The Washington times., 1924-02-14
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''was either the Navy or Interior
Departments advised Of your atti.
Eude?''
"They were advised. In an in
eerview with Assistant Secretary of
Interior Finney, I told him that
! hoped the opinion OF the Attorney
General would be taken on the
subject. He told me 1t was not the
wish Of the Secretary Of the In
eoFior FalD that the opinion OF the
Attorney General be taken"
where did You have the inter
Naew with Finney2''
I'm his office"
Before being excused Sutro asked
that the transcript of the proceed
1ngs when Fan dismissed the Gov.
0rIiment suit to recover sections
16 and S6 be made part Of the rec
Nrd.
Missing from Files.
Sutro explained that the tran
kcript would show that Secretary
Fall could not have done other
than dismiss the proceedings look
lions by the Government"
Walsh said the transcript, taken
by Sutro's own stenographer, would
be included In the record Of the
E0Hnmittee.
A copy Of the transcript Of the
proceedings could not be found in
the files Of the Interior Depart
ment, 1t was developed.
John Holland, Walsh's secretary,
testified before the committee that
he had found a copy Of Sutro's ad-
verse opinion on the Pearl Harbor
contract in the files Of the Interior
Department.
Daugherty Opinion Informal.
Holland also read a letter written
by II. Foster Balm, director Of the
Bureau of Mines, to FAN In which
Balm said Attorney General
Daugherty had informally and
verbally given a favorable opinion"
on the Pearl Harbor contract.
ibid you find any correspondence
showing why Daugherty did not
want to give a formal opinion in
writing?"
"I did not" replied Holland.
Holland was instructed to search
the files Of the Department OF
Justice.
John G. Shaffer, publisher Of sew.
eral Western newspapers, was called
and told the committee he had one
eighth interest In the Pioneer OH
Company, and had received $92,5OO
of the $1,000,000 which Harry F.
Sinclair agreed. to pay to allied COM
panies of the Standard Oil of Indl-
ana group to settle claims Of the
gre tEearot Dome.
Shaffer denied ever having de-
1nanded some $4,000" from the
Pioneer OIL Company ''for services
rendered"
Denies Rendering Service.
Senator Walsh read what he de.
0crtbed as the minutes of meeting
OF Pioneer directors, where it was
unanimously voted to give Shaffer
certain working properties ia the
Teapot Dome lands "for services
rendered" and for which he never
had been paid.
Shaffer listened carefully to
Walsh's reading and, when asked
what he had to say, observed: -
'I've never before heard of these
minutes or that matter, and rem
dered no services to them"
Shaffer explained that he owned
OAA SeSAAO eSOJoSSO9AS w 4O0HOI ApOulSs
To operate drilling operations on
fhis land, Shaffer said he bought oil
from the Pioneer Company.
Shaffer told the committee he re.
ceived one-eighth interest because
OF the mutual interests between
his land and that claimed by Pioneer
IN Teapot Dome. He said he had
given nothing for 1t. He denied
any interest in the Sinclair contract.
Walsh read a letter written by
4hafferato Finney in which he said
e'Fall has arranged with Sinclair
Tor some acreage in Teapot Dome
Tor me personally"
Had No Advantage.
Shaffer explained he wanted 200
acres because Of his previous appli.
cation.
''How do you think FAN could
Seserve 200 acres for your"
THAT didn't debar anyone else
from getting the lease"
rs 1t your opinion that anyone
else could have gone to Fall and
nad reserved a portion Of the Sin.
clair lease?"
IL do"
did you think that was con-
I'm no Judge Of that"
"You think Fail had a right to
distribute land around in any way
ne wanted?"
Eyes, think he could"
$50 you had no advantage over
anyone else, nothing between you
and Fall?"
mo, I did not" replied shaffer.
heatedly.
''on what date did Fail assure
you he would reserve 200 acres
4or you?
During the lease negotiations
with Sinclair"
200 acres7"
''No. Sinclair made an arrange.
ment that he would set aside 42O
acres in Teapot Dome for me, Riv-
ing me half interest in the oil
taken out"
Wouldn't Sign Contract.
"Did you make a contract with
Ginclair?'' ~
mo, Sinclair sent me a contract,
but wouldn't sign 1t because I
wanted the 200 acres to develop
myself as I saw fit."
The publisher said no terms were
proposed, he taking the stand that
he would pay a return TO thu Gov.
ernment just as others getting
shares would do. in royalties.
Shaffer said he had spent
911S.OO0 in drilling the first well ON
his land adjacent to the. Dome.
Now tell me what was the