Evening star., 1925-07-03
BLAMES CABINET
FOR OIL LEASES
Walsh Says Doheny State
ment Involves All Members
in Deal.
By the Associated Press.

NEW YORK, July Edward L.
Doheny's recent statement on the ma
val oil leases, if true, places some de-
gree of responsibility for the "odious
transaction" upon every member of
the Harding cabinet, Senator Thomas
j. Walsh of Montana, chairman of the
Senate committee on public lands,
which investigated the leases, said to-
day.
Senator Walsh, who is on his way
abroad, also regarded as important
parts of the Doheny statement which,
he said, showed that the leases were
not given Doheny to protect the oil
lands from drainage by outside wells.
Mr.. Doheny asserts that the sub
Ject or the executive order transferring
the control of the oil reserves from
the Navy Department to the Interior
Department was discussed in at least
cabinet meetings, at which Secretary
of the Navy DENLY expressed his desire
to have the transfer made" the Sena-
tor said.
The source of Mr.. Dohenys :nfor-
nation is not disclosed, but presuma-
bly, 1t came from Secretary DENLY, al
though 1t Is inconsistent with the testi-
mony given by that gentleman before
the public lands committee.
Cites Hughes Statement.
According to my recollection, Secre-
tary Hughes and Secretary Hoover, at
least, were asked If the subject was
ever considered at a cabinet meeting.
Both replied that it was not, or at
least that neither of them had any
recollection of such an event. 1t will
be interesting to learn what they have
to say on the subject in view of the
Doheny statement. The statement, if
true, involves every member of the
cabinet in some measure of RESPONSE.
bility for the odious transaction.
I'm the second place, Mr.. Doheny
asserts that when the plan was under
consideration - the Pearl Harbor
tanks and paying for them in oil
that Fall said that If my company
or any other company would under
take the work contemplated (the con-
struction of the tanks) leases would
be made for drilling of such addi-
tional wells as would be required to
supply the crude oil with which the
Navy would pay for the fuel oil in
storage
This effectually disposes of the
contention that the Doheny lease of
December II, 1922-that is, the lease
which covered practically the entire
reserVe-waS made because the re-
serve was being drained by wells
outside and to protect the Govern
ment from loss from drainage so
set up"
Denies Documents Suppressed.
Replying to Doheny's assertion that
important kilograms in Government
files had been suppressed by his COM
mittee, Senator Walsh said:
II cannot believe that Mr.. Doheny
intended to intimate that the com.
mittee, or any member of it, secreted
any documents, letters or telegrams
1t seems scarcely likely that If the
committee was in any way RESPONSE
BILE for the disappearance of any
such, that they would be found in
the office of the controller general.
After the Department of Interior
had been directed to send the COM
mtttee copies of all papers in rela-
ton to leases of oil reserves. and
carload had been dumped upon it,
information came to us that there
were others of more or less conse-
quence still in the department. L Sc
cured an order from the committee
authorizing my clerk to make an in
spection Of the files, as a result of
which several letters of no little con-
sequence were discovered"