Evening star., 1924-02-14

I0st, WINS issued today by the SEM
ntc oil committee.
While Frank A. Eandcrlip waited
10 testify regarding his references
TO the sale of President Harding's
Marion Star, the Senate oil commit
tee produced fresh flock Of scnsa-
tions today from other witnesses.
The committee decided shortly
after | o'clock that Mr.. Nandcrlip
would not be questioned until to-
morrow.
John c. Shaffer. publisher OF the
Chicago Post and other newspapers,
testified that in connection with the
Sinclair Teapot Dome lease he got
one-eighth interest i'll the Pioneer
Oil Company, a Standard subsidiary.
and gave up nothing in return. He
had an old claim pending, he said.
and Secretary Fall promised merely
for the asking, that he would be
taken care of.
Objections to Opinion.
a letter by II. Foster Balm, director
of mines, written before the leases were
made, and put into the committee rec
ord, declared that the writer under
stood" that Attorney General Daugherty
had given an informal opinion uphold
ing the validity of the leasing policy:
Mr.. Daugherty previously has denied
he gave any opinion. The letter, ad-
dressed to Secretary Fall. suggested i
written opinion be asked for from the
Attorney General, but aCded that, Il
realize the objections to asking such an
opinion"
Oscar Sutro, counsel ror the Stand
ard OIL Company of California, testified
that he had suggested to Assistant Sec
raf of M ~
ment that an opinion be obtained from
Mr.. Daugherty, but that Mr.. Finney re-
piled that Secretary Fall thought il
Unnecessary to take such step.
Thought Proposal Illegal.
Senator Walsh, democrat, Mon
who was the first witness called to-
day. He asked whether the witness
knew of the advertisement issued by
the Navy Department for the con-
strurtion of oil storage tanks at
Pearl Harbor.
"I do" replied Mr.. Sutro.
Did your company bid?"
81 do not think We made q formal
bid"
"Why?"
my recollection is that the pro
posal was referred to me by either
the president or vice president of our
company, with the usual request that
I pass on it. 4 part Of my functions
w
pass upon the sufficiency of the pro-
posal; whether it's acceptance would
constitute legal contract, and tho
usual request for any comment
might make. 1t was MY opinion that
the proposal, if accepted. would not
constitute 4 valid contract.
''One of the company'S offers said
there was considerable quantity o.
oil involved and that we would like
to have it, i made as thorough in
npy yitrI 7 ~ IF q L.
ing. and rendered a written opinion
to the vice president Of the company
who was particularly in charge OF
the purchase of oil that the contract
would not be legal and that I could
not approve it..
Sutro read the formal opinion
which he delivered to his company
under date of January %, 1922. i'll
which he held that the act of June
4, 1920. did not authorize the Secre-
tary of the Navy to exchange fuel OIL
for anything except fuel oil. Ex-
change for any other thing. the opin-
ion continued. would defeat the In
tent of Congress in passing the act
authorizing the Secretary to work the
naval oil reserves.
of this opinion?" asked Senator Walsh
"I know they were advised of our at
titude. l don't think they were given
copy Of the opinion.
Sutro then related a conversation
with Assistant Secretary Finney Of the
Interior Department. in which he ex-
pressed the hope that the Attorney Gen
eraI would pass on the opinion.
"Mr. Finney's reply. In substance, was
that it was not the wish OF the Secre-
that expresses it. IIe said the Secre-
tary of the Interior considered IT IN
necessary to have the opinion of the
Attorney General
Hearings Before Fall.
The Standard Oil counsel was asked
also about the hearing before Secrc-
tary Fall at the time of the dismissal
government to acquire title TO oil
lands held by the Standard OIL Of
California within the confines OF
naval reserve No. in California. IL"
sented at the hearings and the whole
situation canvassed:
"The Secretary did the only thing
he could do in dismissinG the proceed
ings," Sutro said.
John Holland. secretary to Senator
Walsh, testified that he had found a
copy of Sutro's opinion in the nles OF
the Interior Department, and that
there had been official correspondence
about il. AS result of the testimony
the committee instructed it's secretary
TO search the files of the Department
n Foster Balm. director of mines,
wrote to Secretary Fall on May Il,
1922. at Three Rivers, n. NJ, adyis-
ing him Of the Sutro opinion.
"None OF us want Mr.. Doheny TO
get into any trouble and propose to
do everything in our power to make
it easy for him. said the letter.
Text Of Balm Letter.
The text Of the letter follows:
"506 Custom Place.
"San Francisco, Calf,
MAY IL, 1922
"IIon. Albert B. Fall, Three Rivers,