Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-12
LEASING OF INDIAN
LANDS BY FALL IS
DECLARED ILLEGAL
Continued from First Page,

| bonds aggregating 1926. Original
ly the First National Bank of Chi
J cago deposited $4,000 under the
agreement, Traylor said.
Good Banks in State.
The banker was unable to say why
two citizens of Albuquerque went to
Chicago to transact the sale. He said
there were excellent banking facili-
! ties in the New Mexico town, as we'll
as in other cities closer to 1t than
Chicago.
DO YOU do business with the Stand
! ard OH Company of Indiana" asked
Senator Walsh. democrat, Montana.
Yes, both the First National and
the First Trust" said the witness.
He had explained that the First Ma
tional and the First Trust were under
the same ownership.
l. you are really the Chicago bank
iof the Standard Oil Of Indiana?' asked
Senator Walsh.
Yes, sir
Did SOt Know Fund Source.
Edward Il. Brown, vice president of
the First National Bank of Chicago,
said in response. TO Il question that
records of the bank for May, 1922. did
not show any checks for 100000 or
s250,000 had been drawn by the stan
dard Oil Company OF Indiana. re
source of the funds paid to Magee for
the Journal except that the check for
$200, 900 came from the First National
Bank of Albuquerque. He added that
he saw corresp andence which indi-
Gated IL fight between that bank and
Magee. and il was his supposition that
the bank was buying the newspaper.
Joshua Reynolds. and his son-in-
law, McNary of FL Paso, were the
principal owners Of the First Ma
tional.' he said
lis that McNary the one the Presi-
dent nominated for controller of the
currency" asked senator Walsh.
Yes, sir -.
Explains Papers Purchase.
Explaining how he came to pur-
chase the paper. We'll said there was
a row between the First National,
which owned the afternoon paper,
and Magee's publication. He testified
that the community was ION edge" as
a result and that he thought the First
National should purchase the paper.
Il had a conference with A. b.
Mcmillan, vice president of the First
National Bank" We'll said. After.
wards Magee came to me and said
he was ready to sell. He thought as
] did that Mr. Fall might be inter-
! ested in the purchase. ] went to his
ranch and Mr.. Fail assured me he
had no desire to assist in the pur-
chase and that he was completely our
| of politics..
Magee later entered into an agree
ment with Well the later testified
that he would pay $4,000 for the
{ sale of the paper.
S2OO.OOO Was Advanced.
| The witness said the 100000 was
advanced to him on the order of Nc
MILAN. He did not think the bank
4 tl, dc Tp
the following July. Joshua Reynolds
! bought the paper "as an individuaI
| THE reason Chicago was selected
as the place to complete the trans
| action" We'll said, was not to cover
anything in the method OF the pur-
| chase but l believed il was the place
to close it, as the bonds were scat
| there was high feeling in Albu-
| querqua, and we thought il best t6
| close the transaction outside OF the
! state
| Well denied that the paper was
| bought by him for the account of the
First National. He said he made nc
! physical inventory of the plant, bu,
| had been assured $4,000 was 4 fair
/ price
! No Evidence of Debt.
| We'll said he had given no note or
| other evidence of debt for the $780,
:, 600 loan and that it was his under
! standing that the money was ad-
! vanced on the account of Mcmillan.
Senator Walsh pressed the witness
| as to why he went TO see Fall, who
TWO years before had sold his interest
! AS a matter of fact" asked Sena-
! tor Walsh, didn't you know Mr.. Fal
sold it because of his financial con.
! dition?"
! II did not. I knew nothing OF Mr.
Falls financial condition, either il
| 1920 or 1922"
Replying TO Senator Dill, democrat
! Washington, Well said he had in mint
+. selling the Journal, and so had pu'
| into the contract with Magee a pro.
! vision for his commission. Previously
he had said he was buying it on his
own account and hoped to sell the
i bonds and retain the stock.
| Asked About News Service.
| Taking up the examination again
Senator Walsh wanted to know I
the Journal had special Washington
+! news service. We'll said II did no
have, and the senator then asked i
there wasn't a grape vine arrange
ment with tho Interior Department
| He then read an article from thu
Journal of June 5, saying Fall woult
make report to Congress on thu
leasing of Teapot Dome the next day
Well said NJ. L. Fox. a former edi
tor of the Journal and !ong-tim
friend of Fall. had obtained TIL