The Birmingham age-herald., 1924-01-26
SEES POSSIBLE CRIMINAL STEP
 IN OIL EXPOSE
Coolidge Loath To Believe Wrong Act, But Wants
 Explanation
tc.stInued from P,,. One,

LAl3ldIldClON
 csatIausd from Page on.) signed over to Doheny 32.O0O acres and 25O,O00 barrels of oil set aside as a naval reserve. Denby affixed his signature to the lease and then told the Senate he did not konw what it provided. .r-
 Suggestions that Denby ought to re- sign in face sof this state of affairs are becoming more and more pointed.
 Denby, after call at the White House Thursday, said, My conscience is easy" hut there is strong feeling among many members of the House and Senate that a cabinet officer who is so vague on affairs in his. own de- partment should go back to private life
 The whole oil lease situation was discussed at the cabinet meeting prior to the White House statement.
 Cancellation Demanded
 Cancellation of the maj jor leases ex- ecuted under Falls supervision is be- ing demanded insistently in Congress, the only question being one of proceed dure. some desiring to do it by con- gressional resolution and others by court action.
 Meanwhile Fall remained in bed at the home of Col. James w.. Zeyely, Sinclairs attorney here. He sent out word that he had issued no statement and would say nothing prior to his appearance before the Senate commit tee Monday. His physician professed alarm over his patients health.
 While Fall was. trying to pull him. self together for the ordeal next Mon day, when he must face his old col leagues in the Senate and explain his falsehoods, Zevely reluctantly told the story of the loans made by Sinclair to Fall.
 . A big heavy jowled man, namesake of Zev, the champion three year-old, owned by Sinclair. Zevely told how he was asked for $25,OOO loan by Fall last summer and how he advanced an additional S10,000 to defray expenses of Falls trip to Russia as 'Sinclair's counsel, in discussion of the Sakhalin lease. f..,-s.
 Senator Walsh first questioned Zevely about .3,5O0 shares of Sinclair consolidated stock which he borrowed in October, 1922. Zevely said he ob- tained this loan to purchase a home on Long island.
 Loaned Fall S25.OOO
 Coming to the matter of the $25, 900 advanced to Fall. Zevely testified that Sinclair had to go to Russia last sum- mer to discuss conditions pertaining to his oil concessions from the soviet government had wished Fall to go as his counsel and advisor Zeyely was commissioned by Sinclair to go to Falls home at three rivers New Mex ico and get Falls answer. They did not discuss compensat tion but Fall did mention to Zevely that he wanted to buy some small ranches nearby and needed $25,000.
 Il reported this to Mir. Sinclair and he instructed Mir. Wahlberg to send the bonds." Zevely said. He had them sent to Falls bank at Fl Paso, Tex. After Fall returned from Russia, he mailed Zevely a note for $25,0OO, pay able sn demand, bearing 6 per cent interest. ,
 Fall also asked for $1O,O0O to defray his expenses to Russia and this was advanced. Zevely said no receipt had been given to Sinclair for the liberty bonds.
 Standard Oil Angle
 Through Fred c. Discomfort, former employe of the general land office, Senator Walsh brought out that Fall had taken an unusual" course in dis missing proceedings brought against the Standard Oil company of Califor- mia to prevent further drilling on Sec ton 3G of naval reserve No. T..
 The standard oil people went to Secretary Fall and asked him to dis miss the proceedings, which he did
 Was this the usual procedure in such cases:" Walsh asked.
 Il never heard of any case being handled like that before,' the wit ness replied.
 The Standard Oil people went to Archie Roosevelt, former vice president of the Sinclair Export corporation, and G. D. Wahlberg, formerly per sOnal secretary to Sinclair, to appear Saturday and explain further degard- ing the $6S.000 in cancelled checks which were alleged to have been paid to Falls ranch foreman. Roosevelt testified earlier in the week that Wahlberg. told him he had seen checks for this~ amount, but Wahlberg de- clared Roosevelt had misunderstood him and that he had said "six or eight cows,' not ''sixty-eight thou sand"
 Fall also asked for $1O,O00 to defray -his expenses to Russia and this was advanced. Zevely said no receipt had been given to Sinclair for the liberty bonds.
 Through Fred c. Desendorf. former amnlOyA of thp general land off;oa Senator Walsh brought out that Fali had taken an unusual" course in dis missing proceedings brought against the Standard Oil company of California to prevent further drilling on section 36 of naval reserve number l.
 The Standard Oil people went to