Evening star., 1924-02-25
Testifies Oil Firms Urged Fall Get
Daugherty Ruling on Oil Leases

Mr.. Slemp was excused and Milton
E. Allies. president Of the Riggs Ma
t!onal Bank took the stand. He SUBJ
mitted accounts between Mr.. Mclean
and that bank.
One OF the accounts Of Mr. Mclean
was marked Special" Mr.. Allies said
and the other is the joint account
Of Edward and Evelyn Mclean"
Senator Walsh took the special"
account record. It had one item en-
tered, on April %, for s1.O05, and was
a dead balance" Mr.. Allies said. The
joint account was likewise closed,
with a single deposit and check.
Mr.. Allies was excused.
II. Foster Balm, director OF the
bureau of mines, testified that rep
resentatives OF several oil companies
had urged that the Interior Depart
ment get the opinion Of Attorney
General Daugherty as to the legality
Of the Pearl Harbor (HawaiD oil
tankage project upon a contract.
Senator Walsh called attention to
Il, 1922. to Fall, referring to the un-
Willingness of the Standard Oil Com
pany of California to bid on naval
reserves oil. and saying that none
of US want Mr.. Doheny to get into
trouble" The letter also suggested
asked to give written opinion on
the legality of the naval oil leasing
policy. but said there might be OBJ
jections to such step.
"Oil company attorneys suggested
the Attorney General be asked to
give an opinion" Mr.. Balm said. MY
understanding was that the depart
ment of the Interior considered the
leasing legal, and that this was the
opinion OF the Navy Departments
Explains Objections.
What were the objections to ask
ing the Attorney General for an
opinion?" Senator Walsh asked
1.-THE Secretary Of the Interior had
executed a contract" MIR. Balm said
ITO ask the Attorney General for
an opinion then would throw doubts
on the validity Of the contract.
Then there was a second objec-
ton. Before the contract was made
Secretary Fall took the position that
the solicitor of the department had
called the transaction legal and that
it was not mandatory to seek the
Attorney General for further opinion
WED made a good bargain. and
I. as one of the officials administer
ing a contract. didn't want to see II
declared invalid. We believed II
doubt on its legality, even by merely
asking an opinion"
Secretary Fall had told him. Di-
rector Balm continued. that Attorney
General Daugherty had raised no OBJ
lection to the plan of leasing;
eral policy Of leasing had been dis
cussed, either at cabinet meeting OF
after" Director Balm continued, ana
that the Attorney General had ap--
proved informally. This was two and
Der details as to the conversation"
"But you believed the Attorney
General had approved the legality
of the contracts?" Senator Walsh
asked.
"In general terms. yes"
Lenroot the witness said "the only
profit Mr.. Doheny could make In this
deal, we thought, was in the possf-
bility 1t gave him Of using one OF
two Of his tank ships which would
Director Balm said also that there
were attorneys outside the depart
ment who held the leasing legal.
Senator Walsh asked him to furnish
copies of such opinions.
The committee adjourned at noon
until 10 am. tomorrow.
At the reopening OF the oil commit
tee public hearings today, Chairman
Lenroot read into the record letter
from E. 1. Doheny. demanding that
Senator Wheeler, democrat, Montana,
be called to testify as to his state
ments on the floor OF the Senate that
Attorney General Daugherty was q
friend of Doheny.
Senator. La. Toilette, republican, Wis
consin, Secretary Work today sent to
the Senate voluminous report COW
ering each separate lease upon gov