Evening star., 1924-01-25
sorry note given by Fall was transmitted
to Doheny.


given a note by Mr.. Fall, which he
brought back to me-"
Replying to questions by Senator Len
root. the witness declared that Fall
himself had nothing to do with the
April IS. 1922, by by which the Doheny iD- %
terests acquired preferential rights to
lease certain naval reserve land. The
negotia tions, he said, were all conduct
ed by Falls subordinates.
Senator Lenroot asked the witness to
explain why, in the statement submitted
today. he had only made reference to
this contract. which he had Insisted
would return him no profit. and had
maze MAD no reference to the December.
1922, contract, out Of which he had
stated he expected to make profits
of $100.000.000. 1t was this Contract
by which the Doheny interests leas-
ed the California reserves.
AIter the question had been re-
the witness replied that it could be
contended that Falls part I'm the
awarding of the December contract
might nave been Influenced by the
loan which had been made.
IF there Is suspicion that Sem
ator ran was Influenced by the loan"
Doneny ADDED, Il am willing to rec
ommend to my directors to agree to
Li ths cancellation OF the lease. pro-
Slaed san a htha that suspicion is based upon
Ssomathing stronger than public opin-
X am asking you, in view of the
possibility that you secured an ad-
sned saniase ssnoos because of the loan" pur-
"liilns to turn back the lease?"
Would Favor Cancellation.
"If that will clear Mr.. Fall will
that to my company. II it
Will clear Senator Fall OF any
suspicion OF having been Influenced
py the loan l am perfectly willing to
The attention OF the witness then
was directed to parts of the previous
testimony given before the committee
by Fall with regard to the raising of
money for the ranch purchase in New
Mexico.
Il told Mr.. Fall" said Doheny, ITO
go before the committee. / also told
another man. one of my attorneys,
Mr.. Harold Walker0I 1 wanted him to
urge upon Mr.. Fall to make a clean
breast of this entire affair. That was
Walker did. I told Fall not to do
anything else but make a clean breast
of it,
"At the time you made this loan"
asked Senator Lenroot. had you any
applications for leases pending with
the Interior Department. or did you
expect to have other relations with
that Department."
Had nothing else in sight at that
time. We expected always to be in
the field to bid on any contracts the
government had to make"
Did it occur to you that to get a
contract from the department under
these circumstances other than by
competitive bidding would be a mat
ter of embarrassment
II never got anything that way"
Silent ON Question.
h1r
petitive bidding"
There was no reply.
Mentions DENLY Letter.
Doheny insisted that the December
contract was a mere modification OF
the April contract, made upon the
suggestion Of the Navy Department.
Secretary DENLY was the one that
contract be made in order to enable
the department to improve port
facilities at Pearl Harbor. SAID the
witness. "A letter to that effect Is
In evidence here somewheIe- .,.,
he did not know anything about IT,
interjected Senator Walsh.
Senator Lenroot suggested that the
April contract did not grant the
lease of a single foot of land" while
to all the land in naval reserve No. J.,
without any bid
Il do not want to assent to that"
said Doheny.
You got the lease of naval reserve S,S
ding" replied Senator Lenroot.
.The lease was supplemental to that
Of April 25, which we got after Did
ding" insisted the witness.
Of WHY W. he wanted Doheny to call
at his office today. Senator Smoot
recalled that he had asked the OIL
magnate some time ago to look over
a piece of oil land In California IN
which "a friend of mine" was inter-
ested, and give an opinion on 1t.
Smoot Explains Note.
II have never heard from YOU
continued Senator Smoot. wanted
to hear from you today and that is
why 1 wanted you to go into my
Office"
that concern" replied Doheny,. and
Anderson Of our company made ar
rangements with them to buy their
oil, which means he expects to get
II want 1t understood" Senator
Smoot then said to his colleagues on
the committee. that I have never
handled an inch of public ground
In my life" a
After asking several questions
about the board of experts proposed
by the witness in his statement. SEN
ator Dill, democrat, Washington,
wanted to know whether Doheny
would be willing to turn the lease
back to the government IL he were
reimbursed tor expenditures mace
under 1t.
ITO turn back the lease as pro-
posed" replied Doheny. would be an
evidence OF wrong. do not want
this question to be decided by public
toc hafnra COM
mittee, but by q board OF experts"
Asked whether he had made profit
out of the lease so far, the witness
replied in the negative.
Have you loaned anybody else in
the Interior Department or the Navy
Department any money" asked Sem
ator Dill, cor have you offered to
make any loans to any one in either
department In addition to Mr.. Fall?'
mo, sir"
"When is the Fall note due?"
"It is payable on demand"
What is the rate Of INTEREST,""
mo rate of interest was agreed
upon. 1t was left blank for me to
fill In"
tho note?"
mo"
where is the note to be paid!
New York or Los Angeles"
You gave him the money before
he sent you the note?"
Yes, SIR"
No Instructions ON Terms.
Senator Lenroot interrupted to ask
whether Doheny had given any in
structions about the terms of the
note.
NO" replied the witness.
Who made out the note?' con-
tinued Senator Lenroot'
II think it was in Mr.. Falls hand
writing"
rs this note listed among your Sc
curities in your income tax return ?"
asked Senator Walsh