Evening star., 1926-12-01
Told Chicago Company Oil
Tank Construction Was
"Nobody's Business"
HARDING APPROVED
LEASES, LETTER SAYS
Finney Testifies He Helped Pre-
pare Data on Which Message to
Congress Was Based.

Albert 3. Fall, on trial Jointly with
Edward L. Doheny, oil magnate, on
a conspiracy charge to defraud the
Government, when Secretary Of the
Interior, and on April IL, 1922, IN
formed the Chicago Bridge and Iron
Works that no publicity had been
given to negotiations for the construc-
ton Of oil tanks in Hawaii because
ut is no ones business" and further
because the nature of the project in
volved a military secret.
In support Of its contention that
Fall conducted the Doheny contract
negotiations for construction of the
tanks, in return for which the Pan.
American Co. received oil reserve
leases behind the veil of secrecy, owen
j. Roberts. special prosecutor. this
afternoon presented the foregoing
facts to the jury in Criminal Division
l in answer to q telegram Of protest
made by the Chicago company. also
placed in evidence.
On the same date. April IL. the
u
understood the Interior Department
had invited list of bids to be sub
mitted privately for the construction
of the Hawaiian tanks; that the BIDS
had not been advertised and the whole
matter was being handled with the
utmost secrecy and further that
representative of the company was
refused a set of the plans at the de
partment. The telegram added this
procedure was contrary to Govern
ment policy and the company hoped
it would be given am opportunity to
submit a bid.
FaE Objected TO Criticism,
Fall, in his reply, declared the de
partment did not submit the hids
privately and that under the law we
are required to deal with oil com
panies No publicity was given as 1t
is no cnes business Falls telegram
said he could not entertain any pro
test and he did not sec where the de
partment's action warranted criticism
The Government has shown that
proposals to construct the tanks were
mailed to two institutions not engaged
III the oil business. G.. White
Co and Ford, Bacon Il Davis. both
engineering corporations.
These kilograms were read by MI.
Roberts as documentary evidence ana
were not produced by any witnesses.
Mr.. Roberts then endeavored TO
prove that the Pan American Co. de
sired Fall to suspend operations In
Naval Reserve No. 2 because OF the
overproduction of oil by introducing
a letter dated July 8. 1922. from Joseph
J. Cotter, attorney for the company.
to the then cabinet officer.
Letter Cited Slump.
This letter cited the slump in oil
prices and the tremendous overpro-
duction In that year and requested the
Secretary to call q halt in drilling and
pumping.
Fall replied to this letter. addressing
his communication to Col. f. l.. Do
heny" and calling him MY dear
colonel" Fall said, II am in cordial
accord with your ideas and reasoning"
on the matter of shutting down pro-
duction on the Government leased re
serves. and added that instructions
for cessation of activities were going
forth Immediately.
The Governments stand on this
action is that the Doheny company
desired to get higher prices for It's oil
which would be produced from recent
ly acquired leases from the depart
ment under terms of the Pearl Harbor
contract. and by shutting off the flow
of rival company oil would therefore
find a much better market for it's prod
uct, when time came to embark on
development Of It's leases.
The late President Warren G.
Harding knew about the oil leases
and the Pearl Harbor project and ap-
proved of them. He also sent a mes
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