Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-02
SAYS MCADOO and
GREGORY were OIL
] COMPANY COUNSEL

Washington, Feb. 1.--William G.
McAdoo, candidate for the Demo-
cratic nomination for President, and
Thomas w. Gregory, the Democrat
selected by President Coolidge to
assist, in the prosecution of the oil
lease cases, have had employment as
counsel for oil interests. Edward L.
Doheny, California oil magnate, tes-
titled today before the senate in
vestigating committee.
Mr.. Doheny said he personally
had retained Mr.. McAdoo. after his
retirement as secretary of the treas
ury; that he thought his company
had paid him "all told' about $780,
COO in fees, and that it now / avs
him a retainer of $4,000 a year. His
company and half a dozen other oil
companies employed Mr.. Gregory
after he quit as attorney general,
Mr.. Doheny stated, for the purpose
of appearing before President Will
son or the state department in con-
nection with Mexican oil matters.
Testimony also was given that
companies in which MIR. Doheny has
an interest had given employment
to two other members of the cab
met, in the Wilson administration
after they quit office. Franklin Is.
Lane, former secretary of the inte-
riqr. and Lindley NJ. Garrison. for
MIR secretary of war. Mr.. Lane
was assistant to the president of the
Pan American Petroleum and
Transport Company. Mr.. Doheny
saAd, while Mr.. Garrison was asso-
ciated with the New York Banking
firm of Blair and Company.
The committee also was told by
Mr.. Dohenv that he had advanced
5000 10 Leo j. Stack, of Colorado.
who told him he wanted the money
for George Creel. chairman of tie
committee on public. information
during the war. who was employed.
Mr.. Stack said. in connection with
efforts to prevent the leasing of the
naval reserves to Republicans after
the change of administration. This
was in 1920, he added. when he and
Mr.. Stack were seeking to get q
lease on the Teapot Dome reserve
from the then Secretary Daniels.
Evidence relating to the employ
ment of former Democratic officials
by oil interests was brought out in
response to inquiries by Chairman
Ienroot, put as a result of q. demand
made in the senate Yesterday. by
Senator Reed of Missouri. who also
is a candidate for the Democratic
presidential nomination. Mr.. Reed
insisted that the committee give Mr..
Doheny searching examination as
TO whether he had paid any money
to men while serving as public Off
Gals or afterwards.
Mr.. Doheny declared that he had
not advanced any sums to any public
official other than the 100000 which
he has testified he loaned Albert +.
FAN. then secretary of the Interior on
November 80, 1921. nearly a year be-
fore his firm obtained the lease for
California naval reserve number /,
which the government now seeks to
annul along with that to the Teapot
Dome reserve granted to the Sinclair
interests by Mr.. Fall
AS a result of the testimony of Mr..
Doheny that Mr.. Gregory was en-
ployed by a number of oil companies
and that he had been cousel for the
Island Oil Company President Cool
idge has definitely made up his mind
not to retain him rs counsel in the
oil cases. The executive talked over
the matter tonight with Chairman
Lcnroot and Senator Curtis of Kan
sas. the assistant Republican leader
in the senate. He will see Mr.. Greg
DRY upon his arrival here tomorrow
from Texas.
Before resuming its inquiry today,
the oil committee decided to compel
the attendance of Mr.. Fall tomorrow
morning for questioning. This deci-
sion was made after the committees
writing that the former secretary is in
condition to appear: that while he is
in an anxiety state" there is no EVIL
dence of any organic nervous disease
and no psychotic symptoms.
After Mr.. Fall testifies with refer
ence to the Doheny loan and the
lean of s25.0o0 made 10 him by Harry
+. Sinclair. Senator Walsh. Demo-
crat. Montana, will broaden the scope
of the inquiry in an effort to deter
mine whether any public officials had
transactions in stock of the Mann
moth oil Company. which was or
Canized by Mr.. Sinclair to take oyer
the Teapot Dome lease. To that end,
he has had representatives of num-
Der of Washington brokerage firms
subpocnaed.