The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-11-23
Owen ]. Roberts Of Philadel-
phia, Special Prosecutor Ap.
pointed BY President Cool.
idge, Tells Jury How Leases
Were Handled in Interior
Department

Washington, Nov. 23.-OR-Before
jury that remains under guard un-
til it reaches q verdict, the federal
government today began to unfold
me evidence upon which it hopes to
convict Albert B. Fall and Edward L.
Doheny Of criminol conspiracy in ex-
ploitation Of the nations oil re-
sources.
Owen J. Roberts Of Philadelphia
one Of the two lawyers appointed by
President Coolidge two and hall
years ago to prosecute the cases, be-
gan the governments opening state
ment with a review Of the negotia.
tons that led up to the leasing Of the
Elk Hill oil reserve to the Doheny in.
terests while Fall was secretary OF
the interior. He said the prosecution
c0ntended that the 100000 sent BY
Doheny to Fall in little black
satchel was a part Of the conspiracy
charged against the defendants.
As during the examination of pros.
pective jurymen yesterday, the form.
er interior secretary and the oil mag.
nate, friends for many years and
once prospectors together in the west
So1 near tVBctueT dHu IlSIcueu tcHSc'
~ to every word spoken by court ana
counsel.
Government Wins
The opening preliminaries toda!
proceeded peacefully enough after the
clash of yesterday afternoon, wher
opposing counsel argued at length
whether the jury should be kept un.
der guard during the trial. That mi
tial joust ended with victory fol
the government when Justice Hoehl
ing granted the governments motion
for locked up jury.
Roberts reviewed the legal steps
which led to original establishment
Of the naval oil reserves. The act Of
1920, he said, specifically took these
reserves out Of the hands Of the in.
terror department and placed then
under the control of the navy, but q
retransfer was made by the executive
order Of May 81, 1921, signed BY
President Harding.
Secretary Fall had been in charge
Of the reserves only short time,
Roberts said, "when he suggested Il
Secretary DENLY (of the navy) tina
he could work out . plan whereby
royalty oil could be used for storage
Secretary DENLY approved that plan
but later he wrote letter sayinl
there should be no drilling except ol
offset wells on the edge Of the Cali
fornia reserve"
Roberts then told the jury that
while negotiations for the contract.
between Doheny and Fall were on fol
the Pearl Harbor storage contract
Fall discussed his financial affair!
with D0aeny, and asked him for $500,
900.
Shrouded In Secrecy
"Doheny caused his son to draw
100000 from his bank account II
bills of large denominations and Il
bring it here to Fall who gave hi
demand note" continued the govern
ment attorney. "The whole kransac
tion was shrouded in secrecy. Fat
took the money in cash to Fl Paso
where he paid over most Of it TO pur
chase z ranch adjoining his own a
Three Rivers, New Mexico"
The expenditure of this sum be-
came known to the senate committee
said Roberts, and Fall did not tel
the truth about it, but tried in every
way to conceal it."
Roberts asserted that the govern
ment would show that the Dohen,
leases and contracts were not handles
in the ordinary routine way in thu
interior department, but by Fall him
self, who issued an order for secrecy
Upon all this evidence, he continu'
ed, the government will ask the jury
to find that the 100000 payment
from Doheny to Fall constituted cor
ruption and "that there has been 4
cons piracy to defraud the United
States government"