Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-16

WAS the navy department ad-
vised of this opinion" ! Senator
| Walsh asked.
II know they were advised of
our attitude. don't think they
were given a cory of the opinion"
Learned Falls Attitude
| Sutro then related a conversation
with Assistant Secretary Finney, of
the interior department, in which
he expressed the hope that the at
torney general would pass on the
opinion.
| "Mr. Finneys reply, in substance,
was that it was not the wish of the
secretary of the interior-no, L don't
think that expresses it. He said
| the secretary of the interior conSid-
cred it unnecessary to have the
opinion of the attorney general"
The Standard Oil counsel was
asked also about the hearing before
Secretary Fall at the time of the
dismissal of the proceedings brought
by the government to acquire title
| to oil lands held by the Standard
Oil of California within the confines
of naval reserve No. 1 in California.
He declared the government was
represented at the hearings and the
whole situation canvassed.
THE secretary did the only thing
he could do in dismisSin9 the pro-
iceedings,' Sutro said.
| John Holland, secretary to Sena-
i tor Walsh, testified that he had
found a copy of Sutro's opinion in
the files of the interior department,
and that there had been official cor
respondence about it.
H. Foster Balm, director of mines,
wrote to Secretary Fall on May u,
1922, at Three Rivers n. M. ad-
vising him of the Sutro opinion.
Tried to Shield DOheny
None of us want Mr.. Doheny to
get in any trouble and propose to
do everything in our power to make
| it easy for him." the letter said.
Mr.. Bain's letter added that OBJ
jectons had been raised and that
! he would suggest q formal opinion
be obtained from the attorney gem
| eral in accord with what he under
stood had been IAN informal and
verbal opinion
Balm then added that he realized
the objection to asking for such
an opinion"
| Attorney General Daugherty pre-
viously notified the committee no
opinion was rendered by him.
! AS a result of the testimony the
committee instructed its secretary
to search the files OF the depart
ment of justice.
! A Mr. Story ''told me-" Balm said
in the letter, that he objected to
the conclusion of the lease as it
would embarrass the department.
and give support to the trouble
makers in congress"
Balm added he would propose
that a formal opinion of the attor-
ney general be obtained. as to the
| legality of the contract in accord
with what he understood had been
IAN informal and verbal opinion.
He said %''he realized the objection
of asking for such an opinion.
Balm Warmed Fall
The Balm letter follows:
SOC Custom Place,
San Francisco, Cal.
MAY y. 1922.
Hon. Albert B. Fall,
Three Rivers, n, NJ
Dear MI. Secretary:
II have been here for the last few
days arranging for a transfer of
the accumulated royalty oil and fo.'
future royalty oils to the Pan-Amer-
lean company l have been surprised
| to find the Standard and General
Petroleum in particular are adopt
! ing very technical attitude
towards this transfer, going so far
as to raise a question as to whether
either company would be safe in
making such a transfer or in later
handling any of the oil in question
| the Pan-American desired to have
| them do so.
''As you will recall, Mr.. Sutro ana
Mr.. Wyle have been doubtful as to
the right of the department to make
the exchange contract. They now
| seem to have become positive that
no such right exists and Mr.. Storey
| is even interpreting the law so far
as to question the right of the
Standard to deliver oil to the Pan.
American on our order. ] have ar
ranged that Mr.. Campbell, as rep
resenting the department, shall re-
ceive the oil and give a receipt for
1t, and while l am not a lawyer my
impression is that that should end
the matter as far as pipe line com
panies are concerned.
"Of course this is not a matter
which primarily concerns the de-
partment since we have all been
entirely clear in our minds as to
| the right Of the government to make
this exchange and have, in fact,
! gone ahead and contracted for tbs
exchange with the Pan-Americao 4,
and the latter is an entirely respon-
slble concern. That, [ assume. ends
1t as far as we are concerned.
Proposed Test
There is, however, another phase
of 1t. None of us want Mr.. Dohenv
TO get into trouble and I take it
we will want to do anything we can
to make it easy for him. / have
been told that there was a definite
proposal to have one of the smaller
oil companies go into court and fight
this contract with a view to getting
a decision as to the right of the de-
partment to make such a bargain
This proposal was not carried
through. Mr.. Story tells me that he
objected to it, as he felt that it would
embarrass the department and would
give support to the trouble makers
| In congress. He processes to be anX-
ious and willing to do anything he
can to help the department carry
out its plans, but to be in the awk.
ward position of having an opinion
from his attorney which might be
quoted against him in case the mat
ter ever came up.
"Out of al this has come the sug-
gestion repeatedly that the opinion
of the attorney general be obtained
as to the legality of the contract
[ realize the objections to asking
such an opinion, but I have thought
it proper to let you know the diff
culties that are being raised here
so that you might reconsider the