The Birmingham age-herald., 1924-06-06
OIL REPORT. OF W ALSH. APPROVED Fragrant Disregard Of
 Law In Leases Is Charged EXECUTIVE ORDER OF HARDING PLAYED Transfer Of Reserves To. Interior Department
 Held Illegal DOHENY-FALL LOAN IS TERMED CORRUPT Acceptance Of $lOO,OOO By Fall Is Declared To Be Repre-
 hensible
EXECUTIVE ORDER
 OF HARDING PLAYED
DOHENY-FALL LOAN
 IS TERMED CORRUPT

WASHINGTON, June 5.-A re- port charging serious irregularities in connection with the Sinclair and Doheny leases was approved by the Senate oil committee today as sequel to its long and colorful in- vestigation. Tn e Senate itself probably will be asked to vote it's approval tomorrow.
 Prepared by Senator Walsh of Montana, the committee prosecutor, the report held that the leases were 'wastefu" and had been negotiated secretly in disregard of the statutes and on the basis of a presidential order illegally issued so that all of those concerned in the payment of $l00,000 by E. L. Doheny to Albert B. Fall were "reprehensible," but that no proof had been found either of an Coil conspiracy" at the Chi cago republican convention in 1920 or either speculation by public of- ficials in Sinclair and Doheny oil stock.
 Before the committee gave it's ap- proval it struck out the Montana sena- . and substituted declaration that final judgment as to what new statutes are necessary should be reserved until the courts have construed the present laws in the oil lease litigation which now is pending.
 Republicans Absent
 All organization republicans on the committee were absent from the meet ing at which approval of the report was voted, although they had taken part in a discussion of its provisions at two previous sessions. Four demo- crats and two Chairman Ladd and Senator Norbeck of South Dakota-cast their votes for it and the two remaining democratic members also are expected to sign it. Senator Spencer, republican, Missouri, predict ed tonight that at least three of the four other republican members who were absent today would join in re- fusing to affix their signatures, mak- ing the final lineup either nine to four or eight to five.
 A partial abstract of the report fol- lows:
 Fragrant disregard of the law in nego- tiation of the Sinclair and DOheny oil leases was charged in the report.
 The executive order by which Presi- dent Harding transferred the Oft re- serves from the navy to the interior department was held in the report to have been illegal.
 The manner in which the leases were negotiated secretly by former Secretary Fall was described as in disregard of the statutes.
 AR ''indefensibly wastefup and based on a policy which Congress alone had au- thority to determine.
 Faii's acceptance of $1OO,OOO from F. l.. DOheny was characterized as lin the last degree reprehensible," although no opinion was expressed as to whether the payment was in fact a loan.
 Shipment by Harry +. Sinclair of consignment of blOoded cattle to Falls New Mexico ranch and SinclaIr's sub- sequent employment of Fall after he left the cabinet were cited without comment.
 Likewise without comment the re- port related how Sinclair expended $1,O00,O00 to clear Teapot Dome of conflicting claims, some of which, at least were termed "shadowy."
 Denby Is Exonerated
 
 Former Secretary Denby of the navy department and Assistant Secretary Roosevelt were exonePated from 'any part whatever" in the negotiations lead ing up to the leases.
 It was declared that despite diligent inquiry the committee found mo facts of sufficient importance to report" in support of the rumoE that public off cers had speculated in stocks of the Sinclair and DOheny companies.
 Similarly, the report said, "the evi- dence failed to establish the existence" of any conspiracy between oil operators and others at the republican national convention in 1920 for exploitation of public resources.
 Only a passing reference was made to the conflicting statements by which it had been sought to connect Edward B. Mclean with a $10O,OO0 payment to Fall and no opinion on that subject was expressed.
 The only recommendation contained in the report, aside from court pro- ceedings now in progress, was contained in the following summary:
 Had the legislation enacted by Con- gress been observed in its spirit in deal ing with the reserves, had it not been wrested out of all reason to afford some appearance of justification for the course pursued, further action by the lawmaking branch might not be
 (COntinued on Page TwO.)