Evening star., 1925-12-04
ARGUMENTS HEARD
IN OIL LEASE CASES
Attorneys Defend Demurrers
Filed to New Conspiracy
Indictments.

Justice Wendell p. Stafford of the
District Supreme Court today heard
arguments of counsel on the demur-
rers fled to the new conspiracy in
dictments in the celebrated Teapot
Dome and Elk Hills oil ca ses The
indictments were returned by a Spe.
cial grand jury May 81, following the
quashing of previous indictments by
Chief Justice Mccoy on the contention
of counsel for the oil magnates that
the sanctity Of the grand jury room
was violated by the presence of
Oliver {. Pagan. special assistant
to the Attorney General. after Con
gres had directed that the Department
of Justice have nothing to do with
the prosecution of the oil ca ses The
Government appealed from the order
quashing the former indictments. but
later abandoned the appeal and de-
cided TO stand on the validity OF the
two indictments which were attacked
today.
Albert r. Fall. former Secretary of
the Interior was represented at the
argument by Henry A. Wise of New
York. Levi Cooke Of Washington and
Harry F. Sinclair. oil magnate OF
New York. had as counsel Martin w
Littleton and O. T. Stanford of New
York and George =. Hoover of Wash
ington. Edward l.. Doheny. oil opera
tor of Los Angeles. was represented by
Frederic r. kellogg and Joseph j
Cotter OF New York and by Frank J.
Hogan of Washington. The prosecu-
tion was conducted by Atlee Pomerene
and Owen !. Roberts. special counsel
for the Government in oil prosecu-
tions
Justice Stafford allowed four and
onehalf hours for the argument. of
which the Government took one and
one-half hours and allowed counsel
for the defense to distribute the re
naming three hours among them.
George p. Hoover opened the argu-
ment for Sinclair and was followed
by Henry A. Wise for Fall. Counsel
for the Government will follow. after
which Frank ]. Hogan will close for
Doheny and Martin Little for Sinclair.
The court is expected to take the mat
ter under advisement.
Holds Indictments Faulty.
Attorney Hoover insisted that the
indictments are faulty because they
claim that Secretary OF the Interior
Fall had the power to make the con-
tracts and leases In reference TO the
naval oil reserves. The lawyer point
ed out that the act Of June 4. 1920.
authorized Secretary of the Navy
DENLY to lease the oil reserves 1T
did not impose on Fall" said the
lawyer ANY duty nor did 1t confer
any authority respecting the making
of leases
In the absence Of specific legisla-
ton comforting upon the Secretary of
the Interior any authority or imposing
upon him any duty respecting the
naval petroleum reserves, no such
duty could arise. If IT be determined,
as 1t must necessarily be, that Fall
had no duty imposed on him to make
the leases and that no law conferred
upon him authority TO award leases.
then 1t inevitably follows that the al
legations of the indictments in respect
thereto are mere conclusions Of the
pleader and the indictments must
fall
This continued Mr.. Hoover. 'is
the whole fabric of the indictments.
If the Secretary Of the Interior had
no duty respecting the leases and had
no power to award leases, then there
could be no conspiracy to defraud the
United States, as the officers Of the
United States possess no powers and
are obligated to perform no duties
Otnef tHdn luoSo plcsIllOcu Wy law.
Quotes Government Brief.
Henry A. Wise, counsel for Fall,
quoted the brief uf counsel for the
Government in the civil cases heard
in the courts of Wyoming and Cali
fornia. in which il was stated that
a contract containing the signature of
Fall would have been no more than
a worthless piece of paper" and
pointed out that in the criminal case s
the same counsel were contending
that the executive order Of President
Harding was binding and that Fall
had the power to make the contracts.
Wise told the court that in the civil
cases. Pomerene and Roberts Lad ar
gued that the executive order was
void and that no contract or lease
which Fall might have made there
under could have conveyed anything
to the Oil companies. The Govern
ment told the judges. Wise said. in
the civil cases: ANY one dealing with
Secretary Fall would have been on
notice Of his utter lack Of power and
the contract taken from him contain
ing his signature would have been no
more than a worthless piece of paper. .