Evening star., 1926-11-29
DOHENY'S 100000 BLACK BAG
STORY ADMITTED AT OIL TRIAL

as late as OCTOBER 20. secretary fdli
in a letter dated October 80 had stated
to the Navy Department that the
plan was entirely agreeable to his de-
partment.
Roberts then took up the confer
ence between Doheny and Robson In
January or February following. short
ly before the proposal was issued for
the bids. This conference took place
in New York, Doheny had testified, at
the home Of his son.
It was brought out in the testimony
that Doheny had stated that, being
! absent from Washington. he knew
nothing of the details of the contract
and that Secretary Fall had merely
signed it.
The conference at New Orleans be
appearance Of defendants before the
Senate committee was included in the
testimony read before the Jury.
Note Transaction Disclosed.
Doheny had denied before the com
! mittee that they had discussed the
nature of the testimony they were tG
give at the hearing. The oil magnate
had stated that he had: told Fall that
the committee as he knew them. TIC
all right. Go ahead"
The only thing that the two defend
ants discussed. it was brought out,
was which of the two should testify
first. It was agreed according to
Doheny's testimony that he should
appear first before the committee.
Mr.. Roberts then directed attention
through the testimony to the note
which had been given by Fall to
Doheny in return for the 100000
loan.
How was that note transmitted
to you." Senator Walsh was quoted
as asking. "By my son." Doheny
had replied. He had brought 1t to
me and handed 1t to me-"
Doheny admitted in the testimony
that Fall by reason of the loan would
exercise any discretion in Doheny's
favor. but he insisted that Fall had
nothing to do with the contracts or
leases.
Had Hoped for Huge Profit.
The testimony further declared
that out of the December, 1922, con-
tract for the construction of fuel
storage tanks along the Atlantic and
Pacific coasts for the Navy's exclu-
sive use, Doheny's company would
SCL u lCcSE OII lIlC CALLC LlNNaA AN-
serve, out of which the witness said
he hoped to make a profit of $780,
900 900.
Harold Walker, a Washington at
torney, and a member of the lega
department Of Doheny's company
was asked by the witness to go tC
Fall and make a clean breast of the
entire loan," Mr.. Roberts read from
the printed hearings.
The hearings showed that under re
peated questioning by Senator Walsh
Doheny admitted the December con
tract which granted a lease of oil
land was received without any bid
ding, but I'VE got 1t in return for
something they proposed to us to do
Doheny said 1t was at the sugges
tion of the Navy that the April con
tract of 1922 for the Pearl Harbor
tanks under which no lease of oil
lands was granted be modified to the
terms Of the December contract.
In order to make a profit Of 500,
100000 on the oil land In the naval
reserves. Doheny's testimony related
his company would have to invest
500. 100000 alone for drilling.
Mr.. Lambert interrupted Mr..
Roberts reading at this point and
asked the court if it would instruct
the jury to consider the Fall letter
as being used against Fall alone.
Justice Hoehling deliberated for a
moment and then told the IL men that
the letter admitted this morning Is to
be considered as against Fall alone
and the Doheny testimony as against
Doheny.
Mr.. Hogan objected to the court s
use of the word against" and sug-
gested affecting" instead.
Justice Hoehling smilingly COM
piled with the request and explained
to the jury that the Doheny testimony
would be considered as affecting
Doheny alone.
II don't consider that testimony as
against him." observed Doheny's at
torney.
When court reconvened after