The Washington times., 1924-02-19
CHARGES DENNY
FACED As HE
RESIGNED
Six Allegations Listed, One
Being He Aided Doheny
Keep up Prices Of Oil.
By JOHN T. LAMBERT.
Cosmopolitan News Service.


Cosmopolitan News Service.
What did DENLY do?
The question comse today from
country which now believes tina
Teapot Dome is smeared will
graft, corruption, and inefficiency
but which read little or none o.
the evidence when Senator Thoma.
j. Walsh Of Montana, was build
ing up the case which has nov
disclosed the most startling Of
revelations.
On OfHiciai Record.
The official records show tina
Mr.. DENLY:
/. Allowed DOheny to stop drill
ing for oil i'm the naval oil reserves
because there was an Over.supply
Of oil i'm the country and the prices
to the consumers might come
down.
2. That he let the naval oil
reserves get out Of the navy's
hands despite the advice Of the
experts Of his Department, as well
as abandoning the set policy of
Presidents Roosevelt, Taft and vii.
son, Secretary JOsephus Daniels,
and all the general boards Of the
navy from George Dewey's time.
3. That he consented to leases
the terms Of which have been
voted by Congress as being Illegal.
4. That he allowed Secretary
Fall to dictate his decision and his
subsequent acts to let 60 the
naVy'S oil.
5. That he failed to get the legal
advice Of the Attorney Generals
department., and Of amy expert
legal authority on the validity Of
the leases.
6. That he has repeatedly de-.
clared he would do the same thing
over again.
Naval Officers Criticise.
There are strange rumorings ant
mutterings here and a great deal O
evidence in the official testimon.
which tend to show that attempt
have been made somewhere to oh
literate navy Oil transfer records o
Fall and DENLY.
Mr.. DENLY testified that he sent
a letter to President Harding adyis
ing him to transfer the navy oil
to the Interior Department and that
he included with that memoranda
from Admiral Griffin and Com
mander Stuart protesting against
the transfer. He produced a carbon
copy Of his letter In support of his
statement.
Commander Stuart declared
however, that he did not get any
chance to offer his protest until
after the transfer had taken place
and that he did not hand it ia
DENLY until long after DENLY
claims,
The officials in charge of the
White House files on the naval oil
transfer declared they have abso
lutely no record of either Mr.
Denby's letter or the memoranda.
The testimony shows that Secre
tary Fall executed the lease of Tea.
pot Dome and that he signed the
lease not alone for himself but also
for the Secretary of the Navy"
A few days later Mr.. DENLY
signed the lease, himself. His
name was written in q very "snal
hand, much smaller than his usual
signature. 1t was evidently writ
ten in as an afterthought in a
minute space which had not beer
reserved for him to sign.
Mr. nnnhv foi1od ~ oOl, Tho 49,.
ney Generals department for lega
opinion, although he was signing
away navy property worth probably
81 600, 100000. His critics insist
he certainly would not have signed
away minor plant like the New
York, Boston or San Francisco nava
station without having first OBJ
tanned legal approval.
After the oil reserves were trans
ferred away from him, he did get
an opinion that it was legal, but
even then the opinion came from a
judge advocate general of the
navy. who is not a lawyer. It was
written in fact, by a law clerk.
Little has been published of Do.
heny's statement that Mr.: DENLY
permitted him to stop taking oil
out OF the naval reserves because
there was surplus In that con.
nection, Mr.. Doheny testified
Had An Agreement.
Nobody is drilling there now.
Everybody is waiting, because there
is an oversupply Of oil, and it is
standing STILL"
Senator Norris-Under an agree
ment?
Doheny-Yes and the Secretary of
the Navy has allowed us to stop
operations under our lease.
Senator Norris-You have sort of
a truce?
Doheny-Yes; we have lack of
activity there, because there is an
oversupply Of oil which has de.
pressed the price.
NO statement has been made in
criticism Of Mr.. Denbys personal
honesty. The severest criticism of
him has been that he let out of his
hands, to persons who take it for
private profit, the lubricating and
fuel Oil which in the event of war
might stand