The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-02-15
(Continued on paae %

lOI IuILHeI QuSSJlOAAuS SOlASCAAAAS
"inhuence" welded with government
officials in connection with oil deals.
Oscar Sutro, counsel for the
Standard Oil company of California,
will be summoned for questioning
concerning some phases of the oil
negotiations. Sutro's evidence, COM
mittee members predicted, will have
direct bearing upon the charges of
fraud and corruption.
An important cabinet member Of
the Wilson administration was men,
toned to the committee today as re-
cipient of hundreds of thousands of
Doheny money.
Meantime the committee gave
strong limitations that it would re-
ject both the presidents special coun-
sci before the end of the day il
they were not Withdrawn earlier.
Daugherty Gave o. X.
Attorney General Daugherty gave
San informal verbal opinion" that
contracts for exchange Of naval re-
serve oil for tank storage were legal,
the files of the interior department
revealed to the senate Teapot Dome
committee today.
John Holland, secretary to SEN
ator Walsh, Montana, read to the
committee a letter from H. Foster
Balm, director of the bureau of mines,
to former Secretary Fall in May,
1922.
Daugherty's opinion was given in
the face of an opinion by a Standard
Oil attorney that the proposed con-
tracts constituted "an absurdity"
under the law and We're utterly IL
legal.
In his letter to Fall, Balm sug-
gested that Fall try to have Daugh-
erty put his opinion in writing, to
meet protests of Oscar Sutro, coun-
sci for the Standard Oil Company
of California, that the contracts were
illegal.
These contracts form the strong
est part of the senate Investigators
Cease" against Daugherty and Secre-
tary Of the Navy DENLY.
John c. Shaffer, publisher of a
string of newspapers, told the COM
mittee today he received $4,000 "for
services" in connection with Harry
F. Sinclair's payment 20 the Pioneer
Oil company Of $1,00O,OOO for claims
to Teapot Dome.
Shatfer said he had one-eighth
interest in the Pioneer but had per-
formed no services and had put up
no money.
Fall Knew Lease Illegal.
Former Secretary Fall knew the
proposed payment of naval oil in
return for storage tank construc-
ton had been held illegal when he
made the arrangement with E. L.
Doheny, Oscar Sutro, attorney for
the Standard Oil Company of Cali
fornia, told the committee today.
Sutro, in an opinion to his COM
pany, copy of which was found
in the interior department files, ruled
the proposed exchange Of oil for
storage was an absurdity, under the
law, and that the act Of 1920 gave
the secretary of the navy no power
to do this.
He said Assistant Secretary of
the Interior Finney told him Fan
did not consider it necessary to get
ruling from Attorney General
Daugherty on this point.
Sutro asked permission to pro-
duce transcript of hearings con-
Quoted by Fall regarding legality
of the leases.
The transcript showed five gov
eminent officials took part in the
discussion and knew ali about the
leases notwithstanding contrary
testimony given to this committee
Sutro said.
John Holland, secretary to Senator
Walsh, who has been making an in
vestigation Of records in the interior
department, produced correspondence
showing Fall knew Of Sutro's opin-
Ion and disregarded it.
Johnson Raps Coolidge.
Refusal of President Coolidge to
GUST Secretary of the NAVY DENNY
from his cabinet is in effect presi-
Dental approval Of Denby's Teapot
Dome dealings, Senator Hiram John
son, California, candidate for nom
nation for president, on the Re-
publican ticket, declared in a speech
in Danville, Ill.
The senate was entirely within its
rights when it voted mo confidence"
in DENLY and asked for his removal.
Johnson declared.
Mr.. Coolidge personally cast a
mo confidence" vote in ATTORNEY
General Daugherty when he turned
away from the department of Justice
and appointed private attorneys to
investigate the Teapot Dome scan
dal, Johnson said.
Harding's Friend Subpoenaed.
The senate oil committee decided
this afternoon TO investigate imme-
diately reports that big oil interests
circulated $1,000,00O "slush fund"
among Washington officials.
Edward B. Mclean, publisher and
intimate friend Of the late President
Harding, has been subpoenaed as the
first witness.
Senator Walsh, Montana, who or
dered the subpoena, said he also
wished to question Mclean further