New Britain herald., 1924-02-14
FALL AUTHORIZED
 DENIAL OF LEASE
(Continued from First Page)

rlissal of the proceedings brought b. the government to acquire title tc oil lands held by the Standard Oil Q, California within the confines O. naval reserve No. 1, in California He declared the government was rep resented at the hearings and the whole situation canvassed.
 The secretary did the only thing he could do in dismissing the pro- ceedings." Sutro said.
 John Holland. secretary 10 Senator Walsh. testified that he had found q copy of Sutro's opinion in the files of the interior department. and that there had been official correspond ence about it.
 Letter to Fall.
 II. Foster Bain. director of mines wrote to Secretary Fall on May l2 1922, at Three Rivers, N. M., ad,-is- ing him of the Sutro opinion.
 The letter follows:
 "506 Custom Place,
 San Francisco. Calf,
 May 1a, 1sso. Hon. Albert B. Fall,
 Three Rivers. N. NJ,
 Dear Mfr. Secretary:
 T have been here for the last few days arranging for a transfer Of the Accumulated Royalty oil and for future Royalty Oils to the Pan American company. have been surprised to find the Standard and General Petroleum in particular are adopting a very technical attitude towards this transfer, going so far as 10 raise q 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 Mir. Sutro and 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 righ, exists and Mir. Storey is even interpreting the law so far as 10 question the right of the Standard to deliver oil to the Pan-American on our order.
 
 bell, as representing the department shall receive tho oil and give q re- ceipt for it and while I am not a lawyer, my imprc ssion is that that should end the matter as far as pipe limo companies are concerned.
 There is. however, another phase. None of us want Mir. Doheny to get into trouble and l take it we will want to do anything we can 10 make il easy for him. have been told that there was q definite proposal 10 have one of the smaller oil com- panies go into court and fight this contract with a view 10 getting q de. eision as 10 the right of the depart ment to make such R bargain. This proposal was not carried through. Ar. Storey tells mo that he objected to ii as he felt that it would em- barrass the department and would give support 10 the trouble makers in congress. He professes to be anxions and willing to do anything he can 10 help the department carry out it's plans. but 10 be in the awkward po- sition or haring an opinion from his attorney which might hc quoted against him in case the matter ever came up.
 'Out Of all this has come the sug. gestion repeatedly that the opinion of the attorney general be obtained as to tho legality of the contract. ] realize the objections 10 asking such ar opinion, but have thought it ss 1g4 e II ties that are being raised here so that you might reconsider tho matter and decide as 10 whether you might not properly ask the attorney general to put in writing what I have under stood was his informal and verbal cx- pression Of opinion favorable 10 the action the department has taken. I am not certain that Mir. Doheny cares. but Mir. Cotter will see him to- morrow and if if does seem to them important I am giving Mir. Cotter this letter to show you so that you may know what I have fond out here. "The wells on the north line of g are coming on in good shape. and Anderson has done excellent work in pushing theFo ahead.
 'I am sorry to bother you with this business while you are at home
 Cordially yours.
 IT. FOSTER BA1N.
 Director"
 No More Evidence.
 Senator Walsh asked Holland nhether he had found anything in the Record which would throw any light on how it would be embarrass. ing to have the attorney general put in writing what he had expressed orally.
 No sir" said Hollandcr.
 Then upon motion of Senator Walsh the committee gave Holland author fly to search the files of the Depart ment Of Justice.
 John c. Shaffer. publisher of the Chicago Post, and Rocky Mountain News and other newspapers. WAS questioned by Senator Walsh about his holdings in the Pioneer oil com pany, 2 Standard subsidiary.
 R14sefHfts sn2.OOO