Evening star., 1926-12-02

it be guarded as confidentially as pos
sible"
The defense, at the afternoon ses-
sion. took the opportunity of giving
another version of the testimony Civ
en- yesterday in which it was shown
that the Chicago Bridge and Iron
Works had been refused a set of
plans and specifications for the Pearl
Harbor project by the Interior De-
partment. DIR. Balm testified he de-
clined to give representative of the
Chicago company a set of the plans
because he could not give assur-
ances that his company would take
pay for the contract in oil.
DIR. Balm added he referred the Chi
cagO company to the oil concerns
which had been invited to bid and ad-
vised the representative to take the
matter up with them with the view
Of becoming a subcontractOr, as the
oil companies would be the bidders.
The Chicago company evidently pro-
tested to Senators Mckinley and Nc
Cormick as the defense read into the
record DIR. Bain's two letters giving
the reason for his action toward the
Chicago company. After this incident
DR.. Balm said he heard nothing more
from the Chicago company.
Senator Walsh took the stand
Immediately upon the cOnvening of
court and told Mr.. Roberts he was
unable to find in his office Il copy
of a letter written to Secretary Fall
at the time of the Senate oil COM
mittee investigation. Mr.. Roberts
showed him the Senate committee
hearings in which the letter In ques-
ton had been reprinted and the Sen
ator identified it as being the COM
munication he had sent to Fall. Then
he identified Falls reply and there
upon Mr. Roberts stated: That's all.
Cross examine
"No questions" replied Mr.. Hogan,
speaking for both defendants. And
the second hope of spectators for
grilling by the defense of the noted
oil lease prosecutor faded away as
Senator Walsh left the courtroom.
Mr.. Roberts then offered in evi-
dence the two letters which had been
identified a moment before by the
witness. Mr.. Hogan objected to the
letters on the ground that it was
part of the Senate committee testi-
mony which the defense had fought
at the time Government counsel put
Doheny's testimony before that body
in evidence. Mr.. Hogan had in
mind Justice Hoehlings ruling that
the testimony was admissible when
he made the objection and he stimuli
taneously noted an exception as 1t
went without saying that his objec-
ton would be overruled.
Letters Read to Jury.
Mr.. Roberts then read the two let
ters to the jury. Walsh's letter to
Fall stated that Edward b. Mclean
had testified to him that while he
agreed to loan Fall 100000 and gave
two or three checks in that amount,
in return for which he received Il
note, the checks were returned with
the explanation that the money had
been secured from another source.
Senator Walsh then offered Fall the
opportunity of making any further
statement for the committee, either
orally or in writing. The reply was
that Mr.. Fall had become acquainted
with Mr. McLean's testimony and in
dorsed the accuracy of 1t. He ex-
planned that in getting the money
from another source, this person was
'in no way connected with Sinclair
the Teapot Dome lease. or any other
oil concession" The writer Of the
letter at the time. January II. 1924,
was at the Breakers Hotel. Palm
Beach, and he explained to Senator
Walsh his physical condition would
not permit an examination at the
time. However, he indicated that at
later date he might amplify the
facts as set forth in the letter. When
Mr.. Roberts concluded the reading or
this letter he announced: The Gov
ernment rests"
Justice Hoehling. however. inter
rupted and informed counsel that the
matter Of a contract was still unset
tied from yesterday afternoons ses.
sion. At that time Mr.. Roberts had
offered in evidence a contract between
the Pan-American Petroleum and
Tronsport Co. and the Associated Oil
Co. for the sale of royalty oils received
by the former company from the
naval reserve lease. Defense counsel
objected to the admission of the con-
tract and Justice Hoehling took the
document home with him for study
last night. His ruling this morning
was to accept the contract In evidence.
Provisions of Contract.
The contract showed that the AS
sociated Oil Co. agreed to buy oil from
the reserve which the Pan-American
Co. had received for construction of
the Pearl Harbor tanks at a premium
of Is cents per barrel over the posted
field price. The contract also showed
that the oil turned over to the Asso-
ciated Co. by Doheny's concern under
the second agreement with the GOV
ernment in 1922 for construction or
additional tanks was cOnsummated
without any profit whatever.
Nevertheless, Mr.. Roberts told the
jury in interpreting the document
that the Pan-American Co. s profit on
the oil sold under the first agreement
amounted to $791 ,012.03.
Mr.. Roberts then announced that
the Government rested it's case.
Mr.. Lambert then took his place
before the jury and began his open
ing statement on behalf of the de-
fendant Fall which he had reserved
until the completion of the Govern
ment's evidence.
1.-The pendulum now swings around
to where it becomes the duty of my
self to help you and tighten the bur-
dens which have been shifted on your
shoulders" Mr.. Lambert said. He
informed the jury he would not ''tire
you with any long discussion of facts
as to what we propose to present"
More Official Witnesses.
Recalling to the jury's mind that
the prosecution had placed several
Government officials on the stand, Mr..
Lambert announced he also would
bring to the courtroom several men
of high standing In the Government.
Admiral To Testify.
I'VE are going to give you the op-
portunity to hear from Admiral J. K.
Robson, H. Foster Balm and others"
he said.
Falls attorney then presented to
the jury a number of dates showing
that Fall was absent from Washing
ton when the two contracts with the
Pan-American Co. for the construc-
ton of the Pearl Harbor tanks and
which included the granting of leases
in the reserves were executed in this
city.
Fall left the city November 27,
lcx l,fe Co.