The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-01-26
More Loans
to Fall Are
President Sees No Excuse for
$4,000 Gift and Ex.
pense Money Given by
Sinclair Lawyer.
Ex-Secretary Is Belfast
BY UNIVERSAL Service.

Washington, Jan. 25.-Col. j. W.
Zevely, agent and personal counsel
OF Harry f. Sinclair, owner Of the
Teapot Dome lease, loaned former
Secretary Albert z. Fall s25,000 OF
Sinclair's money. Zevely told the sen.
ate investigating committee today
He also gave Fall $4,000 for "ex-
penses" to Russia4 he said.
Frederick G. Dezendorf, formerly in
the public land office, testified that
because he made an adverse report
on all land in California sought by
the STANDARD Oil interests, he was
denoted by Fall an dhis report was
lost" He said that subsequently,
Fall took into his own hands the
government case to oust the Stand.
ard Oil dismissed the proceedings
and turned the property over TO the
Standard.
The s25, 900 loan and the allowance
of $40 900 for expenses bring the ac.
krowledged gifts or loans to Fall on
account OF hi stransactions in the
oil leases Up to $4,000.
This briefly summarizes today's tes-
timony.
To Recall Roosevelt.
Tomorrow. Archie Roosevelt. who
resigned from Sinclair's employ be-
cause the was convinced there had
been corruption in obtaining the Tea
pot Dome lease. viii be recalled. G.
d. Wahlberg, private secretary to
Sinclair, was charged by Roosevelt
with having said he saw Cancelled
checks for s6s 900 paid 10 Falls fore
man. also will be heard again at
tomorrow's session.
Other sensational developments to-
day were:
/. President Coolidge announced.
following a cabinet meeting, devoted
exclusively 10 discussion OF the oil
lease scandal. that his reading OF the
| testimony strongly indicated criminal
wrong-doing. and that the guilty will
| be brought TO Justice II the eyidencs
TO wbeing taken sustains this view.
The executive feels that any finan-
c.al injury TO the government must
he righted. but that prosecution OF
Individuals guilty of criminal acts
il a most important consideration.
No Excuse for Loan
The White House regards the tes-
timony given by Zeyely today az
more damaging than an yet devel-
oped. The presidents view IS that
assuming there vas possible ustiti-
cation for the Doheny loan 10 Fall on
the ground Of friendship. there was
certainly no such reason for Zeveiy.
Sinclair's man. to lend the ex-secre-
iary any large amount.
Saera.arv DenifT who nae a
party to the leasing Of the naval oil
fields admitted at the cabinet meet
ing that he Is now convinced the
wool was pulled over his eyes" IN
the granting Of the leases al Falls
suggestion. The secretary urged fed
eral action in the matter TO do TO ths
bottom Of the entire mess.
;. Edward l.. Doheny. who testi-
fed yesterday that he made loan OF
s1oo 600 to Fall on an unsecured note
FIVE months before signing the con.
tract for the lease OF naval reserve
Ne. I. was closeted throughout the
day with his attorney and business
advisers. eight IN number.
Fall Really Sick.
4. FAN. broken in health by expos.
ure OF his conduct in dispensing the
leases. and deserted by all save his
friends in the oil companies, spent tho
day in bed under care Of a physician
n the home OF Colonel ZeYely. with
whom he Travelled from New Orleans.
II WAS said by the physician that Faa
is really a sick man. the trip to Wash
ington having caused additional con-
gestion in the chest.
;. Senators Caraway and Walsh
conferred on the text OF the Joint res.
olutlon. which viii be introduced next
Monday. calling on the president 10
take immediate action 70 cancel tho
leases made by Fall Of the naval re-
serve
6. Republican leaders in the house
supported democrats In demanding
swift action by congress and tho pres
idenlt to revoke the leases and COM
pei restitution by and possible prose.
cution Of all persons involved