Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-09
DENVER PAPER HEAD
PUTS new LIGHT ON
OIL LEASE PROBE

Washington, Feb. S--A new turn
was taken today in tho senate oil
investigation with the testimony Of
Frederick G.. Bonfils. publisher OF the
Denver (Colorado) Post, that Harry
f. Sinclair had entered into con-
tract to pay him and his associates
S1,000.000 in settlement of claims
growing out Of rights asserted in the
Teapot Dome naval oil reserve. Sen
ator Walsh, Democrat, Montana, has
told the senate that every vcstige of
these rights had been denied by the
federal government.
According to Mr. Bonfiis' testi-
mony. the contract was entered into
In kanse City after he had sent a
reporter of his paper to the home of
Albert Il. Fall In New Mexico to in
Vestigate rumorS regarding the lCaS-
ing of Teopot Dome TO Mr.. Sinclair
by Mr.. Fall as secretary of the in
terror and after the publication of
one article in the Denver Post at
lacking the lease by analysis and
theory The contract was signed,
he said, after two conferences be-
tween Mr.. Sinclair and Mr.. Boniils
his partner, II. II. Tammens. John
Leon Stack, a Denver oil man, and
Ii. II. Schwartz, their attorney.
The opening up of this uneXpect-
ed line of investigation made 1t nee
cssary for the committee to defer
until next Monday the hearing OF
William G. McAdoo. former secre-
tary of the treasury, which MT. NC
Adoo has requested in letter sent
to Chairman Lenroot last night ana
read into the committee record today.
The committee first decided 10 near
aim tomorrow. but changed its de-
cisIon when it was foun6 that the
examination Of Mr.. Bonfi.s could not
he completed today.
The field Of the oil Investigation
was further broadened today by the
adoption by the senate of reso'u-
ton by Senator Iafollette. Repuh-
lican, Wisconsin, directing the oil
committee 20 inquire into and report
upon claims OF the Honolulu. Con-
solidated Oil Company, to oil Iands
situated within naval reserve num-
Der 2. In California
Senator Dill Democrat Washing
ton, a member OF the oil committee.
proposed that the senate 90 even
further bv inuuiring into what part
Mr.. Fal, had In efforts TO obtain oil
fields IN CoIobia. Mesopotamia. Pal
estine. Persia and other foreign
countries.
President Wilson signed the Walsh
oil lease anullment resolution. but re
attached memorandum In which he
took exception &c tho language in
the preamble which declares the
leases were made I'm violation OF the
Jaw and under circumstances indi-
eating fraud ami corruption.
The president also sent to the SEN
ate the nominations Of Silas H.
Strawn and Alice Ponereae g spec
jal government counsel In the oil
lease cases. They were referred 10
the OIL committee, where a fight on
them Is forecast.
The reference OF the nominations
was made at the conclusion Of an all
day debate in the senate on the DEN
by resignation resolution. in which
addresses were delivered b. Senators
Walsh. OF Montana. nd Helm. OF
Ala bama. Democrats. in support ct
the measure, and by Senator Borah.
Republican. Idaho, in opposition to
il.
Another OF the many developments
of the day was the issuing of sub
poenas by the oil committee for
number Of witnesses. including John
c. Shaffer, of Chicago. publisher Of
in a number of cities:
Robert McCague, of the Pioneer Oil
Company, and Frank Kistler, presi-'
dent Of the Producers and Refiners
Oil Company. OF New York.
An echo Of the Oil inquiry was
heard in the house. where Represen-
tatives letters. Alabama. and Brown
ing. Tennessee. Democrats. Jointly
4 resolution calling for an
of the income tax re-
turns OF Harry f. Sinclair, Edward
L. Doheny, and Edward L. Doheny,