Perth Amboy evening news., 1924-02-14
Oil Counsel Says Secretary
Fall Found 1t Unnecessary
to Get Opinion
OF ATTORNEY DAUGHTERY
On Validity of Oil Reserve
Leases Before They
Were Made

WASHINGTON, Feb. 1.-THE o1
committee decided today that Frank
A Vanderlip would not be question:
ed until tomorrow.
While Mr. Nanderlip did not feS-
tify today regarding his references 30
the sale of President Hardins'e
Marion Star the senate oil COMMITTEES
produced a fresh flock Of sensations
today from other Witnesses
John c. Shafter, publisher OF the
Chicago Post, and other newspapers
testified that Secretary Fall had told
him in March 1921, the very month
he entered the cabinet, that he wae
going to lease Teapot Dome to Harry
Sinclair. At that time Teapot WAS:
not yet under Mr.. Falls Jurisdic{Iou-
Mr.. Shaffer told also how he hlna-
self had got a one-elghth interest IN
the Pioneer Oil company. 8 Standard
oil subsidiary, in CO -szs7. "a ~ szs !!
the Teapot lease and gave m
nothing, in return. He had s >l11
claim pending. he said. T.11d 61<< S
tary Fall promised merely Tor <1E<
asking. that he would be taken eaf<
of.
A letter by II. Foster Bain, difec-
tor of mines, written before the
leases were made. and put into The
committee record, declared that the
writer understood. that Attorney
General Daugherty had given an IN
formal opirion upholding the valid
lty of the leasing policy. Mr.. Daugh-
erty previously has denied he gave
any opinion.
Oscar Sutro, counsel for the
Standard Oil Company of California.
testified that he had suggested to
Assistant Secretary ENinney Of the In
terror department that an opinion
be obtained from Mr.. DoughertF but
that MIR. Finney replied that Seore
tary Fall thought it unnecessary
to take such a step.
Mr. Finney later took the stand
and testified that the legality OF the
leases never even was referred TO the
Interior Departments solicitor. He
declared the discussions were con
Quoted lin the manner of private ne
gotiations,' that Fall instructed him
to formally deny that leases had
been signed a week after the Tea
pot Dome actually had been leased
to Sinclair; and that the real reason
was that the secretary wanted no
publicity until the Doheny Califor
MIA lease, too, had been cQpsumlnat-
ed.
The committee assembled ct 1os1e
a. m. and then disappointed the
crowd by calling first Oscar Sutro
counsel for the Standard Oil Com
pany of California.
l.. c. Finney, assistant secretary OF
the interior. was quoted today before
the oil committee as saying that Sec
retary Fall considered it ''unneces-
81 n
Daugherty pass on the validity OF the
oil leases before they were made.
The testimony was given By 0scsa
Sutro. counsel for the Standard OF
Company of California. He told tbs
committee that he had suggested to
Mr.. Finney that Department OF
Justice opinion be sought.
Mr.. Finney's reply in substances.
continued the witness, was that X
was not the wish of the secretary of
the interior-no, / don't think that
expresses it. He said the secretary
of the interior Considered 1t unnee
essary to have the opinion OF the
attorney general"
A letter to Mr.. Fail from Fl. Foster
Balm, director of mines, Transmitting
an opinion by Mr.. Sutro against the
validity Of the leasing policy was put
into the record. 1t said that mona
of US want Mr.. Doheny to ! into
troubla and propose to do everything
in our power to make it easy FOR
him"
Mr.. Bain's letter added that OBJ
lection had been raised and that he
would suggest formal opinion Be
obtained ffom the attorney general
in accord with what he understood
Ia Inf a. flI 4I<@=
opinion"
Balm then added that he 'realiz-
ed the objection to asking for such
an opinion"
Attorney General Daugherty pre-
viously had notified the COMMITTEES
no opinion was rendered BY him.
As result of the testimony the
committee instructed its secretary 70
search the files of the department.
of justice.
nEnHFA aaaRHEa IN ga