Evening star., 1924-01-25

deal mo reflection on Mr.. Fall"
Senator Smoot asked whether FAN.
the improvements he would have to
make on the ranch property.
rHe tod me that he would have
to have 100000 to get the ranch
returned the witness. Il wanted to
satisfy his ambition to own the
ranch"
"IIe did not tell you he had sold
his newspaper for $45.ooo?" asked
Senator HH1oot-
length into the organization and re.
lationship of the various Doheny oil
properties. The witness said he
owned or 9 per cent, and his family
27 per cent of the stock OF the hold
ing company having control over the
California naval oil leases. He added
that he was able to control the com.
pany through a majority of the board
Of directors.
Did it occur to you that there was
to an officer Of the government with
whom you had business transac-
tions?" Senator Lenroot asked.
Often Aids Friends.
"It did not" was the reply. IF
was limited to loaning my money to
persons with whom / am not associ-
atea and who are not my friends.
would not loan any. 1t is common
fo- me to loan money to my old
friends. My Office is filled with them
1 do not do 1t because they are en-
titled to it, but simply through
friendship. ! loan them money in
sums that may surprise you as to the
Fall was not an unusual thing with
me at that time. I want to insist
that I did no business with him d.
rectly. and for that reason 1t would
not put him under any obligations
to me-"
you told us that it was a matter
where Mr.. Fall did have discretion
said Senator Lenroot. 'If he could
exercise his discretion, do you no,
think the loan may have caused him
to exercise IL in your favorT
That did not occur to me at that
time
At the suggestion Of the Witness
McNab further explained the plan for
an expert commission to inquire into
the lease. and Doheny supplemented
statement on the subject. Senator
| Walsh replied that the question was
not one for experts. but involved a
question of public policy. which
should be determined by Congress.
Then I do not see." returned Do
heny. how a proposition fair to the
government can be passed upon''
You would like to have experts
pass upon the policy of leasing the
naval reserves?' asked Walsh.
IF action by Congress is necessary
for the leasing of the reserves" re-
turned the witness then the leases
which have been made are, of course
null and void"
Calls Attention to Letter.
Senators Walsh and Adams called
attention to portions of a letter writ
ten by Fall to Doheny on July 8,
1921, in which the Secretary said he
would handle the oil leases exactly
as think best. and will not consult
with any officials of any bureaus in
this department, but only with my
self. and such consultation will be
confined strictly and entirely to mat
ters of general policy"
They insisted that in view of this
Doheny must al random his contention
that he was not aware of Secretary
Falls control of the oil lease situa-
tion at the time he made the loan
and that he could not sustain his ar
gument that the leases were made
by Mr. Falls subordinates.
Just before he was excused from the
witness stand. closing the hearing for
the day, Doheny agreed to search
again for the Cancelled 100000 check
and the Fall note and to present them
to the committee at later date:
torney. Calvin McNab, suggested that
President Coolidge be requested to ap-
point board of experts to examine all
facts regarding the contract, and that
If this board reported that the con-
tracts at the time of their making were
for the government to make the Pan
American Company reconvey to the
government all interest in such con-
tracts"
II have been following the reports of
the proceedings before your commit
have concluded that notwithstanding
my authorization to ex-Secretary Fall
early in December to state the full and
complete facts in connection with a
personal transaction had in 1921 be-
tween Mr.. Fall and myself. Mr.. Fall
has been making an effort to keep my
name out Of the discussion for the rea-
son that full statement might be mis-
understood"
Regrets Former Silence.
Whether there is a possibility Of
such misunderstanding or not. I wish
to state to the committee and to the
public the full facts. and I may say
before your committee I did not tell
you what I am now telling you"
Il did not do so for the reason
that such statement was not peril
nent In answer to any Of the ques-
tions asked me by members OF the
committee and to have done SO would
have been volunteering something in
no way connected with the contracts
made with the Pan-American Pc
troleum and Transport Company.
When asked by your chairman
whether Mr.. Fall has profited by the
contract. directly or indirectly. !
answered In the negative. That an
swer I now reiterate.
81 wish to inform the COMMITTEES
1921, 1 loaned Albert b. Fall 100000
on his promissory note to enable him
to purchase a ranch in New Mexico.
This sum was loaned to Mr.. Fall by
me personally. 1t was my own money
and did not belong in whole or In
part to any oil company with which
I am or have been connected. In con-
discussion between Mr.. Fall and my
self as to any contract whatever"
Friends for 80 Years.
This loan had no relation to any
OF the subsequent transactions. The
in which they occurred dispose OF
any connection that they were In:
huenced by my making . personal
loan to lifelong friend"
THE reason for my making and
Mr.. Fall accepting the loan was that
we had been friends for more than
thirty years: He had invested his
ranch In New Mexico, which ] un-
derstood was all that remained to
him after the failure OF mining In
vestments in Mexico and nine years
of public service in Washington,
during whica he could aot properly