Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-19
Attorney General Changed
Margin Account on Day Sim
clair Lease Teapot Dome
w as Announced Fall
Sought Through Friend to
Cover up 100000 Received
From Daugherty

Washington. March 1S-Attorney
General Daugherty and Albert Is.
Fall figured separately in two new
chapters written today into the rec
ord of the oil committee as TIN SEN
ate investigators renew ed their long
public quest for all of the facts con-
nected with the leasingaof the naval
oil reserves.
One story was that on the day the
Sinclair lease of Teapot Dome was
announced officially Mr.. Daugherty
changed his margin account in Sin
clair Oil stock at a Washington
brokerage house from his own name
to that of w. w. Spaid, member of
the firm. who then was carrying a
large amount for Jess W. Smith, per-
sonal friend and confident of the at
tcrney general.
The other chapter lad to do with
still another apparent attempt by
Fall to conceal through the statement
of an old friend that he had obtained
100000 from Edward l.. Doheny,
California oil magnate. late in 1921
when he enlarged and improved his
New Mexico ranch holdings.
Besides the dealings the attorney
general had in oil stocks, the commit
tee obtained from it's expert acco~ at
'ant, Louis +. Bond, detailed accounts
of transactions in Oil stocks by two
senators, Curtis of Kansas, assistant
Republican leader in the senate, and
Elkins, of West Virginia, and five
then members of the house, including
c. BaScom Slemp, now secretary to
president Coolidge. Both the stock
transactions and the story of Price
Mckinny, of Cleveland. Ohio, that
Fall sought to have him agree to say
he had loaned the former interior
secretary money will he followed by
the committee. Members regard Nc
Kinny's statement today one of the
More important that has been de-
veloped in connection with the Oil
leases.
Identifying himself as an old friend
Of Fall, Mckinney, a mine owner,
testified that late in 1923 he had re-
ceived a letter from the former sec
rotary asking me If l would state
that had made the loan for the pur-
chase OF the ranches of property
bought in New Mexico"
The witness said he had not ans
wered the letter and that Clarence c..
Chase. son in law of Fail, had called
upon him in Cleveland day or two
after Thanksgiving Day, which was
November 30. to take up the subject.
Il think did most of the talking"
he said. ut only got started and I
said, 4 have not made him q loan and
l could not say that ] have"
Asked if he had the Fall letter, Nc
Kinney said he had destroyed it
when Mr.. Doheny testified that he
himself had made the loan"
At the time Chase visited McKin-
ney, the committee was seeking the
source of the funds which Fall evil
IDENTIFY had received and the latter
was preparing to come to Washing
ton to testify, according to kilograms
placed into the record. There is evil
dence of Il conference between Fall
and Chase at Chicago IN early Decem-
Der after which the former secretary
went on to New York and then to
Atlantic City, where Edward r. Nc
Lean, publisher of the Washington
Post. agreed to say that he had loan
ed Fall 100000 instead of giving
him unused checks aggregating
$l00,600.
Around the time of his call on Nc
Kinney, Chase, for when a subpoena
was issued TODAY. was in communica-
ton with J. W. Zevely, personal
counsel to Harry F. Sinclair From
Chicago on December I, he sent to
Zevely at Washington. this telegram:
"Will be delayed in arrival account
going to Cleveland from here"
From Washington two days later.
Chase wired Fall that he would meet
him in Chicago, adding tho word 'im-
portant."
On the same day Fa.l wired Zevely
here that he was preparing to come
to Washington to testify, and added:
Chase should have reached Cleve-
land Sunday night. Are you in touch
with him? Notify him."
Zevely on the same day sent a tele-
gram to Chase. who then was en-
route to Chicago, saying: "Immedi-
ately upon arrival in Chicago, call
me telephone main G562"