Evening star., 1926-12-08
DENNY REFUTES HIS
SENATE TESTIMONY
/ ONSTAND IN TRIAL
Declares Today Prevention of
Drainage Was Not Sole
Reason for Leases.
CAN'T BE CHARGED WITH
STATEMENTS, HE SAYS
Ex-Secretary Takes Responsibility
for Executive Order Putting Re-
serves Under Fall.

Former Secretary of the Navy
Edwin DENLY, testifying under cross
examination by Owen j. ROBERTS,
special Government prosecutor, TINS
afternoon in the Fall-Doheny con-
spiracy trial, declared he could not
properly be charged with the test-
monv he gave before the Senate Oil
committee investigation, after it had
been read to him by the Government
counsel in an effort TO prove ne mace
the oil leases solely on the grouno
that they would prevent drainage 10
the Navys oil reserves.
The laundering voices, both OF the
witnesses and the cross-examlner'
fired back at each other as Mr.. Roh-
"rts sought 10 have DENLY, corfooo-
rate his testimony Of 1928.
Receiving little encouragement.
Roberts declared: why, you testlned
less than a year after $4,000 acres
of Government land had been leased
by you and you carried no recollec-
ton of it even them"
just Came From Hospital.
Il do not admit that l carried no
recollection of that" shot back the
witness. II could not be properly
charged with the Testimony of that
time and under the circumstances
that I save it. I had not an oppor-
tunity to prepare for it just came
from the hospital"
We'll, lets see whether you came
from the hospital or not" answered
Roberts. "You appeared three times
before tue committee, October 25, 26,
and December Z.
"When were you in the hospital?"
Il was in the hospital during the
middle of October and | came out on
the esd. two days before I testified
But L have been reading from your
testimony all along from December Z,
replied Roberts.
This testimony read by Roberts in
Cluded the statement by DENLY in re-
ply to a question by Senator Walsh
that the possibility OF drainage and
nothing else brought about the lease
of the oil reserves. On the stand today
Mr.. DENLY declared that that was not
the sole reason for entering into
*hc contract, as the fuel storage tanks
had been desired by the Navy.
Has Refreshed Memory.
Mr.. DENLY could not tell Senator
Walsh :1OW many contracts he had
executed with the Pan-Amer1can Co.
or their dates of execution, according
to the testimony Roberts read The
Government counsel desired to know
how Mr.. DENLY today was able to
recall the exact facts, and asked the
witness with whom he had consulted.
II have talked with Joseph Carey,
Mr.. Eogan--"
"And Admiral Robison?' inter
rupted Roberts.
Certainly not" replied DENLY
heatedly.
These gentlemen have persuaded
you that you remember now" asked
Roberts.
Nothing of the kind the witness
answered.
Il have had an opportunity to ex-
anime records and letters. l have
done here what l did not do before
going to the Senate committee"
DENLY was turned over to the Gov
crnment for cross-eXamination shortly
after the afternoon session began. 1t
had been anticipated that the former
Secretary would ke examined con-
Sderably longer, blt Frank J. Hogan,
chief defense counsel. contcnted him
self with proving that DENLY had
never met Edward l.. DOheny or any
official Of the Pan American Co. until
nocemDer II, 1872, when the second
contract for the enlargement of tank
storage facilities WAS signed.
Talked Only TO Robson.
Denby also testified he was in con-
Stant consultation with Admiral j.
K. Robson, whom he had appointed
as his special representative to handle
oil matters DENLY said he had never
talked about the terms of the con
tract With amy one except Robson.
Roberts pressed his merciloss in
terlogatiQn into all phases of the dis
cussion leading M to The awarding
of the leases and contracts, with
Denby repeatedly replying: Il don't
rocollect"
He had no recollection of ever hav-
ing heard that Dohcny intended to
make ii bid at cost on the April Pearl
lIarbor lease nor when bids were
opened nor any specific recollections
of other leases in Reserve No. !.
Tho Government counsel elected
from the former Secretary that his
first knowledge that the Pearl Har-
Dor contract Of December gave to tho
SECRETARY of the Interior alone the
right 10 fix the terms Oh which the
n-Ancrirar co. could bid on any
'utule leasing came just before he
tool, tho stand TO-DAY.
At the outset of his testimony today
Mr.. DENLY assumed fall responsible
" for official steps leading up to
president Harding's executive order
# May 81, 1921 under which the ad-
ninistration OF the naval oil reserves
VAS transferred to the Department of
tho Interior.
Mr.. Denby's testimony brought out
hat he himself asked President
Harding 10 issue such an order. owing
to the depletion OF oil in the naval re.
serves by cifset wells. and he added
hat the President. toe. thought this
necessary. President Harding then is
sued lhe order al his request.
Ecforc going any further in the mat
ter nt the proposed Pearl iaroor
work. AR Dcnby said he sought and
obtained an opinion from Admiral
mcr as to the legality Of eXchang-
Navy royalty oil for fuel oil. and
~ orlnG IT IL tanks for the use of the
No,. Admiral l.atilnor rendered such
an upiniou. Nr. DENLY testified, hold
ing that lit would be legal.
Fall DisIiiled Responsibility.