Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-26

Cldlr OIL STOCK, IN WHICH he CldlHicu
there was nothing unusual. nothing
improper. nothing indiscreet and
nothing to conceal" Attorney General
Daugherty has replied in detail to
senatorial critics. and asked that the
proposed investigation of his depart
ment, if authorized, "be conducted
and completed as promptly as thor
oughness will permit"
This was brought out in letter
last night from Mr.. Dausherty to
Senator Willis. republican. of Ohio,
made public today. The Attorney
General set forth his attitude on
charges that he had failed to prose-
cute Charles r. Forbes, Albert r.
Fall, Harry F. Sinclair and Z. l.. Do
heny, and asked that he be granted
the privilege of having counsel at all
hearings of the investigating COM
mittee.
Text of Letter.
The letter In full follows:
Il am informed that the resolution
of Senator Wheeler, providing for an
examination of the Department of
Justice. may be called up for consid
Grafton at any time. am taking nd
vantage of your kindness and cour-
tesy to me to place before you Il few
of the thoughts that occur to me in
connection with the pending resolu-
ton.
IL wish YOU to understand. and l
authorize you to say to the Senate.
that any committee Of investigation
which the Senate, in It's Judgment.
may appoint. will be accorded every
facility which the Department of
thorough investigation of all OF my
official acts and of the Department
of Justice may be made fairly and
SYSTEMATICALLY. ! believe, and know,
that such an investigation will salts
fy the Senate and the .,i country ha h .es
and is being conducted with high
degree of efficiency, and that the
rights of the government nave peen
and are at all times fully and amply
protected.
Failure to Prosecute.
II note by the resolution that the
committee is instructed to investigate
my alleged failure to arrest and
prosecute Albert B. Fall, Harry +.
Sinclair, f. l.. Doheny, Charles r..
Forbes. and their alleged cocoon
spirators.
ut is interesting TO remind you
that before the Introduction of this
resolution I requested the presldent
to relieve me OF. the responsibility oil
prosecuting Albert b. Fall and those
with whom he is alleged TO have been
acting in coliuSion. because OF the
fact that Mr.. Fall had been mem
Der of the cabinet IN which | also
served, and that the country might
he better satisfied to have the con.
duct of the prosecution in control OF
LAWYERS in no way connected with
the government. You know that the
President, approving this suggestion
did place this whole matter in the
hands Of two of the ablest lawyers
in this country-Atlee Pomerene ana
Owen j. Roberts-whose appointments
have been confirmed by the Senate
and who are now in full charge of
the particular matters referred TO IN
this resolution.
.Realizing the difficulties confront
ing these distinguished lawyers, l
have extended to them every possible
facility afforded by the Department
of Justice in formal letter ad-
dressed to them, and / am attaching
hereto a copy of that letter, so that
il NAV be available for reference at
any time.
Prosecution OF Forbes.
THE resolution complains Of my
failure to prosecute Charles X.
Forbes. You know, senator, and /
cannot understand how Senator
tiles of this department in connec-
ton with this matter. 1t has been
placed in charge of Hon. John w. II.
Grim. who was appointed by me on
December Is, 1923, in prompt coop
Grafton with the Reed committee and
after conference with and approval
by Chairman Reed and his associates
on the committee Investigating the
Veterans Bureau matter. Mr.. Grim
is being assisted by Maj. Davis Ar
mold, who so ably aided the Reed
investigating committee. and by
and has been for weeks under thor
ough investigation by a special grand
jury at Chicago (Which jury L re-
quested the court to impanel for the
purpose of considering this case long
before the resolution criticising me
in this case was introduced.
II have observed in the press IN
situations that so-called high Of
ficials bought and sold Sinclair Con-
solidated Oil Company stock upon
the oil leases. the inference being
that they profited thereby. In view
of such publications, I desire now
to deny all such insinuations and in
ferences, and to give the facts in
this connection In so far as they
relate to me personally.
Bought Sinclair Stock.
Before I became Attorney Gen
eral or seriously considered any con-
nection with the government, from
time to time in the ordinary course
Of my personal investments l bought
and paid for some stock in the Sim
clair Consolidated Oil Company. Six
months after the execution of the
Teapot Dome lease (of April z, 1929.
endeavoring to recoup my losses in
said stock, I sold a portion OF my
holdings therein acquired and paid
for as aforesaid before 1 became At
torney General. Thereafter / bought
back and paid for the same amount
of said stock thus sold at price
for which the same amount had been
sold. Finally, in the fall of 1923. I
sold all of my holdings in said COM
pany acquired prior to my becoming
Attorney General at a net loss to
me Of about $28 per share. In addi-
ton to this transaction, / bought
eighteen shares of said stock in the
year 1929 (the year the Teapot Dome
lease was executed). which I &C
quired for the sole purpose of round
ing out my holdings in said stock.
This is the story which the testi-
mony will reveal, and / am glad to
have the Senate know of my per
sona1 business transactions in said
stock in 1922. There Is nothing un-
usual in this transaction: nothing im-
proper; nothing indiscreet, and moth
ing to conceal