Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1924-02-08
CONTINUE MOVE TO GUST DENNY
AS SENATE RESUMES PROBE OF
u. S. NAVAL OIL RESERVE LEASES
President Coolidge Has Reso-
luton InStituting Court
Action Before Him

WASHINGTON, Feb. 81
After a disagreement among its
members over the trend taken
by the oil inquiry, the senate oil
committee decided today to de-
fer until Monday its examina.
ton Of William G. McAdoo.
While the senate plunged back
INTO the weller of debate over
the Robinson resolution seek
ing the resignation of Secretary
DENLY because OF his part IN
the leasing of the naval oil re-
serves, the investigating commit
tee today resumed its evcr-wid-
ening inquiry into the question
with large number of Witness
es ready to testify.
President Coolidge, mean
while, had before him the rcso-
luton directing the institution
of court proceedings on the ba-
SIS of evidence adduced at the
inquiry, while another resolution
directing the Secretary Of the
Interior to start proceedings ;rn~
mediately for recovery to fhe
government of SectinRs 4
36 in the Elk Hills sect1on 81
the California Naval Rese,-r-
Number ! !, now held bv fla
Standard Oil Company and 9th
er private interests, was await
ing action in the House. having
been adopted yesterday By the
senate.
Previously. il had been decided IL
permit Air NeAdoe 10 apnear to-
morrow in response to his reanest
that he be given an Opportunity to
explain his connections with K. L.
Doheny.
This decision was reversed after
long committee session ~ wbie1
Frederick G.. Bonfils. publisher or The
Denver Post related how his paper
had begun an expose Of the Teapot
Dome situation months ago and then
had stepped and Low representatives
OF a group Of which he was mem
Der mad made an agreement under
which Harry L. Sinclair was to make
considerable financial concessions
provided the claims of others to
rights within the Teapot reserve
were dropped. The same witness viii
continue his testimony tomorrow.
Frederick G. BonfIs, publisher or
the Denver (Col.) Post, appeared as
a voluntary witness to tell OF his
EFFORTS to assist Leo Stack to enforce
contract Stack had with the Mid
west and other oil companies sup
posed to own acreage in the Teapot
Dome reserve before it was leased to
Harry +. SINCLAIR by former Secre-
tary Fail.
There were rumors about the Sin
clair lease. 1.-The witness said. which
led him to send a reporter. Mr..
StackelbacK, to New Mexico to in
vestigate.
"He brought back a shocking and
astounding story" Mr.. Bonfils said.
1T was one we hesitated TO believe
He was sent back sc make further
inquiry, and was cautioned not to
reveal his identity. because there
might be great danger of bodily
harm to him.
The witness said that after Stack
elback returned. It was decided 10
publish a series of articles In the
Post. The first appeared on August
Is, 1922, and copies were sent to
members of congress. The lease was
attacked "by analysis and theory, =
he continued, and later Senator La
Toilette, Republican. wisconsin, IN
troduced his resolution calling for
an inquiry.
Mr.. Bonhls said ]. w. zevcrly.
personal counsel to Mr.. Slnclair.
called or HIM in Denver to discuss
the matter and finally invited the
witness. his partner, Stack, ard
Schwartz to go TO New York to see
Sinclair.
when we arrived there he said.
"Mr. Sinclair said rather brusqueIv
that he did not know why NE came
to see him: that our suit was against
the Midwest and Allied ComrRnies.. .
'You had filed suit then2~ asked
Senator Walsh.
CONTINUED on page 81