Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-11

stop work on the number naval
fuel station at Pearl Harbor. Ha-
wall. being constructed under the
lease of December IL, 1922. T.. l..
Doheny, through his counsel. Frank
j. Hogan, advised President Coolidge
today that since the government has
stopped further payments on this
project he personally has guaran-
teed his company against loss for
continuing this work.
This project. similar to number 1
storage plant at Pearl Harbor.
which was completed and accepted
by the government last month. Is
now estimated TO be 40 percent COM
pleted and. experts for the Doheny
companies iEavc reported that be-
cause of the peculiar nature OF the
construction work 1t probably would
he total loss If It were to be aban-
doncd at this time.
In a statement issued here tonight
on behalf of the american Pc
troleum Company. reiteratiNn Is
made of the testimony of T.. j.. Do
heny before the oil committee that
the government is S3,627, 100 in ar
reTrs in payment on the two pro-
jccts. OF this sum. 81 ,590.9 IL on
account of tho completed plant.
Under the terms of the contract
between the government and the
pan-Amcrican Company. the COM
pany is performing the tank con-
struction at cost and without profit,
subject to government supervision.
IL receives its pay in royalty oil from
the California reserve. There In
now in plant number I at Pearl
1Iarbor /, 100000 barrels OF naval
fuel oil, and an additional 2,7OO.OW
barrels of oil would be placed in
plant number . under the terms OF
the contract.
Upon concluding the Mclean
phase of the inquiry, the oil COM
mittee will take up the reports OF
the accountants who have been ex-
aiming books of brokerage firms in
Washington. New York and Cleve-
land. Louis ID. Bond. who is in
charge of this work. reported today
TO Senator Walsh that it was nearly
completed.
Senator Walsh said 4fterward that
Attorney General Dau9herty and
Senator Elkins, Republican. West
Virginia, were the only government
officials who were shown to have had
transactions i'm Sinclair oil stocks.
Both Mr.. Daugherty and Senator FL
k;ns have issued statements concern
ing those dealings declaring them to
have been wholly Independent of the
Teapot Dome lease.
After hearing several OF McLean's
employees tomorrow, the committee
viii close its doors to examine tele-
grams delivered to 1t from Three
Rivers, n. NJ. On Wednesday 1t
probably will call Mclean to the
stand and Senator Walsh does not
expect his examination to consume
more than one day.
With the accountants reports on the
brokerage books disposed of by the
end OF the week. the committee Will
be ready to turn to other phases Of
the inquiry. including that developed
by the statement of Leonard Wood,
IL, that oil interests had approached
his father. Maj. Gen. Wood, at the
Republican convention at Chicago I'm
1920, with proffers of support for u
consideration.
This matter Is now under investi-
cation by some members Of the COM
mittee, including Senator Walsh, who
said today he expected to have addi-
ticnal information regrding IL within
day or two. lie declined to dis
close what this would show.
Unless there are unlooked-for de-
Nelopments the committee hopes to
conclude its investigation this month.
Sinclair will be recalled and also will.
be required TO produce the books Of
his private company. the Hyva Cor
Ioration. which the committee has
sought for some weeks.
AS yet the committee has received
no return on the subpoena issued o.
ten days ago today for James Garden
OF the Mutual Oil Company. It was,
desired to question him about the =
So nding of marines to Teapot Dome
to clear the field there Of independants
Operators who had received no pa
tnets from the government Of which
the Mutual OIL -ComnanY was nne