The Washington times., 1924-02-09
HONOLULU Oils
NOW LISTED
|NPROBE
New Sensations Involving Fall
Expected as Senators Be-
gin on Third Reserve.
By WILLIAM HARD.

BY WILLIAM HARD:
The good old naval oil inquiry
leaped today from its welI-lknown
old homes in Naval OIL Reserve
Number Three in Wyoming and in
Naval OIL Reserve Number One in
California to q new expanding
home in Naval OH Reserve Number
Two, which Is also in California
and which includes the totally new
alleged scandals Of the Honolulu
Oil Company now ordered investi-
gated by resolution Of the Senate.
Thus at last all three of the i'm
mediately important naval oil re-
serves are under critical scrutiny.
Only two reserves remain for
further Senatorial exploration.
These are "shale' oil reserves not
at present suitable for big CONNER
cial use. They nevertheless, 1t ts
confidently believed, will presently
be drawn into the orbit Of the SEN
atorial exploring system. 1t Is
claimed that they, too, have been
allowed to get covered with private
business sndeavors.
The story which the Senate is
now following into Naval OIL Re-
serve Number Two brings UP the
memory Of Woodrow Wilson and
the historic but unpublished letter,
already mentioned in these columns
by this writer, through which Mr..
Wilson forbade the Interior De-
partment to carry out its purpose
of admitting and granting the oil
land claims Of the Honolulu Com
pany.
These claims were subsequently
confirmed to the Honolulu company
in the first days OF the Harding ad'
ministration by Secretary Of the In
terror Fall. Thus four oil com
panies are now included in the
record Of alleged improprieties for
favoritisns or leniencies by Mr..
Fall. They are:
The Sinclair company, the Doheny
company; the Standard Oil Com
pany Of California and the Honolulu
company.
The new inquiry into the Homo
lulu company and into Naval Oil
Reserve No. 2 was started, 1t Ia
here today observed, by the Senator
who from the beginning has been
the mole in the ground under the
whole oil investigation affair. This
Senator is La Toilette Of Wisconsin
Walsh Does The Work.
Senator Walsh of Montana, with
admitted enormous legal ability
does the overground work. Senator
LaFollette did the original boring
and burowing and introduced the
original resolution for q naval oil
reserve inquiry, and now from time
to time, as the inquiry threatens tc
exhaust itself in any one direction
he introduces a new supplementary
resolution showing a new direction
in which 1t can successfully and
sNnsationally go.
Senator La Toilette now in thit
matter has the Senate in the hollow
OF his hand. He is seen conferrine
on the Senate floor with Senator
Robinson, the leader Of the Demo
Gratis, and with Senator Curtis, the
whip Of the Republicans. They treat
him with distinguished considera
ton and Difference. He then arises
to offer a resolution for a further in
quiry by the Public Lands Com
mittee, Of which Senator Walsh IL
q member, into the affairs of the
Honolulu company and of Naval Oh
Reserve No. 2; and the resolution il
passed unanimously without a mur
mur against it.
Documents are Discovered.
The full documents Of the Homo
lulu story were discovered today tC
be in Senator La Follette's office In
the Capitol, where they were not re
Vealed to public view. From the
sources, however, from which Sen
ator La Toilette secured them, their
purport was found to be as follows
The claims Of the Honolulu com
pany amount to approximately
1850 acres in the middle of Naval
Oil Reserve No. 2.
II they were admitted and
granted and II wells were numer'
ously sunk in them the drainage into
these wells from the adjoining parts
OF the reserve would make the re-
serve Of doubtful value to the navy.
The Interior Department under
President Wilson was. nevertheless,
inclined to admit the legal validity
Of the claims. Against the Interior
Department there arose then a con
trary view by the Department Of
Justice under Attorney General
Gregory. The Secretary Of the In.
terror favored the claims. The At.
torney General opposed them.
President Wilson sided with the
Attorney General. The Secretary OF
the Interior, nevertheless, persevered
toward granting the claims. Then
President Wilson wrote to the Secre
tary OF the Interior a letter which
was a masterpiece of grim humor
Gus determination.
Were Not Granted.
In effect, he said: "
IF you grant these claims, please
let me know about it few days be
forehand, so that I can ask for your
resignation before you get them
granted"
They were not granted. Then a
succeeding Secretary Of the Interior
still under the administration OF
President Wilson, definitely refused
and rejected them. Then, within q
few days after the Inauguration OF
President Harding, Mr.. Fall, as Sec
retary Of the Interior, reopened the
case regarding them.
Quickly thereafter, by his own
unaided act, he issued q decision
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