Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-01-26

Criminals to Be Track
ed Down and Oil
Leases Annulled if
Necessary Fall Re-
ceived Second Loan
of $4,000 Inquiry
Develops - Former
Secretary of Interior
to Be Heard Next
Week

Washington, Jan. 25-Simultane-
ously with the disclosure today In the
senate oil inquiry OF another unpaid
loan to former Interior Secretary Fall,
the white house made known that
President Coolidge is preparing to
take action to protect public interest
and to punish those suilty OF any
wrongdoing. Before the same COM
mittee, which +. l.. Doheny, Califor-
MIA Oil magnate told yesterday he had
loaned Mr.. Fall 100000 on his per-
sonal note. while he was secretay OF
the Interior. ]. w. Zevely. personal
counsel to Harry +. Sinclair, testified
today that Mr.. Sinclair had loaned
Mr.. Fall $500 in Liberty bonds on q
personal note three months after he
retired fro mthe cabinet.
AS the testimony now stands, the
Doheny loan was made more than a
year before the Doheny interests OBJ
tanned the lease of the Elk Hills,
Calf. naval reserve while the Sin
clair loan was made more than year
after the Sinclair interests received
the lease of the Teapot Dome, Wyom-
| ing. reserve.
Developments In the senate inquiry
were discussed today by the cabinet.
Afterwards the president was repre-
scented officially as regarding some Of
the testimony to point to criminal
/ action. The executive is reluctant
| to believe that anyone has been gull
ty of any criminal intent. but he feels
| that the evidence already adduced
| requires explanation and investiga-
| ton.
7 In the presidents view two qucs-
! tons already are indicted. One, and
the more important, Is to bring to
| justice anyone who has dealt with
| the situation in any way that Is I'm
| violation of the criminal laws. The
| other is to see whether the govern
ment has suffered any injuries by
reason of the Oil reserve leases. II the
leases do not seem proper action
looking to their annulmcnt will be
| taken.
! Having received evidence OF two
| loans to Fall. the senate committee
Will turn It's attention next to fur
!; Their effort to clear up testimony re-
! garding cancelled checks Of the Hyva
| Corporation--a Sinclair concern. But
the committee will be diverted only
temporarily from the 100000 and
+, $4,000 loans.
| Mr.. Fall will be asked next Mon
dag to explain these and other OF
/ his financial transactions. While
Mr.. Zevely was telling OF the $685.
90 loan in June, 1929. the former
secretary was secluded In the Zeve-
| ~ home here under the care of q
physician. He declined to make any
statement: and declared he had
! made none regarding the DOheny
| testimony. s.r.----.
Mr. Zevely testified that the Sin
| clair loan to Mr.. Fall was made just
before the former secretary went TO
Russia to inquire into concessions in
the lower Sakhalin Peninsula which
Mr.. Sinclair had negotiated with the
Chita government. The money was
to be used, he said, In purchasing
| further additions to the Fall ranch
| prorort" but was unable to say
| whether It had been SO used.
| The loan was negotiated through
Mr.. Zevely who said WahIberg had
been directed to ship the bonds to n
bank in FL Paso. designated by Mr.
Fall, where they were entered to
Mr.. Falls account in accordance
with instructions which Zevciy had
sent TO the bank. After the former
secretary returned from Russia, he
gave the witness his personal note
! for the amount which. Mr.. Zevely
id, he still has. He agreed to pro-
Responding to extensive question:
! ing by committee men. Mr.. Zevely
said he went to New Orleans to dis
cuss with him developments In The
{ inquiry. 1t was the understanding
of the witness that Mr.. Fall also had
arranged to meet Mr.. Doheny there
| for n similar purpose.
| As Mr.. Zevely was unfolding his
story to the committee, another move
for cancellation of the Teapot Dome
lease similar to that in the senate
| was made in the house. Representa-
/ tive Morehead. Democrat. Nebraska.
/ introduced n resolution to this end,
the measure setting forth that It ap-
peared the Tease was corruptly OBJ
] tanned" -. :.
| A further move for cancellation Of
the leases will be made Monday In
the senate. but whether the original
Caravan -osolut'on will be pressed
or a substitute offered remains to be
L Hn4n -