The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-01-25
WALSH MOVING
To CANCEL OIL
LEASES
t
DENLY Now Blamed for Trans
fer Of Properties-con-
gress to Call Him.
CONTINUED from First Page.)

inquiry into Mr.. Falls conduct and
who is acknowledged to be one Of
the Seuate's most learned constitu-
tional lawyers. Mr.. Walsh con-
tends that there is grave doubt
as to the legality of the order by
which MIR. DENLY took the oil lands
lntrusted to him by act of Con-
gress and handed them over to
MIR. Fall.
II Mr.. DENLY could rightfully
transfer the naval oil reserves from
the Navy Department to the In
terror Department it is then con-
tended that he could equally right
fully transfer the marine corps
from the Navy Department to the
War Departments thing which
imagines he could possibly
have the right to do.
1t is alleged in Congress accord
ingly that the order transferring
the naval oil reserves from Mr..
Denby's care to Mr.. Falls care can
not in any way clear Mr.. DENLY
from having to account to Congress
for what happened afterwards. It
seems, therefore, that while this in
curry began with Mr.. Fall 1t will
finally end up on Mr.. Denby's door
step.
Congressional leaders today in
predicting this development wepA In
fluenced by their belief in the pO-
litical necessity Of it. They pointed
out that with Mr.. DOheny declaring
that he expects to make 800 900 900
in profits out of his lease on naval
oil reserve number one 1t becomes
necessary to satisfy the public by
stopping those profits as well aS by
taking action against Mr.. Fall.
Testimony to BE Sought.
Senator Walsh further dwelt OH
the fact that the lease to Mr.. Do
heny was formulated with the help
of leading officers in the Navy De-
partment.
On that point Senator Walsh in
his final argument intends to bring
forward the following line of testi.
mony:
Mr.. DENLY. in transferring the
naval oil reserves from the Navy
Department to the Interior Depart
ment, took no legal advice except
from his Judge Advocate General,
who is not a lawyer and who re-
lied upon an opinion by an unim-
portant subordinate in his office.
The naval officer who was in
charge Of the navy's oil reserves
when Mr.. DENLY came into office
was strongly opposed to the trans
fer of the reserves to the Interior
Department. This officer was re-
placed by another officer who had
commanded a ship on which Ed
ward l.. Doheny's son was serving,
in a subordinate rank.
Through Mr.. Doheny's son this
second officer-Ad1niral Robson
made Mr.. Doheny's acquaintance
and became thoroughly eEd con-
scientifically convinced that leases
on naval oil reserves should be
made because of loss of oil through
leakage into adjacent wells.
Admiral Put In Charge.
Mr.. Doheny put Admiral Robi.
son in charge of the naval Oil re-
serves and he represented the
Navy Department in the negoti-
atoms with Mr.. Doheny's repre-
sentatives for the lease which fin
ally on Naval Oil Reserve No. /
was given to Mr.. Doheny's Oil COM
pany.
Meanwhile, according to the line
Of testimony which Senator Walsh
will rely upon in his attacks on Mr..
DENLY, the majority opinion Of the
navy's most experienced experts was
in fact against Admiral Robson
policy. It is not contended that Ad-
miral Robson was in any way actu-
ated by any improper or unworthy
motive; but 1t Is strenuously con-
tended that the origin of the whole
present situation goes back to MIR.
Denby's act in choosing for the post
of naval oil manager an officer who
was at variance with the majority
opinion of the navy in such matter 9
and who through personal associa-
ton with the Doheny family had
come to have views which resulted
finally in a lease to Mr.. Doheny
with one hundred million dollars of
profit.
Senator Walsh holds that this
situation cannot be attributed there
fore simply to Mr.. Fall and that
the inquiry must include an ulti-
mate placing Of responsibility in
the Navy Department where Con-
gress by statute placed the care
and custody Of the navy's future
oil supply. It is expected accord
ingly on Capitol Hill that the final
chapter of the present hearings be.
fore the Public Lands Committee,
where Senator Walsh continues to
be the guiding spirit. will be a
move toward Securing from Mr..
DENLY adequate explanation or else
resignation.
Copyright, 1894, Washington Press
SerViceO