New Britain herald., 1924-01-28
.ANNULMENT OF OIL
 CONTRACT LIKELY
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(Continued from First Page) navy and the secretary of the interior in dealing with these matters, was submitted to me prior to the adop- tion.
 Oppose Dohcny offer
 Senator Lenroot submitted a letter from F.. l.. Doheny personally offer ing to return the California lease if the government will reimburse the Pan-American Petroleum and Trans port company for funds spent in de- vcloping oil reservoirs at Pearl liar bor.
 Senator Norris. republican, Nebras- ka, declared offer ought not to be accepted.
 Senator Henin. democrat, Alabama, also argued against accepting the Dohony offer. IIc charged that both leases were obtained by fraud and corruption"
 Senator Walsh traced the history of the naval oil reserves from the time President Taft withdrew them from entry in 1909.
 The present administration had hardly got warmed in its seat" he said, before the president issued an executive order transferring the entire reserves to the secretary of the in- terior.
 Calls 1t Indcfcnsiblc
 He added that executive order was 'indefensible" and contrary to law" and said he did not apprehcnd that anyone would arise to defend it.
 Tho original draft of this executive order, asserted the senator, was made by Secretary Fall, and was not trust cd to the agencies usually employed.
 Admiral Griffin and other navy ofYi- cers. he went on, made intellectual at- tempts to block the order, and then Co modify it.
 These protests were never trans mittcd to the White House." he con- tinued, and the records there contain nothing to show the reason for issu- ance of the order"
 Hearing Called on
 Rear Admiral Gregory and Rear Admiral Latimer, judge advocate gen- eral Of the navy, appeared before the house naval committee today prepared to discuss the naval oil lease reserve leases but the committee decided, at the last minute, not to question them at this time.
 Chairman Butler explained that he thought 1t would be better, fin view of developments in the senate investixa- ton and the announced intention of President Coolidge to institute court action to pursue hands-off policy at least for day or so.
 Some members of the committee had expressed desire to obtain in- formation from the navy department, particularly as to the requirements in the Doheny lease for the construction of oil tank storage facilities at Pearl Harbor. Hawaii. They had planned to question the naval officers as to how much had been expended from royalties for improvements there and to determine the status of the work.
 Several members of the committee were determined despuite the reiuc- tance of Mir. Butler, to proceed with an examination of Admirals Latimer and Gregory, but just before the com mittee session there was a hurried conference at which 1t was decided to call off today's hearing. The commit tee then proceeded with other busi- ness.
 Claims Violation of Pltdge
 The Walsh substitute for the Cara way resolution which was made pub lie last night, charges that the Sim clair Teapot Dome lease was executed without authority under circum- stances indicating fraud and corrup- ton" Senate action will be confined to the Teapot Dome transaction ct this time, 1t was explained, because of the conditional offer by Doheny. through his counsel, to reconvey to the government the lease awarded to his company on the California reserve.
 Senator Walsh, in making public his resolution said word of the commit tees decision of support in principal, despite a pledge to regard it as con- 1dentIal, obviously" had been taken to the White House prior to the presidents announcement of his de- cision to act at once"
 White House officials describing the presidents course in formulating his decision. said he devoted his trip Sat- urday on the Mayfiower to a study of the situation, after which he con- ferred with advisers here and. shortly before issuing his statement, received a communication from Attorney Gen eral Daugherty, who is at Miami. Fla, urging him to take the action an- nounced. The presidents eonferees included Chairman Lenroot of the in- vestieating committee: Senator Curtis of Kansas. assistant republican leader; Acting Attorney General Seymour. and Assistant Attorney General Holland. who has been observing the progress of the hearing for the last week as the personal representative of Mr. Daugh- erty.