New Britain herald., 1925-07-03
CABINET INVOLVED,
 WALSH DECLARES
Oil Investigator Comments on
 DOheny Story

New York, July 3-senator T. J. Walsh. democrat, of Montana, pros ecutor" of the senate committee on Public Lands, which investigated the naval oil reserve leases. declared al the Waldorf-Astoria yesterday that. If it were true. as stated by Edward l.. Doheny In hts interview in The New York Times, that the question Of the transfer Of the naval oil rs- serve lands from the navy to the h. terior Department was discussed at meeting of the cabinet 1t Involves every member of the cabinet in some measure of responsibility for the odious transaction"
 It would be Interesting" Senator Walsh said, to hear what former Secretary of States Hughes and Sec rttary Of Commerce Hoover had 10 say in connection with the matter
 Senator Walsh also saw in Mir. Do heny's interview a complete refuta- ton of the view that 1t was either necessary or advisable to lease tk-- reserves In order to avert loss through drainage"
 He could not believe. he said, that Mir. Doheny in his statement intend cd to intimate that the committee, or any of its members. secreted any documents, letter or tccgrams con- corning the lease.
 Two features of the statement of Mir, Doheny ought to awaken more than usual public interest" Sena- tor Walsh said. ''Tn the first place, Mir. Doheny asserts that the sub Ject of the Executive order trans- ferring of the control of the oil re- serves from the Navy Department the Interior Department was dis cussed at at least two. Cabinet meet tings at which Secretary of the Navy Denby expressed his desire to have the transfer made.
 'It is specifically stated in the Doheny interview that Secretary Denhy inquired of Attorney General naugherty whether the duties could legally be devolved upon the Secre- tary Of the Interior 10 which in quiry paugherty replied Certainly.
 The sourse of Mir Doheny's in formation on the subject is not dis closed, but presumably 1t came from Secretary Denby. although it is in- consistent with the testimony given by that gentleman before the Pub lie Lands Committee.
 According to my recollection, Secretary Hughes and Secretary Hoover at least were asked If the subject was ever considered at a Cabinet meeting, Roth replied it was not. or at least that neither of them had any recollection of such an event. II will be interesting now to learn what they have to say about the matter in view of the Doheny statement,
 If Mr. Doheny is correct about the matter-tho responsibility for the executive order-the affair so much in the public mind probably never would have occurred.
 Tn the second place, Mir, Doheny asserts that when the plan was un- der consi1eration-the Pearl Harbor tanks and paying for them in oil to quote from the Doheny state nent: Fall said that if my com pany, or any other, would undertake the work contemplated (construc- ton of the tanks>, leases would hc made for the drilling of such addi- tional wells as would he required tC supply the crude oil with which the navy would pay for tho fuel oil in storage
 This is in entire harmony with the testimony of Admiral Robisor before the committee. Dohcny was given the lease which he secured Of the entire reserve, that thera might be oil enough according 10 the gov ernmcnt to meet tho obligations in, cured by the construction of the tanks ss they were being contracted
 This effectualy disposes of tho contention that the Doheny lease o' Dec. to, t92%--that is the lease that covered practically the entire rc. serve--vas made because the re. serve was being drained hy wells outside and 10 protect tho govern. nent from loss from drainage so sci up."