New Britain herald., 1924-01-31
yept., ''afe Lib c a Com, Committee
 Have Differences in Opinion Over Leases -- Blame Daniels
Vinson Claims Money
 Was From Stock Sale

Washington, Jan. 3I.-Differences of opinion cropped out again today among members of the house naval committee as to whether Secretary Denby followed the policy recom- mended by his predecessor, Josephus Daniels, for the preservation of oil for the navy.
 As the committee renewed it's in- quiry into the Sinclair and Doheny naval oil reserve leases, Representa- tive Britten, republican, Illinois, de- clared he proposed to show that Denby Followed in Secretary Daniels footsteps"
 This statement brought the remark from Representative Vinson of Geor- gia, ranking democrat on the com- mittee: No one believes that but you"
 I'll prove it to you before we get through if you will be fair" MT. Brit ten retorted.
 The exchange came after Rear Ad- miral Latimer, judge advocate gen eral of the navy, had reviewed how Mr. Daniels in 1920 recommended lp HfIiiiN bo lit" gotiate for tank construction for the storage of naval oil. Authority then granted by congress, it was brought out, enabled MT. Denby to arrange with the Doheny interests for tank construction at Pearl Harbor. Hawaii, out of royalties for oils from the Cali fornia naval reserve.
 Admiral Latimer testifed that Dem by, after becoming head of the navy department, saw it wsfs necessary to take action to prevent depletion of oil in the naval reserves.
 ''The navy department had no or- ganization," the admiral continued, "and MT. Denby realized valuable time would be lost in forming one. At the time tho interior department had an organization which was handling oil production of millions of arres. Mir. Denby believed this orga nisation was the proper one to act for the navy.
 You must remember that at the l time there was a great effort on the | part of the various departments to | avoid duplication of work, and to economizc."
 At Dcnby's Request
 Declaring he was not familiar with the procedure followed in transferring he California and Wyoming reserves from the navy to tho interior depart ment, Admiral Latimer said he un- ierstood that the executive order for he transfer was issued at the reqest of Secretary Denby.
 "Mr. Dcnby told me-" said tho ad- niral. that he had initiated the transfer after investigating the ques- ion and consulting with various er- ,erts."
 Representatives Ninson and Britten hen engaged in an argument as to he S10O,U00,0o0 Doheny and Sim lair had been reported as saying they would make out Of the leases. Mir. 3ritten declared Mir. Vinson could not 'roduce a statement under oath that ither of the oil operators had made he assertion. '1 accept your challenge" reported fir. Vinson, and will produce the at the next committee ses- ion."
 Representative Stephens. republi- an, Ohio, declared R. Ninson had cen unfair in predicating his ques- ion and that fraud and corruption 1e still to be proven" He said he ad been informed Sinclair would lake little or nothing out of the ( eapot Doem lease.
 Did It to sell stock "If he claimed he would make ( 10 .O0O, O,000," continued the Ohioan z he did so to sell stock. If Sinclair ! lade money he did it out of the sale [ stock and those who invested are 2 olding the bag.
 'If Teapot Dome is returned to the oyernment will the United States be nder obligation to reimburse persons : ho bought stock in the Sinclair com any handling it?' Admiral Isatimer. when the exam alton was resumed. asserted that 2 never had passed on the legality . ! the Doheny or Sinclair leases. d. .. . tough he had informed Mr. Denby lat he could legally arrange with '. 2 -ivate interests for construction of /, nkage for the storage Of naval oil. !. has ben done as a result Of the 2 oheny eontfaet al Pearl Harbor . Do ytu think the lease should be voked 7" asked Mir. Ninsoa. e - q think the matter should De rS- ,.