Evening star., 1926-12-09

Doheny opened up an Oil territory In
the heart of Los Angeles which later
necessitated the drilling Of 2,7O0 wells
and which produced nearly 100. 900 600
barrels of oil. "Canfield and I sunk
the first we'll with pick and shovel"
he explained.
Bankrupt in 1896:
In 1896, anu at the age Of 40. he
went into bankruptcy and then open
ed up a new oil district outside Of
| Los Angeles which he later sold to
railroad company. Seeing that some
prospectors at Bakersfield. Calf. had
bought out their holdings and. in fact,
is the discoverer of Bakersfield. On
| the invitation of a Mexican railroad
official he went to the southern re-
public and discovered oil and produced
| oil for the first time. This adventure
into Mexico produced more than $780,
| 600, 900 worth of oil which was sold
mainly along the Atlantic Coast, he
said. In 1915 the Pan-American Co
was organized. Mr.. Doheny is not
now connected in any way with the
| Pan-American Petroleum and Trans
port Co.
| Throughout these years the witness
said he continued to know Fall and
kept in touch with the latter's prog
ress in his career as a public servant.
Fall served as chairman Of a sub
committee of the Senate to look into
Mexican affairs and Doheny said he
was called upon as witness to give
his knowledge Of that country and
spent two or three days upon the
stand.
Mr.. Hogan questioned the elder
Doheny somewhat at length into the
latter's activities prior and during the
| World War. Doheny related how he
had placed at the disposal of the Pres
ident at the outbreak of war his COM
panies' petroleum and ships. During
these war days. while serving on the
national petroleum war council COM
mittee in New York, he frequently
saw Fall and renewed old acqua1nt-
ances. He said he had discussed
many matters with him concerning
the Governments necessity during the
war and particularly the protection
Of Americans in Mexico.
Fall Planned to Resign.
When Fall was appointed to the
cabinet, Mr.. Doheny said. he under
| stood from the Secretary that he IN
tended resigning at the end of the
first year Of the administration.
Later, when Postmaster General Hays
resigned, he said that Fall had told
him that the President had requested
that he FalD should remain longer IN
the cabinet.
Mr.. Hogan then abruptly shifted
his examination to the loan to Fall.
| the attorney.
eyes" Doheny replied, 100000.
1t was the last day of November,
1921"
| Hogan asked when was the first
| time Fall had talked with him about
purchasing property or about loan:
| 1.-The nearest I can recollect. said
Doheny, "some time in November he
was telling me of his desire to acquire
the Harris ranch, next his own In
New Mexico, at reasonable price.
He stressed the necessity of getting
the water rights"
"He said he had talked with some
one in Washinton, about the matter
it was Edward B. McLean-but was
not sure that Mr.. Mclean would go
into the DEAL He said, however. he
might be able to get the money from
some other source.
Offered to Make Loan.
IT then told him quite casually: IF
| you fail to do that, Senator, and need
| the money very badly you can get 1t
| from me- I can let you have It.
| The witness said that the price
mentioned was about 100000. "At
that time Mr.. Fall said that if he
could get the money from some other
source he would not trouble me-" Mr..
Doheny said.
Mr.. Hogan asked what security Fall
offered.
"That security was mortgage on
his property" Doheny said. At this
point Mr.. Doheny stated that he knew
about the Fall property in New Mex
leo and entered into a lengthy and
descriptive account of conditions
there, particularly of the necessity OF
acquiring water rights for the pro-
lection Of cattle.
Falls ranch he said covered thou
sands of acres.
| did Fall say anything to you about
the value of the Harris ranch and
cattle?" asked Hogan.
| Doheny replied that the ranch
could have been purchased for 100000,
| though Fall had told him that it was
| worth a great deal more than that
| to him.
Asked About Extra $4,000.
He testified that he did not think
Fall mentioned what he intended to
! do with the extra $4,000. which
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