Evening star., 1926-12-10

he left the cabinet, but the witness
said he had called upon him for ad-
vice, which was given without charge.
Doheny added that Fall negotiated
much to the disgust of many Ameri-
cans" This loan was made by Do
heny to the Mexican government in
1922 or 1928 and was in the sum OF
$40, 200, ,000
Didn't you realize that your loan
to Fall would make him more favor
able toward you, as a man having
contractual relations with his depart
| ment?''
1T did not, because he could not
be more favorable to me at the time,
replied Doheny.
Roberts then questioned Doheny
about his testimony before the Senate
;; committee. Doheny, according 10 the
transcript of the record, mad ap-
peared before the oil investigators
and declared he did not have the note
Later he produced the note without
the signature, which had been torn
off. and this act led several members
to accuse the magnate of having de-
ceived them Mr.. Roberts put it that
when Doheny went to Los Angeles
with a part of the note in his wallet
II was a note" but when ne ap-
peared before the committee with the
same paper in the wallet, 1T was not
a note"
To this Doheny replied. "You can
make those statements II you nke'
Mr.. Roberts"
Advanced $4,000 Lately.
YOU paid to Mr.. Fall any money
directly or indirectly or TO MS ac-
count?'
Yes" replied the witness. ao-
yanced him $4,000 just before coming
to this trial from California" Hogan
objected to this trend the examlna-
ton took, declaring Government
counsel was invading fields beyond
the limit of the indictment.
Roberts then shaped his questions
to include the time Fall left the capl-
net, to which Doheny replied he had
made no payments of money IN tnaI
period Then when Roberts asked
for any transactions after Fall lett
the cabinet and others than the one
lust prior to coming to Washington,
Mr.. Hogan vigorously objected, ana
Justice Hoehling asked that the ques-
ton be passed up for the moment
and he would reserve his ruling.
The cross-examination then turn
ed to the Pearl Harbor project. DO
heny was questioned about con
ference he held with Fall late Oc-
tober or November, 1921, at lich
Fall brought up the matter OF ~
structing fuel tanks, for which the
builder would be paid in royalty crude
oil from reserves Nos. l and 2.
Ready to Do Work.
The result Of this conference was
a letter submitted by Doheny under
date of November %, giving an esti-
mate of the cost. After much ques-
tioning, Doheny stated without hesl-
fancy that the letter was suggestion
that he was prepared to bid on TINS
work for the Government at the cost
mentioned. 1--WE were in line to bid
for this work." the witness declared.
Previous witnesses having to do with
this letter did not cOnstrue 1t as an
indication of Mr.. Dohenys desire to
do the work, but merely as an estl-
mate for Fall to go by.
Roberts asked if any profit was in
tended in this estimate, to which Do
heny replied that 1t would require a
return in crude oil and interest on
money invested.
Did YOU ever talk with Fall about
doing this work at cost?" Doheny was
asked.
mo, I never talked with him about
that at ALL" he replied. The oil man
said he had given the letter, per-
haps to Mr.. Cotter, for use in any
possible negotiations, but that he him
self had nothing to do with them.
LAS a result of this letter to Fall,
didn't you expect to get some bus1-
ness for your company at that time?"
Roberts persisted. Doheny claimed
that he never knew whether they
would ever get anything out of it all,
except royalty oil.
Expected No Leases.
mo leases?" asked Roberts.
Not necessarily" replied the wit
ness.
Roberts brought up that the COM
pany had leases in section 1.
when, if at all, did you meet Fall
in the Summer of 1922" asked Rob-
erts. Mr.. Hogan objected, saying
that the witness had testified previous
ly that he had never seen Fall during
that period.
Didn't you complain to Fall in the
Summer of '21 that the royalties on
that lease in district No. l were too
big2" demanded Roberts.
Mr.. Doheny replied somewhat hotly
that there were general complaints
from oil companies holding leases.
He insisted that he did not know
anything about the details of the
rates; that j. c. Anderson, president
of his company in California, was
the man in charge of that matter.
II know only of results, because
the results are there to snow Tor
themselves" he added.
But Mr.. Roberts insisted. He asked
again if Doheny had not protested to
Fall about high royalties, either by
conference or by letter, prior to July
2S, 1921.
Denies Conference With Fall.
II may possibly have written such
a letter, 1 do not remember" Doheny
replied. He denied ever having had
a. conference with Fall at that time.
Roberts said he understood from
his testimony that Doheny had said
he expected to do some business with
regard to Pearl Harbor work.
+ Mr. Doheny replied that he did not
say that;
then" he said. "but were placing our
selves in line to make a bid if the
work was called for"
Roberts then brought up the con
ference with Robson, at which the
naval officer urged Doheny to make
a bid on the Pearl Harbor work. The
Government counsel did not mention
anything about war plans, simply
asking the witness if Robson had not
,,raSSn6 on him the need NJ Sfnra 90
tanks and whether Doheny had said
he would make a bid without cost.
did Robson say he would take
this matter up with any public Off
cial?" asked Roberts.
Doheny replied that the Secretary
of the Navy. general board. board of
strategy and numerous other boards