Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-26
Bought B e fore and
Since Entered Cabi-
net-Willing to Sub
nit All Facts-Tells
Why Failed to Prose-
cute Fall, Doheny,
Sinclair and Forbes
president May Ask
Resignation to Take
Effect When Inquiry
Is Ended

Washington. Feb. 25,--Attorncy GEN.
cral Daughcrty today publicly iao-
knowlcdged NAT he had dealt in Sim
clair oil stock before and since he en-
tered the cabinet, declared he never had
misused official information i'm these
transactions. and renewed his willing
ness to submit all the facts in any in
vestigation the Senate might order.
In an open letter to Senator Willis.
Republican, OF Ohio. Mr.. Daugherty
said he bought some Sinclair stock
before he became attorney gencral, and
finally suffered a loss of S2S a share.
Six months after Teapot Dome was
leased to the Sinclair interests he sold
part of his stock in an effort to re-
coup losses. Later he bought baclc
the same amount at a slightly lower
Price and finally sold. last fall, his en-
tire Sinclair holdings.
The letter also answered charges OF
failure to prosecute former Secretary.
FAN. Edward l.. Doheny. Harry j.. Sim
clair and Charles II. Forbes, former
director OF the Veterans Bureau. Mr..
gestion action against Fall. Doheny
and Sinclair was left to special gov
eminent counsel. while proceedings
against Mr. Forbes had been initiated
some time ago before grand jury at
Chicago
The attorney general added that he
rever had given any opinion. oral or
written. regarding the legality of the
oil leasing policy. and had no knowl-
edge of the negotiations until they
were concluded. He urged that tho
Senate inquiry into his department be
conducted without delay. but that he
be given an opportunitysto summon
witnesses of his own for questioning
by his own counsel
A copy OF the letter was sent TO the
White House after it had been made
public nj the department Of Justice.
White House officials said It had not
previously been submitted to President
Coolidge. Later In the day Mr.. Daugh-
erty had n long conference with the
chief executive but there was no out
ward indication of change In the sit
uation that has resulted from the de-
mand of Republican Senate leaders
that he resign a
At the same time however. II was
apparent that some definite step might
be announced in the near future. The
president has under consideration sew
eral proposals. one of them contemplate
ing that Mr. Daugherty submit his res
ignation to become effective after the
Senate inquiry has been completed. by
that method. 1t has been suggested,
the attorney general might avoid the
charge OF quitting his office under fire.
Action on the investigation resolu-
ton IS expected in the Senate not lat
err than Wednesday, and II may be
adopted tomorrow. It's author. SenR-
tor Wheeler, Democrat. Montana. today
sought unanimous consent to save ~
day by bringing it out of committee,
but Senator Willis objected. insisting
upon decent. proper and orderly pro-
cedurc." Mr.. Willis said he desired
carly disposition of the matter but
wanted action to be taken in the regu-
lar way.
For the most part President Coolidge
has kept his own counsel regarding
tho demand that Mr.. Daugherty return
to private life. No statement Of the
presidents intentions has been author
lied at any time from the White
House, nor have those who have con-
ferrcd with him taken away as clear
an idea of his mental reaction assthey
might have desired, 49,
NeNCTlHcIeSS IL Is certain tnaL Sonic
Of his conferees have gained the as
tinct impression that he is hopeful OF
an adjustment that will in a measure
satisfy both Mr.. Daugherty and the
group of Senate leaders who have been
demanding his resignation. It 10 in
furthcrance of that hope that the sug-
Eestion has been made that a rcstgna-
ton dated some Weeks In the future
might solve the problem.
During the past "a hours Mr.. Cool
idge again has had brought home to
him both sides Of the controversy.
Last night he conferred with Senator
Borah, Republican, Idaho. who said I'm
the Senate Saturday he was willing to
help lay the groundwork for impeach-
ment proceedings against the attorney
general. Today Chairman Adams OF
the Republican national committee,
other matter, reiterated on the doorstep
of the executive offices his support OF
the position taken by Mr.. Daugherty.
He declared that "blackmail and black
guarding of other officials might he
expected to follow n successful assault
upon the attorney general.
Tonights conference between Mr..
Coolidge and Mr.. Daugherty lasted
more than an hour. The attorney gen.
eral said afterward that he went To
the White House to talk about another
subject but that, naturally, there was
Some discussion of the attack upon
him. He would not discuss details OF
the subject. zee.
Conferences of Senate leaders today