Evening star., 1924-02-16
SHARP TILT MARKS
SENATE DEBATE ON
OIL PROSECUTORS
Question of Confirmation
Hearings Behind Closed
Doors Brings Controversy.
$1,000, 900 SLUSH FUND
KNOWLEDGE is DENIED
Oil Probers Take Recess of Ten
Days-Committee Approves
| Special Counsel.

Special Counsel.
A sharp controversy on the question
whether the nominations of the spe-
cial government counsel in the oil
cases would be considered by the Sem
ate in the open or behind closed doors
occurred today Immediately after the
Senate convened.
\ ruling by President Cummins that
a motion for an open executive ses-
on was out OF order at the time put
: decision in the fight over until later
"a the day.
:" no started the opposition in the oil
committee against Atlee Pomerene,
pfecipitated the discussion with a re-
Guest for unanimous consent that the
nominations be taken up in open ex-
ecutive session.
There viii be no unanimous con-
sent" replied Senator Lodge of
Massachusetts, the republican leader.
Declared Out OF Order.
Then l move that the Senate CON
slider them in oren executive ~ses-
sion" said Senator Dill.
Senator La Toilette of Wisconsin,
leader of the republican insurgents,
protested that Senator Dill at least
had right to present his request.
Senator Lodge finally objected. 3
That's not in order" said Senator
Lodge. and President Cummins
agreed. Senator Ashurst, democrat,
Arizona. then served notice that
"this fight has just started"
There viii not be any secrecy in
this matter" shouted Senator
Ashurst.
Il, for one will not be bound by
any executive session."
The incident was closed for the
moment.
The committee, after developing
sensations in startling rapidity for a
month past, mas taken Il ten day
recess.
Before adjourning last night it
received testimony discredfting the
rumors about the sale of President
Harding's Marion Star, which had
been given circulation by Frank A.
Ianderlip. Also it received word
from Otto H. Kahn and Z. F. Yoaknm
that they had no knowledge of any
e1 100000 oil slush fund sent to
Washington for distribution to pub
lie officials and others.
The committee in addition approved
the nomination of special government
counsel in the oil lease cases-Atlee
Pomerene of Canton, Ohio, and Owen
j. Roberts of Philadelphia. Mr.. Rob-
erts was appointed in place fo Silas
ii. Strawn of Chicago, whose nomina
ton was withdrawn Thursday by
President Coolidge.
The nominations will be called up
soon in the Senate. where Senator
Dill, democrat. Washington, will con-
tinue the fight on Nh Pomerene
Meanwhile the counsel will proceed
with a study of the facts, SO as to
speed the institution of injunction
proceedings 20 stop extraction of oil
from the naval reserves-the first
step in the contemplated litigation
for annuiment o. the Fall leases.
Stock Market Breaks.
Adjournment of the committee was
cotemporaneous with break in the
New York stock market. which re-
suited from circulation of reports that
one big operator had become bearish
on the theory that public confidence
had become undermined by the oil
disclosures.
Announcement os the adjournment
came after the executive session, at
which a favorable vote was given to
the special counsel, and it was stated
that the recess was made necessary,
among other reasons. by the enforced
absence from Washington Of Senator
Walsh democrat, Montana.
During the interim committee in
restigators Will go forward with their
work and the accountants of the Fed
eral Trade Commission Will be able
to conclude their examination of the
books of some of the brokers, which
have been subpoenaed by the commit
tee with the view to determining
whether there were oprations in oil
stocks by public officials at or after
the time the leases were MADE.
Mclean to BE Heard.
Although the committee made
rapid progress this week in clearing
up it's witness list, many persons re-
main to be heard. Among them is
Edward B. Mclean, Washington pub
Usher, who has been called from
Palm Beach for questioning with re-
spect to the slush-fund report, and
also the checks for 100000 which he
has testified were returned to him
uncashed by Albert b. Fall.
Harry F. Sinclair, who is now re-
turning from Europe, may be one of
the first witnesses after the recess.
The committee desires to question
him particularly regarding the un-
paid loan of S25,000 which his per-
sonal attorney, j. w. Zevely, has
testified he made to Fall within three
months after he had retired from the
cabinet.
Moreover, it desires to interrogate
him further about the circumstances
surrounding the lease. of Teapot
Dome and conferences Which he had
with Fall at the former Secretary's
New Mexico ranch. Other subjects
which the committee want to take
up with him are the conditions under
which he agreed to pay S1,000,000 to
the Pioneer and Belgo oil companies
for their claims in the Teapot reserve
and the contract for the payment of
another $1,000,000 to j. Leo Stack, a
Denver oil operator, and Frederick G.
Bonfils, publisher of the Denver Post
Mr.. StraWn prior to returning to
Chicago yesterday had a final confer
ence with President Coolidge, and
later correspondence between Mr.
Strawn and the President and be-
tween the President and the Senate
committee was made public. This
correspondence showed that Mr.
Strawn, upon learning that a Chi
cago bank in which he was a director
had acted as trustee for loan float
ed by one of the Sinclair oil COM
panies, had written the President ask
ing that his name be withdrawn IL
Continued on Page 4, Column 3D.