The Birmingham age-herald., 1924-01-25
$lOQ,OOO LOAN / TO FALL MADE BY E.L. DOHENY
Helped Ex-Cabinet Man As An old Friend,'
 Says Oil Magnate
(csntInued from Page one)

<A0 1Ah OAu 4 AVAtuS
 Says Oil Magnate tcsntlnusd from Page one)
 pearance at the time set and the com mittee agreed to defer his examination until Monday.
 Tomorrow, however, the committee will hear J. w. Zeve1y, personal friend and attorney of Harry F. Sinclair. whose interests acquired the lease of the naval oil reserve in Teapot Dome, Wyoming, which until today had been an outstanding point in the long in- vestigation of naval oil reserve leases signed by the former interior secre- tary.
 Senate discussion of the leases will be deferred until Monday at which time Senator Caraway, democrat, Ar kansas, plans to call up his resolution proposing cancellation of the Teapot Dome lease. By unanimous consent the Senate today discharged the investigat- ing committee from further consider ation of the resolution.
 MT. Doheny appeared before the con- ,mittee as a voluntary witness and as he put it, ito state to the committee and the public the full facts" regarding the loan. He said he had come from Los Angeles for this purpose and had .traveled via New Orleans to apprise sMr. Fall of his intention and had found him already in entire accord with my purpose"
 Staging Amid Sensations V Sensational testimony given recently ,by Archie Roosevelt son of the former President, about the reasonG which 'actuated him in severing his connections with the Sinclair interests, and even more sensational charges made in the Senate about the Teapot Dome lease had set the stage for Mir. Doheny's ap- rpearance.
 Mir. Doheny began his testimony by Areading a long and carefully prepared statement explaining the loan and con- ditions of the contracts subsequently, entered into by his company with the navy department.
 "When asked by your chairman whether Mir. Fall has profited by the contract, directly, or indirectly, l an- swered in the negative. That an Swer I now reiterate.
 Gave Promisory Note
 T wish first to inform the commit tee that on the thirtieth day of No vember, 1922, I loaned Albert B. Fall $1O0,000 on his note to enable him to purchase a ranch an New Mexico. This sum was loaned to MT. Fall by me personally. It was my own money and did not belong in whole or in part to any oil company with which ] am or have been connected. In con- nection with this loan there was no discussion between Mir. Fall and my self as to any contract, whateveH
 This loan had no relation to any of the subsequent transactions. The transactions themselves in the order in which they occurred. dispose of any contention that they were influenced by my making personal loan to life long friend.
 'The reason for my making and MT. Falls accepting the loan, was that we had been friends for more than 30 years. He had invested his savings for those years in his home ranch in Mexico, which I understand was all that remained to him after the failure of mining investments in Mexico and nine years of public service in Wash ington, during which he could not properly attend to the management of his ranch.
 His troubles had been increased in 1918 by the death of his daughter and his son, who, up to then, had taken his place in the management of his ranch.
 "In our frequent talks it was clear that the acquisition of a neighboring property controlling the water that flows through his home ranch was hope of his amounting to an Obsession. His failure to raise the necessary funds by realizing on his extensive and once valuable Mexican mine holdings, had made him feel he was a victim of an untoward fate.
 Relieved His Mind
 'In one of these talks I indicated to him that 1 would be willing to make him the loan and this seemed to relieve his mind greatly. In the au- tumn of 1921 he told me that the pur- chase had become possible by reason of the willingness of the then owners of the Harris ranch to sell and that the time had arrived when he was ready to take advantage of my offer to make the loan.
 'The lease on naval reserve number 1, was the direct outgrowth of the contract which the Pan American Pe- troleum and Transport company made with the navy as a result of competi- tive bids in which that company was the lowest bidder for the construction of certain storage facilities and the furnishing of fuel oil at Pearl Harbor, T. H., and in the absence of that con tract the lease would never have been executed.
 '-The navy department, through its representative took up with us the question of constructing the improve ments and facilities at Pearl Harbor and paying for them with the Royalty oil, which the navy was then obtaining from the various leases in naval re- serves number 1 and 2. and of filling the tankage constructed with q large quantity of fuel oil.
 Promised To Bid
 I was entirely in sympathy with the purpose of the navy. the reason for wNich have perhaps been better ex- plained to your committee by the navys representative. Admiral Robison, than I copld hope to do. promised Admiral Rob)son that our company would at least submit a bid to perform the work under those conditions that is