Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-10-30
HARDING APPROVED
FALL s OIL PLANS,
FINNEY TEST|FIES

LOS ANGELES, Cal, Oct. IS
The late President Harding approved
plans of former Secretary of the In
terror Albert B. Fall to compromise
conflicting claims of rival oil compa-
MES to portions of the Elk Hills ma
val reserve No. 1, according to testi-
.mony brought out today at the gov
ernment's suit to, break existing
leases on the properties.
Cross examination of Edward {.
Finney, assistant secretary Of the in
terror, by Frank j. Hogan, chief de-
Tense counsel, revealed the fact that
Fall laid all plans for the compro-
mise before President Harding, Sc
curing his approval.
The Pan-Americ2n Petroleum COM
pany and tho United Midway Oil
company were in contest over the
right to drill % offset wells found
necessary to protect a portion of the
reserve from draining by Standard
Oil company wells adjoining, Finney
admitted.
The .Pan-American company con
trolled by E. l.. Doheny, submitted
the lowest bid, but previous claims
on the land filed by the United Mid
way Oil company made compromise
necessary.
Fall induced the Doheny company,
according to Finneys testimony, to
relinqush eight of the % wells to
the United Midway company The
secretary detailed his plans in let
ter to President Harding, which came
back bearing the notation, ZAP
proved, President Harding"
1t avs evident from Hogan's ques
tioning that the defense counsel
hopes to prove Falls dealings with
Doheny were based on conferences
with others in his department, as
well as naval heads and even the
president.
The defense holds Finney valu-
able witness for it's side should it be
proved he was consulted on the va
rious phases of the deal.
In his opening statement, Hogan
told the court that:
1--WE will show your honor that if
there was q conspiracy Finney was
one of the chief conspirators-and no
one dare reflect on Finney'S absolute
honesty and sincerity"
Edward Finney was not directly
consulted with the regard to the
leases granted the Dohcny and Sin
clair interests, he testified.
What leases have been granted
during your term as assistant secre-
tary Of the interior in which you
had no part whatever?" Finney was
asked by Owen Roberts, government
attorney.
1.-THE, Sinclair lease and the lease
Of December II, 1922, on the EllIs
Hills naval reserve No. l." the wit
ness replied.
Former Secretary of the Interior
Albert Fall handled these matters
almost entirely alone, F'inney init
mated.
'sYou had nothing to do with the
lease of December II, 1922" Roberts
queried again.
II had no part in it at ALL" Finney
declared.
The assistant secretary's testi-
mony, it is anticipated, will be the
governments strongest bit of evil
dence in the suit to break the Do
heny leases.
WIN the direct examination OIL
Finney concluded the witness was
turned over to Frank ]. Hogan, chief
defense counsel, for cross question.
ing.
Hogan secured admission as evi-
dence in memorandum from Fin
ney to Fall concerning claims the
United Midway Oil company had on
part of reserve No. l.
F'inney suggested, according to the
memorandum. that the oil land in
question be submitted to compromise,
withdrawn from the naval reserve,
or be drilled with offset wells.
Hogan, it was said, hoped to prove
Fall turned to Finney for advice
in the leasing matters, refuting his
earlier statement that he was not
taken into confidence when the num-
Der one reserve lease was consum
mated with the American COM
pany.
U. S. APPOINTS RECEIVER
FOR TEAPOT RESERVE
CASPER, Wyo, Oct. %. = Com
mander H. A. Stuart, u. S. N, has
been appointed to represent the gov
eminent in the receivership of the
Teapot Dome naval oil reserve, and
on November l will succeed to the
position vacated by Rear Admiral
Strauss.