Evening star., 1925-05-27
Conspiracy to Defraud in
Teapot and Elk Hills Leas-
ing Is Charged.
D0HENY'S SON IS CLEARED
IN GRAND JURY REPORT
Alleged Bribery Action May Be
Voided Under Three Year
Statute of Limitations.

The new grand jury oil inquiry
terminated today with the reporting
of two indictments alleging con-
spiracy to defraud the United States
in connection with the leasing and
operating Of the naval oil reserves,
known as Teapot Dome and Elk Hills.
One indictment charges a conspiracy
between Albert B. Fall of New Mexico,
former Secretary of the Interior, and
Harry F. Sinclair, oil magnate of
New York, to get the lease to Teapot
Dome without competitive bidding.
The other indictment charges SIM
liar conspiracy in relation to the Elk
Hills reserve between former Secre-
tary Fall and Edward L. Doheny, oil
magnate of Los Angeles.
The grand jurors exonerated Ed
ward l.. Doheny, jr., son of the Cali
fornia magnate, of any connection
with the alleged conspiracy. The
younger Doheny was included in the
conspiracy indictment reported against
his father and Fall last June and
which was quashed by Chief Justice
Mccoy last month.
No Bribery Indictments.
No new indictments for bribery were
secured today by Atlee Pomerene and
Owen j. Roberts, special counsel for
the Government in the oil prosecution.
Counsel take the position, it is under
stood, that If the act of Congress set
ting a limitation of six years in the
prosecution of governmental defraud-
ing applies to the bribery cases there
will be time enough to get new in
dictments. Should the statute not
reach the transfer of the 100000
which figured In the Senate hearing
further prosecution is barred by the
fact that more than three years have
already elapsed since the alleged
bribery.
New Indictments Broader.
The new indictments for conspiracy
are more comprehensive in character
While the old indictments merely
charged conspiracy to obtain the
leases to the lands included in the
naval reserves. the new ones allege
that the conspiracy embraced the
sale of oil to the Government without
competitive bidding, the purchase of
storage facilities, the buying of ker-
osene, lubricating oil and petroleum
and the adoption of a credit sale
method of purchase by which no
cash passed to the United States
Among the overt acts charged in
the Qoheny indictment is the al
legged payment of 100000 by Nae
elder Doheny to the former Secre-
tary. The only new overt act listed
in that indictment relates to con-
tracts of April %, 1922, and Decem-
Der II, 1922, and the setting out of
the lease of the naval reserve execut-
ed December II, 1922.
Added Charges Made.
The Sinclair indictment charges
new overt acts in addition to those
set forth in the indictment of last
year. Chief among these is the al.
legged passage of s23O,500 in Liberty
bonds from Sinclair to Fall through
means of the Continental Trading Co.
Ltd, a Canadian corporation. The
execution of the lease of April I, 1922
to Teapot Dome, and the execution
of a construction contract, dated Feb.
ruary 9, 1928.
Counsel for the Government have
noted an appeal from the decision
of Chief Justice Mccoy quashing the
two previous conspiracy indictments
as we'll as the two bribery charges.
The new indictments were secured
1t is understood, as a matter of pre-
caution in the event that the Court
of Appeals should sustain the ruling
of the lower court.
HOGAN HITS CHARGES.