The Washington times., 1924-01-23

upon the case Of ex-Secretary
Mr.. Doheny conveyed this offer
to Senator Walsh through Gavin
McNab of San Francisco, a lead
ing lawyer of that city and also
leading political parsonage In
the Democratic party of California.
1t was learned further that Mr..
Doheny had talked over his inten-
tions with Mr.. Fall in New Orleans
and had told Mr.. Fall that he in.
tended to come to Washington and
to tell everything that he knew
about all phases of the naval oil
reserve leasing story.
Attorney Already Here.
Mr.. McNab has preceded Mr.. Do
heny to Washington and will pre-
sumably make all arrangements
for Mr.. Doheny's appearance be-
fore the Public Lands Committee
to give his final and complete tes-
timony
1t is realized here that Mr.. Do
heny has longer and larger &c.
quaintance with the oil business in
general and with naval oil reserve
problems in particular than Is pos
sessed by Harry r. Sinclair or by
any other individual in any way
connected with the present inquiry
into Mr.. Falls affairs.
Opinions differed here widely to-
day as to the probable character OF
Doheny's testimony. 1t was thought
in some quarters that possibly
Doheny. who is well known to be
the lively owner of strong and
irritable temper, was on his way
here in a rage against the Public
Lands Committee and with an angry
determination to produce facts
which will clear the character of his
friend Fall. whom he has intimately
and affectionately known for many
years.
Fall and Doheny began their
careers as miners in the same mining
camp; they studied law in the same
Western judicial district, and they
began practicing law at about the
same time and place. When Doheny
last appeared before the Public
Lands Committee, on the first of
last month, he told the Committee
that he was outraged" by the at.
tacks upon Falls integrity.
It was thought in some quarters
on the other hand that possibly Mr.
Doheny, who Is a frank and open
person, and who told the Public
Lands committee in December that
he had made large campaign con-
tributtonS in the year 1920 to both
the Democrat and the Republican
party organizations, was coming
here to tell what might be called
the worst" and get ii over.
1t also became clear today that
Mr.. Doheny'S presence here in COM
pany with his lawyer is well-timed
to meet the climax of the attack
which is about to be made upon the
legality and validity of the naval Oil
reserve leases held by the Doheny
and the Sinclair interests.
Ih;s attack IS much more i'm
portant from the public standpoint
than the attack upon Mr.. Falls
character, and it does not in any
way &c pend IpOn the question
whether or not Mr.. Fall has re-
ceived money improperly from Mr..
Sinclair or from Mr.. Doheny OF
from anybody else. The point in
the attack upon the leases them
selves Is that, according to Sena.
tor Thomas j. Walsh, who Is
lawyer Of the highest reputation,
there is grave doubt as to the
legal power of any Secretary of
the Navy to transfer the control
OF the naval oil reserves to any
Secretary of the Interior and there
Is a further grave doubt as to the
power either of the Interior De.
partment or Of the Nav Depart.
ment to make the sort of leases
which were in fact made.
Traded off for, Tanks.
The character of these leases,
and not the character Of Mr.. Fall,
will be the ultimate deciding fact
In the whole situation.
BY the terms Of these leases the
Navy Department takes the oil
which was given to 1t in the ground
. act of Congress to be- kept in
the ground for conservation pur-
poses, and II trades millions of bar
els OF oil off to Mr.. Doheny and
to Mr.. Sinclair In return for oil
storage tanks which Congress has
never in any way authorized.
This is regarded by Senator
Walsh as an act which extremely
POSSIBLY Is quite beyond the legal
power of the Navy Department or
81 any other agency IN the execu.
i've branch Of the Government
MT. Doheny, who already has
testirled that the lease gwen TO
MIN by Mr.. Fall in Naval Oil Re.
serve Number Ona viii probably