Evening star., 1924-01-30
NAVY LEGAL. HEAD
DEFENDS
Rear Admiral Latimer Tells
House Body He Thought
Laws Obeyed.

Rear Admiral Latimer, judge advo-
cate general of the Navy, told the
House naval committee today that in
December, 1921, he Informed Secre-
tary DENLY it would be legal to en-
ter into contract with the Doheny
interests for the construction of
tankage at Pearl Harbor, Hawaii, as
a part Of their lease of the California
naval oil reserves.
The admiral said he based his opin-
ton on. authority granted the de-
partment by Congress in June, 1920,
TO exchange oil and provide storage
facilities. This authority, it was
brought out by committee members,
was granted at the request of
Josephus Daniels, then Secretary of
the Navy.
Asked for Opinion.
Admiral Latimer said he was asked
for an opinion on November 80, 1921,
by Rear Admiral Robson, chief of
the bureau of engineering, who sent
him this information:
There Is now accommodating for the
account of the United States Navy
royalty oil from naval petroleum re
1000 barrels daily. This amount is
likely to increase in the near future.
1T is proposed to exchange the
royalty crude oil for fuel oil in st"r-
age at Pearl Harbor or at other points
1T is planned that the tanks in
which this exchange oil shall be
stored shall be provided by the lessee
of the oil wells.
"Will this be legal. it being pre-
Sumed that the oil in storage at Pearl
Harbor as well as the tanks and APP
purtenances are to become the prop
erty of the United States
Hears Admiral Gregory.
The committee also examined Rear
Admiral Gregory, chief of the Navy
Departments bureau of yards and
docks.
Admiral Gregory related how as
part OF its contract with the gov
ernment in connection with the Cal
tfornia naval oil reserve lease the
Pan american Petroleum and Trans
port Company had built ut Pearl Har-
bor tanks for storage of 100000
barrels of oil
These tanks, he said. had been COM
pleted and are filled with oi Under
a supplemental agreement, it was
added, construction IS under way at
Pearl Harbor of seventeen additional
oil tanks each Of capacity OF lop,
900 barrels; nine gasoline tanks OF
22j.000 gallons each. and fifty-siX
tanks for storage of lubricatinS oils
each capable of holding $1,000 gal
Ions.
All of the tank construction work
et Pearl Harbor, said Admiral Greg
ory, will be completed BY the end OF
the year.
Since passage of legislation in June.
1920 Admiral Gregory said no new
authority has been given the Navy
Department by Congress for con-
struction of oil tanks.
'As the basis for the California and
wyoming reserve leases" asked Rep
resentative Britten, republican. Hi
nois, was the amendment To the ap-
preparation bill suggested by Secre-
tary Daniels?"
They never would have been en-
tered into" replied the admiral, "if
that amendment had not been
adopted"
Mr.. Britten said he was convinced
that Mr.. Daniels who. he said,
knew the situation thoroughly was
seeking to protect the government by
preserving oil for the Navy. He de
clared too, that regardless OF what
mistakes he might have made. Secre-
tary DENLY had acted in good faith.
Authorized Tank BuiIding.
The amendme mt. Mr. Britten point
ed out authorized tank construction and
the storage there Of oil. as has been
done under the Sinclair and Doheny
interests
In reply to questions Admiral Greg
ory said he knew that every precau-
tIon had been taken to insure to the
government honest expenditure of
funds A system of accounting is in
effect. he added. which affords an
accurate check on expenditures.
The committee adjourned its hear
ings until tomorrow. Secretary
DENLY, contrary to the expectation
OF some committee members, did not
appear at touay's hearing.