Evening star., 1924-01-31
SAYS DENNY FIRST
PROPOSED LEASES
Admiral Latimer Tells House
Committee of Conversations
With Secretary.

Secretary DENLY initiated trans
fer Of the California and Wyoming.
naval oil reserves to the Interior.
Rear Admiral Latimer. judge advo-
cate general of the Navy, today told
the House naval cormmittee.
The admiral said Mr.. Denbv had
told him he had initiated the trans
fer after investigating the question
and consulting with various experts
After becoming g. member Of the
cabinet. the witness explained. Mr..
DENLY became convinced of the
necessity of taking prompt action
to prevent further depletion of oil
IN the Nays reserves, but had no
organization in his department which
could function to that end.
As the committee renewed it's in
quiry today: Representate Britten, re-
publican, Illinois, declared he pro-
posed TO show that DENLY followed
in Secretary Daniels footsteps"
Remark by vinson.
This statement brought the remark
from Representative Vinson. Georgia,
ranking democrat on the committee,
that no one believes that but YOU"
III prove it to you before we get
ten retorted
TIE exchange came after Latimer
lad ieviewed how Mr. Daniels in 1920
recommended legislation to permit
the Navy to negotiate for tank con-
Structlon for the storage of naval OIL
Authority then granted by Congress,
1t was brought out. enabled Mr.. Dem
by TO arrange with the Doheny in
| terests for tank construction at Pearl
Harvor. Hawaii, out of royalties for
q
serve.
Representatives Vinson and Hrit-
! ten then engaged in an argument; as
| to the s1O0.000,000 Doheny and Sin
| they would make out Of the leases
Mr.. Britten declared Mr. vinson
! could not produce a statement under
oath that either of the oil operators
| had made the assertion
Charges Unfairness.
| Representative Stephens, repub.
: lican. Ohio. declared Mr.. vinson haJ
been unfair in predicating his ques.
| tons and that fraud ana corruption
are still to be proven" He said he
. had been informed Sinclair wou!t
; Teapot Dome lease.
! IL he claimed he would make $780,.
100000" continued the Ohioan, "ht
did so to sell stock. IL Sinclair made
| ne Ulu II out the sale o.
! stock. and those who invested are
holding the bag.
IF Teapot Dome is returned to tn,
government. will the United State!
ne under obligation to reimburse per
sons who bought stock in the Sinclai
Company"
Admiral I4atimer. when the exami
nation was resumed, asserted tina
he never bad passed on the legalit.
of the Doheny or Sinclair leases, al
L. f<,- Il l.
that he could legally arrange witt
private interests for construction o
tankage for the storage of naval oil
as has been done as a result of tn
Doheny contract at Pearl Hrbor.
Legality of Lease.
/ DO you think the lease should b.
revoked?" asked Mr.. Vinson.
"I think the matter should be re
! ferred to the courts" replied the ad
miral.
Admiral Latimer testified that Den
by, after becoming head of the Nav
Department, saw 1t was necessary t
> take action to prevent depletion o
oil in the naval reserves.
1.-THE Navy Department had no or
"and DENLY realized valuable tim
would be lost in forming one. At tn
| time the Interior Department had a
! organization which was handling Of
production on millions of acres. MI
DENLY believed this organization wa
the proper one to act for the Navy.
, you must remember that at tn
time there was a great effort on tn
part of various departments to avoi
} duplication of work and to econo
| mize."
Il Declaring he was not familiar witt
! the procedure followed in transfer
, ring the California and Wyoming re
serves from the Navy to the Interio
Department, Admiral Latimer sal
Ihe understood that the executive or
der for the transfer was issued "a
the request of Secretary DENLY"
"Mr. DENLY told me-" said the ad
. miral. that he had initiated tn
transfer after investigating the ques
tion and consulting with various ex