The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-01-25

D Doheny's store Of the 800. 900 loan,
which was dramatically told in
three hour appearance before the
committee, added a new complication
to the record of Falls tranactions
with the lessees of the government
oil property.
100000 Unexplained.
II now apears that the Doheny
loan is not the same one regarding
which Fall previously testified as
having obtained from Edward Beale
Mclean, and that this other $780,
600 is yet to be explained. In other
words, Doheny's testimony. in the
minds of the committee. raises It tc
$500. 900 transaction. Fall having
apparently received that sum after
negotiating with Doheny and Sin
clair for the tranfer Of the oil re-
serves.
Doheny supplemented his testimony
with an offer 10 turn back all the
property embraced in the Elk Hills
lease IL 1t could be ascertained that
the governments interests were not
properly safeguarded in the lease
terms.
This offer was presented TO the
committee by Gavin McNab of San
Francisco. Doheny's lawyer. who pro-
posed that the committee should
adopt a resolution asking President
Coolidge to appoint a committee OF
experts TO examine all the terms OF
the lease and then order its cancel
laiion. IL 1, had been improperly ex-
lecuted. allowing Doheny only the
lamounts already expended in develop
ments.
High points In Doheny's testimony
were:
Intended TO Employ Fail.
/. Admission by Doheny that he
loaned Fall $1,000 n month before
the lease to the Elk Hills in California
was put through, but this is aside
from the $780, that Fall is sup
posed to have obtained from Mclean
or someone else connected with the
| deal. Doheny also stated that he
proposed 10 obtain payment OF the
800, 900 Fall note by taking Fail into
his employ and taking II out OF his
salary, after Fall would resign from
the cabinet.
2. Doheny declared that $1,000 IN
currency was brought from New
York TO Washington by hi. son In
a small black hand satchel and that
Falls note. bearing what he con-
sidered Falls signature. was returned
by his son and is now IN his pos
session. The COMMITTEES demanded
production of the note and Doheny
promised 10 get II from his safe de-
posit box in New York. where he be-
lieves IL now Is.
5. The 100000 note. according to
no action has ever been taken TO
obtain payment. In drafting the
note no interest rate was mentioned.
and Doheny was unable TO eav
whether Fall wrote the rate IN be-
fore signing 1t.
Wanted to Help Friend.
4. Doheny told the committee he
loaned the money TO Fall solely on
account of his so years friendship
and because Fall was broke" and
Explained he might be able TO recoup
himself II he could purchase the Har-
rts ranch adjoining his own land II,
New Mexico.
S. Doheny's testimony regarding
the loan to Fall is in direct contratic-
ton To Falls testimony before the
committee. that he never at any time
approached Doheny on the subject of
borrowing money. Fab will he re-
examined on this next Monday.
| {. Doheny informed the commit.
tee that he had been after Fail FOR
many months TO return 20 washing'
ton and tell the entire truth about
the loan. but that Fall refused 20 dc
SO. He stated that when they met IN
New Orleans last Sunday night. 4,
was agreed that Doheny should sp-
pear before the committee and reveal
details OF tho loan.
:. Asked why he sent the money
in currency rather than by a hank
draft. ncheny MAS unable to recoi'
lect whether he did this of his own
volition or upon suggestion by Fall.
Second Contract Accepted.
s. poheny's testimony also re.
vcaled that the first contract made
with Fan was merely for preferential
rights I'm n portion ot naval reserve
/ No. 1. The contract was rejected by
poheny's managers and the new con-
tract. turning over the lease for The
entire $1,000 acres in the reserve. vas
entered into. nehenN reiterated TIA.
he expects te make az least Sieo .eee..
eco cut of tho lease.