Evening star., 1926-12-01

mad had nothing to do with the draft.
ing of the specifications and was not
IN washington at that time.
Mr.. Hogan in his cross.examination
brought out the reiteration of other
testimony that Fall had told Finney
that Director Balm was going to ham
die the matter for the Interior De-
partment.
Copies Of the competitive bids sub
mitted by the General Petroleum Co,
the Standard Oil, Associated and Pan
American Companies were ordered
produced and their terms read to the
jury. By this procedure the defense
expected to impress on the jury the
fact that the Government had made
no sacrifice to the Pan-American Co.
IN the lease involving the drilling Of
~ wells In number 1 reserve and also
that the royalties were not as exces-
s1ve as Government counsel contended.
Disagreed Over Authority.
When Mr.. Hogan completed his
cross-examination of the witness
with his reference to the Harding
letter, Mr.. Thompson. on behalf of
Fall, entered into a long discussion
OF procedure followed in dealing with
leases in the Interior Department.
During this testimony the witness
once more was called upon to refer to
the contention of Oscar Sutro. attorney
for the Standard Oil Co. of California,
that the Interior Department Secre-
tary had not authority to enter into
the Pearl Harbor fuel storage tank
contract.
After your conversation with Mr.
Sutro. did you report to the Secretary
that you had shaken his views on the
matter?" asked Mr.. Thompson.
No, told the Secretary I did not
agree with Sutro's views and that
thought they were wrong" replied
the witness.
This concluded Mr. Thompsons
questioning, and Mr.. Hogan took the
opportunity of getting the witness to
emphasize the fact that other oil COM
panies rendered mo service to the
Government in exchange for the
leases. but merely took out the oil
and paid royalties"
Mr.. Roberts. on redirect examina-
ton. desired to clear up the matter Of
the witness step down from the stand
and mark Off the places in question on
q green.colored map. It is the Govern
ment's contention that oil leases in
this reserve were granted other co.,
Germs at much higher royalties than
the Pan.American Co. paid in No. l..
Willing to Even Up"
The witness, in answer to question
ing by Mr.. Roberts, reiterated his tes-
tlimony Of last night that the Pan
American Co. objected to the royal
ties It paid on the % wells in No. / re-
serve and applied for a reduction.
Finney explained to the company. he
said, that this could not be granted
because the award was made to Do
heny's concern in competitive bidding
He told Fall, however, and the latter
said. the witness declared, he would
be willing to grant leases adjoining
the % wells at lower rate to even up
on the other bid"
This conversation took place in Nov
ember, 1921. Mr.. Roberts asked Judge
Finney II he had any knowledge of
the financial transaction between Fall
and Doheny at that time. to which the
witness replied in the negative.
At this point the Government called
as q witness Mrs. Olive c. Ham, the
first woman who has yet testified dur
ing the trial.
Mrs. Ham was identified as the
private secretary to Walter S. Pen
field, Washington attorney for the
Union OIL Co. Of California
Mr.. Roberts precipitated a sharp
clash with Mr.. Hogan when he asked
the witness to identify a letter writ
ten to the Secretary Of the Interior
by Mr.. Penfield. Fall was absent on
April %, 1922, the date the letter was
received at the department.
Mr.. Hogan objected to its tntroduc-
ton since it affected one Of the de-