Evening star., 1924-01-27
Doheny Proposes to Return Oil Lease;
Senate M0ves to Anz,ul Rights to Teapot
Continued from First Page.)

tlon resolution. Mr.. Fall remained
confined to his bed yesterday at the
home Of J. W. Zevely Mr.. Sinclair's
personal attorney, who disclosed Fri
day that Sinclair had loaned Mr. Fall
$4,000 in Liberty bonds after Mr..
Fall left the cabinet. The note
which. it is claimed. evidences this
debt was presented to the committee
Friday on behalf OF Mr.. Zevely.
The developments in the oil inves-
tigation were the subject Of con-
ference yesterday between President
man of the republican national COM
mittee. Mr.. Adams indicated after
ward that his views on the subject
We're set forth in an editorial in the
National Republican, which concluded
with the statement that every he
trayal of trust. by whosoevar COM
mitted. should be prosecuted with a
view to punishment of the guilty"
Chairman Hull Of the democratic
national committee issued statement
declaring that the Teapot Dome naval
oil scandal, standing out as the great
est political scandal of this or any
other generation, has created an addi-
tional political issue for the 1924
campaign He said the issue "bluntly
stated" is whether the United States
shall have corrupt government or
clean government"
Snys Checks Confused.
About the on.y new development in
the rehearing yesterday of Mr.. Roose-
Welt and MIR. Wahlberg was the presen-
tation by q. T Stanford, counsel for
Mr.. Sinclair, of two checks aggregatinS
s68,0O0 and drawn to the order of S.
c. Hildreth, trainer at Sinclair's Ran
cocas stables, under date of January
IA Wahlberg testified that these were
the checks about which he spoke in his
conversation with Mr.. Roosevelt con-
cerning the Teapot Dome lease.
Senator Walsh reminded Mr.. VAIL
berg that in his previous testimony
last Monday he had utterly repudiat-
ed" the s6S.000 check portion OF the
conversation and said that ne prob
sent to the foreman Of Falls New
Mexico ranch and that Mr.. Rnosc-
valt hat misunderstood nirn . say
cancelled checks for 96S000 sent -
the foreman.
Forget About Checks.
Mr.. Wahlberg said that last Mon
day the Hildreth checks Lad passed
completely out of his mini. but that
in reviewing thu circumstances ut
tine conversation. held in hts Office,
he had recalled them and remembered
that they had been on his desk at
the time and he had referred to them
in the conversation.
Senator walsh suggested that he
had come to the conclusion that the
story about the COWS would not
-NnI l.,
recalled the incident clearly; that lie
had referred to the checks as Illus
trative of the difference In conlpen-
sation allowed some of Mr.. Sinclair's
employees and that given to others.
The witness said the checks were
on his desk for mailing and that
they were mailed on the day of the
conversation. January 10. He was
reminded that Mr.. Roosevelt had said
the conversation was on January is,
but declared that he thought the
date was susceptible to proof. He
also was reminded that Mr.. Roosevelt
had quoted him as referring to can
celled' checks. whereas the Hildreth
checks were not cancelled at that
time.
Mr.. Hildreth identified the checks
as those he had received-s2o 600 for
salary for 1928 and s43.244 as his
10 per cent commission on the VIM
nings of Mr.. Sinclair's horses In the
same year. Mr.. Hildreth produced a
letter dated January 16. with which
the checks were inclosed. Senator
Pittman, democrat. Nevada, asked Mr..
Stanford to produce the checkbook
from which they were taken. SO that
1t might be developed whether checks
of lower serial number had been
drawn subsequent to the date on the
Hildreth checks.
After the Senate committee had
heard the conditions under which Mr..
Doheny would surrender his leases,
a n sol he
Sinclair Consolidated Oil Corpora
tion, was permitted to take the wit
ness stand in advance of Archie
Roosevelt He stated that he desired
to be heard with regard to the tcsti-
mony given yesterday by J. w. Ieve-
ly, personal counsel for Mr.. Sinclair,
to whom the oil magnate had loaned
$500 shares of Consolidated stock,
Zevely's benefit and $25,J00 in liberty
bonds, which Zevely stated had neen
loaned by Sinclair's direction to for
mer Secretary Fall.
Explaining that Zeve1y was un-
able to be present today Stanford
submitted to the committee In his
behalf note under date of May IS,
1928. for $4,000 payable in twelve
months, which Fall had given to
secure the loan of the liberty bonds.
original note and substituted in it's
place a photestat but this the COM
mittee refused to permit
Checks Given Committee.
Two Cancelled checks. drawn by
Zevely upon the ia ia Corporation,
one for $4,000, dated November 8,
1922. to the order of William Thaw,
from whom Zeyely claimed he pur-
chased home on Long Island, and
the other under the same date for
S2.125 to the order of James n.
Strong, as commission i'll negotiating
the real estate transaction. were also
turned over to the committe by Stan
ford.
The committee was told by STAN
ford that he had received a cable
gram from Sinclair in Paris, stating
that he would expedite his business
and return to the United States at
the earliest date possible. Replying
democrat, Montana, Stanford stated
that he would cable Sinclair for in
formation as to the location of the
books of the Hyva Corporation. a
by % Sinclair, r and ask % his permission fn
to bring them before the committee.
He said he expected to receive a ia
vorable reply from Sinclair.
Archie Roosevelt was then asked
previous testimony. Senator Smoot.
republican, Utah, declaring that the
universal opinion after his former
appearance and the subsequent evil
"that nothing definite had been ar
rived at" especially with reference
TO the canceledchecks for $6s.000,
which Roosevelt had stated Wahl-
berg told him had been drawn to the
order of the manager Of the Fall
ranch in New Mexico.
Roosevelt Admits Worry.
After explaining the length and
character of his service with the Sin
clair company, Roosevelt was asked
by Senator Smoot whether he had
IIcnitccod II-ifla In the Sin