Evening star., 1926-12-03
Continued from First Page.)

witnesses Tor the QeIenSe.
Roberts produced and had identified
by DIR. Balm a letter written by the
witness from Los Angeles, Calf, Ma,
-. 1929, and addressed to Fall al
Three Rivers. The prosecutor ther
read the letter to the jury. Ba n. &C
cording to the letter, had notified Fal
that representatives of the Standard
General Petroleum and Union Oil com
panies doubted the legality of the
executive order of President Harding
transferring the naval oil reserves te
the Interior Department AMI in con
sequence the situation was compli
Gated.
get into trouble and I take it we will
want to do anything we can to make
it easy for him " he wrote.
Bain's letter suggested that the At
torney General be asked to put into
writing the opinion said to have beer
expressed informally by him on the
legality of the oil reserve transfer by
the Harding order and that the In
terror Department join with some
small Oil company in friendly suit In
Federal Court to bring out court
decision on the legality of the pcopo
sition,
The cross-examination by Mr.. Rob
erts developed number Of high
points considered favorable to the
prosecution among which were that
Balm told Fall early in 1922. upon his
return from the coast, that but one
bid could be expected and that was
from the Pan-American Petroleum
& Transport Co. as the othe b!d'
were only partial, due to "teamAne
up of oil and engineering companies
Other facts developed were:
That Balm told Fall prior to his
departure for New Mexico April /
1922, just before the bids on the con
tract were opened, that because OF
the legal complications involved II
would be difficult to get satisfactory
bids.
Told to Avoid Decisions.
That Fall, before he left Washing
ton, instructed Balm and Assistant
Secretary Finney not to close any
contract without advising Fall and
not to exercise any Independent actor
without referring it to him.
That the opinion of Oscar Sutro
counsel for the Standard Oil Co.. hold
Ing the contract would be illegal was
given to Fall and Finney. but no so
licitor Of the Interior Department was
called upon for an opinion.
That representatives of the Pan
American Co. and the j. G.. White En-
rrir Ia.
to be charged in the contract before
the bids were opened.
DIR. Balm was followed on the wit
ness stand by Admiral Luther r.
Gregory, United States Navy. chic
of the Bureau Of Yards and Docks. HI
described in detail the plans of tn,
bureau in connection with the con
struction of tanks at Pearl Harbol
for the storage of oil.
Capt. Robson was the next wit
ness.
Renews CrOss-ExaminatiOn.
Mr.. Roberts, when court opened to
day, pitched into the cross-examina
ton of Balm, which had been halted
by adjournment yesterday The spe
cial Government prosecutor covered
many of the questions Mr.. Hogan
had asked and the answers shed nc
more additional light on the subject
than when first given under direc,
examination.
Mr.. Roberts soon began touching
on questions, however, replies tt
which had not been given on direc
examination. One of these dealt with
the fact that after Balm had had 6
conference with Doheny on the West
coast in January, 1922, he wrote G
letter to the J. G. White Engineering
Corporation suggesting that thi.
corporation team up" with Doheny's
company in handling the Pearl Har
bor project.
Mr.. Roberts then demanded Of tn,
witness If on his return to Washing
ton he had suggested to Assistant Sec
retary Finney that an informal opinion
on the legality. Of the contract b,
obtained from the Interior Depart
ment solicitor. But DR.. Balm replied
he had not.
Mr.. Roberts turned to the matter
of proposals for the Pearl Harbo
project, which was mailed out Febru
ary IS, and asked the witness If HI
discussed this with Fall before the,
were dispatched. The witness wa
uncertain in lis mind whether h
had talked with Fall or not. and Mr.
Roberts refreshed his memory by con
fronting him with the testimony h,
gave in Los Angeles, which statet
that Balm told Fall in substance thu
nature Of the proposition and re
ceived his approval.
Expected Only One Bid.
AS a result Of his conferences will
various concerns who might be in
duced to bid on the project, Balm tes
titled that on his return to Wash
ington he told Fall there was but ont
bid to be expected and that was from
the Pan-American Co. The other
were partial bids. due to "teamlnt
up" he said. -,
Mr.. Roberts then drew from th'
witness the statement that before Fai
left for New Mexico in April, abou
two days before the bids were opened
he told Balm and Finney not to clos'
any contract without advising MN
and not exercise any Independent &C
ton without referring it to him. Bali
sought to inject into this statemen
the words "and the Navy also" bu
| Roberts produced his Los Angeles tes
timony, which did not call for an!
conferences with the Navy.
Balm was asked If he had beer
aware Of the fact that a man named
Williamson had been assigned to tax
the proposals, not the bids. and dra1
! a formal contract for submission t.
Fall before he went away, but TIT
| witness could throw no light on this.
Balm did know, however, that con
ferences had been held between Glnt
Dunn of the White Co, Joseph
Cotter of the Doheny Co. and sew
eral Interior Depu urtrnent officials be
fore the bids were opened on th'
question of regulating royalties in th'
contract that had not then been exc
| cuted because the bids had not beer
received.
"Is 1t true that you saw copies o
the Pan.American Co. bids before TIT
| bids were opened?' asked Mr.. Roberts
'Not to my present recollection,
replied Balm.
Tho oninion rendered by OSCal