New Britain herald., 1926-12-08
DENDY CALLED IN
 CONSPIRACY TRIAL
Doheny Himself Probably Will
 Testify in Own Defense
OFTEN LOANED BIG SUMS
Defense Seeks to Show That Doheny's Loan of S1OO,OO0 to His Friend Fall Was Nothing Unusual For Him to Do.

Washington. Dec. 8 R>-Edwin S. Denby, who as secretary of the navy, approved the oil leases of 1922, was called as defense witness today In the Fall-Doheny oil conspiracy trial.
 The former cabinet officer. who resigned under fire during the sen- ate oil inquiry, was questioned as a. part of the effort of the defense 10 show that much of the responsibil- ity for award of the Elk Hills lease to the Doheny oil interests lay with the navy. and could not have re- suited from a conspiracy between Edward l.. Doheny and Albert B. Fall, then Denby's colleague In the cabinet.
 Defense counsel disclosed at the same time that Doheny proba ply would take the stand in his own de- fense.
 The forper navy chief was called for examination as to the part the navy played in shaping the oil leas- ing policies, in conjunction with the interior department, during the Harding administration.
 First, the defense resumed pres entation of character witnesses for Doheny, including three Los Angeles neighbors of the oil man.
 Went in Doheny's Yacht
 A. w. Ambrose, who was petro- leum technologist in the bureau of mines when the Elk Hills lease was negotiated, testified that when he went to Hawaii in the summer of 1922, in connection with Pearl liar bor naval oil storage project, he traVeled on Doheny's private yacht With J. c. Anderson, president of the Pan-American Petroleum com- pany. He was mot exactly a guest,' he said, but he paid no boat fare.
 Previous witnesses had named Ambrose as the petroleum expert who suggested the royalty schedule which formed the basis of the Elk Hills leasing negotiations.
 Bernai H. Dyas president of q Los Angeles department store, and for 25 years a personal friend of Doheny testified the oil man loaned him s250,000 on his personal note in 1922. but the government ob- lected, and the answor was stricken from the record
 Frequently Loane,I Money Dyas' testimony represented a de- tense attempt to establish that Doheny frequently loaned large sumf 1 to his friends.
 Benjamin r. Bledsoe, former fed eral judge of Los Angeles, testified that II years intimate friendship with Doheny was the basis of his estimate that mo one in California stands better in respect of general reputation for integrity, honest and patriotism, than the oil magnate.
 The Rev. Dr. George Davidson, restor of St. Johns Episcopal church, said he had known Doheny for fl years as "a man of ideals, integrity and high character" Denby Takes Blame Much of the responsibility for the oil leasing policy of 1922 was shouldered by Denby. The former naval secretary said that he had sug- egsted to Fall that the naval oil reserves be transferre' from the navy to the interior department to prevent draining by private wells adjoining.
 Fall said he would help as much as he could to that end, the witness continued. Denby then preached the subject 10 President Harding, who issued the transfer order. Fall help cd draft it, and Harding signed it in June, 1921, while Denby was out ot the city. Some officers of tho navy approved the transfer and the presi- dent acquainted with this fact be- fore he issued the order.
 Denby began his testimony with Q resume of his public career. | He said that very shortly after he entered the Harding cabinet in March 1921 he was advised that the naval oil lands in California were being drained by private wells near the rim of the public domain. He did not know from whom this advice came.
 His flrst move, he said, was to so- licit the cooperation of Secretary Fall of the interior department. And did you speak to anyone (Continued on Page 15)