Evening star., 1924-04-19
LEASE AUTHORSHIP
CLAIMED BY DENBY
Denies Collusion, Takes Full Re
sponsibility for Oil Reserve
Policy.
SAYS HE APPROACHED FALL
Took First Step in Interest of Con
serving Supply.
By the Associat ted Press.

by Ine AsSOcldteu GEess.
ADRIAN, Mich, April 19.-Full re-
sponsibility for the initiation of the
policy which resulted in the leasing
Of the naval oil reserves was assumed
here last night by Edwin DENLY,
around whom ragged a storm of crit
icism in the Senate before his retire
ment last month as Secretary Of the
Navy.
Had I not taken the action I did
to protect the interests of the Navy
in these reserves against the tremen-
dous loss of drainage ne declared IN
an address, 81 would have been false
to my trust and culpably negligent in
the performance of my duty"
Replying to what ne said had been
an insinuation of collusion on his
part in connection with the oil leases,
Mr.. DENLY said he had never been
talked to about the naval petroleum
reserve situation before he entered
the cabinet by the President-elect or
by any of his cabinet or other ad-
viSers.
Appointment A Surprise.
MY appointment was somewhat
unexpected" he said, "and was not
announced until about February 20: "a.
Therefore there was no collusion as
to any acts to be performed by me
although even that insinuation has
been made"
shortly after taking office. 1T was
represented to me that drainage of
the reserves was proceeding rapidly
and offset wells were necessary. Be
lieving the Department of the 1nte-
rior was best qualified to handle Tor
the Navy its enormously valuable re-
serves, / turned to the Interior De-
partment for advice. I then asked
the Secretary of the Interior Depart
ment if he could not take over the
administrative control of the naval
petroleum reserves. Secretary FAN
did nta6 not .. ask SKI me; re- asked him. NJ
invaluable resource. Together, then!
| the Secretary of the Interior and
presented the matter to the Presi-
dent, and after he had given it care
| full study he decided to issue an eX-
| ecutive order.
| Thereafter a searching inVeStiga-
| ton was made by the Department OF
| the Interior into the whole problem
and in the meantime certain offset
| wells were drilled by the Department
| and approval of the Secretary OF the
| Navy, although he did not sign those
| individual contracts.
Later on-October Is, 1921-after
discussion of. the subject with the
| council of the Secretary of the Navy
1 gave Rear Admiral J. K. Robinson,
| engineer r-in-chief of the Navy, charge
| of the oil reserves under the naval
| establishment"
Denies Oficers Removed.
Here Mr.. DENLY reiterated at
length and in detail his denial OF
the charge that he had caused to be
transferred from Washington or to
| be retired certain officers of the Navy
| who opposed the leasing policy.
Upon the advice of Admiral Robin
| SO nand Others" he resumed, II be-
came convinced that steps must be
taken to use the powers given to
| the Secretary of the Navy by Con-
gress to accomplish what 1 earnestly
believed to be the intention and will
| of CongreSS-to save and protect the
oil for the United States Navy. The
| matter was taken UP between Secre-
| others of the two departments, and
| carefully studied. Secretary Fall
| then entered into negotiations with
| prospective contractors and the lease
| with the Mammoth Oil Company was
| the result
Consulted About Lease.
"A lease was prepared with my
full knowledge and in frequent con-
| Sultation with me. Admiral Robinson
acted as my agent, visited the De-
partment of the Interior constantly
| and reported to me the progress OF
negotiations for the lease. the differ
ent features under discussion, and
never acted without my approval
Finally, when the lease was COM
pleted, he brought it to me and we
went over it together in detail. /
also went over 1t with Secretary Fall.
On April Z, 1922, the lease was signed
by Secretary Fall and the lessees.
On April IL. 1922, after further care
full study it was signed by me, and
it then became a binding valid con-
tract I directed immediate and COM
plete publicity in this as in all other
matters pertaining to the naval
petroleum reserves.
Tells of Second Lease.
"On April 25, 1892, after careful
consideration of bids submitted by
the Standard Oil Company of Cali
fornia, the Associated Oil Company
and the Pan-American Petroleum and
Transport Company, there was
awarded to the Pan-American Petro-
leum and Transport Company a con-