Evening star., 1926-12-11
OIL CASE EVIDENCE IS FINISHED;
ARGUMENTS BEGIN MONDAY

dynamite. I don't want to have any
thing to do with it."
AT the afternoon session on the
same day, October IS. Admiral Robert
F.. Coontz was quoted in the report as
stating the Navy's fuel supply would
be exhausted within 60 days and steps
would have to be taken to secure
more oil or 60 to Congress for a de-
ficiency.
Secretary DENLY wanted to know
IL 1--WE have the legal right" for dis
position of the Navy royalty oil In
return for the storage tanks and then
said: 1--WE should use 1t now. The
Secretary of the Interior said II we
don't get 1t now, we won't get any
three months from now. The Secre-
tary Of the Interior says they are
getting 1000 barrels a day from one
WELL"
Admiral Latimer, then Judge Advo-
cate General, was quoted as telling
DENLY he had legal authority to do
anything in the world" with the
oil. Secretary DENLY said in reply:
II wanted to explain 1t all to Con-
gress," and Admiral Robson inter
rupted to say that all he had to do
would be approve the contents Of a
letter he held in his hand and the
tanks would be built. What will
do about IT." he was quoted as say.
ing.
wen see about that later" replied
Secretary DENLY.
Shall go ahead with the tanks?"
asked Robson.
mot until I have seen the commit.
tee," presumably referring to the
naval affairs committee of the House.
Invitations For Bids.
Admiral Morris then took the stard.
carrying several large books and docu.
ments. He testified that invitations
to bid on the Navy's fuel oil for cur
rent use and for delivery at San
Pedro, Calf, from 1922 to the current
year were sent to about AZ firms.
Among these firms invited was the
Pan-American Co.. but his records did
not show this company submitted a
bid from 1922 until 1924 when 1t was
awarded a contract for the fiscal year
ending June 80. 1928.
On cross-examination Of the witness
Mr.. Hogan frequently asked II
Admiral Morris knew that the Pan.
American Co. did not possess a re-
f1nery during the periods 1t did not
submit a bid. Through his questions,
the jury learned that the first year
the refinery was in operation was
1924 and that year the company had
received the bid. Not more than six
oil companies had responded out of
the AZ invited to submit figures,
Admiral Morris said.
Roberts read from the testimony
given at the Los Angeles equity suit
by DIR. H. Foster Balm, director of the
Bureau of Mines, one Of the principal
defense witnesses during the present
trial. The testimony had to do with
the meeting in Falls Office. October.
1921, when Balm first met Admiral
Robson. who was in charge of oil
matters for the Navy.
At this meeting, Balm testified at the
Los Angeles trial. Robson had stres-
sed the difficulty the Navy was having
in getting any benefit from its oil
reserves.
Secretary Fall had remarked. the
witness said. that he had looked into
might be able to help the Navy. At
another point in the testimony
Balm had quoted Fall as saying he
had been considering the plan for
using royalty oil for storage pur-
poses and that he was satisfied Mr..
Doheny would make a bid.
Other Testimony Produced.
Mr.. Roberts produced this testi-
mony to support the Government 8
contention that Fall and Doheny
must have had some conferences or
communications about the matter.
Another portion of the Los Angeles
testimony which the Government
counsel produced related to DIR.
Bain's report to Robson on the re-
suit of his Western trip. regarding
which he testified at the present
trial that various oil companies had
questioned the legality of the Pearl
Harbor contract.
Robson testified at Los Angeles
that Balm told him counsel for General
Co. would support the
plan. Robson also testified that Balm
had only mentioned temporary objec-
tions by counsel Of the Standard
John G. Holland, an attorney Of
New York, who was clerk to Senator
Walsh Of Montana during the 1924
Senate Oil investigation, was called to
IIe SldIlu ny INOUcIlS.
Roberts asked him If he had not
been instructed to search the 5000
pages of letters and documents pro.
Senate resolution and transmitted by
President Harding. He said he had
been so instructed.
Roberts asked about a letter Of
2S, 1921, written by Doheny
to Fall.
The witness said he had searched
the files. but could not find it, after
testimony before the Senate
in 1924.
Roberts then asked If he had found
a letter from E. c. Ffnney. acting
Secretary Of the Interior, written De-
cember 16, 1921, to ]. J. Cotter Of the
Doheny company. Only a carbon
copy had been found, the witness said.
Cotter Requested to Call.
This letter requested Cotter to call
at DR.. Bain's Office, as the Bureau of
Mines director wished to see him with
regard to matters contained in Do
heny's letter of November 28, 1921.
The existence of such a letter was
not known until Finney'S reference to
it had been found.
The witness related that in response
to a motion by the Senate committee
upon his failure to find such a letter
m the batch of documents sent by
Fall, he went to the Department Of
Interior and made a thorough search
of all it's files relating to the Navy De-
partment. He was unable to find the
letter, he explained, and testified that
later DIR. Balm forwarded a photostat
copy Of 1t to Senator Walsh. He then
said that after his failure to discover
the letter in any of the files at the
DR.. Balm had shown him
the copy Of the original in his office.
The purpose Of Mr.. Roberts in press
ing this inquiry was to show that the
letter had not been included
in the files forwarded to the President
by Fall.
Wilbur Takes Stand.
E-SFo ~ nYV~v vaae1f-