “The Pioncer people felt wa had a Pioneer commeon interest in the Teapot hon-I.' ings in case the Dome was ever thrown open to the public,” Mr. Shaf- ! fer said. “They glve it to m was their idea Mr. Shaffer ®ocognized This signa letter dated April 19, 182 s Secretary Finney calling| attenti to Mnewspaper reports a contract had been made with company. Involved, I have a personal interest in this deal,”” the letter read. retary Fall had arranged with . Sin for some acreage for me| ersona | He th the Sinelair The witnes: e the readi zave up nothing. It| his that the Mammoth Of Yall “As you asked that a copy of case be sent him. having Just testified be.| letter that he| inclair lease, g Scnator Walsh asked: “Does that refresh tion?" Rack in applied for under lease your recollec- 1917, Shaffer replied, he| iand on the Teapot Dome and had been promised| 200 res of land by Secretary Fall. “How in the world do you think the. mere fact that yvou had applied for land gave you a right to share in the Sinclair lease?"” demanded. “1 didn't,” Mr. Shaffer replied. “Didn’t you think it was the duty of a !for the public out of it jopinion that anybody in this country could go to Sccretary Fall and de- mand a share in the Sinclair lease or money for it?” “I think so,” Shaffer said. ! “And you think that was consistent with Secretary T s discharge of his duty,” Senator Walsh said, nd that he distribute the around as he saw fit?" “I think so.” Shaffer explained that when he pressed a claim previously presented to Secretary Lane, Secretary Fall told him he was then negotiating with Sinclair for a elase, Promised Some Land, “He then said that as 1 had made my application in 1917 he would se that I would have some land ther ffer testified, “He told me after. ward that he had told Mr. Sinclair that he was reserving for me 200 res because of my previous applicas tion.” Chairman witness' exami “I had a conversation with Seere- tary Fall two months after he took office,” Shaffer said, “and told him T had spent $150, trying to-gevelop ol at the Teapot Dome. He promis- #d me that T would be given a chance to get some land if the reserve was ever opened, Later, he said, he would ltake it up with Mr. Sinclair.” ! Volewing thir Elneclair mede a proposition to develop 200 acres of {the Teapot Dome land in his behalf, nroot ion. took over the “What was the obligation you un- dertook in getting an eight of the Ploneer company?” Senator Lenroot asked, “Just that I was to help them de. “That we would both e land inside the Teapot, and I would 1} obliged to give an eight interest in mine,"” § thera anything in the con. tract to fix this obligation?” Scnator | Lenroot a {velop,” Shaffer said Moral Obligations No, it was a moral obligation, but we wonuld have had to put up pipe lines together and make joint arrange. ments. T would have agreed to de- velop jointly with them.” “Do you mean business man would make arrangements like that without a contract and on the basls of a moral obligation?” 8enator Len- POOL Aueried J “1 think so.” Shaffer replied You were to furnish no money, np nd were free to make a lease Senator Lenroot come “What was the consideration on gave for this cighth?” was $1 and other valuable con- Wtion,” Shaffer responded “as the said.” ugt gave you thin cighth 7" Senator Tenroot interjected, -y but senator, there were 8,000 cacres of land there” Shaffer protest. ed. "l just to ge one small see- yourself Kenate took the witness bistory of his attempts Teapot. &haffer 1 ienecr ~nroot ase on the ad in 1918 natof nding made the proposal to| | ference In the proportion of these two Senator Walsh! public officer to get something| Was it your! NEW BRITAIN DAILY HERALD, THURSDAY, Mr. Shaffer on the stand. of the lease “You read this letter to Mr. Sha- after {t) was| ffer?” Senator Walsh asked. *I in- vite vour attention to its statement/ recollection was|of Mr. Shaffer's personal interest in What did you know about Do Publie was madc signed. | Shaffer said his that he got the information that Tea- this deal. pot Done was to be leased just as any-"1t?"” {one else could. | “I recall Mr. Shaffer's connection “I did not get it from Mr, I'all,” he with the Salt Creek matter under| said. Secretary Payne’s administration and | Adverting to the agreement with his letters saying that he had spent Sinclair, the published said it was/ considerable money in developing oil and that he was to get 200 acres. |there and had some equities in the| ‘T wunted to develop it myself, but | field, if it ever should be developed, Mr. Sinclair wanted to do all the de- and in Teapot Dome.” veloping in Teapot himself, Mr. Sin. “A letter had been sent by Secre-| clair proposed that he set uside 420 tary Payne, in the Wilson administra- acres of land out of the reserve, de- tion, denying Mpr, Shaffer’'s request| announcement two weeks | velop that at his own expense and | for drilling permits on Teapot Dome, Mr. Finney said, but the .\laryland‘ company was allowed drilling permits’ “You didn't own the land, you|©On land outside the Dome.” didn't have a elaim on it, and the 1 mentioned the matter to Becre-| whole of your right depended on Sec- | tary Fall, likely,” Mr. Finney conunu-} otaré IPall's verbal statement that|ed, “and filed memoranda showing| you would he taken care of " Senator Mr. Shaffer to be asserting some Lenroot demanded. lequity on Teapot Dome, as did a, “That's right,” Shaffer said. 'man named Taylor and another | nator Dill, demoerat, Washington, | lamed Campion. 'All these claims) pointed out that Frederick G. Bonfils, Were filed under mining locations. | FALL STRENGTHENS Standard Oil Witness Says Secre- | tary Wanted No Legal Opinion “I just wondered whether the dif- Washington, Feb, 14.—E. C. Finney, assistant secretary of the interior, was quoted today before the ofl commit. ! “Oh you are still working on that,” |tee as saying that Secretary Fall con- said Senator Dill. ‘s1dered it “‘unnecessary” to have At. | “What's the reason these men come | torney General Daugherty pass on the to you and make you these gifts?”|valldity of the oil leases before they | ! Senator DAl asked. were made. “It was because I had this lapd | The testimony was given by Oscar alongside,” Shaffer returned. | Sutro, counse! for the Stapdard Oil “You used that land alongside to{Company of California. He told the get this interest from the Pioneer |committee that he had suggested to people?” Senator Dill continued, “and | Mr. Finney that a department of jus- used it toe to get half the oil from |tice opinion be sought. this 420 acres of Sinclair, too?” Opinjon Unnecessary ! “That's right.” “Mr. Finney's reply in substance,” Sinclair Sent Contract continued the witness, “was that it Shaffer sald Sinclair had sent him | Was not the wish of the secretary of a written contract, but that he had|the interlor—No I don't think that ex- not signed it. His plan with Sinclair |presses it. He said the secretary of is held in abeyunce now, the witness the interior considered it unnecessary sald, because th to have the opinton of the attorney lense might be general,” (of the oil inquir! A letter to Mr. Fall from H. Foster ! “How did ) here you had no | Bain, director of mines, transmitting interest in the Sinclair lease?” Senator (@0 opinion by Mr, Sutro against the | Dill queried. validity of the leasing polic; vas put “It's a difference between having |into the record. It said that “none of some land and having an interest in | US want Mr. Doheny to get into trou. lthe tease itscif,” Sharfer responded, blc and propose to do everything in He added that he didn’g have a share | OUI power to make it casy for him." - of stock or interest fn the Sinclair| Mr. Bain’s letter added that objec- compunies, {tion had been raised amnd that he ! Pressed by Senator Walgh, Shaffer | Would suggest a formal opinion be ob- said he had no recollection that he |tained from the attorney general in had called on 1all after his visit \iwmyd with what he understood had Mareh, 1021, been an “informal and verbal opin- “When did Secretary IMall tell you |ion.” {he had argunged with Sinelair to give Bain then added that he “rcalized you an interest in the lease?” Senator |the objection to asking for such an Walsh asked opinton,” “I can’t remember as to these dates Attorney General Daugherty |1 went to Secretary ¥all soon after | VIOUSly has notified the committe | he took office and told him I wanted | Opinion was rendered by him, |to make application for u part of th As a result of the testimony the 1and when it was opened to the pub.®committee instructed its secrctary to !tie, if it ever was, He made no pledge | Seareh the files of the depurtment of |16 me, but later he told me he had |Justiee, arranged with Sinelair to take care of me op thig 26 res” “Bécrctary Fall must have told yen [this some time prior to April, 1621," { gonator Walsh pursued. | That's right.” HEARST CANNOT BE | “Then It fellows that as early as| Mareh, 1921, Fall had an arrangement | by -’.?1(-!\ Sinclalr was to get thn:Pubfisher [s Beyond Age Limit1 | 11 grant that,” Bhaffer responded. | |“T want to give the facts” | wu‘ W“mefl[ Rmes | "We'll draw the inferences,’ rpr! marked Scnator Walsh ! | “The Ploneer Oil company was en- | ged in trying to got legislation to | o |open up these lands," Senator Walsh |y wald. "Wasn't the consideration you | share the protits ‘50-50° with me.” Had No Real Claim propertics vou got depended on the difference between the circulation of your two papers,” Senator Dill com- | mented. ;i | “Well, there was a little more liber- al view," Shaffer replied. “But T don't want to discuss Mr.| Donfils, We don’t publish a paper llke | he does.” Senator Diil said he noticed Shafter, besides getting one-eighth interest in the Pioneer, got 200 acres from Sin- clair. { interest pre. s no as Washington, 1'cb. 14.-~Application Willlam Randolph Hearst of New | ork for appointment In the Milltary Intelligence branch of the Officers’ lin the Pioneer Ofl company, a Stan- {ings in case the | interest in this deal,” and added: | gave tor this lease the support of your ' newspapers for this leasing legisla- tion 7" “The support of my newspapers was never mentioned or promised,” Shaf- | ) Reserve Corps, has been turned down ,‘hy the secrctary of war, because Mr, | | Hearst is over the age limit fixed by | & “m;y Weeks has written n: : po " letter to Mr. Hearst on the subject ex. | er replied. “1 don't even know wh yressing the regret of the de ent | "}”"“v"" they took on the proposi- ilrhu thi. appol:!mcn! could p:\::lm tr::‘ " Rdverting to the letter of Finney |M8de for the reason that the aw | |Scnator Walsh demanded to know "(f’r"::’n":: b ‘:,m,';:wo‘",',mf(""' et [why he wrote Finney instead of Fall. i’ 30 Soeu e M Dt it wes { had ,""”""","’“,"L"r‘m"“’,“"‘. ’"’"‘;,"k““,‘m-d« plain at the war department Interest in this when inquirfes were made there to- day that his application for the ap- had told pointment was not wholly veluntary. | One of the enthusiastic officers of the army, who felt that prominent news. papermen should be in the officers’ [teserve corps, urged and persuaded Mr. Vearst to make the application But the officer falled to ascertain Mr, Hearst's age and when the matter ne before the department for con- sideration it was found that the law | "How about your deal?" ™ “1 assumed the secretary ‘personal ‘1 assume you ‘as you know.' he 1 . don’t knew knew it 1t may mind then that T about it I take talked with Iinney how has had it thought been in my talked to him I must have about it after 1 FEBRUARY 14, 1924 CHICAGO PUBLISHER INVOLVED INDEALS Oil Scandal Develops-Got. Stare lor “Services Rendered” | @ S e Washington, Feb., 14.—John C.| Shaffer, publisher of the Chicago Evening Post, and a number of other papers, was questioned by the oil| committee today about a reputed | grant to him of a one-eighth interest dard subsldiary “for services render- ed.” Scnator Walsh, democrat, Montana, produced what he said was a record of procecdings of directors of the Pi- oneer company making such a grant. Mr. Shaffer said be never heard of those proceedings. He did hold an| eighth interest in the company, how- ever, he said, but had sold it. Asked what service he had rendered the witness replied: “None." He added that he had had adjoining Teapot Dome. Gave Up Nothing Shaffer said his payment from the Ploneer company came out of the $1,000,000 paid that company 'by the Sinclair interests. “The Pioner people folt we had a common interest in the Teapot hold- Dome ever was thrown open to the public,” he con- tinued. “They made the proposal to give it to me. I gave up nothing. It was their idea.” A letter to Assistant Secretary ¥in- pey from, Shaffer dated April 19, 1922, was put into the record. In it the publisher said he had “a personal land | “Secretary Fall had arranged with| Mr. Sinclair for some acreage for me | personall Just before the letter was read the witness had testified he had ne in- terest in the Sinclair lease, | Promised 200 Acres | Asked is his memory now was re-| freshed, he said that back in 1917 he| had applied for land on Teapot and later had been promiscd 200 acres by Fall, | “Was it your opinion that anybody could go to Secretary Fall and de- mand a share in the Sinclair lease or money for it?” he was asked. “I think so,”” Shaffer meplied. Tp to Fall | “He could distribute the interest! around just as he saw fit?” “I think so.” The publisher said under question- ing that it was his understanding the land on which he filed in 1917 was not at that time open to leasing. Asked 1t it was on the basis of that sort of a claim that he “made demand,” on Fall for some of th Dome, he replied: | “No, not at all. I just urged thet 1 get it." Told About Lease, Shaffer later testified that Se Fail told him to Harry F. Sinclair, When he was asked if the policy of his papers was involved in the in Mareh, 1921, that|erty, be was golng to lease Teapot Dome | lsaacson, John Malarney, John Lar. son and Harry Clark. Miss IMlorence Hurlbut was awarded a gold piece, ~ An Amazing Fact many people it may seem in- credible that a habit so common as coffee-drinking can be harmful. Yet if your doctor were to enumerate the common causes of indigestion, head- ache, and run-down condition, he would be likely to mention coffee. If you are troubled with insomnia, nervousness, or are inclined to be high-strung, try Postum in place of coffee for thirty days,and note the dif- ference in the way you feel, and how much better you sleep. Postum is a pure cereal beverage, absolutely free from caffeine, or any harmful drug. Postum deal, Shaffer replied: “The support of was never mentoned or promised, 1 don't even know what took on the propositio 5 OWLS HAVI | A successtul whist was held Mon- 1 made no demand, | day evening in Odd Fellows' Hall un- |der the auspiees of the men's nest of owls. ary jawarded to Mrs. Bouchez, Mrs. Flah- Mrs. Ohlson, for Health “There’s a Reason’’ Your grocer sells Postum in two forms: Instant Postum (in tins} prepared instantly in the cup by the addition of ‘boiling water. Postum Cereal {in packages) for those who preler the flavor brought out by boiling fully 20 minutes, The cost of either form is about onehalf cent a cup. LTI IS OOL MEETING, of the Purents and | Teacars' asso ion of the East street school will be held Pebruary . Councilman David L., Ir of (he First ward will give ta on “Goeorge Washington.” A svoecal selection will | be rendered by M Tostey jand musical ren dered by the or- chestra. The | charge of President Hollis J. er, | Parents will bo allowed te interview the teachers in their respective roomas from 7 to 8:15 o'clock at which time the regular mecting will be opens ed. . EAST STREET S my newspapers A meeting position they SUCCESSPUL WHIST selections will b Junior High school meeting will by and ladics The prizes were | | Miss Woods, R. five dollar For Business Men=—- A Business Bank ODERN business calls for banking facilities of a s Fall,” pushed talked Becretary Senator Walsh with be the would net permit the appointment to made. ialized character. 1 The helpful bank is more than a deposi- Chicago questioned by bis holdings in pany, & Standard s ] ‘he matter, however, became meantime of some embarrassment to the department because while it was pending protests againet any such ap- pointment were made by members of | quiry vigorousiy. “Oh. 1 suppose 1 talked with Mr Finney cvery time | came from Fall's office.” sald applica- as open, retary &haffer ‘ tory of funds; it must co-operate actively d witness deseribed at Recetves $92:000, “l received eompany lo whic terest,” Mr. Shaffrr $62,000." “Did eonnection « Walsh queried ve, and sold. “Didn’t you a $60,000 from the Pioneer ¢ for services?” “Neo sir.” “Mr. Bhaffer, cesded, “1 have of Proceedings o Fioneer Ofl com John C. Sehaff: the Pioneer Oil scrvices rendered “I've never seen t fer returmed, “and n them untll read t “What service did “None. 1 had a contrac @n eighth interest in the proper Pionesr company had Te Dome. They had thre sometime 18 1918.” Senator Walsh asked for t5 tract; the witness said his was in Chicago. “! bad land adjoining Pome,” Mr. Shaffer continu Poiding known as the Mary company, and purchased sonic compa you re Teapot i a il n and on a pref Made No Demand. “Neo, not at a 1 made no demand. 1 just urged that 1 Anybody rmed wst. he Wye not or Kendriek iggested the ed until 1922 Got His Dates Wived democsat jease at was mer of after t Teapot announcement was Dome was to be by Senator Kendrick. Shaf- neisted tha e was e- Teapot « Bse | gotieting with Sincisir for The gth hi actions in getting title to his Mary- land company land outside the teapot resere, “That land was withdrawn in 1909 fteelf, wasn't it Ecnator Lenroot asked. “1 don’t kno= “It was drilied ) 1 oeot it first euner for qeveloping it their rights. He was eveused The Shaffer trer written from and said “The morning Times £ that the contract for ing the nuval reserves | has been made © the Ol company of Delaware clair, president, cte “As you know 1 have a personal in- terest in this deal. Secretary Vail has arranged with Mr. Sinclair for some scréage for me personally. 1 wo Schaffer returned om the widow of the ent on imply to eccvded o) Los Angeles, quetes vay s cretnp- Wyoming Matmeth * Hike therefore to have & copy of this , con act. 1f it is pMinted plesse mail me a copy care of Chicago Evening Post, and if it has to be typed, please have it done and I will pay for the expense. Chicags office week.” by the last of the Vinnes Takes Seand tant ' As an geon's office rang. When the the Militury Order of the World War. Molhcr‘l)rmms Two But Fails in Suicide Effort Revere, Mass., Feb. 14.—L2aving a note to ber husband that she was T the old Wining | tired and cold and could not “stand | any Mre. George €. Wils tert drowned her twe infant chil- dren in a bathtub yesterday and ate tempted to end her own life Wiifert, returned from work last night, found Mes wife and children in tatht fully dressed. The infants, & boy of three years and a ein of monthe, were clasped in of the mother, who was un her struggles the wom. apparently kicked aside the stopper of the tub and the water had Irained away. Wiifert told the police his wife had been despondent for some time. " longer,” Pa Gets An Earfal The tricphone in & well-known sur. doctor answered, the voice at the end of the line inquired, “Who is this>” The doctor, recognizing the voice 1 expect to be back in my of his seven-year-old son, replied, “The smartcst man in the world. ™ T beg your pardon”™ have tie wrong 1 Secretary Finney followed Bits (London). 1 | i finance. in various problems of business and | l As a business bank, in contact with many phases | | 4 of business activity, this institution is equipped to give valuable service to merchants and manufac- turers who require banking facilities that are pro. gressive and adequate. | We solicit new accounts of this nature to which we can give the fullest measure of service. Qur organ- ization, with the counsel and co-operation of our officers, is at your disposal. | i | | wE » THE BANK OF SERVICE - Open Saturday Evening 7-9